Gold rush: Why more Malaysians are seeking safe haven by investing in bullion, dinars, and digital gold

Gold rush: Why more Malaysians are seeking safe haven by investing in bullion, dinars, and digital gold



As economic uncertainties loom, Malaysians, both seasoned and first-time investors, continue to turn to gold, reinforcing its reputation as a timeless safeguard for wealth. A general view of HABIB Jewels Store in Ampang on January 12. — Picture by Firdaus Latif.

Wednesday, 26 Feb 2025 7:00 AM MYT


KUALA LUMPUR, Feb 26 – More Malaysians are turning to gold, seeing it as a fortress against global financial turbulence and a time-tested way to preserve wealth amid turbulent times.

Gold remains to be the go-to asset for those seeking financial security. Demand is surging across various segments of society, from seasoned investors to young, tech-savvy buyers.

Gold demand surges amid market uncertainty

With United States President Donald Trump imposing trade tariffs on China, fears of a global trade war have driven gold prices to new heights, soaring past USD2,900 (RM12,855) an ounce earlier this month.

The world’s appetite for safe-haven assets has never been stronger.

Datuk Seri Meer Sadik Habib, Executive Chairman of Habib Group, has witnessed this shift firsthand.

“In uncertain times, people gravitate towards gold as a stable investment. For many Malaysians, gold is not just ornamental but also a strategic financial asset,” he said in a recent interview with Malay Mail at Habib’s headquarters in Ampang.

“In Malaysia, people buy gold for two reasons: as jewellery and as an investment. Some investors prefer gold bars, which come in two forms, minted and cast bars.

“But increasingly, more people are opting for dinars and gold gifts, and it makes sense. One dinar, which weighs about 4.25g, is now worth around RM1,900. It holds its value far better than cash, and in just one year, it could appreciate by 20 to 30 per cent.”

According to Meer Sadik, Habib recorded a 20 per cent increase in sales nationwide recently, with younger, tech-savvy investors driving the trend.

“We are seeing more young Malaysians investing in gold through digital platforms like Shopee and TikTok,” he said.

Malabar Gold & Diamonds has also recorded significant growth, with gold jewellery sales rising by eight to 12 per cent year-on-year.

Yasheedah Yashaiya, Malabar’s head of business development in Malaysia, noted a 15 to 20 per cent increase in gold bullion and coin purchases since the start of the year.

“Younger buyers are drawn to customised and minimalist 18K and 22K jewellery, while high-net-worth individuals continue investing in heavier 24K gold pieces,” she said.



HABIB Group Executive Chairman Datuk Seri Meer Habib durin an interview with Malay Mail at their headquarters in Ampang. — Picture by Firdaus Latif.


Gold as a shield against Inflation

Meer Sadik maintains that gold continues to serve as a reliable hedge against inflation, standing the test of time.

“Historically, gold retains its purchasing power. For instance, one dinar could buy a goat 1,400 years ago, and it still can today, perhaps even a whole Briyani! In contrast, paper currency continues to lose value.”

Gold prices have shown impressive growth, surging by 27 per cent in 2024 and climbing another 11 per cent in early 2025.

“If you buy gold today, prices may fluctuate in the short term, but over the long run, they generally rise. Many investors see gold as a safe haven, especially since money kept in the bank loses value due to inflation,” he added.

Yasheedah echoed this sentiment, pointing out that during financial crises, gold prices tend to rise while stocks decline.

“Central banks worldwide have been accumulating gold at the fastest pace in over 50 years, reinforcing its role as a stable and trusted asset,” she said.



A graph showing the price of gold in the last five years. Screenshot from gold.org



Global tensions drive gold to record highs

Datuk Chiah Hock Yew, President of the Federation of Goldsmiths and Jewellers Associations of Malaysia, highlighted multiple international factors fueling gold’s rally.

“In Malaysia, the growing interest in gold investment reflects a combination of economic and market factors.

“Global geopolitical tensions, such as conflicts in the Middle East, the Russia-Ukraine war, and strained US-China relations, have heightened demand for gold as a safe-haven asset, pushing prices upward. During times of market uncertainty, investors turn to gold for wealth preservation and risk mitigation,” he said.

Since 2020, gold prices have surged by over 60 per cent, a testament to its resilience during turbulent times.

Chiah also pointed out that currency depreciation has made gold an increasingly attractive option.

“Investors are shifting part of their funds from local currency assets to gold to hedge against exchange rate risks. Compared to traditional bank deposit interest rates of around 2.5 per cent per year, gold’s substantial appreciation makes it an appealing investment.”

Despite rising prices, Malaysian consumers remain confident in gold’s long-term value. Some even cash in on previous gold purchases to reinvest, believing prices still have room to grow.

However, Chiah cautioned against impulsive buying during market peaks.

“Consumers should be mindful when investing in gold. Always buy from reputable merchants or authorised platforms, such as established jewellery retailers or banks, to avoid scams,” he advised.



Gold jewellery being displayed at one of the Malabar Gold and Jewellery shops. — Picture courtesy of Malabar Gold and Jewellery.



From jewellery to Investment gold

The Malaysian gold market is evolving, with more consumers shifting from buying jewellery to investing in gold bars and coins.

“Previously, investors made up just 30 per cent of gold buyers, but today they account for 70 per cent,” said Datuk Abdul Rasul Abdul Razak, President of the Malaysian Indian Goldsmith and Jewellers Association.

“Jewellery sales have slowed significantly. Middle-class consumers, particularly those in the B40 and M40 income groups, used to buy small amounts of gold jewellery regularly. But with prices soaring, they’re prioritising essentials over luxury items.

“On the other hand, demand for gold bars and bullion has increased by three to five per cent,” he noted.

Even the younger generation is joining the gold rush, with some as young as 18 entering the market using savings or family support, Abdul Rasul observed.

Gold’s future as a safe Investment

Despite its recent rally, gold remains a solid long-term investment.

“Gold’s value never depreciates. Unlike stocks or currencies that fluctuate, gold has consistently proven itself as a store of wealth,” said Abdul Rasul.

For new investors, Meer Sadik recommends starting small.

“Begin with a 1g gold piece or a dinar to familiarise yourself with the market. Keep an eye on global economic trends, as they directly impact gold prices. Unlike cash, which loses value over time, gold preserves purchasing power.”