Gold is proving to be a popular commodity for investors in Japan, even though its value has been dropping around the world in recent weeks.
The declining value of the yen against the dollar has had a positive impact on the precious metal, which is subsequently worth a lot more in Japan.
According to a report by the Wall Street Journal, Japanese families are picking out gold objects from closets and jewellery boxes and selling them on to metals dealers.
Speaking to the news provider, 61-year-old Masako Yoshida explained she waited for an hour to sell her gold last week and is planning to use the money for a holiday later in the year.
Naoto Mizuki, general manager at Tanaka Kinzoku, stated the crowds of people looking to cash in on their gold are getting increasingly larger.
Gold has lost around 7.4 per cent of its value from the start of the year and is close to the 52-week low of $1,535 set in May, it was recently reported by Mining.co.uk.
Find out about commodities trading and learn CFD strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.