Why Malaysians are turning to gold
Hedge against inflation and a weakening currency: Gold has a historical reputation for holding its value during times of high inflation. When the purchasing power of the Malaysian Ringgit depreciates, gold's value tends to rise, making it a popular choice for protecting wealth.
Geopolitical and economic stability: Gold is often referred to as a "crisis commodity." When there is global economic or political uncertainty, investors tend to flock to gold, driving up its price.
Portfolio diversification: Gold often has a low or inverse correlation with other major asset classes like stocks and bonds. Adding gold to a portfolio can help reduce overall risk and volatility.
Cultural and historical significance: In Malaysia, gold has a deep-rooted cultural value, often being used for jewelry and as a means of generational wealth transfer. This cultural connection makes it a more familiar and trusted asset for many.
Gold investment accounts in Malaysia are not covered by the Perbadanan Insurans Deposit Malaysia (PIDM), which protects depositors' savings.
Ultimately, whether gold is a good investment for you depends on your individual financial goals, risk tolerance, and investment horizon. It is generally recommended as a tool for diversification and long-term wealth preservation rather than a short-term speculative asset.
TESSA 12 August 2025