Many using EPF payment to invest in gold

It pays to invest in gold: Customers looking at jewellery in a shop in Little India, George Town. — LIM BENG TATT/The Star

GEORGE TOWN: Many say it pays to invest in gold, so that’s exactly what R. Sivashankary is doing with her Employees Provident Fund (EPF) special withdrawal.

The 25-year-old said she was using the RM10,000 to buy gold as a hedge against inflation.

“This investment is safe and reliable and it will certainly come in handy if I ever need it in future.

“It’s the second time I’m using my EPF money to buy gold,” she said when met at a jewellery shop in Little India.

Sivashankary, an online sales and marketing assistant, said she would buy a necklace this time after she bought a chain with an earlier withdrawal.

“I like the pieces I own and the value is less likely to depreciate. I can wear them and if I need money, I can always sell them off,” she said.

Sivashankary said it is nice to be able to spend her hard-earned money on herself.

“The EPF money is something we can usually withdraw only after retirement to use on our children, spouse or other financial commitments. I am glad I can spend it now,” she said.

Gold prices have surged in the past two years, hence many consider it a great option for investment.

VKN Jewellers director S. Yuvabalan said the sale of gold bars has increased lately.

“People believe that gold prices will keep going up and they see it as an investment option.

“Others buy jewellery for cultural celebrations, like when their children are getting married.

“Gold is considered a good investment,” he said.

The Muslim Jewellers and Money Changers Association of Penang said gold is not just for adornment but more for investment.

Its president Datuk Dr Anvar Hussain Rahumathullah said he has noticed many people buying gold with their special EPF withdrawal.

“Those with holding power can buy gold as the resale value is good. Whenever gold prices go up, one can always sell it and make a profit,” he said.

Computer analyst Syed Arafath Syed Mustafa, 41, said he will be using the RM10,000 for a trust fund and to settle personal loans.

“The withdrawal has come in handy but I won’t spend it on unnecessary items. We have to save for a rainy day,” he said.

Firdaus Hashim, 38, a clerk, said he would use the money to buy items for Hari Raya.

More than 5.3 million applications have been approved under the EPF special withdrawal facility since it opened on April 1.

A total RM40.1bil has been paid out since April 18.