Gold investment is surging in Japan as fears over a global economic slowdown, fueled by U.S. President Donald Trump’s aggressive tariff policies, prompt investors to seek safer assets. As a result, gold, seen as a stable investment amid economic turbulence, has become increasingly popular.
On April 22, the benchmark price of gold set by Tokyo’s Tanaka Precious Metal Technologies Co. reached an all-time high in yen terms, surpassing 17,000 yen ($115). The price surged by approximately 15% in the three months since Trump took office on January 20, reflecting growing concerns over the economic impact of his trade policies.
Gold-linked investment products have also gained popularity, particularly among private investors taking advantage of Japan’s tax-exempt NISA (Nippon Individual Savings Account) program. The Mitsubishi UFJ Fine Gold Fund, which tracks gold prices, saw inflows of 19.2 billion yen in March—an increase of about 2.6 times from December. This marked a rise in the fund’s popularity, as it topped the NISA rankings in February and placed second the following month, according to PayPay Securities Corp.
At Tanaka Precious Metal, the number of investors purchasing bullion and coins has increased, while the number of individuals investing in pure gold through fixed monthly contributions has grown by 26% during the January-April period compared to the same time last year.
The demand for gold also extends to used gold accessories. At Komehyo Co., a major second-hand luxury goods retailer, sales of gold products, including accessories, rose 30% year-on-year in March. In Tokyo’s Shinjuku district, one outlet reported strong sales of gold necklaces, pendants, and other high-priced items, with prices ranging from hundreds of thousands to millions of yen. The store’s sales manager noted that most buyers are in their 30s to 40s.
While gold, like any asset, carries the risk of price declines, its stability during periods of stock market volatility has made it an attractive option for investors. The Nikkei benchmark, for instance, suffered its third-largest point drop in history on April 7.
“Given the volatility in the stock market, gold remains an appealing investment destination,” said Atsuko Sato Whitehouse, head of the Japanese market at BullionVault, underscoring the ongoing shift toward gold as a safe-haven asset amid uncertainty.
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