Japan Physical Gold ETF Surges to 14% Premium Amid Supply Crunch
Japan's Physical Gold ETF soared to a 16% premium over net asset value this week, defying warnings from the Tokyo Stock Exchange. The fund, backed by domestically stored bullion, now holds ¥1.25 trillion ($8.2 billion) as demand overwhelms supply.
Gold markets face historic volatility - spot prices crashed 6.3% on Tuesday, the steepest single-day drop in 12 years. The ETF subsequently tumbled 11% Wednesday, though premiums persist at levels unseen in global markets.
The divergence highlights Japan's unique market dynamics. While international gold ETFs like Goldman Sachs and iShares maintain sub-4% premiums, Japan's fund has decoupled from both global norms and underlying metal prices.