Malaysia’s gold rush sees busy jewellery stores

KUALA LUMPUR – When 37-year-old information technology executive Nur Hashim accompanied her brother on a wedding shopping trip in September, she was stunned to discover just how dramatically gold prices had risen.

The bracelet he purchased for his fiancee cost around RM3,600 (S$1,135), compared with a similar piece Ms Nur had bought for less than RM2,000 just a few years earlier.

The price shock prompted Ms Nur, who regularly trades in her jewellery for new designs, to return to the store in October with her mother and sister, and about 40g of gold to exchange.

“I actually went there a few times this year, in March and June,” she told The Straits Times. “When I traded in my gold in March, I got around RM275 per gram, but in October I got around RM478 per gram. The big increase really made me feel like I had lost out financially.

“I was quite surprised with the price now. It made me ask myself, ‘Why didn’t I buy more back then?’ Three years ago, I bought a bracelet for around RM4,500, but now the same design is about RM8,000.”

Fluctuations in gold prices since the end of August have drawn crowds to jewellery stores across Kuala Lumpur. Buyers are hunting for bargains, while sellers are cashing in after a historic price rally that pushed the precious metal to record highs earlier in 2025.

Gold broke US$4,000 an ounce for the first time on Oct 8, as investors flocked to the safe-haven asset for reasons such as ongoing geopolitical uncertainty, a weak US dollar and anticipation of more US interest rate cuts.

On a recent weekday evening visit by ST, staff at a jewellery store in The Exchange TRX – one of Malaysia’s biggest shopping malls in the capital’s financial district – were fully occupied. No one was available to assist new customers.

The scene was similar at a neighbourhood shop in a Kuala Lumpur suburb over the weekend, where selling a small bracelet and pendant required an hour-long wait as customers held queue numbers in the packed store.

The sky-high prices have also not deterred buyers.

On Nov 20, one jeweller in Kuala Lumpur was quoting RM595 a gram for 916 gold, RM640 a gram for 999 gold, and RM625 a gram for 999.9 gold bars.

In comparison, 916 gold was priced at RM630 a gram on Oct 21, and 999 gold at RM680 a gram.

999 gold is 99.9 per cent pure, making it ideal for long-term savings and investment, but its softness makes it prone to bending or scratching, and less suitable for daily wear.

Meanwhile, 916 gold contains 91.6 per cent gold alloyed with metals like copper or silver, making it harder and more durable for everyday wear, while still retaining strong resale value.

Although prices have dipped from their record highs earlier in 2025, they remain elevated compared with historical levels, creating a mix of caution and opportunity for both buyers and jewellers.

Habib Jewels, founded in 1958 and one of Malaysia’s most established retailers, has seen a 20 per cent increase in overall sales so far in 2025 from 2024, according to Chantique Jewellery branch executive Azlan Mohamed Shanavas. Chantique, a Habib-owned shop, offers pre-owned jewellery and gold bars.

“We get approximately 50 to 100 customers per showroom per day,” Mr Azlan told ST. “Last year, it was mainly busy on weekends, but now even weekdays are packed. People come in after work or teaching.”

The majority of visitors are selling to cash in on higher prices, he said.

“The current market rate for 916 gold is RM595 per gram, though we are selling it at RM580 per gram after discount,” he said, adding that the highest rate in 2024 was RM485 a gram.

Some buy to make a quick profit, hoping that gold prices will go as high as between RM700 and RM1,000 a gram by 2026.

At a branch of a jewellery chain located in the Bukit Bintang shopping district in the capital, staff said demand has been strong since prices “went up like a rocket”.

“People keep buying, and they are also still buying for weddings,” said a staff member, who did not wish to be identified as she is not authorised to speak to the media.

“People are scared the price will go up again,” she said, adding that besides jewellery, gold bars, available in weights of 1g to 100g, are also popular.

“This year, gold prices have risen by more than RM200, and many customers are buying for the future, worried that prices may climb further. We’re seeing twice as many customers compared with last year.”

Foreign buyers have joined the rush. The staff member noted that tourists from China are buying gold at her store.

This volatility in gold prices has left some jewellers, especially smaller long-running family businesses, with mixed feelings.

A jeweller whose family has been in the trade since the 1990s observed that many of his customers are selling.

“High prices and difficult times are pushing people to sell. To me, the gold market is being seriously manipulated by global monetary pressures,” he said.

Beyond jewellery stores, gold investment platforms are also witnessing increased activity. Some Malaysians polled saw gold as a safe investment to park their savings during uncertain times.

“People buy gold as a hedge against inflation, viewing it as a way to safeguard and preserve the value of their money,” said Dr Sharmila Mohamed Salleh, a Public Gold investment agent who manages about 70 investors.

Digital gold investments allow individuals to buy and hold gold in electronic form through platforms like Public Gold and other financial institutions. This investment combines the security of physical gold with the convenience of online trading.

“The principal concept is that regardless of the price, when we have money to allocate, we buy,” Dr Sharmila said.

A new investor, who asked to be identified only as Dayana, 54, said she recently began buying gold online on her daughter’s encouragement. She has yet to see any increase in her investments, she said.

“My kids are into investments like gold and stocks, and they kept telling me gold appreciates well. No wonder our mothers used to buy so much gold,” she said.

Economists said global forces are driving the swings.

Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid noted that

gold hit an all-time high

of over US$4,356 an ounce in October before correcting to around US$4,051.

“We still see a chance that gold prices could go up in 2026,” he told ST.