BOK Buys into Gold with $250 Million ETF Investment
The Bank of Korea (BOK) has made its first gold-linked investment in 13 years, acquiring shares of SPDR Gold Shares worth around $250 million. The purchase was a significant move for the central bank, marking its first gold-related transaction since 2013.
The BOK bought 679,765 shares of SPDR Gold Shares at the end of the second quarter, according to a filing with the US Securities and Exchange Commission. The investment does not add to the central bank's official bullion holdings as Gold ETFs are classified as securities and form part of foreign-exchange reserves.
Central banks globally have increased their gold purchases in recent years, seeking diversification and safe-haven assets to hedge against geopolitical and financial risks. In fact, monetary authorities bought a net 289 tons of gold in the three months ended June, a record amount for a second quarter, according to the World Gold Council.