Online sales of gold items rise sharply

A growing number of Koreans are turning to online retailers to purchase gold items at cheaper prices amid skyrocketing prices of pure gold here.

G-Market, a leading online retailer, said Monday that its sales of solid gold items had increased almost sevenfold as of Aug. 15 compared to the same period last year.

The online gold prices per “don,” a Korean measure equivalent to 3.75 grams, stood at about 273,000 won ($252) when taxes and other costs were added, almost 10,000 won cheaper than those sold by offline vendors. 

With about 6,000 items listed for sale on the website, especially popular were 1-gram gold rings that are favored as a baby’s first birthday gift.

The market for the traditional 1-don gold rings has plunged almost 95 percent, with the prices having tripled in recent years.

And 1-gram gold rings have emerged as reasonable substitute whose prices stand at about 75,000 won, almost one third of the 1-don rings.

Young couples who used to buy 14 or 18 karat gold couple rings also choose pure gold rings that later could earn higher profits, G-market said.

“Adding to price merits, consumers can get guarantee for quality as certificates are offered together. They also can check the reviews of other customers,” said a G-market official, adding that better consumer confidence has also contributed to the recent popularity of online gold purchase.

“I bought a gold bar as a present for a married couple through an online retailer. I first hesitated but now feel satisfied considering the cheaper prices and fast delivery,” said Lee Ji-hyun, a 29-year-old office worker.

According to the Korea Gold Exchange, a local gold dealer, gold prices per don touched a new record high of 257,400 won on Monday, up 3,300 won from the previous record set on Saturday.

Gold prices have increased by 17 percent over the month as the metal has repeatedly reached new record highs in recent weeks.

By Lee Ji-yoon (jylee@heraldcorp.com)