Gold prices in Japan have reached their highest levels in over 50 years, prompting a surge in market activity.
Recently, gold prices in the country have repeatedly reached new highs, even breaking records unseen in over 50 years. At one point, the retail price of one gram of gold exceeded 19,000 yen (about 128.46 U.S. dollars).
Compared to the same period last year, Japan's retail prices of gold have risen by nearly 50 percent. This increase in gold prices has directly influenced consumer behavior and trading patterns in the country's gold retail market. The manager of a gold jewelry recycling and sales shop noted a significant shift in the ratio of customers selling gold to those buying it. Previously, the two groups were roughly equal, but now there has been about a 20 percent increase in customers looking to sell gold compared to the same period last year. "As gold prices have kept rising, some customers have come to sell their gold multiple times. I have noticed a significant increase in clients selling gold with a large gram weight," said Fumi Sukekawa, manager of a gold store in Tokyo.
"Some customers expressed regret that they should have bought gold when prices were lower in the past. They feel particularly regretful. Many others think that if they don't buy quickly now, prices may become even more expensive in the future," said Mika Yamashita, a staff member at a gold store in Tokyo. Some executives from major gold trading companies in Japan have also noticed a significant increase in the number of customers buying and selling gold recently. They generally expect that gold prices in Japan will continue to rise in the near future.
Additionally, compared to physical gold, gold-related exchange-traded funds (ETFs) have been highly popular among investors.
For Japanese investors, amid inflationary pressures and a weak yen against the U.S. dollar, gold ETFs are increasingly viewed as an insurance policy in their investment portfolios. They serve to mitigate risks related to exchange rates, inflation, and global economic uncertainty. "Currently, the yen remains at a low level. Compared to investing in domestic financial products in Japan, investors are also choosing various overseas products for diversification. In this context, more and more people are turning their attention to gold, alongside the U.S. dollar," said Hideo Kumano, chief economist at Dai-ichi Life Research Institute in Tokyo.
Gold prices in Japan reach highest levels in over 50 years
Gold prices in Japan reach highest levels in over 50 years
