South Korea’s central bank is contemplating a return to gold buying for the first time since 2013, signaling a potential shift in its reserve management strategy.
The move comes amid growing demand for the precious metal, as investors seek protection from inflation and currency weakness.
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Bank of Korea Weighs Buying Gold Again
According to the latest data by the World Gold Council (WGC), as of October, the Bank of Korea held 104.4 tons of gold, ranking 41st globally. It last added to its gold reserves in 2013, concluding a three-year buying spree that began in 2011.
During that period, the central bank purchased 40 tons in 2011, 30 tons in 2012, and 20 tons in 2013. Nonetheless, the decision drew domestic criticism, as gold entered a prolonged price slump. The bank’s timing led to significant backlash, contributing to its hesitance to re-enter the market.
Nonetheless, as macroeconomic conditions deteriorate, inflation accelerates, and currencies weaken, the bank is reconsidering its earlier stance.
Heung-Soon Jung, director of the Reserve Investment Division at the Bank of Korea’s Reserve Management Group, announced the decision on Tuesday during the London Bullion Market Association and London Precious Metals Markets event in Kyoto.
“The Bank of Korea plans to consider additional gold purchases from a medium- to long-term perspective,” he said.
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Jung noted that the bank will monitor the market before deciding when and how much gold to purchase. He added that any move would dep
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Author: Kamina Bashir
