OSAKA—A 21-kilogram gold donation worth approximately 5.3 billion won ($3.7 million) landed in the heart of Osaka after an anonymous citizen gave the gold bars to the city government.
According to Yomiuri Shimbun and other Japanese media outlets on May 21 local time, Osaka city officials announced they received the 21kg gold bars from an anonymous donor. The donation offer was made in November last year, and the donor also provided 500,000 yen in cash along with the gold. The donor requested the funds "be used for aging water pipe countermeasures" and declined to reveal their identity.
Osaka Mayor Hideyuki Yokoyama said at a press conference, "I am grateful beyond words." He added, "A donation of this magnitude is unprecedented in the history of water utility contributions."
According to city officials, the gold's appraised value is equivalent to replacing approximately 2 kilometers of standard water pipes. Osaka plans to sell the gold bars and use the proceeds for water pipe replacement, honoring the donor's wishes.
The motivation behind the donation drew attention. The donor reportedly decided to give after watching news reports of water main breaks and leaks occurring across Japan. The country's water and sewage infrastructure, built intensively during the high economic growth period of the 1960s and 70s, is now simultaneously reaching the end of its service life, causing accidents of varying severity. In January last year, a road collapsed in Yashio City, Saitama Prefecture due to sewer pipe damage. Osaka alone reported over 90 underground water leaks in fiscal year 2024.
For the city facing significant fiscal burdens, this was an unexpected gift. Mayor Yokoyama expressed repeated gratitude, saying, "The aging water pipe problem requires massive investment."
As of May 21, gold prices remain elevated. According to the Korea Standard Gold Exchange, the purchase price for one don (3.75 grams) of 24-karat gold rose 13,000 won from the previous trading day to 1,039,000 won, while the selling price increased 7,000 won to 864,000 won. Gold prices underwent a correction on profit-taking after hitting record highs earlier this month but have recently resumed their upward trajectory.
Global investment banks maintain bullish outlooks on gold. BNP Paribas, Deutsche Bank, and Goldman Sachs forecast that Federal Reserve policy uncertainty and the trend of reducing dollar and U.S. Treasury holdings will support gold demand. Geopolitical risks persist, including the Ukraine war, Middle East tensions, and stalled U.S.-Iran nuclear negotiations.