PETALING JAYA: Gold price has been soaring to new highs in recent months.
In 2023, the average price of gold stood at US$1,942.67. On Aug 23, the commodity closed at a price of US$2,486.80 per ounce.
As geopolitical tensions continue to escalate and the economy remains uncertain, gold prices are expected to maintain their upward trajectory in the coming months, said Public Gold Group founder and executive chairman Datuk Wira Louis Ng (pic).
Ng is also the president of the Malaysia Gold Association (MGA).
“This is because to some people, gold is considered a safe haven. Whenever there is a crisis like war or economic turmoil, gold will appreciate.
“Do you see how the price has constantly been going up after the war in Iraq and after the economic crisis?
“So yes, I believe this trend will continue for a while and the tensions are not going to be settled very soon,” he told StarBiz.
In the case of Malaysia, Ng gave an example where during the Covid-19 lockdown period, the government had provided citizens with several incentives and schemes.
“In my opinion, because of that, a lot of people had plenty of cash to spare and that is when people started to buy gold,” he said.
He said from there on, the demand for gold has surged in Malaysia and has continued until today.
That being said, Ng strongly believes that the gold market in the country will continue to be very active and robust.
Continuing from that, Ng emphasised on the importance of saving physical gold.
He compared cash to gold, whereby gold is finite as compared to “paper money”.
Again, using an example during the Covid-19 period, Ng said most central banks printed money as a move to stimulate the domestic market.
“They print a lot of money to distribute to the nation, so this indirectly creates a lot of inflation.
“There’s a lot of money being printed and thrown into the market.
“So in a way, gold is relatively safe because of how limited it is,” he said.
That being said, Ng emphasised the difference between saving and investing in gold.
He said for those investing, they tend to compare and follow the prices of gold.
“However, when one saves gold, you only pay attention to how many grams of gold you have in your safe.
“But once you start to save without having to compare prices, it becomes a habit and slowly you can accumulate your assets.
“And because gold has its own specialised characteristics, you would not usually let it go unless in dire need.
“So saving gold is like a type of forced saving for the general public,” he added.
Aside from highlighting the importance of saving gold via marketing campaigns, Public Gold aims to provide convenience for consumers to purchase physical gold bars via its gold dispensing automated teller machine (ATM).
Having launched its first gold dispensing ATM in February 2023, Ng said the group targets to have a total of 200 gold ATMs nationwide by the end of 2025.
He stated that by allowing consumers to easily purchase physical gold bars via its ATMs, it prepares the general public, especially Malaysians, for long-term wealth preservation.
“Keeping physical gold is a great way to hedge against inflation, so we want to cultivate the habit of saving gold.
“When they collect (the physical gold bars), it can be considered collectibles as well,” he said.
Ng shared that the physical gold bars can range up to five grams per bar with 999.9 purity.
“This machine will be operating 24 hours a day, seven days a week and can cater to any ad-hoc demand at any time of the day.
“So, we will put it in high traffic areas such as airports and even rest and refreshment areas for customers to easily use with a few clicks of a button to buy gold,” he said.
The ATM will feature various designs, including Disney, Marvel Studios, Hello Kitty, local cuisines and festivities, among others.
