KUALA LUMPUR, MALAYSIA: More Malaysians are turning to gold as a way to protect their wealth against turbulent financial times, seeing it as a safer option compared to keeping money in banks.
According to Malay Mail, Datuk Seri Meer Sadik Habib, Executive Chairman of Habib Group, said gold sales have increased by 20% across Malaysia, led by younger, tech-savvy buyers who invest through digital platforms like Shopee and TikTok in small gold pieces such as dinars and gifts.
Mr Habib noted that Malaysians mainly buy gold as jewellery or investment, with some preferring gold bars in minted or cast forms. However, more people are now choosing dinars and gold gifts, as dinars can appreciate by 20% to 30% in a year.
A 4.25 g dinar is worth about RM1,900 (S$575.41) and tends to hold its value better than cash, he said.
Bernama reported that gold jewellery sales at Malabar Gold & Diamonds rose by 8% to 12% year-on-year (YoY). Its Malaysia business head, Yasheedah Yashaiya, said gold bullion and coin purchases increased by 15% to 20% since the start of the year.
As for their buyers, younger customers prefer customised and minimalist 18K and 22K jewellery, while high-net-worth individuals go for 24K gold pieces.
Mr Habib pointed out that gold has long been a reliable hedge against inflation. He noted that 1,400 years ago, a gold dinar could buy a goat—and it still can today. “If you buy gold today, prices may fluctuate in the short term, but over the long run, they generally rise,” he said.
Ms Yashaiya echoed this, noting that gold prices often rise while stocks decline in times of financial crises. She added that central banks worldwide have been accumulating gold at the fastest pace in over 50 years, reinforcing its role as a stable and trusted asset.
At the end of 2023, the price of gold hit an all-time high, soaring past its previous August 2020 record. In 2024, it set another record as investor demand across the broader metals market surged. Earlier this month, gold prices also hit an all-time high amid the tariff war between the United States and China, pushing people to seek refuge in safe-haven assets.
Datuk Chiah Hock Yew, President of the Federation of Goldsmiths and Jewellers Associations of Malaysia, said more people are growing their gold investments for wealth preservation and risk mitigation amid global geopolitical tensions, including conflicts in the Middle East, the Russia-Ukraine war, and strained US-China relations.
According to Mr Yew, some even sell their earlier gold purchases to reinvest, expecting prices to rise further. However, he cautioned buyers to always purchase from reputable merchants or authorised platforms, such as established jewellery retailers or banks, to avoid scams.
Datuk Abdul Rasul Abdul Razak, President of the Malaysian Indian Goldsmith and Jewellers Association, said investors now make up 70% of gold buyers, compared to just 30% in the past.
He noted that more people are choosing gold bars and bullion, with demand rising by 3% to 5%, while jewellery sales have slowed. Even young Malaysians are investing in gold, with some starting as young as 18, through their savings or family support.
He added, “Gold’s value never depreciates. Unlike stocks or currencies that fluctuate, gold has consistently proven itself as a store of wealth.” /TISG
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