A staple jewellery distributor and buyer in Malaysia’s capital city has been witnessing a major increase in customers as a result of gold’s elevated price.
One of Kuala Lumpur’s longest-running retailers, Habib Jewels, has observed a 20 per cent year-over-year rise in total sales throughout 2025.
Meer Habib, the company’s Executive Chairman, told Malaysian publication The Star that the metal’s rising price has been causing a surge in spending, unlike many other items.
“With gold we see the opposite,” he stated, “people buying more despite rising prices, and showing strong confidence.”
Meanwhile, many others in need of cash are selling their gold items to turn a profit, pay bills and allocate funds to other interests.
Azlan Mohamed Shanavas, a representative from Habib-owned store Chantique Jewellery, explained that the majority his shop sees are selling their gold merchandise to profit from the commodity’s recent appreciation. Gold has surged by over 25 per cent since Jan. 1 alone and ascended above US$4,100 per ounce. Geopolitical tensions, inflation, a weakening American dollar and safe haven appeal have made the precious metal reach an all-time high.
“We get approximately 50 to 100 customers per showroom per day,” Shanavas said in an interview last week.
Customers have been reporting wait times of up to 1 hour to sell their items.
“Last year, it was mainly busy on weekends, but now even weekdays are packed,” he added in the discussion with Singapore-based media outlet The Straits Times. “People come in after work or teaching.”
Habib specializes in gold, diamonds and luxury jewellery with designs inspired by its Malaysian heritage. The company was founded in Georgetown, Penang in 1958. Habib is known for creating the most expensive bejewelled miniature of Kuala Lumpur’s iconic Petronas Twin Towers in the early 2000s. The collectible was valued at approximately US$240,000.
Nearly 90 per cent of Malaysia’s jewellery market is dominated by gold used for gifts during weddings, festivals and other culturally significant events.
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Analyst sentiment about gold investing is positive
Many expect the price of the yellow metal to either remain elevated or continue climbing. Their forecast is reassuring for Malaysian buyers and gold investors in international markets.
Rodolphe Bohn, commodities strategist at HSBC Holdings PLC (NYSE: HSBC) (LON: HSBA), said in a Nov. 20 report that his bank has a positive outlook for gold in the coming months despite its volatility and considerable rally in 2025. Bohn highlighted that current market conditions are providing a supportive backdrop for gold prices.
Additionally, the HSBC official stated that strong demand from central banks and elevated interest in gold ETFs will be beneficial for the commodity going forward.
“Following a period of consolidation around US$4,000/oz, gold appears to have resumed its upward trend,” he explained, “driven by speculation that upcoming economic data – delayed by the US shutdown – may support another rate cut by the Federal Reserve in December.”
This recent assessment is one of many similar analyses during the latter half of 2025. In October, the London Bullion Market Association estimated that the precious metal could hit US$4,980 before the end of 2026.
This bullish outlook is also shared by the Bank of America Corp (NYSE: BAC). The American financial firm forecasted that gold could hit US$5,000 per ounce last month as well.
Gold is no longer trading solely as a fear asset or a hedge against inflation but rather re-emerging as a strategic portfolio item to hold in a multi-polar financial environment. Central banks are continuing to diversify away from the American dollar at record speed and physical demand in Malaysia, and throughout Asia more broadly, is showing no signs of slowing.
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