Japanese queuing at the gold shop

The price of gold has reached a new all-time high in Japan this week. On Thursday, the price rose to more than ¥165,000 per troy ounce, breaking the old record set in 1980. At one point, the local market paid ¥5,325 yuan per gram, more than the international gold price. Now that the price of the precious metal is at a record high, Japanese gold shops are also busy. Customers often had to stand in line for two to three hours at many merchants this week to be helped, according to Reuters.

Remarkably, the high Gold price in Japan there is no rush for gold yet. On the contrary, many customers come to hand in their precious metals to take profits. Japan's largest gold trader, Tanaka Kikinzoku, saw gold purchases increase by 40% in July and even 70% in August compared to the monthly average in the first half of this year. Sales, on the other hand, were 10% lower than the monthly average in July and even 20% in August.

"Japanese gold investors are contrarian. They sell high and buy low, while Western investors and funds tend to do the opposite. With a price of more than ¥5,000 per gram, we see more individuals taking profits on gold," Chiyoki Chen of Sunward Trading told Reuters.

Gold price hits record high in Japanese yen

The gold price in dollars is at its highest level in six years, but in many other currencies the price of the precious metal is at an all-time high. That's because the dollar has strengthened in recent years. Investors worried about the prospect of the global economy are seeking refuge in the U.S. currency, which is the most traded worldwide.

The Japanese yen has weakened against the dollar since 2010, partly due to the Continued monetary stimulus by the central bank. As a result, the gold price in this currency has reached a new record. Still, Japanese investors don't seem to be worried about the economy, as they are predominantly Selling gold.

At Holland Gold, we initially saw mainly profit-taking after the rise in the gold price. Later, as the price continued to rise, the sale of precious metals also took off. Perhaps the gold price in Japan will have to rise a little further before private individuals get in. Buying gold is less attractive in Japan than in the Eurozone. The purchase of gold is taxed with 8% VAT in Japan, while it is VAT-free in the Eurozone.

Gold price in Japan to record level