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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: macavity who wrote (6183)	5/26/2002 2:36:53 AM
From: Jorj X Mckie	Read Replies (2) \| Respond to of 33421

macavity, This statement is true: "The average Japanese citizen is not yet buying bullion. Not even the not-so-average. Very few people are" I do a fair amount of business in Japan (just got back from there today) and I do little informal polls with the people who I am working with. Not only are they not buying bullion, I have been assured that it is a very difficult thing to do.

To: macavity who wrote (6183)	5/29/2002 10:09:35 PM
From: t4texas	Read Replies (1) \| Respond to of 33421

question about japanese savings insurance. i know that in april, 2002, the japan bank deposit insurance was lowered from "what ever you have in there" to about $75K. i have since read (somewhere, like northern trust, i think) that either in 2003 or 2004 the japanese bank deposit insurance will be eliminated completely. do you know whether this is true? amazing if true.

To: macavity who wrote (6183)	5/30/2002 8:47:48 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Mac, a really great post, You have really been writing some very incisive missives the past several weeks. How Japan unfold / unwinds will continue to be fascinating to watch. I find it very intriguing that the bank deposit insurance in Japan is being phased out over the next few years. That's a very interesting development. John, you said it - "Life takes time to live!" thank you for remembering my little pearl of wisdom -g- John

To: macavity who wrote (6183)	6/6/2002 12:29:09 AM
From: Step1	Read Replies (1) \| Respond to of 33421

Mac, and don`t forget to mention that whoever buys gold here in Japan also has to pay the 5% consumption tax on the purchase as well, plus a bar charge and of course the regular mark up from the dealer. Then you have to store it somewhere... So, despite good numbers on tonnage imports for gold, this is not even a wave, and much less a gold tsunami here, just a tiny ripple ... yet ... To be fair, if the gold bar is returned to the same dealer, the 5% sales tax get eaten back at that time so a purchaser of say 1kg of gold would pay: POG + 5% sales tax + 1% spread + 5000 yen bar charge to buy and then turn around and get POG + 5% sales tax back - 1% spread + 5000 yen bar charge. All in theory, you have to trust what the dealer says when they promise they will add the 5% sales tax back on when you come back to sell the bar to them, assuming they are still in business when you do ... Plus sales tax could change (actually it is pretty obvious it will have to go up sharply in the years ahead, Koizumi will eventually have to do a read my lips speech ...) . So my read of the gold buying reports of late in Japan is this (plus I live here and I only know of one person who has bought some gold ) : that it is still small all considered. Smaller cities do not have the kind of large, trustworthy dealers, people still trust ... The Postal Savings System as this has been told to me, it is the emblem of the country itself, (never mind people don`t ask where the assets are, nobody says show me the money), and buying gold is still regarded as an extreme move warranted in extreme circumstances... I have broached the topic with some close friends and noone thought it was practical thing to do, things would have to be a lot worse than they are, etc, etc ... Goes to show you two things: 1. people know what`s going on, yet they are frozen, incapable of taking action 2. if it ever moves, it will be incredibly violent (sorry for the generalization implied in "people know") Three tidbits I would like to add though: Large gold dealers do offer gold and PMs accounts with automatic bank transfers for monthly accumulation programs.(PMs stored at the dealer facilities) No need to use real names (yet ) as IDs are not checked when you buy physical. Gubment guarantees still do exist on bank deposits albeit severely curtailed on term deposits (about 75,000 usd insured) and still unlimited guarantees on "on-demand" deposits (equivalent of checking accounts in North America) until Next Year ... perhaps the real day of reckoning ... Just some thoughts and comments to add to your post for all. later Stephan