The Japanese are buying gold: panic or reasonable hedge?

The Japanese are buying gold: panic or reasonable hedge?Massive purchases of yen-denominated gold from Japan's largest dealer have led to panicky prices rising: for the first time, 1 gram of the precious metal costs more than 10,000. Retail investors have changed their attitude to risk: the yen continues to weaken against the US dollar, and ordinary citizens and small businesses, burdened with cash, are looking for protection against inflation.The traditional Japanese consumer has always trusted the national currency. But the country emerged from the COVID pandemic with record savings of more than 2 quadrillion yen, about 4 times the country's annual GDP. Consumers kept approximately 50% of this amount in cash and on deposits. Now Japanese analysts are trying to convince clients that inflation is here to stay, they just need to move their savings into other financial products. By the way, core consumer price inflation reached 3.1% last month, which is high for Japan.The yen is likely to remain weak until Japan's interest rate gap with the US and Europe narrows and the BOJ decides to tighten its ultra-loose policy. Goldman Sachs forecasts USD/JPY in the 155 zone over the next six months.Of course, the retail price of gold in Asia tracks global spot prices, which have been driven up by the pandemic, the military conflict in Ukraine and tensions between China and the US. But the sharp drop in the yen this year turned into a year-and-a-half rally not only in bank gold but also in the products of jewellery retail chains. Now everyone prefers to convert the yen into gold, hoping that the price in dollars will remain high and stable. The national retail gold market is small, so demand is gradually spreading outside Japan.Have you already stocked up on reserve gold bars?Profits to yall!#ForexChief #GoldmanSachs #usdjpy #Market #forexnews #boj #worldnews #gold