Gold Reaches 155,180 Yen/oz - Near Record In Japanese Yen

Tyler Durden's picture

From GoldCore

Gold Reaches 155,180 Yen/oz - Near Record In Japanese Yen

Today’s AM fix was USD 1,664.25, EUR 1,224.52, and GBP 1,057.47 per ounce.
Friday’s AM fix was USD 1,665.00, EUR 1,217.99, and GBP 1,052.46 per ounce.

Silver is trading at $31.57/oz, €23.37/oz and £20.17/oz. Platinum is trading at $1,701.00/oz, palladium at $754.00/oz and rhodium at $1,200/oz.

Cross Currency Table – (Bloomberg)

Gold rose $3.00 or 0.18% in New York Friday and closed at $1,667.80/oz. Silver surged to a high of $32.14 and finished with a gain of 1.18%. 

Gold advanced 0.54% for the week, while silver was up 1.99%.

Gold rose initially on Monday prior to seeing determined selling. Gold was unable to break its narrow trading range despite rising after the poor GDP number last week.

While sentiment towards gold remains lukewarm due to recent tepid price action and confusing, mixed economic data, platinum rose to a 4 month high ($1,705.25) and palladium soared to its highest since September 2011 ($759.75) primarily due to concerns about supply especially from South Africa.

The run up in platinum and palladium is also due to U.S. auto sales reporting that January topped estimates, as car buyers returned to U.S. showrooms.

This week’s U.S. economic highlights include Factory Orders at 1500 GMT today, ISM Services on Tuesday, Initial Jobless Claims, Productivity, Unit Labor Costs, and Consumer Credit on Thursday, and the Trade Balance and Wholesale Inventories on Friday.

The Eurozone Sentiment and PPI are also released today and currency and gold traders will be paying close attention to the ECB's monthly policy statement on Thursday for any attempt by the ECB to weaken the euro as currency wars heat up.

The Chinese week long holiday for the Lunar New Year starts on Saturday and therefore physical buying will continue this week and lend support prior to becoming quiet next week.

Holdings of SPDR Gold Trust, remained unchanged for its 4th session at 1,328.092 tonnes

The benchmark gold on Tokyo Commodity Exchange (TOCOM) hit a record high of 5,000 yen a gram, driven by a weak yen and the continuation of the Bank of Japan’s loose monetary policy.

XAU/JPY, 1 Year – (Bloomberg)

Gold bullion for delivery in December climbed as high as 1.2% to 5,000 yen per gram on the TOCOM. In ounce terms, the yen fell to 155,180/oz against gold, its highest level since 1980. 

According to the data on Bloomberg, the all-time record high for gold priced in yen was 204,850 yen on January 21, 1980.

Thus, yen gold remains 33% below the record intraday nominal high from 1980. Given the Japanese determination to devalue the yen to escape deflation, the record nominal high will almost certainly be reached in the coming months.

Platinum also climbed 2.7% to 5,130 yen per gram for the same month, the highest level for the most-active contract since May of 2010.

The yen was 92.97 per dollar on Feb. 1st its, the lowest ratio since May 2010. The Japanese yen dropped 2.1% last week its 12thweek of losses in a row.

Despite Japanese Finance Minister Taro Aso claiming that “the objectives from the current government are not intended to weaken the yen” – that is exactly what is happening.

XAU/JPY, Quarterly, 1971-Today – (Bloomberg)

A cheaper yen boosts Japanese exporters.  It helps increase the earnings abroad when they are funnelled back into yen, plus it lowers the price abroad of goods that are made in Japan and exported.  The country’s strong auto and electronics sector benefitting from the cheap yen are outperforming the benchmark index. 

The yen fell by more than 20% against gold in 2012 and analysts are concerned that Prime Minister Abe and his new government’s determination to stoke inflation, devalue the currency and promote growth could lead to further falls in 2013.

Competitive currency devaluations are set to continue and currency wars deepen and such beggar thy neighbour monetary policies will lead to debased currencies, inflation and the real risk of an international monetary crisis.


Gold in Tokyo Advances to Record; Platinum Reaches Two-Year High - Bloomberg

Gold Little Changed as Investors Weigh U.S. Jobs, Growth Outlook - Bloomberg

Gold slips as upbeat U.S. data trims safe-haven draw - Reuters

Platinum Market Seen Producing Deficit of up to 760,000 Ounces in 2013 – Fox Business


The Case Of The Disappearing Gold – Zero Hedge

Dubai gold dealers shun Turkish bars on fears of Iran link - Mineweb

Former Iranian Central Bank Head Caught Smuggling $70 Million Bank Of Venezuela Check Into Germany  - Associate Press

The looming gold ‘production cliff’ –

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GetZeeGold's picture



Good luck getting one of them to sell it to you. They buy it over there....they don't sell it.


Gold is how you say 401K in Japanese.

BeerBrewer09's picture

soon it will cost you 155,000 in FRNs for an ounce of the stuff

fourchan's picture

comming to an amerika near you...soon.

goldenbuddha454's picture

So now Japan and the U.S. will have to sell a bunch of gold to make this situation go away?  I mean, how can they manipulate themselves out of this one?

