BOK Dives into Gold with $250m ETF Investment
The Bank of Korea (BOK) has made its first investment in gold in 13 years, holding over $250 million worth of a gold exchange-traded fund (ETF) traded on the US stock market.
According to a filing with the US Securities and Exchange Commission, the BOK held 679,765 shares of SPDR Gold Trust, one of the most widely traded gold ETFs in the United States, as of the end of the second quarter. The total value of this holding is $250.4 million.
Gold ETFs allow investors to benefit from gold price movements without owning physical gold, and are classified as foreign securities included in a country's foreign reserves.
The BOK's investment in gold comes as it seeks to diversify its reserves and hedge against geopolitical and inflation risks. The bank has recently announced plans to purchase domestically produced gold for the same purpose.