The “FOMO” phenomenon ignites gold markets… and Asian countries stop sales
All parts of Asia are witnessing a strong demand for buying gold, as consumers rushed to buy before it rose Pricesto higher levels, forcing some major companies to suspend the sale of the precious metal amid scarcity of supply.
Gold fever forces companies to stop sales
Major gold companies in Japan and South Korea were forced to suspend the sale of yellow metal bullion, as an unprecedented rise in demand led to prices rising to astronomical levels, with the market unable to keep up with demand, which led to a shift Consumers to silver and other precious metals.
The company announced "Tanaka Group Precious Metals"Last Thursday, it temporarily suspended sales for a month of gold bullion weighing between 5 and 50 grams, and platinum bullion weighing between 5 and 10 grams, due to their inability to meet demand. In the meantime, it will continue to offer gold and platinum bullion weighing more than 100 grams.
Scarcity of supply in South Korea
The frequent rise in prices has led to a strong demand for investment in gold in South Korea. Local trading prices rose by more than 18% of their prices abroad, which made finding gold bullion in the markets rare.
And the consumer switched from jewelry to Investment bullion was a major factor in the rise in gold prices.
As a result, the "Korea Mint and Securities Corporation" Selling all gold bullion of small weights from October 20 until January 1, 2026.
Sale will be limited to banks, with the exception of the Bank "Shinhan" And a bank "Nonghyup"on gold bars weighing only 1 kilogram, while silver bullion, which is very popular like gold bullion, will be banned from bank purchases starting next week, as the Korean Gold Exchange will stop supply starting October 20.
The “FOMO” phenomenon ignites demand
It has become a term "FOMO" Or the fear of missing the opportunity to buy, which is very popular during the recent rises in gold prices, as consumers rush to buy in light of the current prices, for fear of them rising to higher levels, especially since gold does not currently show any signs of stability or decline.
The high gold prices to record levels and the shortage of supply have contributed to stimulating the smuggling of gold to India – the second largest buyer of the precious metal in the world – before major festivals.
Factors driving the gold fever despite record high prices
Some wonder, what is driving this strong demand despite steady increases in prices, and analysts attribute this rush to a number of factors.
Says Ricardo Evangelista, senior analyst at "Active Trades" For "Reuters": "What is currently supporting gold are the bearish expectations for the US dollar, which are supported by expectations of lower interest rates, and investors’ distance from US assets, as well as the uncertainty associated with the tariff war."
There is another factor no less important than trade tensions and political conflicts, which is the efforts of central banks around the world to enhance their reserves of the precious metal, while data from the World Gold Council show that central banks plan to increase their holdings of gold as a percentage of their reserves, while reducing their dollar reserves over the next five years.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
