The Bank of Korea disclosed it holds over $250 million in a U.S. gold ETF, marking its first investment in gold in 13 years. The central bank purchased 679,765 shares of SPDR Gold Trust, valued at $250.4 million at the end of the second quarter.
The Bank of Korea's decision to invest in a gold ETF signals a strategic move to diversify its foreign reserves and hedge against potential geopolitical and inflation risks, reflecting a shift in its investment strategy after a 13-year hiatus from gold.
The Bank of Korea (BOK) has disclosed holdings of over $250 million in a U.S. gold exchange-traded fund (ETF), marking its first investment in gold in 13 years. According to a filing with the U.S. Securities and Exchange Commission (SEC), the BOK held 679,765 shares of SPDR Gold Trust, valued at $250.4 million as of the end of the second quarter.
Gold ETFs allow investors to gain exposure to the precious metal's price movements without directly owning physical gold. The BOK's previous investment in gold was in 2013, when it purchased 20 tons. Gold ETFs are classified as foreign securities and are included in the country's foreign reserves. The central bank also recently announced plans to purchase domestically produced gold to diversify its reserves and hedge against geopolitical and inflation risks.