Bank of Korea increases gold reserves

3 August 2011

Gold reserves in South Korea have been significantly bolstered of late as the emerging economy increasingly turns its attention to bullion.

The Bank of Korea - established in 1950 - revealed it has bought 25 tonnes of gold, helping the country almost triple its reserves of the precious metal over the past two months.

Such purchases were worth around $1.24 billion and were the first of the kind by the institution since 1997-1998, when the Asian financial crisis struck.

South Korea is the latest emerging market nation to set its focus on gold acquisitions, as the economies move away from the struggling dollar and aim to diversify their reserves.

Thailand, Mexico, India, China and Russia have all bought substantial amounts of bullion in the past few years.

Ross Norman of retail precious metals broker Sharps Pixley stated: "The switch into gold by central banks is very much a reversal of the policy a decade ago."

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development