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Japanese Buyers Flock to Gold As Yen Tumbles

July 8th, 2013 by

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Bloomberg reports how Japanese buyers are running for the gold, as bullion sales doubled from January to May compared to last year. Japanese investors have snapped up 7,686 kg of gold in the first five months, spurred by falling gold prices and a spiraling yen.

Spokesman for Tanaka Kikinzoku, Japan’s largest bullion dealer, says that 500 gram (16.05 ozt) bars are the favorite, as investors look to hedge yen-denominated assets such as stocks and real estate. Because of the falling value of the yen, gold prices in yen have dropped only 15%, compared to a 27% drop in gold denominated in dollars.

by David Peterson