Gold rush: A jewellery outlet in Market Street, George Town, is packed with customers taking advantage of the low prices to stock up on the precious metal. — WAN MOHIZAN WAN HUSSEIN / The Star
GEORGE TOWN: Plunging gold prices make it a good time for buyers and investors to stock up on the precious metal as the price has dipped by 25% since January.
Public Gold Marketing executive chairman Datuk Louis Ng Chun Hau said the price of gold yesterday was about US$1,240 (RM4,000) per ounce, compared to US$1,670 (RM5,050) per ounce in January.
He said price of gold soared from about US$280 per ounce to over US$1,900 per ounce between 2001 and September 2011, but since 2012, the price started to fall, with this year recording a serious decline.
Chun Hau, however, said he does not expect the price of the precious metal to fall any lower than US$1,050 (RM3,379) per ounce.
He said Public Gold’s sales of gold this year increased by 15% in terms of weight, driven by the low gold prices.
He suggested that people use 5% to 10% of their personal finances to invest in gold, as it is considered a stable investment.
Federation of Goldsmiths and Jewellers Association of Malaysia’s president Ng Yih Pyng said it is a good time to buy gold, whether it is for investment purposes or as keepsake.
He said the price of gold is seeing a decline due to the strengthening of the US dollar.
Yih Pyng added that even if the price did not dip, gold merchants usually recorded good sales between November and February due to the festive season and weddings.
He said the past two weeks saw an increase in the number of customers checking out prices and buying gold jewellery.
“Merchants have also noted that year-to-date sales had increased by 15%,” he said.
Tamilarasii’s Tangge Maligai Jewellers outlet employee, known only as Muthukumar, said the number of customers to the shop in Market Street, has been increasing since last week.
“Usually business is slow after Deepavali, but many people are taking opportunity of the low gold prices to buy it as it is a sound investment.
“The price has dropped to RM123.50 per gramme compared to RM127 per gramme last week and many people are taking advantage of this,” he said.
Devan Jewellers Sdn Bhd manager M. Krisnan said many of his customers were however, adopting the “wait-and-see” approach as they believe the price could plunge further.
“My advice is that they should buy now as the price is already low.
“Nobody can predict what will happen next,” he said.
“Before this, the price difference was only between RM1 and RM2 per gramme, but now it is lower by more than RM10 per gramme,” Krisnan added.