Gold Hits a Stunning Milestone: Why a Single “Don” Now Costs 1 Million Won

Gold prices have surged to record levels, with the price of one don (3.75 grams) of pure gold in South Korea surpassing 1 million won for the first time, amid rising global geopolitical uncertainty and strong demand for safe-haven assets.

According to the Korea Gold Exchange on January 22, the buying price of one don of pure gold stood at 1,009,000 won as of the previous trading day, breaking the psychologically significant 1 million won mark.

Gold prices have been on a sharp upward trajectory since last year. From around 530,000 won per don at the beginning of last year, prices climbed into the 600,000 won range in March, the 700,000 won range in July, and surpassed 900,000 won in October, repeatedly setting new highs. Despite a brief correction at the end of last year, prices have continued to rise in 2026, marking an increase of nearly 90% year-on-year.

International gold prices have also continued to rally, exceeding USD 4,800 per ounce and reaching an intraday high of USD 4,885, extending a series of record highs. Silver prices have moved in tandem, with international silver briefly rising to USD 94.705 per ounce, also a historical peak.

Investment demand has flowed into gold-related exchange-traded funds as well. The “ACE KRX Gold Spot ETF,” the first physical gold ETF in South Korea, recently surpassed 4 trillion won in net assets, reflecting heightened safe-asset demand.

Silver prices have also remained strong in the domestic market, trading at 22,180 won for buying and 15,610 won for selling per unit. Analysts note that more than half of silver demand comes from industrial uses such as electronics and solar power, with supply constraints and rising industrial demand supporting prices.

The rally in precious metals has been driven largely by escalating geopolitical risks. Ongoing global inflation, uncertainty over the timing of interest rate cuts, a weaker U.S. dollar, declining U.S. Treasury yields, and increased gold purchases by central banks have all contributed to the surge.

Additional geopolitical tensions—including political instability in Venezuela, anti-government protests in Iran, and recent conflicts between the United States and Europe related to Greenland—have further strengthened safe-haven sentiment in global financial markets.

Market experts caution that while gold prices are at historic highs in both nominal and real terms, short-term corrections remain possible if geopolitical tensions ease. However, they also note that structural factors, such as sustained central bank demand, may differentiate the current cycle from past gold rallies.