Posts by "djellal"

Japanese investors are reportedly hoarding gold bars, aiming for short-term profits, as the country braces for its first sales tax hike in 17 years, seen as crucial for bringing down the massive national debt.

Beginning April 1, Japan’s consumption tax will rise from 5% to 8% and since gold purchases are subject to such levy, speculators are buying now to sell it back to dealers once the higher rate kicks in, FT.com reports (subs. required)

According to the article, customers have lined up for hours this week at some renown precious metals retailers, such as Tanaka Kikinzoku Jewellery, which has seen its sales jump 530% so far this month, compared to the same period last year.

Physical deliveries of gold at the Tokyo Commodity Exchange, meanwhile, have reached its highest levels since 2007 both in February and in December, reports FT.com. The market also recorded substantial delivery surges before the introduction of tax consumption in 1989, and then again when the rate was increased from 3% to 5% in 1997.

Analysts worry the upcoming tax hike may have similar effects to what happened then, deterring consumers and foreshadowing a cycle of falling prices. However other factors, including the Asian financial crisis, also weighed on Japan’s economy, which fell into recession not too long afterwards.

gbpusd 1.70 soon

buy

vote : gbpjpy 200.00y

BUY BUY BUY USD/JPY
Inflation in Japan is rising, while the Fed's favored PCE prices index slipped
to 0.9% overall in Feb from 1.2% in Jan; well below the Fed's 2% goal. The
divergence between real rates since the last FOMC meeting has been glaring. Even
on a nominal basis USD-JPY 5-yr spreads have reached their highest since last
Sep and are up 30bp from Feb lows and 47 bp from late Oct. With the April 1
Japan sales tax nigh and economic activity expected recede for a qtr or so, the
BOJ is expected to launch QQE2 as the Fed tapers and provides rough guidelines
on when Fed funds rates will be raised next year. Assuming China repeats the
pattern of upping stimuli after a weak start to the calendar year, so as to meet
y/y GDP goals, USD/JPY should target 105.59, the 61.8% of 124.16-75.55 ('07-'11)
hurdle again.

QE reduced in 2014
But they are afraid about the after QE. the US and Europe are addicted to the cheat money. And the emerging markets could crash