PENANG is seeking to tap the potential in gold and precious stone exhibitions as global economic situations forced many nations to switch towards acquiring gold as a preferred reserve other than the US Dollar.
As gold prices appreciates globally with renewed interest in the commodity, there is now room for more trade exhibitions and programmes tailored to position and market the precious metal better, said state executive councillor Wong Hon Wai, who oversees the tourism portfolio.
On a global scale, geopolitical risks, economic uncertainty and volatility in the US trade policy, are continuing to drive various central banks to accelerate their gold purchases as it is regarded as a safe investment in turbulent times.
"Gold's traditional role as a preferred (monetary safekeeping) is now more vital than ever," Wong said when opening the Penang Signature Gold, Gems and Jewellery Fair at the Setia SPICE Convention Centre off Bayan Baru.
The global geopolitical landscape is becoming increasingly unstable with frictions among major powers, particularly between the US and China as well as the West and Russia, Wong noted.
This has prompted many nations to seek greater financial reassurances.
"Unlike the US Treasury Securities or other USD denominated assets, gold is a neutral commodity, free from the political or legal control of any single nation.
“This makes it an attractive store for value among central banks seeking to shield themselves from the potential fallout of sanctions, trade disputes and currency war."
Nations such as China, Russia, and India have steadily reduced their reliance on the US Dollar while increasing their holdings in gold, said Wong.
According to him, the World Gold Council stated that central banks throughout the world, have purchased over a thousand tonne of gold annually since 2022.
Hence, it is strategic and timely for Penang to host gold trade shows and exhibitions, said Wong, adding that 120 exhibitors, mainly from China are participating in the fair which ran from yesterday until Sunday.
The launch also saw models parading with gold ornaments and fashion ware. - August 16, 2025.
