In April, gold prices hit a new high of $2,395 per ounce (about $114 per gram), marking a 20% increase over the past year. This has sparked varied reactions from the public on whether to buy gold. Some believe gold's stability makes it a worthwhile investment despite high prices, while others prefer to wait for prices to drop before purchasing.
Zhao Liangni and her husband have been exchanging gold bars as birthday gifts for the past two years. Despite the high prices, Zhao continues to buy gold, viewing it as both an investment and a meaningful tradition. They also consider selling their gold bars when prices are high to buy them back later.
Gold jewelry remains popular, with no decline in customers over the past six months. Gold is seen as a symbol of wealth, peace, and good fortune, making it a favored gift for occasions like Mother’s Day. Jewelry stores have noted an increase in young customers interested in both modern and traditional gold designs. However, financial planners caution against buying gold jewelry as an investment due to high costs and low returns compared to gold bars.
Pawnshops have evolved significantly in Singapore over the years. They offer various services, including pawning gold and other valuables, selling new and second-hand jewelry, and even online interest payments. The pawn industry has grown, driven by both traditional and group-based pawnshops, offering competitive interest rates and expanding to countries like Malaysia and Indonesia.
The industry faces challenges, including fluctuating gold prices and competition from other forms of investment. Despite this, pawnshops play a crucial role for many, especially blue-collar and white-collar families needing short-term financial support. Pawnshops also deal in high-value items like luxury watches, which hold significant market value.
Overall, gold continues to be a versatile asset for investment, gifts, and financial security, with its market influenced by price fluctuations and consumer trends.