Gold Just Tanked: Will This Be A Good Opportunity For Investors In 2025?

Gold. It’s shiny, it’s timeless, and for generations, it’s been the ultimate fallback plan when things get rocky. From your grandma’s heirloom bangles to the 1-gram gold bar you impulse bought at the Maybank kiosk because it “felt like a smart idea,” gold has long been seen as a symbol of security in Malaysia.

But now, something pretty wild is happening: gold prices have just tanked.

Cue every WhatsApp group chat blowing up with links to news articles and that one friend who suddenly becomes a self-declared investment guru overnight. But the million-ringgit question remains: Is this gold price dip the best chance Malaysians have to cash in and strike it rich in 2025?

Let’s break it down.

What’s going on with gold prices in 2025?

As of early May 2025, the price of gold globally saw a surprising dip, dropping to around USD 2,100 per ounce after peaking near USD 2,400 earlier this year. In ringgit terms, that’s roughly RM310 per gram—down from RM360 per gram just a few weeks ago (according to Public Gold and Maybank’s live price trackers at the time of writing).

So, why the sudden fall? Well, analysts are pointing fingers at several factors:

• Stronger US dollar: The greenback has been flexing hard, making gold (which is priced in USD) more expensive for non-US buyers, which tends to drag prices down.
• Interest rate hikes: The US Fed (yet again!) hinted at more rate hikes. Higher interest rates usually mean people pull out of gold and jump into bonds or savings accounts that suddenly look more attractive.
• Profit taking: After months of rising prices, many institutional investors decided to cash out—causing a ripple effect.

Should we care?

Short answer: yes.

Gold has always been a favourite in Malaysia, not just as jewellery, but as a serious investment tool. According to a World Gold Council report, Malaysia is one of Southeast Asia’s most active gold-buying nations, with retail gold demand holding steady even during economic downturns. Gold savings accounts (GSAs) from banks like Maybank, CIMB, and UOB have seen a steady rise in uptake, especially among young investors wanting a slice of the action without the hassle of storing physical gold.

And let’s not forget, Malaysia’s obsession with gold-backed financing, like Ar-Rahnu (Islamic pawn broking), makes gold a deeply woven part of our financial safety net.

Why do people love gold in Malaysia?

• It’s tangible: Unlike stocks, you can actually hold your investment.
• It’s inflation-proof: Gold is seen as a great way to hedge against inflation—which, let’s be real, we’ve all felt with our skyrocketing teh tarik prices.
• Liquidity: Need cash fast? Pawn it, sell it, or tap into your GSA. Boom—instant money.

Is now the perfect time to buy?

Okay, here’s where things get interesting. We Malaysians love a good bargain (cue the endless queues at warehouse sales), and cheaper gold sounds like a golden (pun intended) opportunity. But investing in gold isn’t just about timing the dip—it’s about understanding your goals.

Let’s weigh the pros and cons:

✅ Why you should consider buying now:

• Long-term gain: Historically, gold always rebounds. In fact, if you look at the last 20 years, every major dip has been followed by an even bigger rally. Buy low, hold, and you’re likely to see solid gains over time.
• Ringgit woes: Our RM has been flirting with historic lows. Even if gold prices stay flat globally, any further RM depreciation can boost your returns in local currency.
• Diversification: Experts always stress the importance of not putting all your eggs in one basket. If your portfolio is heavy on stocks or crypto, gold offers a great way to balance things out.

🚩 Why you might want to wait:

• Short-term volatility: Gold isn’t immune to market drama. Prices could dip further before stabilising, so if you’re looking to make a quick buck, tread carefully.
• Opportunity cost: Gold doesn’t pay dividends or interest. If your money’s tied up in gold, that’s cash you can’t use elsewhere—like a high-interest fixed deposit or REITs.
• Storage hassles: Physical gold comes with its own headaches—safe deposit boxes, insurance, and the ever-present fear of theft.

What are the experts saying?

Public Gold’s recent investor briefing flagged 2025 as a “volatile but opportunistic year” for gold, advising buyers to focus on dollar-cost averaging (buying small amounts regularly rather than going all-in at once). Maybank’s research arm echoed a similar sentiment, suggesting that while prices might dip further in the short term, the long-term fundamentals for gold remain strong, especially with ongoing global geopolitical tensions.

So… what’s the move?

Here’s my two sen: If you’ve been thinking about dipping your toes into gold, this price drop might be the nudge you needed. But like all things finance, don’t rush in blindly. Set your budget, decide if you’re going physical or digital (GSAs are honestly a super convenient option), and consider speaking to a financial planner if you’re not sure how gold fits into your overall money game plan.

And remember—gold isn’t a get-rich-quick scheme. It’s more like that super chill cousin who doesn’t show off at parties but always comes through when times are tough.

Read More: Guide To Gold Prices In Malaysia

FAQs

Q: What’s the minimum I need to start investing in gold in Malaysia?

A: For gold savings accounts, you can start with as little as RM10. Physical gold (like 1g bars) can cost around RM310–RM350 depending on daily prices.

Q: Is it better to buy physical gold or invest via a bank?

A: Both have pros and cons. Physical gold gives you something tangible but comes with storage risks. Gold savings accounts are easier to manage but don’t offer physical delivery unless you hit a certain threshold.

Q: How do I track gold prices in Malaysia?

A: Most banks (Maybank, CIMB, UOB) have live gold price trackers on their apps and websites. You can also check sites like Public Gold for the latest market updates.

So, what do you think? Are you ready to ride the gold wave, or are you staying on the sidelines for now? Take your time, think about it: should I invest in gold now? Once you’ve weighed the pros and cons, if you decide to go forward, happy investing!