Gold is gaining popularity in Malaysia

That Chinese and Indians have a lot of Buy gold we already knew, but the precious metal is also gaining popularity in Malaysia. Young people in particular appear to be interested in the precious metal and increasingly decide to keep part of their savings in the form of gold coins or a digital gold account.

The Malaysian ringgit has depreciated the most of all Asian currencies over the past year. The country has been hit hard by the fall in commodity prices, and the depreciation has caused inflation to rise sharply. Fearing a further depreciation of the currency, more and more Malaysians are deciding to convert part of their wealth into physical gold.

The Malaysian Insider tells the story of Muhammad Syarifuddin Mohd, a 21-year-old student who bought a gold coin for the first time in early 2014. He wanted to save for later, but he was worried about a further depreciation of the currency. That's why he decided to turn his savings into physical gold. After that, he also managed to convince people around him to buy gold.

Young people in particular buy gold

According to economist and financial expert Shan Saeed, it is mainly young people who are interested in gold. Adults prefer traditional investments in real estate and stocks, while young people prefer the precious metal. This is partly because they cannot afford real estate, but also because young people are worried about rising inflation and a decline in the value of money.

In Malaysia, too, young people are realising that it is wise to save money at a young age. For example, they save to be able to make a down payment for their own house or to pay off their student debt. And they prefer to do so in precious metals rather than in money that quickly loses value. The ringgit fell to its lowest rate in seventeen years this year and has become the weakest currency in the Southeast Asian region.

Certainty

Over the past four years, Malaysia's demand for gold has increased by 20%. Real estate has also become a trusted safe haven. According to financial expert Saeed, there is a logical explanation for this: "People want certainty and then gold, silver and real estate can be your salvation in uncertain times. Equities are very volatile at the moment, which is why investors are shifting their wealth towards real estate. Over the past four years, Malaysians have put 50% more money into real estate."