Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Bank of Korea Increases Gold Reserves by Massive Nearly $1 Billion or 39% in November Alone

IMG Auteur
Published : December 02nd, 2011
1082 words - Reading time : 2 - 4 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

Gold is trading at USD 1,752.90, EUR 1,298.30, GBP 1,116.10, CHF 1,604, JPY 136,700 and AUD 1,706.4 per ounce.


Gold’s London AM fix this morning was USD 1,751.00, GBP 1,116.50, and EUR 1,298.29 per ounce.


Yesterday's AM fix was USD 1,750.00, GBP 1,113.02, and EUR 1,298.03 per ounce.



Cross Currency Rates


Gold is marginally higher in most currencies and is headed for its biggest weekly advance in six weeks after also seeing a gain of 1.8% in November. Gold’s technical picture has become positive again and is now aligned with the very positive fundamental backdrop.


The Bank of Korea’s continued diversification of its foreign exchange reserves is a bullish factor which may have led to the price gains today.


The central bank of South Korea announced that it had purchased 15 metric tonnes of gold in November to raise its reserve of bullion in an effort to diversify its portfolio of its foreign reserve investment and reduce risks caused by market volatilities.


According to the Bank of Korea (BOK), it made a purchase of 15 tons of gold last month to increase the nation’s gold reserves to 54.4 tons worth $2.17 billion as of the end of November.


It boosted the size of its gold reserves by US$850mn in November, up a massive 39% from the previous month. Its total gold reserves are now worth US$2.17bn.




The purchase was the central bank’s second acquisition of gold this year. It bought 25 tons of bullion in June and July for the first time in 13 years.


Thanks to the buying, the gold reserves of Asia’s fourth-largest economy jumped by three notches to 43rd in the rankings of the World Gold Council.


Based on the October reading, Korea is the eighth-largest holder of foreign exchange the world behind China, Japan, Russia, Taiwan, Brazil, Switzerland and India. 


The Bank of Korea said its gold holdings account for just 1% of its foreign-exchange reserves.  


“The BOK purchased gold last month in a bid to diversify its portfolio of foreign exchange reserves,” Lee Jung, head of the investment strategy team at the BOK’s Reserve Management Group, told reporters.


"Demand for gold is increasing as a hedge against global inflation amid the persistent sovereign-debt crisis in Europe," Lee was quoted as saying.


"The gold purchase will help us cope with volatile global financial markets and enhance investor confidence in Korea in times of crises."




The move comes as other central banks across the world are again diversifying into gold amid the worsening financial turmoil in the eurozone. The European sovereign debt crisis is lurching towards contagion and showing signs of spreading to France and Germany, the top two strongest economies in the region. 


Mexico has bought 98 tons of gold this year, followed by Russia and Thailand, which purchased 63 tons and 53 tons, respectively, with the total official acquisition of gold reaching around 350 tons.


South Korea’s foreign exchange reserves stood at $308.63 billion at the end of November, down $2.35 billion from the previous month, as the euro, pound, yen and dollar all fell in value versus gold.


Foreign reserves consist of securities and deposits denominated in overseas currencies, along with IMF reserve positions, special drawing rights and gold bullion. 


It is the second time Korea has bought gold to diversify its foreign exchange reserves this year. It purchased 25 tons of gold between June and July -- its first purchase since the 1997-98 Asian financial crisis.


No details were given as to from where the sizeable tonnage of gold was bought in November – whether it be inter central bank or from refiners or bullion banks. Nor was information forthcoming as to whether the Bank of Korea is storing their gold reserves in the central bank in Seoul.


Asian governments have become increasingly concerned about the problems in the West, with European leaders struggling under the weight of a crippling sovereign debt crisis that threatens the end of the eurozone and the euro.




The United States has a debt crisis of its own with politicians unable to agree a plan to bring down the country's titanic deficit, which sits at more than $15 trillion and increased another $160 billion in the last two weeks alone.


