Japan is exporting gold at a record pace: Japan’s gold exports surged +35.6% YoY in FY2025, which ended in March 2026, to ~$25.5 billion, the highest since data began in 1988. The average export price rose +48.7% YoY to a record ~$117,400 per kilogram, driven by surging global gold prices. At the same time, gold imports surged +120% YoY to ~$1.1 billion, the highest on record. As a result, Japan exported over 200 metric tonnes more gold than it imported in FY2025, valued at ~$24.4 billion, up +37.9% YoY. Japan's domestic gold production is too small to account for the scale of export growth, according to the Finance Ministry, which says the figures point to an outflow of previously smuggled gold into the country. The suspected mechanism is that gold is smuggled into Japan without the standard 10% consumption tax, sold domestically at tax-inclusive prices to generate a profit margin, and then exported overseas. Unusual gold movements are taking place in Japan.(The Kobeissi Letter)