Gold continues to slowly chip away at the US dollar as it gradually continues it’s ascent towards the primary global reserve currency, as the World Gold Council has announced that South Korea increased it’s gold reserves by 16 tons to 70.4 tons at the end of August. The increase moves the Asian nation up to 40th in the world in gold holdings, yet the 70.4 tons of physical gold remains only a paltry 0.9% of South Korea’s entire $317 billion in reserves.
Asia’s fourth largest economy, South Korea’s gold reserves hit 70.4 tons valued $2.98 billion at the end of August, according to World Gold Council.
South Korea now ranked 40th in the world in gold holdings by nations, up three notches from two months earlier as its central bank purchased the precious metal to diversify foreign exchange reserves.
However, Gold still accounts for only 0.9 percent out of the country’s total foreign reserves of $316.88 billion.
The Bank of Korea (BOK) bought 16 tons of gold in July, the third purchase of the precious metal since the central bank bought it in July last year for the first time in 13 years.
The BOK’s move came as the bleaker economic outlook and the protracted eurozone debt crisis raised investors’ appetite for safe assets. Gold is also viewed as a way to hedge inflation.