Gold delivered very good returns for Japanese

In Japan, too, inflation concerns, rising geopolitical risks and a weak yen as well as a rather gloomy outlook for economic growth are having an impact. Gold gained in attractiveness and brought investors profits, especially compared to other investments. Deflation prevailed in Japan for many years. The Bank of Japan (BOJ) had initiated quantitative and qualitative monetary easing in 2013 and 2016. Inflation was still below two percent after three years, so the BOJ used yield curve control (YCC) in 2016. But there is still a risk to growth. Gold proved to be an asset that can boost returns, protect purchasing power and reduce risks. For example, gold returned 19 percent in local currency terms in the first half of the year. Unlike other major central banks, the BOJ has maintained loose monetary policy while supporting an economic recovery.

Currently, there is a risk of global stagflation in Japan. And the weakness of the yen is reflected in the strength of yen-denominated gold. Here’s how the World Gold Council sees it. The yen depreciated 18 percent against the U.S. dollar in the first half of 2022. Real economic growth in Japan was negative in the first quarter. This had a positive impact on the price of gold in yen terms, which rose 19 percent in the first half of the year. Just as gold has outperformed major assets in Japan, perhaps the same could be true here in the medium to longer term. Even if the gold price is weakening right now, the lean period will eventually be overcome. Investors can therefore look at solid companies like Karora Resources or Osisko Development.

Karora Resources‘ – https://www.youtube.com/watch?v=Fj9xXKHciGE – current drilling program at the Beta Hunt property in Western Australia has intersected up to nearly 30 grams of gold per tonne of rock.

Osisko Development – https://www.youtube.com/watch?v=Eh0stFKsYwk – is developing gold projects in North America. The main project is the Cariboo gold project in British Columbia.

Current corporate information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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