The Japanese way to boost gold assets

“The rationale behind this move is that when the great earthquake hits Tokyo (or more likely the tidal wave that will follow), these companies will be able to sell their gold to pay for the city’s reconstruction,” he writes. (Tokyo, like San Francisco, is located on ground susceptible to earth t remors and movement.)

The gold price in yen has turned higher and the country’s import price inflation is increasing.

“We are led to believe that if all the non-life companies took up their 3% entitlement, it would amount to around 4,000 tons of gold or about 2.3 times estimated new mine production of 1,700 tons for next year,” says the analyst.

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