Bank of Korea Breaks 13-Year Streak With Gold ETF Purchase

The Bank of Korea has disclosed a $250 million place in a gold exchange-traded fund (ETF). The stake marks its first gold-linked funding in 13 years.

The transfer offers South Korea’s central financial institution publicity to gold costs with out increasing its bodily bullion reserves.

Filing Shows a $250 Million Gold ETF Position

The BOK held 679,765 shares of SPDR Gold Shares on the finish of June. The stake was valued at $250.4 million in a filing submitted to the US Securities and Exchange Commission.

That similar doc lists 4 holdings value $3.89 billion in complete. Gold accounted for roughly 6.4% of the disclosed portfolio. It reported no such place three months earlier.

Gold ETFs rely as securities and are held inside South Korea’s foreign-exchange reserves. Physical bullion is handled as a separate long-term reserve asset. This implies that the acquisition leaves the official stockpile at about 104.4 tons, unchanged since 2013.

However, earlier in August, the central financial institution mentioned it constructed a framework for domestic gold purchases, its first such step in nearly six a long time.

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Central Bank Gold Demand Hit a Record Second Quarter

Meanwhile, different central banks mixed added a web 289 tons within the three months by means of June. This marked the strongest second quarter ever recorded, the World Gold Council mentioned.

Poland led with 51 tons. The BOK sat out that run. Its final bodily buy got here in 2013, when it added 20 tons. China, against this, added about 20 tons in July alone.

Investor demand has turned as properly. Gold-backed funds pulled in $3 billion in July, ending a two-month outflow streak. Whether the BOK expands from ETF publicity into bullion will floor in its future reserve reviews.

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