Sudden Debt's picture

I bet there's still plenty of gold on American graveyards ONLY 6 FEET UNDER!!

I wonder when they'll be selling digging claims!!



espirit's picture

I'll always think of the Yen as the same value as a U.S. penney so, 155k+ seems kind of low.

165k+ Yen per oz is about right.

youngman's picture

If you are Japanese and you are buying gold to save your wealth...why would you sell.....because you made 5% last week...I don´t think so.....I think you will try to buy more...Many people in many countries are doing the same thing.....governments too..people realize that the fiat is going to devalue...all of them...and until this settles and silver are the historic money...the true safe haven...

Momauguin Joe's picture

Chickens coming home to roost.

BeerBrewer09's picture

How many people do you think are actively purchasing gold/silver in the USA?
I see lots of craigslist posts of people who are buying. The only people selling are asking $40+ for government issued silver rounds.

It's impressive that prices have been forced so low for so long.

Silverhog's picture

There is few sellers of size in PM's on Fleabay. I just bookmarked a Silver Eagle @ $44 plus $3 shipping and still a half hour to go. Spread is getting up there.

BeerBrewer09's picture

1% of the population?
2% ?

What percent of Americans buying PMs make the prices go parabolic?

youngman's picture

I know 47% of the population is NOT buying......but the othe half...I have had several people ask me about¨PM´s the last couple of months...out of the blue..we used to be 3%......I think we are now 10%

BeerBrewer09's picture

Thanks for the reply. They might be buying plumbum instead of aurum or argentum.

oddjob's picture

10%?...considering PM's and all related equities comprise less than 2% of investable assets I doubt americans are over invested by a factor of five.

eigenvalue's picture

In fact, Japan is a net exporter of gold. It used to import large quantities of gold in the bubble years of the 1980s. Now the aging population is selling gold for the retirement. 

youngman's picture

I would think they would sell their bonds first.....give their gold to their families

eigenvalue's picture

Oh well, maybe it's stupidity but it is what it is. That's what the Japanese, especially the old people are doing. They trust paper banknotes more than gold.

goldenbuddha454's picture

1980, hmmm? Gold prices, Iran, hostages, oil, food inflation, middle-east tensions, money printing, govt. spending, high unemployment.  Hmmm?  Is there something De Ja vu-ish going on here?

GetZeeGold's picture



What was the debt in 1980?

Ghordius's picture

trick question? let's see: not backed in gold? and therefore actually smaller than the one in the 50's and 60's? though that one was gradually being paid back, courtesy of conservative policies

pls don't confuse me, GetZeeGold

Sudden Debt's picture

in Yen... whohoo... to bad I'm not a radiating Japanese guy... lucky them...



kralizec's picture

I yen fo gold, beechez!

100pcDredge's picture

Yen / oz... ehm... ok.

orangegeek's picture

Euro is the last of the four key currencies to collapse.  After this, the US Dollar should rocket.  Yen, Pound and CDN have all turned down.

tip e. canoe's picture

gold priced in the IMF's paper gold remains flat for the week prior:

and for the month and YTD as well:

don't let the currency fluctuations fool ya...

CheapBastard's picture

I had some yen travellers checks when I was in Asia last Fall. No one wanted to cash them---Korea, Taiwan, one wanted them. It might be better to carry a handful of 10th oz gold coins next time? My guess is everyone would have jumped to cash that seeing how the gold stores were packed in HK and CHINA.

Monedas's picture

Puke is luke warm .... gold is HOT !

agent default's picture

Yes, and tomorrow it will be gold in new heights against the Dollar, and the day after new heights against the Euro, but don't worry.  It is a barbarous relic, irrelevant to the 'Real Economy'(TM) and the currency of doomers.  The really worrying part is that most people out there will still have these opinions long after they start paying $1000000000000 for a loaf of bread.

Uncle Zuzu's picture

Motion to ban forever anyone who writes "bitches" in a comment.  Do I have a second?

monopoly's picture

Patience all, our time is coming. Just look around you, way too many sheeples believe this rally is for real. Retail investor moving back in now. That is always a good sign.... Right!!!! (sarc)

FunkyOldGeezer's picture

But the Japanese who bought the Aussie Dollar would have been even better off.

Gold approx + 19%, Aussie Dollar approx + 30%.

Lately, Gold and Silver have been, in reality, under performing. That possibly bodes even better for the future, but it's no surprise the two metals have lost some of their lustre and can't get going.

FunkyOldGeezer's picture

Quote: Euro is the last of the four key currencies to collapse.  After this, the US Dollar should rocket.  Yen, Pound and CDN have all turned down.

Euro has recently gone positive against the Dollar after being 15% down mid 2012.
Pound is still just positive to the Dollar and Canadian Dollar still 5% positive to the Dollar (which has itself recently gone negative).

So at the mo' I don't see too much evidence of the Dollar being the strongest currency.