For the first time in 13 years, the Bank of Korea bought or continued to build up gold assets

On 13 August, for the first time in 13 years, the Central Bank of Korea bought gold-related assets to hedge against geopolitical and economic uncertainty. According to a document submitted to the SEC, the Central Bank of Korea held 679,765 SPDR Gold Shares at the end of the second quarter, valued at approximately $250 million. The document shows that three months ago the Bank did not hold any shares in the largest in-kind gold-support ETF worldwide. The Central Bank of Korea stated that the investment was its first gold-linked asset since 2013. This purchase will not increase the Bank ' s official gold reserves, as the gold ETF is classified as securities and forms part of foreign exchange reserves. According to Choi Kyuho, an economist for Hanwha Investment & Security, “The Central Bank of Korea currently has a very low share of gold in its allocation. From the point of view of alignment with global standards, the Central Bank of Korea still has room for further gold purchases. I think they will gradually increase their gold holdings.” Kim Xian