Korea Gold Exchange Website Crashes Amid Unprecedented Investor Surge
Thu Feb 06 2025
On Feb. 6, the Korea Gold Exchange website experienced a significant crash as investor interest surged to unprecedented levels. This surge in activity was driven by escalating geopolitical tensions and economic uncertainties following the inauguration of U.S. President Donald Trump. According to the Korea Exchange, the gold trading volume on the previous day had reached a staggering 108.83637 billion won, marking the highest level since the gold market's inception on March 24, 2014, and the first time daily trading volume exceeded 100 billion won.
The sequence of events leading to this crash began on Oct. 23 of the previous
year, when the gold trading volume hit a record 50.09299 billion won. This
record was subsequently broken on Feb. 3, with trading volumes rising to
59.15286 billion won, and again on Feb. 4, reaching 71.26662 billion won. The
crescendo of trading activity culminated on the day before Feb. 5, with the
volume soaring to 108.83637 billion won.
The Korea Gold Exchange found its website overwhelmed by the influx of
investors. As of 11:30 AM on Feb. 6, the waiting time to access the site was a
staggering 5 hours and 20 minutes, with over 19,000 individuals queued online.
This overwhelming interest is largely attributed to the heightened tensions
among major countries following President Trump's inauguration, particularly
concerning his administration's imposition of tariffs
on products from Canada, Mexico, and China.
The financial markets have been roiled by fears of a potential tariff war,
leading to sharp rises in interest rates and exchange rates, while stock
markets have plunged, increasing uncertainty. In such volatile conditions,
gold, traditionally viewed as a "safe haven" asset, has become an
attractive alternative for investors seeking stability.
The current situation reflects a broader trend where political events,
especially those involving major economies like the United States,
significantly impact global financial markets. President Trump's controversial
trade policies and tariff concerns have amplified fears of trade wars,
prompting investors to seek refuge in gold.
Source: https://www.businesskorea.co.kr/