South Korean Actress Nam Bora Reveals Preference for Gold Bars Over Traditional Baby Gifts
Actress Nam Bora, currently five months pregnant, sparked a conversation on the MBN indicate “Dongchimi” about modern baby gifts and investment strategies. Rather than traditional gold rings, Nam Bora expressed a preference for receiving gold bars (known as ‘gold dong’ in Korea) as gifts for her upcoming child, citing cost considerations and resale value.
The Rising Popularity of Gold Bars as Baby Gifts
Nam Bora’s preference reflects a growing trend among Korean parents. According to gold shop representative Choi Seong-gyu, who appeared on “Dongchimi,” many parents now prefer gold bars to traditional gold jewelry for their babies. This shift is driven by the increasing cost of gold jewelry due to labor and crafting fees – the “gongimbi” or workmanship charge – and the desire for a gift with a guaranteed resale value.
Choi Seong-gyu explained that while rings, necklaces and bracelets have joining points that reduce the purity of the gold and incur additional charges when resold, gold bars offer a higher return on investment. He noted that the cost of a traditional gold baby ring can exceed 1 million won.
Gold as a Safe Haven Asset
The discussion on “Dongchimi” also highlighted the broader context of gold as a safe haven asset, particularly in times of global economic uncertainty. Choi Seong-gyu explained that wealthy investors often view gold as a form of insurance against unforeseen events. He emphasized that they typically buy and hold gold for 5-10 years, rather than engaging in short-term trading.
He revealed that as of January 29th, a 1kg gold bar (approximately 267 ‘don’) was valued at 280 million won, while 1kg of silver was priced at 7.5 million won – a significant increase.
Fluctuations in Gold Prices and Timing the Market
Nam Bora also inquired about the best time to sell gold, acknowledging the price fluctuations. Choi Seong-gyu advised that most gold investors don’t focus on short-term profits, but rather view gold as a long-term store of value. He noted that the price of gold can vary, and what appears to be a profitable sale can sometimes result in a loss.
Silver’s Surge: A Parallel Trend
The program also touched upon the dramatic rise in silver prices. Silver has experienced a 5x increase in value over the past year and a half, making it another attractive option for investors seeking alternative assets. This surge is linked to industrial demand and its role as a hedge against inflation.
FAQ
- Why are gold bars becoming more popular than gold jewelry as baby gifts? Gold bars offer a higher resale value due to the absence of labor costs associated with crafting jewelry.
- Is gold a good long-term investment? Experts suggest that gold is a good long-term investment, particularly as a safe haven asset during economic uncertainty.
- What is ‘gongimbi’? ‘Gongimbi’ refers to the labor or workmanship charge added to the price of gold jewelry.
- What is a ‘don’? A ‘don’ is a unit of weight used to measure gold in Korea.
Pro Tip: When considering gold as an investment, focus on long-term holding rather than attempting to time the market for short-term gains.
Want to learn more about investment strategies? Explore our other articles on financial planning and alternative assets.
