Japanese Investors Flee to Gold as April’s Record High Sparks Safe-Haven Rush

Gold’s April ATH triggers defensive pivot in Japan—because nothing says ’stable’ like a 5,000-year-old shiny rock.

Traditional investors ditch volatile markets for the OG store of value. Guess crypto’s 24/7 trading wasn’t stressful enough for them.

Bonus jab: Meanwhile, the Bank of Japan still thinks negative rates are a ’temporary measure’. Sure, just like fax machines.

Japan residents take shelter in gold via NISA, direct investment

NISA’s tax-exemption schemes for private investors afford individuals the ability to invest in products linked to gold’s price movements, but direct investments are also reportedly on the rise. Tanaka Precious Metal Technologies, Co. notes of the inter-dealer price (translated): “[The] price was also boosted by reports that US President TRUMP was considering firing Fed Chairman Powell, reaching a monthly high of 15,561 yen on the 22nd. After that, US President Trump denied the idea of ​​firing the Fed Chairman, and selling prevailed due to expectations of an easing of US-China trade friction, and the month ended at 15,198 yen.”

JPY-denominated Tanaka Precious Metals retail bullion price. Source: Tanaka. Notably, Gold tapped an all-time JPY price high per gram on April 22, and again on May 8, according to the asset bullion retail rate set by Tanaka. The tax-excluded, inter-dealer reference price (mentioned above) similarly tapped a high on the 22nd, but has since cooled off. The Kyodo News report notes that concerns about global economic downturn and Donald Trump’s trade war have Tokyoites and residents of Japan not only buying up bullion and coins, but also “investing in pure gold at fixed monthly values” via Tanaka Precious Metals, which investments reportedly grew 26% as compared to the January-April period from a year ago. Further, Komehyo Co., a major secondhand luxury brand retailer, says gold product sales (including accessories) climbed 30% year-on-year as of March 2025. Investments such as the Mitsubishi UFJ fine gold fund (tied to gold’s price), have also seen growth, with inflows of “19.2 billion yen in March, up by about 2.6-fold from last December,” according to Kyodo.

Japan’s political and economic strife a major factor

Even before fear of Trump’s stifling of international exchange, Japan has been struggling with multiple issues, most of which have been the direct result of dysfunctional government policy. These issues include lack of adequate pensions for the elderly, skyrocketing inflation, rice prices at all-time highs, destructive inbound tourism, a new self-described “defense geek” prime minister with a strikingly low approval rating. Given the turmoil, people seem to be turning to gold in an ages old strategy designed to protect themselves from such problems. To many residents of the archipelago, Japan’s PM seems more interested in pouring JPY into the U.S. state, than helping fix the problems at hand.

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