The Jakarta Post
State-owned pawn shop PT Pegadaian reported a 5 percent annual increase in outstanding financing in the first half of the year as people pawned gold to meet various needs for Idul Fitri.
Pegadaian president director Riswinandi, who goes by one name only, said its outstanding financing portfolio stood at Rp 33.6 trillion (US$2.55 billion) in the January to June period, higher than the Rp 32 trillion recorded in the same period of last year.
"More and more people pawned gold for cash, especially in April to June, before Idul Fitri for various celebration needs,” he told The Jakarta Post on the sidelines of an open house at the private residence of State Enterprise Minister Rini Soemarno on Wednesday.
“However, people already paid off their financing a week before Idul Fitri using their holiday bonus [THR]. They usually come to Pegadaian again in August."
Pegadaian predicts that people will be more attracted to pawning gold due to its attractive price, especially after the results of the UK referendum made global markets more volatile.
Bloomberg reported on Wednesday that gold climbed as much as 1.1 percent to $1,371.39 an ounce, the highest level since March 2014.
Separately, Tedy Badrujaman, president director of major gold miner Aneka Tambang (Antam), said it expected to see the gold selling spree continue this month as people sought profits from the high price to finance their needs. (tas)
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