TOKYO (Commodity online): Lower Gold prices are not deterring Japanese investors from selling off their gold due to an impending bullion tax law.
The law, which comes into effect on Jan 1, will require bullion retailers to report gold and Platinum transactions over 2 million Yen to the tax authorities. As such, investors have been eager to liquidate their gold holdings even though prices are still over 15% below its record prices.
Bullion houses had even opened on Thursday to accommodate the selling public despite Thursday being a public holiday.
"The general public does not want to pay additional tax on their Gold investment. So even though prices dropped sharply overnight many are coming to bullion shops for liquidation”, Reuters quoted a Japanese bullion house official.
On Thursday, gold prices had briefly spiked below its September lows of around $1530/oz. With financial markets perceiving a higher risk in investments, gold prices may remain weak or even fall severely since gold is now seen as a risk asset.
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