Bank of Korea Joins Central Banks Expanding Gold Reserves Amid Geopolitical Risks
The Bank of Korea has announced plans to expand its gold reserves through a domestic buying program. This move is part of a broader trend among central banks, which have been increasing their gold holdings in recent years.
The Bank of Korea currently holds just over 104 tonnes of gold, making up about 1.1 percent of the country's total reserves. The last time it expanded its gold reserves was 13 years ago.
The central bank will purchase gold from South Korean miners at international spot prices and store it in South Korea. This move is expected to reduce the amount of gold flowing into the global supply, but it won't likely impact the domestic gold price as the central bank plans to only buy gold intended for export at contract prices.
The Bank of Korea's Reserve Management Group head Jeong Hee-sup said that the central bank has started purchasing gold ETF shares and emphasized that the domestic gold purchases are part of a long-term strategy to expand the country's gold reserves.