Japanese are turning to net buyers of gold for the first time in three and a half years

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Japanese turn to net buyers of gold as an investment for the first time in three years and a half during the second quarter, following a decline from its highest level last fall.

According to data from the World Gold Council, they bought 5.1 tonnes of bullion and gold coins in the three months ending at the end of June, while they were net seller the first quarter (they sold 9.4 tons).

The Japanese investors tend to add more to the possession of gold when prices drop, and vice versa at a rally.

The global demand for gold fell 7% during that period, which is partly due to falling demand, which is India’s largest buyer of precious metal the world over the past year, so in conjunction with the high cost of imports because of taxes, as well as the weakness of the exchange rate of the rupee.