[Wall Street Talk] Gold Leasing Booms as Prices Surge—A New Era of 'Rolling' Gold

(Seoul=Yonhap Infomax) International Economics Department = The sharp rise in gold prices this year has fueled significant growth in the gold leasing market.

On the 18th (local time), CNBC reported that wealthy investors and family offices are increasingly opting to lease their gold bars to jewelry and processing companies, earning interest instead of simply storing them in vaults. This burgeoning gold leasing market is gaining traction among high-net-worth individuals.

Gaurav Mathur, founder of gold leasing platform SafeGold, said, "More high-net-worth individuals are becoming familiar with gold leasing," adding, "SafeGold's gold leasing volume has surged from $2 million at the start of the year to $40 million."

Gold leasing operates similarly to lending, with the key difference being that the asset is measured in ounces of gold rather than cash.

Investors deposit their gold with leasing platforms or financial institutions and receive interest payments. Jewelry and processing firms can secure the gold needed for production while hedging against price volatility, as repayment is made in the same quantity of gold rather than cash.

SafeGold offers interest rates of 2% for collateralized gold leases and 4% for unsecured leases.

However, experts caution that investors face risks such as borrowers failing to return the gold on time or repaying with lower-purity gold. Therefore, investors must carefully assess the creditworthiness and reliability of borrowers, they emphasized. (Ji Yeon Kim)

◇ Hidden Costs of US Homeownership Surge, Intensifying Pressure on Buyers

The hidden costs of owning a home in the United States have soared to an annual average of approximately $16,000, significantly increasing the burden on homebuyers.

According to a recent joint analysis by real estate data firm Zillow and local services platform Thumbtack on the 18th (local time), maintenance, insurance, and property taxes now cost the average household $15,979 per year.

Maintenance accounted for the largest share at $10,946, followed by homeowners insurance at $2,003 and property taxes at $3,030.

These rising costs are exacerbating the housing affordability crisis, making it increasingly difficult for potential buyers to enter the market.

Over the past year, these housing-related expenses have climbed 4.7%, outpacing the 3.8% rise in household income. The burden is particularly acute in major coastal cities such as New York, San Francisco, and Boston, where annual costs reached $24,381, $22,781, and $21,320, respectively.

Insurance premiums have also seen notable increases. In Miami, the average annual premium soared 72% over the past five years to $4,607, while other Florida cities such as Jacksonville, Tampa, and Orlando recorded increases of 68–72%.

Outside Florida, premiums jumped 79% in New Orleans, 59% in Sacramento, 58% in Atlanta, and 56% in Riverside, California.

US Treasury Secretary Scott Besant stated in August, "Addressing the housing affordability crisis is one of the most important tasks this fall," signaling a forthcoming government response. (Si Yoon Yoon)

◇ Hong Kong's Wealthy Population Grows Despite Property Slump, Driven by Stock Market Rally

Hong Kong's wealthy population is on the rise, buoyed by a robust stock market despite a sluggish property sector, the South China Morning Post (SCMP) reported on the 18th (local time).

According to Citibank Hong Kong, the number of residents with a net worth of at least HK$10 million (approximately 1.88 billion won) increased by 1.3% over the past six months to 395,000.

This figure is based on a survey of about 2,600 residents aged 21–79 conducted during two periods: December 2024 to January 2025, and August to October 2025.

Citibank noted that the number of wealthy individuals fell from 408,000 in June 2023 to 310,000 at the end of that year, before rebounding to around 390,000 by the end of 2024 and 395,000 by mid-2025.

Currently, approximately 400,000 wealthy individuals account for 7% of Hong Kong's total population.

Citibank explained that the stock market rally has partially offset weakness in the property sector.

Over the past five years, the share of real estate in their total net assets has declined from 71% to 51%, while the proportion of stocks has risen from 7% to 16%.

The Hang Seng Index has surged 32% year-to-date, outperforming major US equity indices.

Notably, more than 50% of their liquid assets are held in cash or deposits, reflecting the need to maintain a high standard of living and secure emergency funds, according to Citibank.

However, the current number of wealthy individuals in Hong Kong remains about 20% below the peak of 500,000 seen in 2017–2018, following a 13.6% surge in property prices.

Citibank forecasts that "the net assets of Hong Kong's wealthy are likely to increase further, given strong signals of continued stock market strength and stabilizing property values." (Min Jae Lee)

◇ Musk Vows to Create a Modern Library of Alexandria and Launch It into Space

Elon Musk, CEO of Tesla, has emphasized that "Grokipedia," an online encyclopedia powered by his AI company xAI's model "Grok," will serve as a modern-day Library of Alexandria.

According to Business Insider on the 18th (local time), Musk said, "The burning of the Library of Alexandria was a great tragedy."

Musk added, "To preserve knowledge, I believe we must literally engrave it in stone and distribute it widely."

The Library of Alexandria, once one of the world's largest libraries, was destroyed in 48 BC during the Roman civil war between Julius Caesar and Pompey, resulting in the loss of vast knowledge.

Musk sees Grokipedia as a safeguard against such knowledge loss.

In the worst-case scenario, he said, future civilizations could learn from what we have achieved by accessing this encyclopedia.

Musk stated, "Grokipedia will not remain confined to Earth; it will be sent to the Moon, Mars, and beyond." (Kyung Pyo Hong)

◇ Longer Walks More Beneficial Than Step Count, Study Finds

While the health benefits of walking are well known, a new study suggests that walking for longer periods at a time is more beneficial than simply focusing on step count.

According to CNBC on the 19th (local time), research published in the Annals of Internal Medicine found that longer, continuous walks are more effective for heart health than multiple short walks.

The research team analyzed the daily activity of 30,000 adults in the UK, with an average age of 62. Participants who walked for intervals of 15 minutes or more showed a stronger association with reduced risk of heart disease and mortality compared to those who walked for less than five minutes at a time.

The researchers advised, "It's important to focus not only on how much you walk throughout the day, but also on the duration of each walk," adding, "Walking for 15–20 minutes at a time is far more beneficial than simply aiming for more steps or walking whenever possible." (Yong Wook Kwon)

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