Japan is witnessing scenes reminiscent of the 1980 gold rush. As global gold prices surged past $4,000 per ounce, investors flooded the streets of Tokyo in a frenzy to secure physical bullion - a phenomenon now being dubbed "Gold Fever."
At the heart of the rush is Tanaka Kikinzoku, Japan's largest precious metals retailer, which has suspended sales of small gold bars weighing 5, 10, and 20 grams after unprecedented demand wiped out inventories nationwide.
Local media reported five-hour queues snaking around the company's flagship Ginza store, as desperate buyers scrambled for what little remained. Bars of 50 grams or more were still available - but for how long remains uncertain.
"It started with small lines, then they grew longer and wrapped around the block," said precious metals analyst Mike Maloney of GoldSilver.com. "It's exactly what we saw in 1980 when panic buying became a national event."
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From Tokyo to Global Markets
The surge in Japanese demand mirrors a broader trend sweeping the world. A similar shortage is hitting silver markets, with investors across Europe and North America struggling to source coins and bars as physical premiums soar.
Analysts say the movement reflects eroding trust in fiat currencies and renewed fears over inflation, debt, and global economic instability.
Institutions Are Buying Too
The gold rush isn't limited to individual investors. Stablecoin issuer Tether reportedly added 19 tons of gold to its balance sheet in the first half of 2025 - 15 tons in the second quarter alone, roughly matching China's central bank purchases during the same period.
Meanwhile, the Kobayashi Letter, a Tokyo-based financial journal, revealed that world central banks purchased another 15 tons of gold in August, marking their 27th month of net buying in the past 28 months.
"This isn't a blip," said Maloney. "We're watching a long-term structural shift in how nations and investors view money. When confidence in paper fades, gold becomes the only lifeboat."
A Market on Fire
On the trading floors, the COMEX gold futures market broke above $4,000, signaling strong upward momentum. Silver, too, climbed above $48 per ounce - but demand continues undeterred.
BullionStar, one of Asia's largest bullion dealers, confirmed record-breaking sales activity this week:
"Customers continue buying aggressively," the company stated. "Price isn't deterring demand. Investors are securing physical assets rather than waiting for pullbacks that aren't materializing."
Echoes of the Past
The last time Japan experienced such hysteria was during the late 1970s gold boom, when Time Magazine compared the buying frenzy to movie premieres for Star Wars and Apocalypse Now.
Today's buyers, however, are motivated not by novelty, but by fear.
As investor Simon Mikhailovich noted, "Those who think they missed out on gold are missing the point. If a ship goes down, those who paid more for their lifeboats aren't any less happy than those who paid less."
The Next Wave
Even as prices hit record highs, experts warn that the real surge may still be ahead. With central banks accumulating gold for a record two consecutive years, and retail investors emptying dealers' shelves, global inventories are tightening fast.
Maloney believes the next phase could see "cash-for-gold" shops reappear across cities worldwide - but this time, with more buyers than sellers.
"You can print yen or dollars," he said. "You can't print gold."
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