Kuala lumpur: Robust demand for gold is expected to raise Public Gold Marketing Sdn Bhd’s customer base to 2.3 million by the end of the year from 2.2 million currently. Escalating global prices for the commodity have also encouraged the gold trading company to mull expanding into Indonesia, Thailand, and Dubai in the United Arab Emirates to introduce its automated teller machines (ATMs) that dispense physical gold.

According to BERNAMA News Agency, Public Gold’s executive chairman Datuk Seri Louis Ng said the company expects about 50,000 new customers across Malaysia every month through retail sales via its ATMs. He noted that gold prices are expected to increase by a further 10 percent in September this year from the current US$3,370 per troy ounce, over expectations that the Federal Reserve will lower interest rates. The narrowing interest rate differential between the dollar and the Ringgit would spur demand for gold.

Gold is currently hovering at US$3,370 per troy ounce, up 28 percent from US$2,630 at the beginning of the year. Ng mentioned that the majority of Public Gold customers who started their gold investments in 2008 comprise middle-income earners. They have increasingly turned to gold as an asset class investment because they see it as a safe haven commodity.

‘Every day, we see about 1,000 to 1,500 new customers signing up, which roughly adds up to about 50,000 customers a month. By the end of the year, we expect this to reach the targeted 2.3 million customers,’ Ng said. Ng, who is also the president of the Malaysia Gold Association (MGA), said gold trading was poised for growth, spurred by rising retail demand and the desire to retain more value domestically.

Ng added that the price of gold has surged by up to 200 percent since 2019, making it an increasingly attractive asset class, particularly for institutional fund managers who are now allocating part of their investment portfolios to gold. He emphasized that customers contribute significantly to the company’s trading volume, which in turn fuels international demand.

To meet this growing appetite, Public Gold imports between 50 and 150 kilogrammes of gold per shipment, mainly from the gold trading hubs of Dubai, Singapore, and Hong Kong. As of now, Ng said Public Gold operates 18 branches and around 100 ATMs throughout Malaysia.

Public Gold launched its first gold dispensing ATM, known as Malaysia Gold ATM, at Menara Public Gold at Tun Razak Exchange in early 2023, enabling customers to purchase physical gold bars conveniently. These ATMs allow customers to withdraw sealed and certified gold bars via the Public Gold mobile app. It also enables users to buy, sell, and store gold and silver securely through its Gold Accumulation Programme (GAP).

Through the GAP, customers can accumulate gold in small amounts. On reaching certain thresholds, such as 5 grams (g), 10g, or 20g, they may convert it into a physical gold bar dispensed from an ATM that functions similarly to a vending machine.