Malaysian goldsmiths mould a profit out of COVID-19 pandemic

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Malaysian goldsmiths mould a profit out of COVID-19 pandemic

Demand for the safe-haven commodity has soared during the coronavirus pandemic

Published: December 05, 2020 16:25 AFP and compiled by Balaram Menon, Senior Web Editor

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Copy of 144211-01-02-1607169835742 — In a backroom workshop in Malaysia, goldsmiths with blowtorches and chisels sit at wooden desks as they melt and mould the precious metal into glittery jewellery. Image Credit: AFP

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Copy of 144219-01-02-1607169859147 — Demand for the safe-haven commodity has soared during the coronavirus pandemic and it is not only professional investors who are cashing in, but small businesses too. Image Credit: AFP

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Copy of 144214-01-02-1607169844311 — The Makmur Gold company, which is based in northern Kelantan state and mainly makes jewellery, has enjoyed brisk business this year even as the Southeast Asian nation's economy fell into recession. | Above: Gold bracelets on a scale at the Makmur Gold workshop in Kota Bharu. Image Credit: AFP

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Copy of 144218-01-02-1607169856061 — "We've seen good developments - during Covid, our sales were much better," said company director Muhammad Nur Hisyam Che Mahmood. | Above: A salesman displaying gold bracelets for sale at the Maysarah Gold shop in Bentong in Malaysia's Pahang state. Image Credit: AFP

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Copy of 144206-01-02-1607169867246 — Gold surged this year as the pandemic accelerated and stock markets tumbled, hitting a record above $2,000 an ounce in August, although it has since slipped back to about $1,800. Image Credit: AFP

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Copy of 144217-01-02-1607169853230 — Makmur Gold recorded strong sales of about 80 million ringgit ($19.5 million) over the past eight months as buyers sought to park their cash somewhere safe. Image Credit: AFP

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Copy of 144213-01-02-1607169841400 — The business sells goods directly to customers from its four outlets as well as online, offering items ranging from bracelets and rings to small gold bars. Image Credit: AFP

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Copy of 144221-01-02-1607169817674 — Most of its gold is sourced in the form of jewellery from a small number of suppliers in the country or bought second-hand from customers, before being melted down and fashioned into new products. Image Credit: AFP

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Copy of 144216-01-02-1607169850036 — In addition to regular customers, the business has agents who sell on its behalf and then keep a share of the profits. | Above: Jewellery craftsmen decorating bracelets and rings at the Makmur Gold workshop. Image Credit: AFP

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Copy of 144208-01-02-1607169826144 — One such agent is Tuan Zubaidah Tuan Abdul Rahman, who made half a million ringgit ($120,000) in sales during three months of buying and reselling gold jewellery part-time. | Above: A jewellery craftsman heating a gold bar with a torch at the Makmur Gold workshop. Image Credit: AFP

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Copy of 144210-01-02-1607169832451 — "People are seeing that rather than hold on to their money in the bank, it is better for them to buy gold," said the woman, who is also a teacher. "People can wear it, and it can be a valuable asset." Image Credit: AFP

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Copy of 144209-01-02-1607169829473 — Nurse Nor Fazilah Jamaludin said she sold gold jewellery during the pandemic to increase her income. "Women will buy these for beauty, but the benefit of buying gold is more towards our investment for the future," she said. Image Credit: AFP

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Copy of 144215-01-02-1607169847116 — Malaysians began rushing to buy gold in May as authorities allowed businesses to reopen after a six-week virus lockdown, said Steven Siow, president of the Federation of Goldsmiths and Jewellers Associations of Malaysia. Image Credit: AFP

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Copy of 144222-01-02-1607169820052 — People had extra cash after not spending much for a while and due to a six-month government moratorium on repaying loans aimed at boosting the economy, and gold shops doubled or even tripled their sales, he said. Image Credit: AFP

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Copy of 144223-01-02-1607169823281 — The gold price has slipped as hopes rise that vaccines will be rolled out soon, but experts believe the world economy faces a bumpy recovery and the precious metal will remain a safe bet for some time. Image Credit: AFP

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Copy of 144220-01-02-1607169862543 — "Gold, in any crisis, would be the key asset to look out for," said Yeah Kim Leng, economics professor at Sunway University Business School. Image Credit: AFP

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