Tag Archives: safe haven + gold + Japan

Gold is the word in Japan as exports are at their biggest high in the last twenty years

8 Dec

People in Japan who bought gold twenty years ago have been cashing it in at record prices, resulting in a boom in Japan’s gold exports.

Shipments in the first ten months of the year reached 95.6 metric tonnes. Many countries have jumped on the gold band wagon; exports to Thailand have tripled, and those to Singapore doubled in the first ten months of last year. And the demand from Europe has almost doubled since the fourth quarter of 2008.

Kotaro Horita, a trader at Mitsubishi Materials said:“More and more people who bought gold and jewelry in the 1980’s and 1990’s are selling back what they purchased.”

The largest gold retailer in Japan, Tanaka Kikinzoku Kogyo K.K. reported a 40per cent increase in gold bought from individuals in the first nine months of the year. According to Horita, China and Southeast Asia have been showing particular interest in the metal, with a high increase in exports.

Precious metals such as gold are considered safe havens during times of global economic uncertainty, as they are a good hedge against inflation; which many experts predict will be coming in the years ahead.

Unlike other safe havens, such as the Swiss franc and the Japanese Yen, the price of gold can not be easily interfered with by any one entity. This could attribute to the jump in global gold investment from 33per cent to 468.

With the future of the euro in question, Central Banks have been turning to gold as a safe haven.
“Central banks are continuing to buy gold exchange-traded funds after concerns arose about the creditworthiness of euro- zone nations,” said Koichiro Kamei, managing director at Market Strategy Institute.

Marcus Grubb, managing director at World Gold Council, predicts the amount bought by Central Banks could reach 450tons this year; a big increase from last years purchases of 142 tons.