Kuala Lumpur: 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 BERNAMA News Agency, Habib Jewels Sdn Bhd (Habib Group) executive chairman Datuk Seri Meer Habib stated that rising gold prices have not deterred Malaysian buyers. As of March 17, the price of gold stood at RM426.71 per gramme, based on data by FXStreet. Meer Habib explained that when the price of a product increases, demand usually declines, but in the case of gold in Malaysia, it’s the opposite. Malaysians, including Malay, Chinese, and Indian communities, have a long-standing tradition of buying gold, viewing it as a reliable investment. When prices rise, confidence in gold actually increases, leading to more purchases.

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. Meer elaborated that they also offer pure 999 gold pieces and heavier items for those who prefer gold as an investment. In the growing e-commerce market, the focus is on lighter-weight items to cater to online buyers. Beyond design innovation, sustainability plays a key role in managing costs. The company runs a gold buyback program where customers can trade in old jewellery at competitive prices. The gold is either melted down and refined for new pieces or resold as pre-loved jewellery under the Chantique brand, offering an environmentally friendly and affordable alternative for investors.

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 highlighted that gold has historically maintained its value, even during times of economic instability, serving as a hedge against inflation. This enduring value is bolstered 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.

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

With Ramadan and Hari Raya approaching, gold sales are peaking as Malaysians purchase jewellery for festive celebrations. Meer noted that during this time of year, the business is busier than ever. Even with high prices, those who invested earlier are already seeing benefits. The demand extends beyond jewellery, with gold-backed Islamic pawn services, such as Habib Jewels’ Ar-Rahnu Express, witnessing increased activity, particularly among small traders who use gold as collateral for business financing. Meer emphasised that gold is not just a luxury item but also a financial tool, a cultural tradition, and a long-term investment.