KLANG: Three months ago, gold was sold at RM38 per gm but the price has vaulted since then to RM50 per gm due to an impending US war against Iraq.
Despite the gold price notching a seven-year peak, it has only encouraged more businessmen to invest in the “safe-haven” metal, increasing speculation that the price of gold will go up further.
Over the last three weeks, goldsmiths in the Jalan Tengku Kelana Indian business enclave have found that the price increase has not dampened gold buying in the community.
Federal Territory and Selangor Indian Goldsmiths and Jewellery Business Owners Association adviser N.P. Raman said nervous businessmen in Klang and Selangor were investing in gold as it was a safe cache for their money.
He said there were people who bought Canadian Gold Leaf coins which were sold at RM1,860 per ounce.
“For the 916 gold, it can cost up to RM400 inclusive of workmanship, for a gold coin,” he said.
Raman, who has been with the association since it was established five years ago, said the last time prices shot up this high was seven years ago due to an economic slowdown.
“At this moment there is a fluctuation in the price but it is within a RM20 bracket,” he said.
Raman said the 122-member association hoped that the United States would not go to war with Iraq but would resolve the problem through negotiations.
Most of the goldsmiths in Jalan Tengku Kelana had penned down their names in support of the Malaysians for Peace anti-war campaign organised by the MCA Jalan Pasar branch here.
“As businessmen, we feel that the war will not augur well for us. It will certainly further dent the economy. What we want is peace so that the people around the world will be able to enjoy a better livelihood,” he said.