Per editor: Du Yu
According to CCTV Finance news on May 12, due to the dual impact of the rise in the international gold price and the decline in the yen, the recent domestic gold price in Japan has continued to hit a record high. Within two months, the price of gold in Japan rose by nearly 10%, which also led to a boom in gold trading.
Japan's gold trading boom! Someone took out all the gold from 20 years ago
Image source: CCTV Finance
On the 10th, Japan's largest gold retailer Tanaka Precious Metals announced a retail price of 9,794 yen per gram (about 505 yuan), once again hitting a record high. Under the continuous rise in food and other prices, many Japanese consumers regard gold as one of the important ways to fight inflation. Many of them chose to buy physical gold, and the number of customers in several gold stores has doubled recently compared to before the gold price rally.
Wang Xiang, special correspondent of the financial channel: There was a sign at the gold exhibition held in Saitama Prefecture that said "Gold price hit a record high". According to the organizer, all gold products will be raised in price from the middle of next month, with an increase of up to nearly 20%.
The person in charge of the gold exhibition introduced that Japanese consumers like to buy gold artworks, as well as tableware, tea sets and other gold products with practical value. In terms of customer age, there has been a recent trend towards younger age, with the average age of customers buying physical gold this year falling to 55 from 68 three years ago.
Image source: CCTV Finance
As the price of gold continues to rise, some Japanese people choose to sell gold when it is high. At a gold store in downtown Tokyo, the reporter learned that the high price of gold has also driven the purchase price of second-hand gold products, and the number of customers who have come to sell gold jewelry has increased significantly. Many of them sold gold jewellery that was purchased two or three decades ago, and some have been passed down for two or three generations, and the price of gold has risen significantly compared to the beginning of the purchase.
A staff member of a gold store in Tokyo, Japan: The price of gold has risen all the way from 78,000 yen to more than 9,000 yen, and the number of customers selling gold has also increased, which may have one a day before, but now there are three or four on weekends.
Image source: CCTV Finance
In addition to physical gold, according to Japanese media reports, the number of Japanese consumers opening gold fixed investment accounts is also increasing, mainly young people. In addition, gold-related investment funds are also favored. Against the backdrop of rising gold prices, Japan-related funds have performed well recently, with the latest data showing that the top three fund investment returns in March were all related to gold.
World Gold Council: Global central bank gold reserves in March were flat from the previous month
According to Shanghai Securities News, the World Gold Council released news on May 12 that according to the International Monetary Fund (IMF) data, as of the end of March 2023, the world's official gold reserves totaled 35,682.2 tons. Among them, the eurozone (including the European Central Bank) totaled 10,773.2 tons, accounting for 55.7% of its external aggregate reserves.
This also means that global central bank gold reserves remained largely unchanged in March compared to the previous month. According to the World Gold Council, available data showed that global central bank purchases almost completely offset gold sales, with a net increase of 0.2t in global gold reserves.
From the perspective of overweight, the data showed that the People's Bank of China bought 18 tons of gold in March, marking the fifth consecutive month of gold reserves. Singapore's central bank increased its holdings of gold by 17t that month, bringing its total gold reserves to 222t, up 45% from the end of 2022. India and the Czech Republic reported modest increases of 4t and 2t respectively.
In terms of holdings, data showed that global central bank gold sales in March were mainly driven by Turkey (15t), Uzbekistan (11t) and Kazakhstan (10t). In addition, after announcing a temporary suspension of some gold imports, Turkey's central bank sold gold to the domestic market.
Experts say gold prices may break to the upside, and the dollar may lose its main support, which is positive for gold
Since the beginning of this year, the international gold spot price has increased by more than 10%. According to CCTV Finance, industry insiders believe that after the Fed's May interest rate meeting, the market's expectations for the Fed to suspend interest rate hikes have increased, which means that the US dollar may lose its main support, which is good for gold. The investment director of South Coast Investment Research said that gold prices are now in a long-term upside range and will break to the upside in the future, which will be a very attractive buying opportunity. Industry insiders also pointed out that the gold market is volatile and will be affected by the comprehensive impact of multiple factors such as economic policy, monetary policy, and geopolitics, and it is necessary to always pay attention to market dynamics, understand the trend and change of the market, and adjust investment strategies in time.
As of the close of trading on May 12, local time, the London gold (spot gold) CFD was at 2011.23 per ounce.
Daily economic news comprehensive CCTV finance, Shanghai Securities News, public information
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