Japan ‘Insurance’ Gold Buying Doubles On Yen Concerns
Monday, 8 July 2013
Gold has inched higher today in all currencies. Friday’s U.S. nonfarm payrolls figure came in better than expected (195Kvs166K) which may have led to gold falling in price.
Gold demand internationally remains robust – especially in Asia. China’s gold imports from Hong Kong for May jumped over one third from April, confirming again that Asian buyers shrewdly buy on dips in price.
In Japan, gold bullion demand in 2013 is twice the levels seen in 2012. Japanese gold imports have doubled to 7,686 kilograms from January to May verses 2,994 kilograms the prior year noted data from Japan’s finance ministry.
Many Japanese are now buying gold as a diversification and as insurance due to the risks of volatility in stock markets and of a further devaluation in the yen.
Abenomics has seen the yen fall 15% against the greenback year to date, its lowest since 2008.
Gold in Japanese yen depreciated 15% this year while gold in dollars sank 27%. On the TOCOM (Tokyo Commodity Exchange) the yellow metal hit a record of 5,081 yen a gram ($1,562/oz) on February 7th as the yen deteriorated.