February Export Value Reaches 2.7 Trillion Won, 4.7 Times Higher Than a Decade Ago
Tariffs Cited as Key Factor Behind Surge in Gold Exports
Recent Increase in Gold Smuggling Cases Detected
Recently, gold exports from Japan have surged. As gold prices reach record highs and demand for gold intensifies, there are also concerns that gold bars previously smuggled by criminal organizations may now be circulating in the market.
According to Japan's balance of payments statistics released on May 8, exports of non-monetary gold such as bullion (with a purity of 99.5% or higher) in February 2025 amounted to 281.1 billion yen (approximately 2.7 trillion won), which is about 4.7 times higher than a decade ago. In contrast, imports stood at 5 billion yen, down about 40% compared to ten years earlier.
The amount of gold exported in February 2025, when converted to market prices, corresponds to about 20 tons. Considering that the annual export volume in 2023 was around 190 tons, gold is now flowing overseas at a faster pace.
Japan was once called the "Land of Gold, Zipangu" due to its abundant gold reserves, but it is no longer a major gold-producing country. Nevertheless, some analysts attribute the increase in gold exports to the tariff policies implemented by the Donald Trump administration.
The Financial Times (FT) reported that as speculation grows that the United States may impose tariffs on gold imports, traders and financial institutions have been moving gold to storage facilities at the New York Mercantile Exchange since the U.S. presidential election in November 2024.
Since Russia's invasion of Ukraine, gold prices have steadily risen. Recently, concerns over U.S. protectionist policies and an economic slowdown have further driven capital into gold, pushing gold prices even higher. On April 22, 2025, the international spot price of gold surpassed $3,500 per ounce for the first time in history.
With global demand for gold increasing, Nihon Keizai Shimbun (Nikkei) analyzed that individuals and organizations in Japan who had been holding gold may have started to release it into the market.
There are also suspicions that gold bars previously smuggled into Japan are now being exported. In Japan, a 10% consumption tax is imposed on gold imports. To avoid this, it became common to smuggle gold and then sell it domestically at prices including the consumption tax, profiting from the difference. This practice became especially prevalent after the consumption tax was raised from 5% to 8% in April 2014, leading to a sharp increase in gold smuggling cases. In 2024, the number of gold smuggling cases detected reached 493, a 2.3-fold increase compared to the previous year.
The Customs Bureau of Japan's Ministry of Finance stated, "There are indications that smuggled gold is now being exported."
Although exporters in Japan are required to report the source of gold when exporting, it is difficult to trace the actual distribution channels, making it hard to determine whether the gold is smuggled. Nikkei pointed out that, in addition to preventing smuggling, it is necessary to strengthen monitoring systems to ensure that gold obtained through illegal channels is not exported.
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