TAIPEI (Taiwan News) — Japan overtook Switzerland to become Taiwan’s largest source of gold last year, reports said Saturday (Aug. 20).

The presence in Japan of several internationally certified gold refineries and the country's significant recycling capacity played an important role in that evolution, CNA reported.

According to Ministry of Finance (MOF) data, from January until July this year, Taiwan imported 34% of its gold from Japan, 21% from Hong Kong, and 18% from Switzerland. The rise of Taiwan's northern neighbor as a source of gold was mostly the result of its ability to offer more competitive prices.

The price of gold has been subject to strong fluctuations, with the ups and downs of the COVID-19 pandemic, the war in Ukraine, and the disruption of global supply chains all having an impact on the market, according to experts.

In 2011, Taiwan imported gold with a total value of US$2.58 billion (NT$77.69 billion), but in the following years, imports fell, until 2020 and 2021, when they rose again to US$1.97 billion and US$2.22 billion, respectively. During the first seven months of 2022, Taiwan imported US$1 billion worth of gold, or 8% less than during the same period last year.

Gold is not being imported to serve just as an investment or as jewelry, but is also used in the manufacturing of electronics, aeronautics, and telecom products.