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Since last November, the surge in Japanese gold sales has contributed to a 10 percent strengthening in world gold prices.
Maybe Japanese depositors are afraid of a repeat of the Argentinian experience -- banks locked, withdrawals restricted.

While the circumstances in Japan and Argentina are quite different, they could have the same end result. A run on bank withdrawals would leave banks with a severe liquidity squeeze. If the Govt prints more yen to bail them out, it could exacerbate the banking problems, lead to high inflation, or a devaluation of the yen. Gold is probably still cheap, compared to what it could become. The deadline for the banks is at the end of this month?

It'll be interesting to see what pans out. Gold is looking very shiny these days.

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