Gold Price in Japan Shatters ¥25,000 per Gram Record as Weak Yen Fuels 'Safe Haven' Shift
The retail price of gold in Japan has surpassed ¥25,000 per gram for the first time, driven by a historically weak yen. This development calls into question the yen's status as a global safe-haven asset.
¥25,000 per gram. The retail price of gold in Japan has breached a major psychological barrier for the first time in history. This isn't just about the rising value of gold; it's a stark reflection of the market's dwindling confidence in the relentlessly weakening Japanese yen.
The Illusion of a Yen-Denominated Record
This morning on December 24th, major bullion dealers across Japan simultaneously updated their prices to over ¥25,000 per gram, setting a new all-time high. The surge is particularly notable as global gold prices have remained relatively stable, indicating a phenomenon specific to Japan.
Analysts point to the record-setting weakness of the yen as the primary driver. Because gold is priced in U.S. dollars on the international market, a depreciating yen means Japanese investors must pay more of their local currency to acquire the same amount of the precious metal. In essence, the story is less about gold's strength and more about the yen's declining purchasing power.
Is the Yen's Safe-Haven Status Fading?
The Japanese yen has traditionally been a go-to safe-haven asset for global investors during times of economic turmoil. However, concerns are growing that its status is eroding due to the Bank of Japan's (BOJ) prolonged monetary easing and structural issues within the Japanese economy. The current flight of domestic investors from their own currency to a hard asset like gold only amplifies this anxiety.
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