PETALING JAYA: Demand for gold has surged in the past few months with investors and consumers taking advantage of the price correction experienced by the precious metal.
“For that period alone, we recorded close to 200% sales increase in terms of weightage.
“In terms of value, it would not be that much since prices had corrected downwards since April,” he told StarBiz recently.
Price of the precious metal peaked at US$1,895 in August 2011 and is now down approximately 25% since the beginning of April, putting it on track for its biggest quarterly loss since at least 1968.
The sell-off was triggered over concerns that the US Federal Reserve would be tapering off stimulus sending stock markets tumbling besides gold prices.
“A number of goldsmiths and jewellers have been selling gold at negative margins, or very low margins as we can’t pass on the cost to consumers due to the drastic price drop.
However, the squeeze in margins were offset by the increased in jewellery production by the factories in tandem with the demand,” he said.
While many are still sceptical that gold prices would rebound in the near term with bearish fundamentals weighing on the precious metal, many took the contrarion view and is still trying to catch a falling knife.
“Generally, gold retailers throughout the country are experiencing a surge in demand from local buyers of gold, who purchase the precious metal for investment and also as jewellery,” he said.
“There is no right or wrong price to enter the market.
“As an investor you would not be able to buy at the lowest and you won’t be able to sell at the peak too,” he said.
Ng also is also the president of the Federation of Goldsmiths and Jewellers Association of Malaysia, which represents over 1,600 members in the country.
Meanwhile, Tomei will also be part of the four-day Malaysia International Jewellery Fair (MIFJ) endorsed by the FGJAM which would be held from July 12 to July 15 featuring over 200 international jewellery companies from 20 countries.
“Last year we had tremendous orders from several companies in the Middle East, and we hope more jewellery factories would be joining the fray as exhibitors in the future.
“The key objective is to promote Malaysian jewellery as exports items, as our quality and craftmanship are of high demand overseas,” he said.