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Japan's biggest gold retailer says negative rates boost demand - Bloomberg

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Bloomberg reporting the Japanese biggest gold retailer quoting that the Bank of Japan’s (BOJ) latest negative interest rates policy stance has boosted the domestic demand for gold.

    In an interview with Bloomberg, Takahiro Ito, chief manager at Tanaka Kikinzoku Kogyo K.K.’s store said, “Many customers are wagering that it’s better to turn their savings to gold as a safe asset rather than deposit money at banks that offer low interest rates.”

    The price of gold bars climbed to 5,027 yen ($44) a gram on March 11, the highest since July 7, according to the Tokyo-based company.

    “Many customers usually sell gold, but we get the feeling that more customers are buying gold even at prices exceeding 5,000 yen,” Ito added.

    According to the World Gold Council (WGC), consumer demand in Japan rose to 32.8 metric tons in 2015 from 17.9 tons a year earlier, making it the seventh largest consumer in Asia.
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