More central bank buying of gold – this time Korea
Back in mid-September we wrote and article looking at the sheer amount of gold being bought around the world by the World’s central banks – some 336% more to be precise. We noted:
After going through the report one thing really jumps out – that central banks a massive buyers of gold this year. For all of 2010 net central bank purchases totaled 77 tons. For the first half of 2011 alone central banks snapped up some 216 tons and are expected to buy another 120 tons before the year is out
Well, since we published that ,15 tons of that 120 tons expected buying by central banks by the end of the year, has been snapped up Korea.
The Bank of Korea, owner of the world’s eighth-biggest foreign-exchange reserves, purchased 15 metric tons of gold last month, said Lee Jung, head of its investment-strategy team. Gold has climbed 23 percent this year in London as investors and central banks bought the metal as an alternative to stocks, bonds and currencies.
The really interesting thing about this is that is wasn’t that long ago that the Korean government were asking its citizens to send in gold to help it out of a financial hole.
South Korea has exported the first shipment of 300 kilograms of gold collected in a public campaign to help the country out of its economic crisis. The nationwide campaign – led by large business groups including Daewoo, Samsung and Hyundai – began on January 5, and involved ordinary Koreans donating personal gold treasures, which have been melted down into ingots ready for sale on the international markets. Kate Liang looks at the phenomenon of public self-sacrifice to save an economy in trouble
The above entire article is well worth a read – it’s only from 1998 but it seems like an entire lifetime ago, a different era where people were trusting of their governments and willingly sending it gold.
We fully expect this trend of central bank buying to continue well into next year.
- Central bank gold buying expected to increase 336% in 2011
- Gold supply drops 4% in Q1 because of central bank buying as demand increases 11%
- Central bank eyes merits of gold
- Ron Paul: Today’s central bank action is a reflection of a panic
- South Korea Gold Exchange
Link to this article: : http://www.goldmadesimplenews.com/gold/more-central-bank-buying-of-gold-this-time-korea-5847/