Gold has not lost its lustre in Malaysia

A jeweller interviewed said the war in Ukraine did have an impact on the industry, but people would always be able to make money out of gold.


March 17, 2022

KUALA LUMPUR – Malaysians are snapping up gold, but it’s not because they’re arming themselves against an uncertain future fuelled by anxiety over the Covid-19 pandemic or Russia’s invasion of Ukraine.

No, it’s apparently about upcoming festive celebrations, including Hari Raya, as well as a fiscal safety net.

Malabar Gold & Diamonds branch head Nijeesh P. said there is always a spike in purchases whenever there are celebrations because people like to buy gold jewellery as a gift or for special occasions.

“During uncertain times, it is considered buying for the future.

“Today’s gold price is RM260 per gramme, yesterday it was RM264, so when the price comes down, people tend to buy more.

“It is considered an asset because you can liquidate it quickly if you are short of cash.

“We also have cash back and exchange policies, so a lot of people like to trade in gold,” he said in an interview here yesterday.

Jeweller Datuk Abdul Rasull Abdul Razak said the price of gold has become somewhat stable despite it surging to RM280 per gramme a couple of days back.

As such, he said it was unlikely the price would go further down.

“The good thing when prices went up is that people were selling and now, they have come back to buying. So definitely, some have made their profits.

“This is a healthy sign for the industry because gold is a better investment. Gold is always on top and it is better than investing in currencies,” he claimed.

Abdul Rasull said the war in Ukraine did have an impact on the industry, but people would always be able to make money out of gold.

A sales representative for Varusai Jewellers, who wished to be known only as Basith, said the middle class preferred to buy gold jewellery while the more well-heeled would opt for gold bars.

“People will still buy based on the price but excess gold is bought so that it can be pawned for instant cash.

“The war in Ukraine and the tension between Russia and United States do affect the price of gold and the stock market,” he added.

Diamond Jewels executive manager T. Heman said there is always a trend of people buying excess gold, but the amount has been reduced from 50g to 35g currently because of the pandemic.

“Looking at the sales trend, it is not what they used to be in terms of buying but it is a good time to sell.

“For those who decide to sell, it is usually because they need money,” he added.

RKN Jewels manager Amir Pupathi said gold is an asset that anyone can exchange anywhere, including other countries.

“In Malaysia, the middle class will not buy if the price is too high; they would opt to wait for a good time to buy.

“But the rich will always buy and they tend to buy pure gold or gold bars.

“I can’t see the trend of people buying as a result of the war in Ukraine because Malaysia isn’t directly affected. We have our own reasons and culture that determine our buying trends,” he said.

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