The president of the Muslim Jewellers and Money Changers Association of Penang, Datuk Dr Anvar Hussain Rahumathullah has commented that many individuals are opting to use the special RM10,000 withdrawal by the Employees Provident Fund (EPF) to invest in gold.

“Those with holding power can buy gold as the resale value is good. Whenever gold prices go up, one can always sell it and make a profit,” said Datuk Dr Anvar, adding that these purchases may also pull double duty as adornment, if need be, although they are mostly for investment.

The association president’s comments are also corroborated by several jewellery retailers; for instance, the director of VKN Jewellers, S. Yuvabalan, noted that the sale of gold bars has increased lately. “People believe that gold prices will keep going up and they see it as an investment option. Others buy jewellery for cultural celebrations, like when their children are getting married. Gold is considered a good investment,” he further said.

The price of gold has surged significantly over the past two years as investors looked for an optimal investment option, especially amidst the economic instability brought on by Covid-19 and the recent war between Russia and Ukraine. This allowed the metal commodity to retain its status as a safe-haven asset, as compared to other more volatile asset classes, such as stocks and shares.

To give you an idea of how gold has performed over the years, it traded at RM5,350.21 per ounce ten years ago, rising by a marginal 4% to RM5,562.29 per ounce five years later. In the following half of the past decade, however, prices rapidly climbed up, peaking at RM8,629.53 per ounce in August 2020. In fact, investors in gold have seen a 25% return in the past two years.

Meanwhile, the one-off special RM10,000 withdrawal by the EPF is meant to assist individuals who are still affected by the economic effects brought on by Covid-19. The provident fund has consistently urged members to only withdraw their retirement savings if they really need it, but it had been highlighted before that many EPF members – particularly those from the T20 income group – had also made withdrawals via earlier Covid-related facilities to invest in gold and stocks.

(Source: The Star)

• TAGS:
• Datuk Dr Anvar Hussain Rahumathullah
• Employees Provident Fund (EPF)
• EPF
• Gold
• Gold Investment
• Muslim Jewellers and Money Changers Association of Penang
• S. Yuvabalan
• Special Withdrawal Facility