Photo/Illutration A display of 250 kilograms of gold bullion was removed at the end of July at the Toi gold mine in Izu, Shizuoka Prefecture. (Provided by the Toi gold mine)

The price of gold has doubled over the past two years to a record high, causing headaches for Japanese businesses ranging from tourism enterprises to soft-serve ice cream sellers.

Investors have turned to gold as a safe haven due to global instability and other factors.

Tanaka Precious Metal Technologies Co., a prominent trader of precious metals in Japan, listed a gold retail price of 20,324 yen ($133) per gram on Oct. 1, an all-time high.

For about 20 years, the Toi gold mine in Izu, Shizuoka Prefecture, displayed a 250-kilogram block of gold bullion. But the exhibit was removed at the end of July this year because of the soaring prices.

The gold bullion was cast in 2005 by Mitsubishi Materials Corp. at its Naoshima smelter in Kagawa Prefecture.

Measuring 45.5 centimeters long, 22.5 cm wide and 17 cm high, the block was recognized by Guinness World Records as the largest gold bullion until 2024.

When it first went on display in 2005, its market value was around 400 million yen. On the final day of its display, the value had risen elevenfold to 4.363 billion yen.

Although the facility had insurance against theft, the rising insurance costs became a burden.

The Taio gold mine in Hita, Oita Prefecture, known for offering visitors the experience of panning for gold, faces a different problem.

A chart showing price trends of gold is displayed at the ticket counter. Many visitors have expressed surprise over the sharp increases.

The gold panning experience costs 830 yen for 30 minutes.

Last fiscal year, a record 27,000 people participated, and some paid for 10 sessions a day.

On one day in August this year, 700 people panned for gold.

To ensure visitors do not leave empty-handed, the facility uses gold dust imported from Canada.

Rising gold prices have hit operations hard.

Between 2022 and 2024, the facility raised its participation fees three times by a total of 150 yen.

In April this year, the mine operator started charging customers for the plastic foam bottles used to take home the gold dust.

The facility is operated under designated management by the Hita city government, and price increases require ordinance revisions. However, the city has had difficulties keeping pace with the rapidly rising gold prices.

“Every day, we hope that gold prices will stabilize,” said Kosei Yamaguchi, 58, head of the tourism management office of the gold mine.

Gold prices have also affected sellers of soft-serve ice cream.

Kanazawa, the capital of Ishikawa Prefecture in northern central Japan, produces nearly all of Japan’s gold leaf.

Kanagawa-based Imai Kinpaku Co., a gold leaf manufacturer founded in 1898, also sells gold leaf soft serve ice cream, a staple of tourism in the city.

Currently, one soft cream serving costs 600 yen including tax. The price is 880 yen with gold leaf.

Although the company keeps its cost ratio confidential, an official said, “The surge in gold prices directly affects our production costs.”

The company may have to consider charging more for the soft cream if gold prices and inflation continue to rise, the official said.

However, the official noted that orders for gold leaf souvenirs and gifts have increased because more people are recognizing the rising value of the metal.

“Tourists are showing more interest,” the official said.

Since July, when gold topped 17,000 yen per gram, orders from gold vendors who expected further price increases have grown.

However, there are still concerns about a decline in orders sent to traditional gold leaf artisans in Kanazawa.

The surge in gold prices has been pushed in part by instability around the globe, including the wars in Ukraine and the Middle East.

“We hope for peace in the world and for gold prices to stabilize soon,” the Kinpaku official said. 

(This article was written by Akihito Ogawa and Mahar Yunisu.)

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