Bank of Korea Eyes First Gold Purchases Since 2013 Amid Global Central Bank Accumulation
Introduction
In a significant shift for one of Asia’s major economies, the Bank of Korea is actively considering gold purchases for the first time in over a decade. This potential move, announced in late 2025, signals a profound reassessment of reserve management strategies amid a deteriorating global macroeconomic landscape. The deliberation comes precisely twelve years after the bank’s last acquisition in 2013, marking the end of a prolonged hiatus driven by past domestic criticism. The announcement, made by a senior bank official at a major international precious metals forum, places the Bank of Korea squarely within a broader, aggressive trend of central bank gold accumulation that is reshaping global reserves and challenging the dominance of traditional fiat currencies. For crypto investors and observers, this pivot toward a timeless store of value by a major financial institution offers a critical lens through which to view evolving notions of monetary security, inflation hedging, and asset sovereignty.
Bank of Korea's Gold Strategy: A Return from the Wilderness
The Bank of Korea’s potential re-entry into the gold market is not a decision taken lightly. According to data from the World Gold Council (WGC), as of October 2025, the bank holds 104.4 tons of gold, ranking it 41st globally among official holders. Its history with the metal is defined by a distinct period of activity followed by a long silence. The bank embarked on a three-year buying spree from 2011 to 2013, purchasing 40 tons, 30 tons, and 20 tons in each respective year. However, this strategy backfired in the court of public opinion as gold prices subsequently entered a prolonged slump. The timing of these purchases led to significant domestic backlash, which has been cited as a key reason for the bank's hesitance to add to its reserves in the years that followed.
Heung-Soon Jung, director of the Reserve Investment Division at the Bank of Korea’s Reserve Management Group, formally announced the reconsideration on Tuesday during the London Bullion Market Association and London Precious Metals Markets event in Kyoto. “The Bank of Korea plans to consider additional gold purchases from a medium- to long-term perspective,” he stated. Jung emphasized a cautious approach, noting that the bank would monitor the market before deciding on the timing and volume of any purchase. He clarified that any concrete move would be contingent on the evolution of the country’s total reserves and the direction of both gold prices and the Korean won.
The Global Rush: Central Banks Set Record Pace for Gold in 2025
The Bank of Korea’s deliberations are part of a much larger, coordinated shift in global reserve management. The move away from dollar-denominated assets and towards gold has accelerated dramatically in 2025. During the first half of the year, 23 countries increased their gold holdings. The second quarter alone saw significant acquisitions: Poland added 18.66 tonnes, Kazakhstan purchased 15.65 tonnes, Turkey bought 10.83 tonnes, China acquired 6.22 tonnes, and the Czech Republic increased its reserves by 5.73 tonnes.
This trend is not merely about diversification; it represents a fundamental change in asset allocation. For the first time since the mid-1990s, central banks collectively hold more gold than US Treasuries. This milestone underscores a growing erosion of confidence in traditional debt instruments, fueled by persistent US fiscal deficits and ongoing global trade tensions. Analysts project that central banks will purchase a staggering 900 tonnes of gold over the course of 2025. This institutional demand has been mirrored by retail investors, who have been queuing at physical dealers to hedge against potential currency debasement and inflation.
Price Volatility and Expert Sentiment: Navigating Gold's Sharp Swings
The surge in global demand propelled gold to an all-time high of $4,381 per ounce in late 2025. However, this peak was immediately followed by a severe correction. Reports indicated that gold plunged 6% in its worst one-day drop in 12 years, erasing an estimated $2.1 trillion in market value. The decline persisted, with gold losing 8.4% of its value over the following week. The downtrend was so pronounced that it pushed prices below the psychologically significant $4,000 per ounce mark for the first time since October 13.
Despite this sharp volatility, many market experts view the correction not as a bearish signal but as a necessary consolidation within a longer-term bull market. Steve Hanke, an economist at Johns Hopkins University, described the decline as a buying opportunity and publicly forecasted a bull market peak at $6,000 per ounce.
This optimistic outlook is shared by other analysts. Rashad Hajiyev suggested that the current drop in gold prices is “needed” before another major rally can commence. He interprets the sell-off as a mechanism to flush out weak-handed traders and establish a stronger foundation for a powerful move toward the $5,500–$6,000 range. Prominent gold advocate Peter Schiff echoed this sentiment, stating, “Gold is a great buy below $4,000, and silver is an even better buy below $47. Remember, it was just a week ago that gold almost hit $4,400 and silver traded above $54.40. Those highs will likely not even be close to the peaks of this bull market.”
Strategic Conclusion: A New Era of Monetary Reserve Management
The Bank of Korea’s potential return to the gold market after a 12-year absence is more than an isolated policy review; it is a powerful indicator of a new financial paradigm. The collective action of central banks—now net buyers of gold over US Treasuries—signals a deep-seated search for stability beyond the traditional fiat system. For observers in the crypto space, this trend is highly instructive. It highlights a universal drive for assets perceived as sovereign, non-confiscatable, and detached from the monetary policy of any single nation-state—a drive that also underpins the fundamental value proposition of decentralized digital assets like Bitcoin.
The recent price volatility in gold demonstrates that even established safe havens are not immune to sharp corrections. However, the consistent message from experts is that these pullbacks are viewed strategically as accumulation opportunities within a longer-term bullish narrative focused on macroeconomic deterioration and currency weakness.
Moving forward, market participants should closely monitor two key developments: the official confirmation and scale of the Bank of Korea's purchases, which would validate this global shift, and whether the projected central bank demand of 900 tonnes for 2025 materializes as forecast. The interplay between institutional accumulation in gold and growing institutional adoption of cryptocurrencies will continue to be a critical narrative, defining how value is stored and sovereign risk is managed in the 21st century.
Disclaimer: In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.