South Korea’s central financial institution is considering a return to gold shopping for for the primary time since 2013, signaling a possible shift in its reserve administration technique.
The transfer comes amid rising demand for the valuable metallic, as buyers search safety from inflation and foreign money weak point.
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Financial institution of Korea Weighs Shopping for Gold Once more
In response to the most recent knowledge by the World Gold Council (WGC), as of October, the Financial institution of Korea held 104.4 tons of gold, rating forty first globally. It final added to its gold reserves in 2013, concluding a three-year shopping for spree that started in 2011.
Throughout that interval, the central financial institution bought 40 tons in 2011, 30 tons in 2012, and 20 tons in 2013. Nonetheless, the choice drew home criticism, as gold entered a protracted value stoop. The financial institution’s timing led to vital backlash, contributing to its hesitance to re-enter the market.
Nonetheless, as macroeconomic situations deteriorate, inflation accelerates, and currencies weaken, the financial institution is reconsidering its earlier stance.
Heung-Quickly Jung, director of the Reserve Funding Division on the Financial institution of Korea’s Reserve Administration Group, introduced the choice on Tuesday in the course of the London Bullion Market Affiliation and London Treasured Metals Markets occasion in Kyoto.
“The Bank of Korea plans to consider additional gold purchases from a medium- to long-term perspective,” he stated.
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Jung famous that the financial institution will monitor the market earlier than deciding when and the way a lot gold to buy. He added that any transfer would rely upon how the nation’s reserves evolve and on the route of gold costs and the Korean received.
International Central Banks Lead Gold Accumulation
The Financial institution of Korea’s renewed curiosity in gold comes amid a big redeployment of worldwide reserves. Throughout the first half of 2025, 23 nations elevated their gold holdings.
Within the second quarter, Poland acquired 18.66 tonnes, Kazakhstan 15.65 tonnes, Turkey 10.83 tonnes, China 6.22 tonnes, and the Czech Republic 5.73 tonnes. Moreover, BeInCrypto lately highlighted that for the primary time for the reason that mid-Nineties, central banks maintain extra gold than US Treasuries.
Notably, banks are anticipated to purchase 900 tonnes of gold in 2025. The shift highlights eroding confidence in dollar-denominated property amid US fiscal deficits and commerce tensions. Retail buyers additionally mirrored this development, queuing at sellers to hedge towards foreign money debasement.
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Gold Worth Volatility Assessments Market Sentiment
In the meantime, the excessive international demand pushed gold upwards, reaching an all-time excessive of $4,381 per ounce final week. Nevertheless, a correction adopted.
BeInCrypto reported that after the document excessive, gold plunged 6% in its worst one-day drop in 12 years, erasing round $2.1 trillion in market worth.
The decline has continued, with the gold shedding 8.4% of its worth previously week. Moreover, yesterday the downtrend even pushed costs beneath $4,000 per ounce for the primary time since October 13.
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Regardless of this, some market consultants stay optimistic about gold’s comeback. Steve Hanke, an economist, described the decline as a shopping for alternative and forecasted a bull market peak at $6,000 per ounce.
Analyst Rashad Hajiyev advised that the present drop in gold costs is “needed” earlier than one other main rally. He views the sell-off as a method to flush out weak merchants and set the stage for a strong transfer towards $5,500–$6,000.
“Gold is a great buy below $4,000, and silver is an even better buy below $47. Remember, it was just a week ago that gold almost hit $4,400 and silver traded above $54.40. Those highs will likely not even be close to the peaks of this bull market,” Peter Schiff added.
