Graphics Card Roller Coaster
There has been some focus on component price increases in South Korea recently, with graphics cards being singled out as one component seeing rapid price increases over the last few months. Back in August we noted that the prices of graphics cards has fallen as China began restricting the mining of bitcoin, one of the primary demand drivers for graphics cards, and such cards had suddenly become available after being in short supply. We went back to the same two cards that we used as examples in the 8/11/21 note to see how prices changed over the last 2 ½ months. While China has virtually eliminated the big bitcoin farms across most of the country in their push to conserve power, as we have noted previously, bitcoin farmers have moved to other countries where power is both inexpensive and the regulatory climate is a bit more amenable to such non-essential industries.
In South Korea graphic card prices, based on 20 major graphics cards checked between August and the 2nd week in September, increased between 6% and 100% according to local tech press, while the four examples given in the graphic (Fig. 5) saw increases between 23.2% and 65.3%, with an average of 47.8%. This compares to the two cards we used in our last check, which saw increases of 13.9% and 16.1% based on current prices, although when each of the two reached peak levels in mid-September, they were up 27.1% and 78.1% from our August check points, much closer to the increases seen in Korea. It would seem that using the most current data here, which comes from 3rd party sellers on Amazon (AMZN) (Amazon does not have many cards directly available), we should expect some moderation to graphic card prices overseas. That said, with the price of bitcoin nearing its all-time high, such a theory, based on what we have seen in the US, seems unlikely as the economics of bitcoin mining get better as the price/hash rises. If you need a graphics card, despite the rise in prices, it would seem to be the time to buy, as odd as that appears.
In South Korea graphic card prices, based on 20 major graphics cards checked between August and the 2nd week in September, increased between 6% and 100% according to local tech press, while the four examples given in the graphic (Fig. 5) saw increases between 23.2% and 65.3%, with an average of 47.8%. This compares to the two cards we used in our last check, which saw increases of 13.9% and 16.1% based on current prices, although when each of the two reached peak levels in mid-September, they were up 27.1% and 78.1% from our August check points, much closer to the increases seen in Korea. It would seem that using the most current data here, which comes from 3rd party sellers on Amazon (AMZN) (Amazon does not have many cards directly available), we should expect some moderation to graphic card prices overseas. That said, with the price of bitcoin nearing its all-time high, such a theory, based on what we have seen in the US, seems unlikely as the economics of bitcoin mining get better as the price/hash rises. If you need a graphics card, despite the rise in prices, it would seem to be the time to buy, as odd as that appears.
ASUS TUF Card - August Pricing - Source: Amazon
ASUS TUF Card - Current Pricing - Source: Amazon
ASUS ROG Strix Card - August Pricing - Source: Amazon
AUSUS ROG Strix Card - Current Pricing - Source: Amazon
Sales Price - Major Graphics Cards - KRW 10,000 - Source: ETNews
Selected 3rd Party Graphic Card Prices - Source: Amazon
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