(C) The Times

SEOUL – Domestic demand for precious metals has reached an unprecedented peak, with sales of gold and silver bars at major Korean banks hitting all-time highs in 2025. According to financial industry sources on December 28, the "safety asset" craze has driven silver bar sales to a staggering 38 times the volume of the previous year.

Record-Breaking Performance

Data from the top five commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) reveals that gold bar sales reached 677.9 billion won this year (up to Dec 24). This is more than four times last year’s total and the highest since tracking began in 2020.

The surge in silver is even more dramatic. Excluding Hana Bank, which does not carry silver products, the four major banks saw silver bar sales skyrocket to 30.6 billion won, compared to a mere 799 million won in 2024. The demand was so intense that some branches reported temporary inventory shortages.

Skyrocketing Prices and Gold Banking

The investment frenzy is fueled by a historic rally in global markets. This year, gold prices rose by approximately 70%, while silver surged by over 150%—the highest annual growth rates since 1979. On December 26, international gold spot prices touched a new record of $4,530 per ounce, while silver surpassed $75 per ounce for the first time in history.

"Gold banking" accounts (gold-linked savings) are also seeing record inflows. Shinhan Bank’s "Gold Riche" product reported a balance of 1.29 trillion won across nearly 188,000 accounts, the highest since its launch in 2003.

Expert Advice: Watch the Volatility

While the outlook remains optimistic due to the trend of lowering interest rates in the U.S., experts urge caution. Lee Heung-doo, a PB Center Manager at KB Kookmin Bank, noted, "While prices may climb further if the low-interest-rate trend continues, investors must be wary of silver's high volatility compared to gold."