Jewellers stock up as needed to avoid losses as gold prices dip

KOTA BHARU – Stable and falling gold prices in recent times have forced some jewellery traders to take in new stock only as needed, to avoid hurting their working capital.

A survey by Utusan Malaysia at several premises around the district found that few customers were buying, even though gold prices had fallen sharply to as low as RM508 per gram.

Trader Farisya Najwa Rosli, 26, said the uncertainty in gold prices meant new jewellery stock was taken in according to need, so that working capital could be managed more effectively.

She said gold prices currently moved only by about RM1 to RM10 per gram at certain times.

"When gold prices fall sharply, jewellery stock has to be taken into account, including the amount of working capital.

"My shop still has new jewellery and plenty of choices because I do not want to disappoint customers who come to buy," she said when met yesterday. (Quote translated from Malay.)

Another trader, Rosli Ibrahim, 60, said the drop in gold prices had affected his business to some extent, though the impact was not very significant.

He said customers were also not as active as during the festive season, even though market gold prices then had risen to around RM700 per gram.

"Perhaps at that time customers expected gold prices to keep rising, which led to gold shops being flooded. But there are also customers who are desperate and come to sell their jewellery when market gold prices fall," he said. (Quote translated from Malay.)

Rosli said a drop in gold prices did not necessarily encourage people to buy.