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The Japanese are Rushing to Gold!

According to Conclude Daily Gold, the interest towards gold has reached a record level in Japanese yen, after the Bank of Japan engaged into intensive monetary easing.

Gold's price in Japan has hit the 4820 yen level, which has surpassed the September 2011 record height.

The Japanese yen has gradually lost ground against the US dollar and precious metals as well.

Weakening exports-related figures have only worsened the situation.

The dollar has surpassed the 89 Japanese yen level and, according to Kate W. Harada from the precious metals division of Tanaka Kikinzoku Kogyo - if the dollar reaches the 90 yen psychological level, then the small investors will likely engage in gold buying.

For 7 years, Japan has been a net seller of gold, but the tide may turn - the country might become a net buyer of gold.

Currently, the interest towards investment gold (as a hedge against the yen's devaluation) is rising and this will evidently influence the price of gold on a global scale.

Japan being the 3rd largest economy in the World and the population has a very high purchasing power - if the small investors engage into massive buying, the population as well might start purchasing investment gold. If a "Japanese gold rush" happens, then this will add tremendously to the demand for gold, joining China and India.

It remains to be seen how much weight Japanese buyers will represent. China has a large population, but Japan has a higher purchase power.

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