That’s a worrying sign when a central bank should increase it gold reserves so much in a short period of time. Bank of Korea has joined a list of central banks that are increasing their reserves. China is constantly purchasing but what is not publicised is that it is buying up all gold production within its borders and nobody knows it total gold reserves.

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.

Source: GoldCore

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