All that glitters: Imran (seated behind the display counter) helping a customer pick items from an array of attractive designs at his jewellery shop in Little India, George Town. — CHAN BOON KAI/The Star
GEORGE TOWN: Attracted by the high prices of gold now, people have found a way to get their hands on new jewellery and the latest designs by exchanging their old trinkets.
VKN Jewellers director S. Yuvabalan said while business has taken a hit and sales have gone down by 40% to 50% in the past few weeks, customers are experiencing a win-win situation.
“Many are coming in to exchange the ‘old gold’ they bought years ago when the prices were much lower for some new jewellery.
“This is a win-win situation for them, as they are now getting more valuable gold items, and they don’t have to spend any money for this exchange.
“For people who need money as well, this is the time to take advantage of the high prices and sell their gold,” he said yesterday.
Yuvabalan said there were still customers buying gold, but their budget has been reduced slightly due to the hike in prices as the items they are buying are lighter in weight.
He said the price of gold now, which stands at RM282 per gram for 916 gold, is the highest he has ever known in this business.
“A few weeks ago, it was between RM260 and RM265 per gram, but today, we are selling it above RM280 per gram for 916 gold.
“Some jewellers are even selling it for RM296 to RM310.
“From what I can remember, this is the highest, as even during the pandemic it was not this high,” he said, adding that the collapse of some banks in the United States could be the reason for this sudden increase.
“The BRIC countries are planning to trade gold in their local currencies as well and no longer in US dollars,” he said.
Nalla Jewellers managing director, Imran Khan Varusai Mohamed, said business has been bad as sales had gone down by 40% to 50% in the past few weeks.
“Once there was news of the banks collapsing, gold prices suddenly shot up by RM15 to RM18.
“This happened right before Ramadan. Now people only buy it if they really need it for wedding purposes.
“Others do not want to invest, as it is not the right time. It is only on a necessity basis,” he said.
According to Imran, there aren’t many people selling gold for cash, and there aren’t many people who disposed of gold during the pandemic.
“Right now, more people seem to be exchanging old gold for new ones.
“They will get a higher price for the old gold, as they would have bought it for much less,” he said.
Imran said he believed the prices would eventually go down once the banks have recovered. The current price would not last long, he added.
