PETALING JAYA: Gold prices have been rising rapidly and one would think that consumer sales of the prized metal would have slowed down.
But that is not the case, with enterprising jewellers coming up with novel ideas to keep prices within reach of the average buyer.
One way they have done it is by producing lighter, thinner and smaller gold items.
Federation of Goldsmiths and Jewellers Association of Malaysia (FGJAM) president Datuk Chiah Hock Yew, who disclosed this, said while sales of high-grammage jewellery have slowed significantly, demand for investment-grade gold products with value-preservation features have increased.
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These included small gold bars, gold wafers and coins, he added.
“Preferred jewellery products mainly comprise those that are lightweight, chic and uniquely designed,” he said.
Chiah said rising gold prices means consumers having to pay more to buy gold items.
“This directly affects purchasing power and naturally shifts demand towards more flexible and affordable product options,” he said.
Gold prices have soared by almost 40% since November, peaking on Jan 29 at RM22,010.89 (US$5,583.69) per oz, RM8,845.68 (US$2,243.96) per tola and RM707.75 (US$179.54) per gram.
Despite dipping in the past week, prices remain stiff at RM19,297.81 (US$4895.44) per oz, RM7,755.49 (US$1,967.4) per tola and RM620.43 (US$157.39) per gram as of yesterday.
Chiah said while consumers generally view gold as a long-term investment, they opt to buy in stages instead of large quantities.
“This shift reflects a broader transition from purely decorative consumption towards wealth preservation and financial planning needs,” he added.
Tomei managing director Datuk Ng Yih Pyng said with rising prices, retailers have come up with smaller and thinner products.
“While being lighter, such items continue to be appealing,” he added.
Ng, who is also FGJAM adviser, said while gold gifting has reduced, the coming festive periods will still see a rise in demand for gold.
On the shift from jewellery towards gold bars, coins and wafers, he said the trend was noticed several years back and became more apparent towards last October.
“Some may see greater value in purchasing gold products as the same price may only get you a small piece of jewellery. However, demand for jewellery is still there,” he pointed out.
Ng said the domestic gold retail industry has yet to be affected by sudden closures as seen in Thailand.
On Jan 26, the Thai Gold Traders Association said the sharp rise in gold prices could force dozens more gold shops to close this year, following the closures last year.
It noted that the closure of gold shops was not due to losses from product prices but rather for profit at a time when gold prices were on an uptrend.
Malaysian Indian Goldsmith and Jewellers Association president Datuk Abdul Rasul Abdul Razak confirmed that members have begun moving towards lighter items, and providing more options such as from 750 and 585 grade gold.
“We are trying to monitor this, to see which one can be as appealing as the 916 grade. While the quantity remains the same, the pricing will be lower to give more options to the lower and middle income groups,” he said.
Abdul Rasul, who is the Malaysia Gold Association vice-president, said the jewellers at most risk of possible closures were smaller ones and those located in the outskirts.
“The danger is for those renting premises with high overheads. People, however, have yet to lose hope in gold as those with bigger budgets are still going for jewellery while others seek investments,” he said.
