Japan tries to entice investors with a half ounce of gold

[pmbug]

Japanese Finance Minister Jun Azumi will be rewarding investors who buy reconstruction bonds with half an ounce of gold, an added incentive that could boost the return by nearly six times.

Individual investors who purchase more than 10 million yen ($129,000) in the debt with a 0.05 percent return and keep it for three years will receive a gold commemorative coin weighing 15.6 grams (0.55 ounces), the Finance Ministry said in Tokyo today, worth about $948 based on current prices for the precious metal.

The offer suggests the return could be boosted to 89,000 yen should gold prices remain at current levels, more than the approximate 15,000 yen one would receive from the bond. ...

http://www.businessweek.com/news/20...ds-offer-could-boost-return-by-5-9-times.html

Complete math fail. Investors could also just buy gold bullion directly with their $129,000 and likely realize a much greater return on their investment in 3 years time.

 

[ancona]

I love the smell of desperation.

 

[swissaustrian]

Are they going to buy the gold before or do they tap into their reserves to mint the coins?

Anyway, I always admire the work ethic, humility, and kindness of the Japanese people. It´s a great culture.