Jewellery Makers Continue To Shine Despite Soaring Gold Prices

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, March 18 (Bernama) -- Malaysia's jewellery sector remains resilient, with robust demand continuing despite rising gold prices, largely fuelled by deep-rooted cultural appreciation for gold as both a symbol of wealth and a trusted investment or “safe haven” asset.

According to Habib Jewels Sdn Bhd (Habib Group) executive chairman Datuk Seri Meer Habib, rising gold prices have not deterred Malaysian buyers.

As of March 17, the price of gold price stood at RM426.71 per gramme, based on data by FXStreet.

“When the price of a product goes up, demand usually declines. But in our case, it’s the opposite. Malaysians—whether Malay, Chinese or Indian—have a long-standing tradition of buying gold.

“They see it as a reliable investment, and when prices rise, confidence in gold (actually) increases, leading to even more purchases,” he told Bernama.

Navigating Rising Costs Through Innovation and Sustainability

While demand remains strong, jewellery retailers are adapting to innovating to ensure affordability. Habib Group has introduced electroforming techniques that allow for large yet lightweight jewellery pieces, giving customers the illusion of substantial gold jewellery without the hefty price tag.

“We also offer pure 999 gold pieces and heavier items for those who prefer gold as an investment. 

“In the growing e-commerce market, we focus on lighter-weight items to cater to online buyers,” Meer explained.

Beyond design innovation, sustainability plays a key role in managing costs, he added.

Habib Group runs a gold buyback programme where customers can trade in old jewellery at competitive prices.

“The company either melts down and refines the gold for new pieces or resells pre-loved jewellery under our Chantique brand.

“This approach is environmentally friendly and offers a more affordable alternative for those looking to invest in gold jewellery,” he added.

Gold as a Safe Investment Amid Economic Uncertainty

Meer, who has led Malaysia's premier jewellery brand since 1986, noted that gold prices have nearly doubled since the COVID-19 pandemic, reinforcing its status as a safe-haven asset.

He pointed out that gold has historically maintained its value, even during times of economic instability.

“More than 1,400 years ago, one dinar could buy a goat, and today, it’s the same. But a 20-sen coin from years ago has lost its purchasing power. Gold is a hedge against inflation and retains its worth over time,” he said.

This enduring value of gold is further supported by increasing geopolitical tensions and central banks’ strategies, which are fuelling demand.

“Countries like China and Russia are stockpiling gold, while gold-backed exchange-traded funds are boosting global investments in the precious metal,” he added.

While some analysts predict a slight drop in gold prices due to shifting economic policies, Meer believes the long-term outlook remains strong.

“The price range is currently between US$2,700 (US$1=RM4.43) and US$3,000 per troy ounce. A slight dip of up to 10 per cent is possible if global tariffs ease, but overall, gold remains a solid long-term investment,” he said.

Festive Demand and the Future of Malaysia’s Gold Industry

With Ramadan and Hari Raya approaching, gold sales are peaking as Malaysians purchase jewellery for festive celebrations.

“This time of year, we are busier than ever. Even with high prices, those who invested earlier are already seeing the benefits.

“The demand goes beyond jewellery. Gold-backed Islamic pawn services, such as Habib Jewels’ Ar-Rahnu Express, are also seeing increased activity, particularly among small traders who use gold as collateral for business financing,” he added.

Meer emphasised that gold is not just a luxury item but also a financial tool, a cultural tradition, and a long-term investment.

-- BERNAMA