Monday, May 6, 2013
Japan's gold buyers flock to stores
In Japan, it's improved consumer sentiment that's boosting purchases of gold.
The "Abenomics", Prime Minister Shinzo Abe’s quest for Japan’s economic recovery, has not only driven the yen 20 percent weaker, but boosted consumer spending and investments. One investment that stands out is gold. Private investors have bought and sold gold in record numbers, as the weakening yen pushed up base gold prices.
Naoto Mizuki, Gen. Manager, Marketing Dept., Tanaka Kikinzoku Jewelry K.K., said, "A lot of people came to our stores to sell their gold they accumulated over the years, but last week the international gold prices in dollar terms went down significantly, so yen prices also went down and we have seen a lot of people coming to our store buying new gold"
Many Japanese traders remain bullish, as the metal rebounded after the worst slump in three decades last week.
Akira Doi, President, Daiichi Commodities Co., Ltd, said, "We see an active mix of buying and selling after the huge fall last week. I think we will see more activities, with the expectations for further weakening of the yen and increase in demands"
Historically, gold, in all forms, from religion to art, has been a popular investment commodity in Japan.
Japanese used to buy gold as a long term investment commodity. Analysts said that trend recently changed. With recent fluctuation in the exchange rate and gold prices, many bought and sold gold as short term profit taking investments.
Akira Doi, President, Daiichi Commodities Co., Ltd, said, "In recent years, we have seen an increase in new types of investors, who are attracted to the volatility and bullish gold market. I think we will see further increase gold transactions in Japan"
Gold, platinum and silver are gaining popularity for investment in Japan.
Naoto Mizuki, Gen. Manager, Marketing Dept., Tanaka Kikinzoku Jewelry K.K., said, "Japanese people are expecting worst case scenario for instance for Japanese government bonds and other paper money, so the gold is sort of the anchor of their asset so to speak"
Due to its price, gold is popular amongst wealthy elderly investors, but the number of young investors is said to be on the rise.