Korea's Central Bank to Resume Gold Buying After 13-Year Hiatus

The Bank of Korea is preparing to buy physical gold for the first time in 13 years, marking a significant shift in its reserve strategy. The purchases would be made domestically, drawing from gold output that would otherwise have been destined for export markets.

The bank's head of reserves cited geopolitical risks as a key motivating factor behind the renewed interest in gold, echoing a broader trend among central banks seeking to diversify their reserves and reduce concentration risk.

While the scale of the plan is small, with South Korea producing an estimated 40-45 tonnes of gold annually and only 4-5 tonnes being typically sold abroad, the decision adds another data point to a global pattern of central banks rethinking their reserve strategies.