Page 36 - Bullion World Volume 4 Issue 10 October 2024

P. 36

the attitude of the

Japanese investors

toward gold

Mr Bruce Ikemizu
Chief Director & Precious Metals Specialist,
Japan Bullion Market Association

This completely opposite trading style gave me
quite good opportunities to trade between the two
markets when I was a professional trader.

However, in the past several years I see Japanese
investors’ mind set have totally changed especially
after Covid. We have younger generations who are
not concerned about past prices. The weakening
yen is also a driving force for the change.

People had realized the purchasing power of the
Yen decreased significantly when they visited
foreign countries after the pandemic. Gold in
Mr Bruce Ikemizu Yen is the best protection against the currency
devaluation. Investors who hold gold stopped
selling for profit but rather choose to hold it as an
The past 37 years in Japanese precious metals important part of the portfolio. Japanese Gold
market, Japanese investors always impressed ETF balance has been increasing while US and
me with their bargain hunters’ activities. They European counterparts sold hard on the back of the
buy when the gold price dips and sell when the higher interest rates. In the retail physical market,
price goes up. But in Western world investors even with the historical high prices, the buying and
act the other way around. Most of the Western selling are well balanced. Although this structural
investors are what we call “trend followers”, change in Japanese gold market is not a big news
they buy when market is going up, they sell but I feel it could change the world gold market for
when market is going down. the long run as Japanese investors turn to be long
term holders rather than short term traders.

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