Malaysians Pawn Their Jewellery For Quick Cash As Gold Price Rises
Many cite the rise in the cost of living and financial issues as reasons for pawning their valuable jewellery.
More Malaysians are resorting to pawning their jewellery as gold prices increase to record highs
According to Free Malaysia Today, pawn shops in the Klang Valley report a surge in people pawning their gold, particularly jewellery. Pajak Gadai United Tapah Resources claimed that there's been an increase of 30% at its Kuala Lumpur outlet.
Many cite the rise in the cost of living and financial issues as reasons for pawning their valuable jewellery.
Image via AFP / New Straits Times
Pawn shops claim that people are taking a longer time to redeem their pawned items
Typically, people would redeem their items within three to five months.
However, with the rise in gold prices, many pawn shops said that people are taking longer than six months to redeem their items. Some don't redeem them at all, forcing pawnshops to auction their jewellery.
The breakout of the Hamas-Israel war on 7 October 2023 led to the rise in gold prices
Image via GoldPrice
Yesterday, spot gold reached an unprecedented peak of USD2,353 (RM11,183), marking a significant increase of USD520 (RM2,471) or 28% from its value of USD1,833 (RM8,712) on 6 Oct 2023.
Despite the high prices, Malaysians continue to buy gold, viewing it as a secure investment amid economic uncertainty.
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