‘Gold price’ soars… Take out the stone ring from the closet and start investing? /Newsis
“Should I sell the child’s first birthday ring in the closet now?”
“They say Bitcoin will soon be worth 100 million won each. Will it be too late to get involved now?”
When news broke that the international gold price hit an all-time high on the 5th and the Bitcoin price was close to an all-time high, questions like these arose in the individual investor community. Reflecting international prices, the domestic gold price exceeded 90,000 won per gram, and the Korean won Bitcoin price exceeded 97 million won per piece, both breaking previous highs. One investor asked, “What on earth is the relationship between gold and Bitcoin, so they are rising together?” and “I can’t decide whether I should buy both now, sell gold and buy Bitcoin, or buy stocks when the US stock market takes a break. “I don’t,” he said. After the stock markets of major countries such as the United States and Japan reached record highs, alternative assets such as gold and virtual currency also rose, leading to the term ‘everything rally’, which threw investors into confusion.
Graphics = Kim Hyun-guk
◇One stone ring costs over 400,000 won
The international gold price hit an all-time high of $2,126.30 per ounce on the 4th (local time). Accordingly, on the 5th, the price of gold on the Korea Exchange (KRX) reached an all-time high of 90,856 won per gram. Gold costs 340,000 won per dollar (3.75g), but if you want to buy a stone ring, including the cost of crafting, etc., you actually have to pay 420,000 to 450,000 won.
The rise in gold prices is due to geopolitical instability that has continued for more than two years. When Hamas attacked Israel in October last year, demand for safe assets increased, and the international gold price rose by more than 7% in less than two months. Previously, during Russia’s invasion of Ukraine in February 2022, it jumped by about 4% in one month.
On October 7 last year, families of victims kidnapped in Hamas’ attack on Israel arrived near the International Criminal Court and held a protest. Global geopolitical instability is supporting the rise in gold prices. /AP
Peter Boockvar, Chief Investment Officer (CIO) of Bleakley Financial Group, told CNBC, “U.S. interest rates are still high and the dollar is still strong, but the reason gold has risen is because of the sentiment in China and other countries, ‘Can we really use all of our assets to hold U.S. Treasury bonds?’ “That is why, immediately after the Ukraine incident, the United States and the European Union froze Russia’s foreign exchange reserves of $300 billion, and central banks in each country purchased huge amounts of gold, which was decisive.” According to the Chinese state-run China Daily, the People’s Bank of China went on a ‘gold shopping spree’ of 225 tons last year, the largest amount among central banks in the world. This is about one-fifth of the world’s trading volume.
◇Domestic Bitcoin close to 100 million won
On the morning of the 5th, on the domestic virtual currency exchange Upbit, Bitcoin rose to 97 million won per piece, hitting an all-time high. On this day, on CoinMarketCap, a global cryptocurrency market site, Bitcoin rose to $68,770, leaving only $20 behind the previous highest price of $68,790.
Bitcoin continues to rally thanks to the approval of the U.S. spot exchange-traded fund (ETF) and the decrease in issuance volume due to the halving in April. In Korea, buying momentum is stronger due to the FOMO (fear of being left out) mentality. Therefore, the ‘Kimchi Premium’, which represents the difference in virtual currency prices between overseas and domestic exchanges, rose to 6% on this day. This means that Bitcoin purchased in won is more expensive.
Image of Pepecoin, a frog-themed meme coin (pandemic coin). The cryptocurrency market is shaking due to the Bitcoin rally. /Pepecoin homepage
As funds flow into the virtual currency market, led by Bitcoin, meme coins (pandemic coins) are also soaring. On this day, Sibuycoin jumped 91%, Dogecoin jumped 25%, and Pepecoin jumped 22% compared to 24 hours ago. Meanwhile, World Coin, which gives 10 coins when registering personal iris information, dropped by 7% on domestic exchanges compared to 24 hours ago when the Personal Information Protection Commission announced on the 4th that it would begin an investigation.
Following stocks in major countries, alternative assets such as gold and Bitcoin are also on the rise, but as the investment environment is still characterized by high interest rates, some experts advise people to refrain from making hasty chase purchases. Hong Chun-wook, CEO of Prism Investment Advisory, said, “Bitcoin is called ‘digital gold,’ but it is too volatile to be classified as a safe asset,” and said there is a need to be careful when investing.
2024-03-05 08:39:22
#gold #ring #costs #won #Bitcoin #costs #close #million #won.. #rally #assets #rise
