Malaysians still keen on gold despite price downtrend

THE current gold price downtrend has not tarnished gold’s role as a hedge against inflation, at least for Malaysian consumers who are cash-rich and looking for investment assets – with some using their Employees’ Provident Fund (EPF) withdrawals to purchase the yellow metal.

Gladys Tang, an accountant in a logistics company in Johor Bahru, decided to buy a 5-gram gold wafer as a present for her newborn nephew. She told The Business Times: “The value of money is shrinking and my sister is working in Singapore. It’s better to give my nephew something more valuable that will appreciate over time. Who knows, this could contribute to his future education fund.”

Besides gifting gold wafers, Tang also buys them as an investment or a reward for herself. The first 1g 916 gold wafer –made of 91.6 per cent pure gold – that she purchased in 2017 has appreciated in value by around 45 per cent to RM290 (S$92), based on the current price of a wafer from the same store.