Gold Rush Despite Higher Prices

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Precious metal not losing its shine: Customers buying gold jewellery in Kuala Lumpur. — FAIHAN GHANI/The Star
PETALING JAYA: With gold prices hitting a lifetime high at the beginning of the Year of the Snake, jewellers say the shine of gold jewellery has shown no signs of waning.
Tomei Consolidated Bhd Group managing director Datuk Ng Yih Pyng said business has been encouraging.
“We cannot compare with last year because that was the Year of the Dragon,” he said, adding that sales for the Dragon Year were generally better due to it being perceived as auspicious.
However, he said the outlook for the Year of the Snake is also looking good as it is seen as an auspicious year for weddings, coupled with a slew of upcoming celebrations such as Valentines Day, Hari Raya and Mothers Day.
“We are selling slightly smaller items because gold prices have gone up.
“We also see some customers trading in old jewellery for new jewellery so that they don’t have to top up as much,” added Ng.
He said although the items are smaller in size, their value has appreciated due to rising gold prices.
He added that for the Year of the Snake, items with serpent designs such as bangles, feng shui items and auspicious products have been selling well.
Malaysian Indian Goldsmith and Jewellers Association president Datuk Abdul Rasul Abdul Razak said the price of gold will only continue to appreciate, adding that there is a 15-20% increase every year.
“People who don’t know about gold have come to know about it and they are investing,” he said.
He added that there has been an increase in purchases by investors who are “passion buyers”.
“The best thing is that the price of gold will not stop here,” said Abdul Rasul, adding that those who have already invested in gold will see a 10-15% gain.
The World Gold Council predicted that gold prices would hit US$3,000 (RM13,000) per ounce this year following a bullish run.
On Friday, the price skyrocketed to an all-time high of US$2,798.96 (RM12,367) despite higher tariff concerns from the Trump administration.
Abdul Rasul said he hopes there would be no wars or conflicts in the future that could affect gold prices.
“War is a main factor for gold prices to increase,” he added.
Yasheedah Yashaiya, head of business development at Malabar Gold and Diamonds, said sales have been very promising, particularly for symbolic and investment-grade jewellery.
“The Year of the Snake represents wisdom and transformation, which has driven demand for intricate snake-themed designs, auspicious motifs, and 24K gold pieces.
“Customers are still buying gold, at the same time they are also using this opportunity to trade in their old gold jewellery for new designs which are heavier in weight,” she said.
The primary factor is the rising gold price, which has influenced consumer behaviour. Many buyers see gold jewellery as a long-term store of value, especially amid economic uncertainties, said Yasheedah.
“Many have witnessed the proven gold value over the years, especially after the Covid-19 pandemic.”
Additionally, cultural traditions play a key role as gold remains an essential part of Lunar New Year gifting, weddings, and family wealth preservation.
“The younger generation is also showing interest in modern, wearable gold designs that blend tradition with contemporary style,” she added.
Yasheedah said compared with the previous Lunar New Year, customers have shifted to more strategic gold purchases this year.
“Last year, customers were more focused on statement pieces and heavier gold jewellery.
“This year, there is a stronger preference for versatile, lightweight designs and smaller denominations of investment gold, such as gold bars and coins,” she said.
Customisation and heritage-inspired designs are also gaining traction as consumers look for meaningful, lasting pieces, she said.
“At our outlets in Kuala Lumpur, we have had a 12% increase in the number of walk-ins compared with last year, with more transactions,” she added.
Yasheedah said looking ahead, despite high gold prices, demand is expected to remain resilient.
“Consumers are adapting by choosing refined craftsmanship, multi-use jewellery, and designs that retain high value. We anticipate continued interest in 22K and 24K gold, along with innovative styles that cater to modern lifestyles.
“Festivals and weddings will continue to drive sales, and as gold remains a symbol of prosperity, we expect sustained interest from both investors and jewellery lovers,” she added. - Star

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