TheJakartaPost
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Gold demand surges as people turn to bullion to protect wealth
Gold is traditionally seen as a safe investment in times of uncertainty and worsening global economic health.
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An employee shows two bars of gold produced by state-owned diversified mining company PT Aneka Tambang (Antam). (kompas.com/Garry Andrew Lotulung)
G
old sales in Indonesia have increased sharply this year as many people still believe that bullion remains a safe haven in times of financial or political uncertainty.
Local gold trader Sembada Gold director of operations Hendry Wijaya said his company recorded a 15 percent year-on-year growth in gold sales in October, citing the global uncertainties, caused by trade tension between the United States and China.
“People are buying more gold because they know it is a safe haven to face inflation and global uncertainties,” said Hendry in Jakarta on Friday.
Sembada Gold currently has three retail stores in East Java with most of the buyers being retail investors seeking a relatively safe investment as well as those who bought jewelry for lifestyle and investment.
According to a report by the World Gold Council (WGC), the world’s demand for gold reached 1,107 tons in the third quarter this year, up 3 percent from 1,079 tons in the same period last year.
Investment in gold-backed exchange-traded funds offset a decline in purchases of jewelry, bars and coins to push global gold demand slightly higher in the third quarter according to the WGC, as reported by Reuters.
Gold is traditionally seen as a safe investment in uncertain times, and the worsening health of the global economy triggered a growing demand from financial investors such as asset managers and hedge funds.
