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

South Korea buys more gold amid speculation on currency market intervention

IMG Auteur
Published : December 09th, 2012
500 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

By Christine Kim
Reuters
Wednesday, December 5, 2012

http://www.reuters.com/article/2012/12/05/korea-economy-reserves-idUSL4N...

SEOUL, South Korea -- South Korea's central bank said on Wednesday it bought 14 tonnes of gold in November using its foreign reserves in order to spread its portfolio risks, while releasing data showing total reserves rose after talk of market intervention.

The Bank of Korea bought the gold for $780 million, the fourth purchase in about 1 1/2 years, lifting the proportion of gold in its total foreign reserves to 1.2 percent from the previous 0.9 percent, it said in a statement.

"Gold is a physical, safe asset and allows" the country "to deal with changes in the international financial environment more effectively," it said in a statement, without providing more details on the purchase.


The Bank of Korea now holds 84.4 tonnes of gold, valued at $3.76 billion in terms of purchase prices, up nearly six-fold from 14.4 tonnes before June last year.

The Bank of Korea made its first gold purchase in more than a decade between June and July last year, joining some central banks in diversifying their increasing foreign reserves away from the U.S. dollar and low-yielding government bonds.

Official-sector buying has become a key factor supporting gold demand and prices in recent years.

South Korea's gold buying "points to stronger support for gold prices from central banks," said Philip Klapwijk, global head of metals analytics at Thomson Reuters GFMS, a
metals consultancy. "If private-sector investment falters and prices dip, central banks' buying supports prices at higher levels than if this demand were not present. It is a substantial additional source of demand for gold bullion."

Central banks around the world bought a total of 351.8 tonnes of gold in the first nine months of 2013, up 2 percent from a year earlier, data from the World Gold Council showed.

In comparison, private-sector gold investment demand during the period dropped nearly 8 percent on the year to 1,139.3 tonnes, the data also showed.

Spot gold traded just below $1,700 an ounce on Wednesday, up more than 8 percent so far this year.

The Bank of Korea said it now expected its ranking among central banks around the world in terms of gold holdings to rise to 36th from 40th.

Meanwhile, the central bank said foreign reserves rose by $2.6 billion last month to a record $326.09 billion, extending its record-breaking streak to a fourth consecutive month. It attributed the increase to investment gains but the data came after reports by traders of dollar-buying intervention by South Korean authorities during the month to curb the won's rapid appreciation.

On Nov. 22 alone, currency traders estimated authorities bought up to $1 billion in the local currency market to temper a stronger won, which hurts the competitiveness of South Korean exporters.

Central bank officials declined to comment on the talk of intervention.

South Korea, which had the world's seventh-largest foreign exchange reserves as of the end of October, held 91.7 percent of its reserves in the form of securities

 

 

Companies Mentionned : Bullion | Gold Holdings | Metals X |
Data and Statistics for these countries : South Korea | All
Gold and Silver Prices for these countries : South Korea | All
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
Chris Powell is the secretary of the Gold Anti-Trust Action Committee (GATA) which has been organized to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Panicked Hedge Funds Now Praying...
30 Junovertheedge
"... and the silly game theory ..." Obviously you have no knowledge of game theory and its applications. Otherwise you wouldn't have used ...
The Gold Standard: Generator & P...
30 Junuser4779
Is it really so bad for Americans that they do not spend their lives labouring on a production line to make mass-produced goods, and have left this...
The Gold Standard: Generator & P...
30 Junsam_site
You state, “To continue selling to the West, China will have to open wide its doors to imports” Here’s the crux of your argument of why Chin...
The euro crisis
30 Junovertheedge1
"There is no immediate benefit from debating why." Debate? That would be like debating whether or not gravity exists. You stated the obvio...
The Ultimate Confirmation
29 Junovertheedge
It would appear that we share the same conclusion. A few sealed cans of kerosene might be handy as well. Thumbs up sir.
The Ultimate Confirmation
29 JunS W.1
My main sentiment here is why swap dollars for gold or silver only to sell at some later date for more dollars when that same paper is continually ...
The Ultimate Confirmation
28 Junovertheedge1
Well, gotta admit that there is a problem if a person tries to play silver as both an investment and as an insurance policy. I would suggest th...
The Ultimate Confirmation
27 JunS W.
Fair call, overtheedge. I've given Butler short shrift several times. Fancy spending 30 yrs analysing the silver market likely believing Ag...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Helix(Ag-Au-Co)HLX.AX
R & D Tax Rebate Received
AU$ 0.04+5.71%Trend Power :
Corporate news
HannansHR9.BE
Sale of Exploration Database
€UR 0.00+0.00%Trend Power :
Corporate news
Arch Coal(Au-Coal-Cu)ACI
SHAREHOLDER ALERT: Levi & Korsinsky, LLP Announces an Investigation Involving Possible Violations Concerning Arch Coal, Inc.’s 401 (k) Plan-- ACI
US$ 0.33-2.94%Trend Power :
Corporate news
Mindoro Res.(Cu-Ni-Zn)MIO.V
Mindoro Announces That Bridge Loan from TVI Resource Development, Phils. Inc. has Not Been Extended
CA$ 0.01+0.00%Trend Power :
Corporate news
Bannerman(Ur)BMN.AX
Change of Director's Interest Notice - L Jubber
AU$ 0.05+4.08%Trend Power :
Corporate news
Peabody(Coal)BTU
Mid-Day Market Update: Chubb Surges Following Announcement of Acquisition by Ace; Ballard Power Shares Decline
US$ 1.78-18.72%Trend Power :
Corporate news
Peabody(Coal)BTU
Mid-Morning Market Update: Markets Open Higher; Constellation Brands Q1 Profit Tops Views
US$ 1.78-18.72%Trend Power :
Corporate news
Asian Mineral Res.(Co-Ni-Cu)ASN.V
Asian Mineral Resources Announces Appointment of Director
CA$ 0.05+0.00%Trend Power :
Corporate news
AlstomALO.PA
Alstom’s Citadis Dualis enters service on the Nantes-Clisson line
€UR 25.73+1.10%Trend Power :
Corporate news
Range Res.RRS.AX
Why Range Resources (RRC) Could Be Positioned for a Slump - Tale of the Tape
AU$ 0.02+0.00%Trend Power :
Corporate news
Comments closed