TANAKA KIKINZOKU KOGYO K.K.

View from Japanese Gold Market

LBMA Singapore Market Forum

25/06/2014

TANAKA KIKINZOKU KOGYO

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

About TANAKA Founded in 1885. Total Solution Provider

From procurement to the recycling of

precious metals, we aim to further

streamline our business by adopting

an integrated system.

STEP 2: Processing and

Manufacturing

STEP 1: Bullion

Procurement

STEP 4: Recycling

STEP 3: Sales

2/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

Gold price (Tanaka Kikinzoku Retail price vs London Fixing)（1973年～)

\-

\1,000

\2,000

\3,000

\4,000

\5,000

\6,0001973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Reta

il price（\gm

）

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

London F

ixin

g（$/oz)

Retail price

London FixingGold price since 1973

Monthly average Loco Ldn ,TKK Retail PX（JPY)

Gold import

liberalization

TANAKA

GAP launched

Consumption tax 3%

Consumption tax 5%

Consumption tax 8%

Deposit insurance limit

lowered

Han-shin Awaji

Earthquake

The Great East

Japan Earthquake Appointed

as a LBMA

GD smelter

Appointed

as a LBMA

GD Referee

3/13

TANAKA PAP

Launched

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

Japan Gold （unprocessed) import/export data

Annual import and export（1988～）

HS Code:710812000

Gold (Unprocessed)

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Quan

tity

（K

g)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Tan

aka

Kik

inzo

ku r

eta

il pr

ice（\/gm

）

Import quantity

Export quantity

Average price of Retail price

4/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

Japan Gold import/export data Annual import and export（1988～）

HS Code:710811-13

Gold (All)

-400,000

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Quan

tity

（K

g)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Tan

aka

Kik

inzo

ku r

eta

il pr

ice（\/gm

）

Import quantity

Export quantity

Average price of Retail price

5/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

TANAKA Retail business network in Japan

Hotel Chinzanso Tokyo

Ginza Tanaka

Headquarters

Sendai

Shinjuku,

Tokyo

Motomachi,

Yokohama

Nagoya

Shinsaibashi,

Osaka

Tenjin,

Fukuoka

Sakae,

Nagoya

9 Direct shops / 120 distribution retailers

Call Centre / Online Shop

6/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

Gold price (Tanaka Kikinzoku Retail price vs London Fixing)（1973年～)

\-

\1,000

\2,000

\3,000

\4,000

\5,000

\6,0001973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Reta

il price（\gm

）

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

London F

ixin

g（$/oz)

Retail price

London FixingWhat TANAKA experienced ?

①

②

③

④ ⑤

⑥

⑦

⑧

7/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

TANAKA Gold Retail business index Au 2000年1月を1としたIndex

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2000年

2001年

2002年

2003年

2004年

2005年

2006年

2007年

2008年

2009年

2010年

2011年

2012年

2013年

2014年

指数売 指数買Sales Buy-Back

⑤

⑧

⑥

⑦

8/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

Key word in Japan Retail market

Gold /yen price

How to hedge asset in JPY

Long term holding

Personal Pension

Heritage

Customer education

9/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

TANAKA Precious Metals Saving account

1980: Launched Gold Accumulation Plan (GAP)

1984: Launched Platinum Accumulation Plan (PAP)

2013: Launched Silver Accumulation Plan (SAP)

〔GAP〕

・Monthly average buying ,Min. amount: 3000yen($３０）

・Allocated account

・Also spot buying available

10/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

TANAKA Retail items

Physical bullion and coins

Jewellery

11/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

Works of art 12/13

Copyright ©TANAKA KIKINZOKU KOGYO K.K. All Rights Reserved.

Thank you very much

13/13