OWNERS of gold jewellery are taking the opportunity to pawn their valuables to take advantage of the high gold price.

Many are cashing in on their gold items either by pawning or selling them as the price of gold in the market reaches around RM300 per gramme.

A survey in Cheras, Petaling Jaya, Seri Kembangan and Kajang found people queuing at pawnshops at the start of business at 9am.

A nasi lemak seller in Kajang said he had bought gold as an investment, which he resold when the price of gold soared because the return was higher.

“I will use the money from selling the gold as business capital to open another nasi lemak outlet in Semenyih for my son to manage,” he told The Malaysian Insight.

A single mother who wants to be known as Sarah, 54, said that the increase in the price of gold gave her the opportunity to complete some of her delayed affairs.

Sarah, who works as a cleaner in a government office building, wants to purchase a piece of land in her hometown in Temerloh, Pahang.

“When I came here, there were about five customers in the gold shop. Usually when the price of gold is low, this shop is quiet,” she said at a gold shop.

Sarah said with the increase in the price of gold, the time was right to make gold an investment capital.

Meanwhile, in some gold shops in the Klang Valley, the high price of gold prompted some consumers to sell their jewellery to make a profit.

A gold dealer in Brickfields, Shahid Ali Muhammad Ali, 32, said many people went to his shop to sell their jewellery this month after the price of 916 gold increased by more than 50%.

“The price of gold is currently the highest, exceeding RM280 for a gramme of 916 gold jewellery. Most women are taking the opportunity to sell their jewellery.

“They sell gold because they want to hold more cash and to buy daily necessities,” he said.

There are also some who exchange their old gold for new ones, he added.

Another gold shop owner, Teoh Boon Cheah, 37, said selling gold at high price was normal, as had happened during the implementation of the movement control order more than two years ago.

“At that time, people sold jewellery because the price was high and they wanted to hold on to cash after not being able to work due to the movement restrictions.

“They also sold gold at that time because they planned to buy gold at a low price. However, the price of gold did not drop as it used to so many did not buy back their gold.

“However, for those who have jewellery, they are taking the opportunity to sell their gold at this time,” said Teoh, whose shop is in Petaling Jaya.

He explained that the high price of the metal caused sales of gold in his shop to decline by 50% because people were afraid to buy gold when the price was at its peak.

A gold dealer in Lebuh Ampang, Nurul Hamizah Mohd Izani, thinks the price of gold is rising because of the tension in Palestine, in addition to the world financial crisis.

She explained that the price of gold before the Israel-Gaza conflict was around RM270 per gramme.

“Previously the price showed a fluctuating trend from RM270 to RM260 per gramme before rising RM5 several times this month until recently reaching RM301 per gramme.

“This situation is causing more customers to pawn their jewellery instead of buying,” she said.

Meanwhile, another trader, Saraswathy Ramayah, is not sure if the price of gold will drop in the near future as long as the situation in Gaza does not subside.

“If the war in Gaza ends, it may take time to see the price of gold fall again due to the intervention of the United States and Russia.

“This situation certainly upsets traders. Customers are not keen to buy gold as they face rising cost-of-living issues,” she said. – November 29, 2023.