S. Korea buys gold for first time in 13 years

South Korea's central bank said Tuesday it bought gold for the first time in 13 years, diversifying its foreign exchange reserves away from the dollar.

AFP - South Korea's central bank said Tuesday it bought gold for the first time in 13 years, diversifying its foreign exchange reserves away from the dollar.
The Bank of Korea said in a statement it bought 25 tonnes of gold from the global market between June and July, bringing its total gold reserves to 39.4 tonnes as of the end of July.
"The gold purchase, as a safety net, will help us cope with volatile global financial markets and enhance investor confidence in Korea in times of crises," Hong Taeg-Ki, head of the bank's reserve management group, told Dow Jones Newswires.
He had no comment on whether there would be more purchases.
It was the first time the bank has bought gold since it purchased the precious metal from Koreans during the 1997-1998 East Asian financial crisis.
Individuals at that time collected gold from their homes to help their country overcome the crisis.
Since the 2008 financial meltdown, gold has become increasingly attractive to central banks worldwide, and prices have risen sharply.
The central bank's total reserves were at a record high of $311.03 billion at the end of July.