Coronavirus: Malaysian goldsmiths’ profits shine even amid pandemic recession

“We have seen good development – ​​during Covid, our sales have been much better,” said company director Muhammad Nur Hisyam Che Mahmood.

Gold has surged in value this yr because the pandemic has accelerated and stock markets have tumbled, reaching a record above $2,000 an oz. in August, even though it has since fallen to around $1,800.

Makmur Gold has seen strong sales of around 80 million ringgit ($19.5 million) prior to now eight months as buyers looked to park their money somewhere protected.

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The company sells goods on to customers through its 4 sales outlets in addition to online, offering a big selection of things from bracelets and rings to small gold bars.

Most gold is sourced in the shape of bijou from a small variety of suppliers within the country or purchased second-hand from customers, then melted down and formed into recent products.

In addition to regular customers, the corporate has agents who sell on its behalf after which retain a share of the profits.

One such agent is Tuan Zubaidah Tuan Abdul Rahman, who earned half 1,000,000 ringgit ($120,000) in three months of shopping for and reselling gold jewelry part-time.

“People see that as a substitute of keeping money within the bank, it is best to purchase gold,” said the lady, who can be a teacher.

“People can wear it and it can be a valuable asset.”

Nurse Nor Fazilah Jamaludin said she sold gold jewelry to extend her income throughout the pandemic.

“Women will buy it for beauty, but the benefit of buying gold is more related to our investment for the future,” she said.

Malaysians began rushing to purchase gold in May when authorities allowed businesses to reopen after a six-week virus lockdown, said Steven Siow, president of the Federation of Goldsmiths and Jewelers Associations of Malaysia.

People gained extra money after not spending much for some time and because of a six-month government moratorium on loan repayments geared toward stimulating the economy, and gold sales at gold stores doubled and even tripled, he said.

The price of gold has fallen as hopes of vaccines being rolled out soon grow, but experts imagine the worldwide economy faces a bumpy recovery and the dear metal will remain a protected bet for a while.

“In any crisis, gold would be a key asset to watch out for,” said Yeah Kim Leng, an economics professor at Sunway University Business School.

This article appeared within the print edition of the South China Morning Post as: Malaysian goldsmiths are cashing in on the pandemic