All that glitters: An SMS Deen Jewellers salesperson showing special diamond jewellery for the Valentine’s Day promotion. — FAIHAN GHANI/The Star
PETALING JAYA: Diamonds are no longer a girl’s best friend as gold emerges as the preferred choice for many Malaysians.
Amidst financial concerns and economic uncertainties, Malaysians are increasingly turning to gold, causing a significant downturn in the sale of diamonds.
The Malaysian Indian Goldsmith and Jewellers Association said diamond sales have plummeted by 20% since the onset of Covid-19, driven by financial concerns and the increasing allure of gold.
“Gold has become the go-to for preserving value,” said its president Datuk Abdul Rasul Abdul Razak in an interview.
However, despite this downturn, he said diamonds remain timeless, particularly for cherished occasions.
He said the market, currently sluggish, is expected to recover.
“Women cherish diamonds. Before Covid, demand was high.Now, out of 1,000 customers, only a handful purchase diamonds without specific requests.
“The surge in gold prices has attracted a diverse range of buyers.
“Since 2010, gold purchases have skyrocketed by 95%. Even diamond buyers have turned to gold for investment.
“There has also been a 30% to 40% increase in interest among the younger generation, since 2015, for gold,” he said.
Diamonds, he explained, face depreciation, adding that a diamond worth RM1,000 might only resell for RM600, losing 40% of its value, while gold retains its value, offering significant returns.
He said the market now sees two types of diamonds: natural and lab-grown.
Lab-grown diamonds, which mimic the real thing, are 20% the price of natural diamonds, which has shaken consumer confidence, Abdul Rasul said.
Despite these challenges, diamonds remain desirable, particularly for high-end buyers.
“They’re still the go-to for engagements and weddings,” he added.
He noted that in Malaysia, 80% of diamond buyers are women.
Malaysia imports diamonds mostly from Hong Kong, Singapore, India and Belgium, with the latter playing a crucial certification role.
“Valentine’s Day marks a peak for diamond sales,” Abdul Rasul added.
Tomei Group managing director Datuk Ng Yih Pyng said the decline in diamond prices was partly due to the depreciation of the ringgit.
He said while smaller diamonds have not seen significant price drops, larger ones have noticeably decreased.
Ng also identified key market influences, such as the growing prominence of lab-grown diamonds, especially in Europe and the United States.
Despite this, demand for natural diamonds remains robust in South-East Asia and India, he said.
Ng pointed out that market confidence was shaken by some merchants mixing natural and lab-grown diamonds, affecting consumer trust.
He said this shift might prompt some consumers to prefer investing in gold.
Ng added that as the Malaysian economy recovers, market sentiment for diamonds will improve.
He noted that the Year of the Snake is considered auspicious for weddings and is expected to boost wedding-related demand for diamonds.
He acknowledged that consumers now have more choices, which impacts overall purchasing power.
Despite challenges, Ng remains optimistic about the Malaysian diamond market, noting its future trajectory depends on the global economic situation and stock market performance.
“We’ve observed a gradual recovery in diamond sales post-pandemic, though they haven’t yet reached pre-pandemic levels,” he said, adding that it is now more challenging to find jewellery craftsmen.
Federation of Goldsmiths and Jewellers Associations of Malaysia president Datuk Chiah Hock Yew highlighted the significant surge in gold prices.
“In 2024, gold was priced at US$2,035 (RM9,039) per ounce, and now, in 2025, it has reached US$2,919 (RM12,9666) per ounce, an increase of over 40%,” he said.
He said demand for gold continues to rise.
“With inflationary pressures and economic uncertainties, more consumers are turning to gold as a tool for asset protection, boosting market activity.
“Jewellers must adapt their sales strategies to better meet consumer demand, which includes diversifying products and enhancing brand value,” he added.
