Korea's Central Bank Prepares to Buy Gold Locally
The Bank of Korea, South Korea's central bank, is planning to restart gold buying for the first time in years. According to an official, the bank hasn't added to its gold reserves since 2013 and now wants to purchase domestically produced gold that would otherwise be exported.
The new system will allow the bank to buy metal from local producers once it's ready by December 14th. Up to 1 metric ton could be available initially, which is a tiny portion of the bank's total reserves, currently standing at 104.4 metric tons, or about 3.1%.
The move fits into a wider trend among reserve managers to diversify away from traditional assets and add gold to their portfolios since 2022. The Bank of Korea's decision is seen as a shift towards adjusting how its reserves are composed.