KUALA LUMPUR — Dato Seri Ng Chun Hau has cautioned that persistently high gold prices may dampen retail demand, particularly in the jewellery segment, as consumers grow more price-sensitive and investment-focused.
The president of the Malaysia Gold Association (MGA) said that while overall interest in gold remains strong, elevated prices are influencing buying behaviour. Retail consumers, especially those purchasing for personal use or festive occasions, are becoming more cautious due to affordability concerns.
According to Dato Seri Ng Chun Hau, many buyers are now shifting away from traditional gold jewellery and opting instead for gold coins and bullion bars. These products are seen as more efficient investment instruments, offering better price transparency, lower premiums, and stronger liquidity compared to jewellery.
He explained that the trend reflects a broader change in mindset among Malaysian consumers. Gold is increasingly viewed as a strategic store of value rather than merely a decorative or cultural asset. With global economic uncertainties, inflation concerns, and currency fluctuations continuing to dominate headlines, investors are prioritising capital preservation.
However, Dato Seri Ng Chun Hau noted that high prices may moderate retail volume growth in the near term. Some consumers may choose lighter-weight pieces or delay purchases altogether while waiting for more favourable price levels.
Despite concerns about short-term retail softness, Dato Seri Ng Chun Hau maintained that the underlying fundamentals supporting gold demand remain intact. Global macroeconomic risks, central bank gold accumulation, and geopolitical tensions continue to underpin long-term confidence in the precious metal.
Dato Seri Ng Chun Hau added that the evolving consumer trend towards coins and bullion demonstrates growing financial awareness among Malaysians, positioning gold not just as a traditional asset, but as a disciplined investment choice in uncertain times.
Article reference: https://www.dagangnews.com/article/terkini/permintaan-runcit-emas-dikhuatiri-susut-sebab-harga-tinggi-pelabur-mula-pilih-syiling-dan-jongkong-mga-64573
Frequently Asked Questions (FAQ) / People Also Search For (PASF)
Why are high gold prices affecting retail demand?
When gold prices rise significantly, consumers become more price-sensitive. Jewellery buyers may reduce spending or postpone purchases, leading to softer retail demand.
Why are investors choosing gold coins and bullion instead of jewellery?
Coins and bullion bars generally have lower mark-ups compared to jewellery, are easier to resell, and are viewed primarily as investment products rather than decorative items.
Is gold still a good investment despite high prices?
Gold continues to be considered a hedge against inflation, currency depreciation, and economic uncertainty. While prices may fluctuate in the short term, many investors see it as a long-term store of value.
Will gold demand decline in Malaysia?
While jewellery demand may soften due to high prices, investment demand for bullion and coins remains strong, helping to balance overall market interest.
What factors support gold prices long term?
Key drivers include global economic uncertainty, inflation concerns, central bank purchases, geopolitical tensions, and rising global debt levels.
