BUTTERWORTH: Consumers are advised to buy gold and jewelleries from proper channels to avoid unnecessary loss, says Chiah Hock Yew, president of the Federation of Goldsmiths and Jewellers Association of Malaysia.

This is because gold and jewellery shops, both physical and online, have mushroomed in the last two years as sales pick up, he said.

Close to 200 gold and jewellery outlets have been set up in the past two years.

In an interview with Sin Chew Daily, Chiah said consumers should buy gold and jewelleries from reputable shops where they would be able to check the source of the gold.

“Reputable shops would look after the interest of the shop and the consumers, the right of consumers and the reputation of the shops. They would be able to answer queries on the spot. One should be mindful if the source of the gold is unknown,” he said.

Although the government does not require shops to send the gold and jewellery for verification, Chiah said the association encourages its members to conduct verification on a regular basis by sending them to FEDMAS Assay to test the purity of gold.

Chiah also encourages the shops to join the federation to acquire the latest information on gold and updates on government policy.

The federation is playing the role of communication between members and the government, he said.

Since 2020, gold has become a popular product among consumers, with robust sales registered from June to September 2020, March and April last year and May this year when the government allowed RM10,000 withdrawal from the Employee’s Provident Fund before Hari Raya.

Sales of gold peaked when consumers lined up outside gold shops to buy gold before Hari Raya.

“We estimate the sales of gold in May was 50% more than the previous month,” he said.

Consumers see gold as an instrument to hedge against inflation. Many opt to buy gold instead of saving up cash and the sale of gold has continued to spike in the last two years.

Chiah said he estimated that the price of gold would increase further till end of the year as inflation remains.