Japanese Buying Physical Gold, Storing it in Switzerland
Japanese investors are buying Bullion and storing it in Switzerland because of negative interest rates and fears JPY will depreciate as the government grapples with the heaviest public debt burden in the developed world, according reports.
The number of buyers jumped 62% in 1-H of Y 2016 Vs 2-H of Y 2015 the data show.
The Bank of Japan (BOJ) has embarked on unprecedented bond buying to bolster the economy, prompting speculation that JPY could plunge if stimulus efforts fail.
Japan’s growth has stagnated for the past 10 yrs, defying fiscal and monetary stimulus which has driven up public debt to more than 2X the value of annual economic output.
Global investors have moved into Gold in Y 2016 as market turbulence and low or negative interest rates increase the appeal of Bullion.
Prices soared about 30% to the highest in more than 2 years as assets in ETFs (exchange-traded funds) rose 37% to more than 2,000 tonnes. The buying increased after the UK voted to leave the EU on 23 June.
Bullion looks to me to in the early stages of its next Bull Market according to the technicals and overall pattern.
But, rather than weakening, JPY has risen in the past year because investors see it as a save haven along with US Treasuries, Silver and Gold.
Meaning that the price of the precious Yellow metal in JPY has dropped 2.5% over that frame even as Bullion denominated in USDs has strengthened to 1,368.45 oz late Saturday.
Japanese investors attracted to Gold range from wealthy older businessmen who have experience working abroad and want to shelter their assets, to younger people and women seeking a safe-haven because of increasing global economic and political risks, especially after the British vote to leave the EU.
Many US owners keep their Bullion abroad because they are very worried about the risk of US government confiscation, which happened during the Great Depression in the 1930’s. Some major US banks have told their “safebox” owners that they cannot be used to store Gold or Silver.
According to the data he supply of “paper Gold” in the market far outstrips that of Bullion and perhaps the much of the world’s Gold mining companies ability to meet future production demand.
Live Metal Spot Price (24hrs) 9 July 2016 at 11:15p EST
|Gold Spot Prices||Today||Change|
|Gold Price Per Ounce||$ 1,368.45||6.50|
|Gold Price Per Gram||$ 44||0.21|
|Gold Price Per Kilo||$ 43,996.69||208.98|