Article Summary
Driven by global economic uncertainty, gold prices have nearly tripled since 2020, reaching approximately RM665 per gram. While gold serves as an effective hedge against inflation, experts warn against impulsive buying based on trends rather than financial literacy. Investors are advised to maintain cash reserves for immediate liquidity and limit gold allocations to between 5% and 15% of total savings. To reduce risk, a "cost averaging" approach is also recommended over attempting to time the market or accumulating debt to fund purchases. Finally, the public must remain vigilant against fraudulent investment schemes that promise unrealistic returns without verified legitimacy.

---

By: Husnina Zahra Hadri

 

 

SERDANG, 21 April – The price of gold has nearly tripled over the past six years, rapidly positioning it as a favoured instrument for both savings and investment. However, the public need to exercise caution and avoid impulsive purchases without sound financial planning.

 

Prof. Dr. Mohamad Fazli Sabri, The Dean of the Faculty of Human Ecology (FEM) at Universiti Putra Malaysia (UPM), noted that gold prices have surged from RM220–RM230 per gram in 2020 to nearly RM665 today, driven by global economic uncertainty and ongoing geopolitical crises.

 

“Gold is often used as a hedge against inflation and is able to preserve purchasing power, compared to cash which lacks the backing of a physical asset,” he explained.

 

He added, however, that the growing public interest in gold has also been accompanied by a tendency for people to buy it based on trends rather than on a fundamental understanding of the asset.

 

 

“What is concerning is when purchases are made without proper knowledge and planning, to the extent that daily expenses are affected,” he warned.

 

He stressed that gold purchases should be made prudently, considering financial priorities such as cash savings and emergency funds.

 

“In emergencies, cash savings are more practical due to its liquidity, compared to gold, which takes time to sell and is affected by the spread between buying and selling prices,” he explained.

 

He also recommended allocating between 5 to 15 percent of total savings to gold investments to help balance risk.

 

“A gradual purchasing approach, or cost averaging, is recommended to enable consistent investment without the need to time the market,” he further advocated.

 

 

The Dean issued a strong caution against borrowing to fund these investments. “Avoid going into debt solely to purchase gold, as it can compromise financial stability,” he said.

 

He further requested the public to be cautious of gold investment schemes that promise extraordinary returns, as they may potentially be fraudulent.

 

“The public should not be easily swayed by promises of high returns without first verifying the legitimacy of the investment,” he concluded.

Date of Input: 21/04/2026 | Updated: 11/05/2026 | hairul_nizam