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Japan gold imports plunge, weak trend seen in '96

TOKYO: Japan's gold imports plunged in April due to a weaker yen, which pushed up import prices, and the recent strength of the Japan stock market, Japanese precious metal industry sources said on Wednesday.

The weaker trend in Japan's gold imports was likely to continue for the rest of this year, they said.

Japan's gold imports totalled 9.37 tonnes, down 74.2 percent from the same month a year earlier, Finance Ministry data released on Wednesday showed.

Gold imports in the first four months of 1996 totalled 54.24 tonnes against 103.08 tonnes in the same period last year.

"Unlike the same period a year earlier, gold investment by private investors has cooled off since earlier this year, discouraged by higher yen-based gold retail prices," said Yukuji Sonoda, president of Sumisho Gold Co., Ltd.

Sonoda said gold imports for the whole year could fall to around 150 tonnes against 262.30 tonnes in 1995.

On Wednesday, the retail price of gold was 1,419 yen per gram, against a 20-year low of 1,070 yen on May 29 last year.

"Private investors, who bought gold bars at the 1,300 yen level, are stepping up their selling, especially since the retail price broke above 1,400 yen per gram," Sonoda said.

The recent strength of the Japanese stock market and static gold prices have also lured private investors away from the gold market, the industry sources said.

In April 1995, gold imports were boosted by social uneasiness after the devastating earthquake in Kobe in January and the sarin gas attack on Japan's subway in March, in addition to cheaper yen-based gold retail prices.-Reuter