The ongoing woes have led to forecasts of further gold purchases, especially from Asia.


Gold is becoming increasingly attractive to central banks worldwide due to the global financial crisis and concerns for the outlook of the global reserve currency, the dollar and the euro and all fiat currencies. 


European central banks have stopped selling gold. China, which has the world's biggest foreign-currency reserves, has been increasing its gold holdings mainly through domestic producers.


As we have been saying for some time, gold makes up a miniscule 1.6% of China’s foreign exchange reserves. People’s Bank of China buying alone could support gold prices in the coming months and years.


The world average for central-bank gold holdings as a share of foreign-currency reserves has increased marginally to 11%. The U.S., still the world’s largest gold holder of gold bullion, bullion makes up 74% of foreign exchange reserves.


The fundamentals for gold remain very bullish and yet gold remains largely taboo in the non specialist financial media. The fundamentals and the facts of the gold market remain unknown by the majority of the market which is bullish. 


Total above ground stocks of refined gold bullion remain tiny vis-à-vis stock, bond, foreign exchange and derivative markets.


Even a small shift in allocations from these markets and into physical bullion has the potential to lead to much higher prices.


For breaking news and commentary on financial markets and gold, follow us on Twitter.


SILVER 
Silver is trading at $33.51/oz, €24.78/oz and £21.32/oz 


PLATINUM GROUP METALS 
Platinum is trading at $1,561.50/oz, palladium at $649.25/oz and rhodium at $1,575/oz. 


NEWS
(Reuters)
Gold steady, eyes U.S. jobs data


(Reuters)
ECB opens door to action, Sarkozy seeks new treaty


(Bloomberg)
Bank of Korea Boosts Gold Reserves for Second Time This Year


(Mining Weekly)
Coeur would mull holding silver over cash, says CEO


(Bullion Street)
Indians hold 12,000 tons more gold than Chinese


COMMENTARY
(ZeroHedge)
UBS On "How Bad Might It Get" And Why "Sooner Or Later Intense Instability Will Resume"


(ZeroHedge)
US Debt/GDP Hits Post WW2 High 99.5%- $55 Billion Overnight Debt Increase: Total Debt Now $15.1 Trillion


(Reuters)
Hank Paulson’s Inside Jobs


(KingWorldNews)
This is a Case of Systemic Solvency & Control


(Wall Street Journal)
MF Global and the New Era of Crony Capitalist Regulation


Mark O’Byrne

Goldcore

 

 

Companies Mentionned : Gold Holdings | Platinum Group Metals |
Data and Statistics for these countries : Brazil | Russia | South Korea | Taiwan | Thailand | All
Gold and Silver Prices for these countries : Brazil | Russia | South Korea | Taiwan | Thailand | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The U.S. Continues To Import Rec...
03:57Gypsy
Steve, you seem to have a grasp on Silver Reality here. I'm impressed. With over 100 claims on each ounce of GOLD being sold in the Paper Market,...
Gold Surges Another 7% This Week...
13 FebS W.
Buy the dip in gold?? Better to buy the selloff in Oil.
Gold Surges Another 7% This Week...
12 Febovertheedge
"Buyers should be getting into position to buy on the next dip." Gold is up something like 16% so far this year. Should'a bought when it wa...
Here We Go Again: Banks Are Impl...
12 Febsonora69
What is going to happen NEXT Monday? The Shanghai markets are closed all this week for the Lunar New Year. Monday morning ( or Sunday night U.S. t...
First Report since April, 2014
05 FebAndy_K1
Jason, One of your articles written way back is one of the reasons I started paying attention to silver and shortly thereafter started to ...
Something has Changed in Gold St...
06 Febneville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.1
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.34+1.49%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 51.64-2.75%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 21.69+2.07%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.40+8.35%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 51.64-2.75%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 51.64-2.75%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 21.69+2.07%Trend Power :
Corporate news
Comments closed