Thursday, August 6

M’sians urged to invest in gold to mitigate ringgit’s decline

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KUALA LUMPUR: Malaysians have been urged to keep between five to 10 per cent of their savings in gold as part of their overall portfolio to mitigate the ringgit’s decline.

The founder and executive chairman of Public Gold Marketing Sdn Bhd Datuk Wira Louis Ng Chuu Hau said the investment in physical gold played an important role in the current economic uncertainties.

“The gold price is based on international pricing and quoted in the US dollar. So, if the ringgit’s value fell against the US dollar, it would still give those with gold savings an advantage,” he told the media at a seminar titled, ‘Gold as a Safeguard Against the Ringgit’s Decline’, here.

Ng expected the ringgit to trade at the level of RM4.40 to RM4.50 this year, and this will drive gold prices higher.

“The weak global economy, coupled with the efforts of foreign central banks to change bond investments to physical gold, will have a higher impact on gold demand globally,” he said.

He also said investing in physical gold was easier than derivatives which was more complicated, while having elements of speculation.

Meanwhile, the inaugural seminar which brought together speakers from the gold investment sector, was sponsored by Public Gold with the cooperation of Agrobank, POS ArRahnu and Koperasi Dagang Emas. — Bernama