A SURGE in global gold prices is casting a pall over Malaysia’s upcoming wedding season, with couples and families tightening their belts and scaling back on jewellery purchases amid escalating costs.
Gold, traditionally an essential part of dowries and ceremonies — particularly in Indian and Indian Muslim weddings — has become increasingly unaffordable, forcing consumers to turn to trade-ins and smaller investments such as coins, bars, or gold certificates.
“Many customers now trade in old pieces for new ones during weddings, which cuts down on the actual amount of new jewellery bought,” The Star quoted M. Krishnan, branch manager of Devan Jewellers in George Town saying. “If families used to buy around 100g of gold jewellery for dowries, they now limit themselves to about 50g.”
The price of gold, which hovered at RM430 per gramme earlier this year, has now surged to around RM491 per gramme — tracking global prices currently near US$3,700 per ounce. Two weeks ago, gold stood at RM470 per gramme.
Federation of Goldsmiths and Jewellers Associations of Malaysia president Datuk Chiah Hock Yew confirmed a significant drop in business since the spike.
“It’s more of a trade-in and sellers’ market now, as consumers are cutting back on gold purchases,” said Chiah, who supplies about 400 wholesalers and retailers. “We hope prices stabilise before the end of the year, but that largely depends on how the political situation in other parts of the world develops.”
Datuk Dr Anvar Hussain Rahmatullah, president of the Penang Muslim Jewellers and Money Changers Association, attributed the spike to geopolitical tensions in the Middle East and aggressive gold accumulation by China, further exacerbated by speculative trading.
“Speculative syndicates have taken advantage, further fuelling the spike,” he said.
Estimates presented at the Asia Pacific Precious Metals Conference indicate Malaysians purchase between 25 to 30 tonnes of gold annually, with trade-ins now accounting for up to 40% of retail volumes — underlining the growing reliance on recycling old jewellery.
Datuk S. Yuvabalan, owner of VKN Jewellers and MD Jewellers Sdn Bhd, said many customers are now prioritising only the thali — a symbolic wedding pendant — while postponing other purchases.
“It’s like a wait-and-see period as the wedding month of Ipasi approaches,” he said, referring to the Tamil calendar’s auspicious seventh month, beginning next month.
Some jewellers, like Krishnan, are also seeing customers request to lock in current rates with down payments. “Unless a deposit of at least RM10,000 is made, we cannot accept such requests. If the price continues to climb, it would reduce our profit margins,” he explained.
He advised clients to consider gold certificates or coins that can later be converted into jewellery.
Sulaiman Mohd Ibrahim, manager of Varusai Jewellers, noted that even among wealthier families, spending patterns have shifted dramatically.
“Previously, customers spent around RM20,000 to RM30,000 on jewellery. Now, they need RM40,000 just to get the same weight of gold,” he said. “It’s no longer about choice — it’s about affordability.” - September 27, 2025
