Malaysian goldsmiths mould a profit out of COVID-19 pandemic
05 December, 2020
In a backroom workshop in Malaysia, goldsmiths with blowtorches and chisels sit at wood desks as they melt and mould the important steel into glittery jewellery.
Demand for the safe-haven commodity has soared through the COVID-19 pandemic and it is not merely professional investors who are cashing in, but smaller businesses too.
The Makmur Gold company, which is situated in northern Kelantan state and generally may make jewellery, has enjoyed brisk business this season even while the Southeast Asian nation's economy fell into recession.
"We've seen good developments - during COVID-19, our sales were far better," organization director Muhammad Nur Hisyam Che Mahmood advised AFP.
Gold surged this year as the pandemic accelerated and share markets tumbled, hitting an archive above US$2,000 a great ounce in August, though it offers since slipped back again to about US$1,800.
Makmur Gold recorded solid sales around 80 million ringgit (US$19.5 million) over the past eight months as buyers sought to park their cash somewhere safe.
The business sells goods right to customers from its four outlets in addition to online, offering items which range from bracelets and rings to small gold bars.
The majority of its gold is sourced found in the sort of jewellery from a small number of suppliers found in the country or bought second-palm from customers, before appearing melted down and fashioned into services.
GOLD RUSH
In addition to regular customers, the business enterprise has agents who offer on its behalf and keep a show of the profits.
One particular agent is Tuan Zubaidah Tuan Abdul Rahman, who manufactured half a million ringgit (US$120,000) in revenue during three months of buying and reselling gold jewellery part-time.
"People are seeing that rather than retain their money in the lender, it is better to allow them to get gold," said the girl, who is also a teacher.
"People can use it, and it's rather a valuable asset."
Nurse Nor Fazilah Jamaludin said she sold gold jewellery through the pandemic to increase her income.
"Women will get these for beauty, but the benefit of buying gold is extra towards our investment for future years," she told AFP.
Malaysians began rushing to get gold in May as authorities allowed businesses to reopen after a good six-week virus lockdown, said Steven Siow, president of the Federation of Goldsmiths and Jewellers Associations of Malaysia.
People had supplemental income after not spending a good deal for some time and due to a six-month government moratorium on repaying loans targeted at boosting the market, and gold retailers doubled and even tripled their revenue, he said.
The gold price has slipped as hopes rise that vaccines will be rolled out soon, but specialists believe the world economy faces a bumpy recovery and the valuable metal will remain a safe bet for quite a while.
"Gold, in any crisis, will be the essential asset to look out for," said Yeah Kim Leng, economics professor at Sunway University Organization School.
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