KUALA LUMPUR, Feb 2 — Surging gold prices have not dampened consumer interest, but they are changing how Malaysians buy the precious metal, with demand shifting towards lighter jewellery and smaller investment-grade products.

According to industry players cited by The Star, jewellers have responded to elevated prices by offering thinner, lighter and smaller gold items to keep purchases within reach of consumers.

Federation of Goldsmiths and Jewellers Association of Malaysia (FGJAM) president Chiah Hock Yew said sales of high-grammage jewellery have slowed, while interest in gold products designed to preserve value has grown.

“These include small gold bars, wafers and coins,” he said, adding that jewellery buyers are gravitating towards lightweight pieces with contemporary and distinctive designs.

Chiah said rising prices have inevitably squeezed purchasing power, prompting consumers to look for more flexible and affordable options.

“Preferred jewellery products mainly comprise those that are lightweight, chic and uniquely designed,” he said.

Gold prices have climbed by almost 40 per cent since November, hitting a peak on January 29 at RM22,010.89 per ounce, RM8,845.68 per tola and RM707.75 per gram. 

Despite a pullback in recent days, prices remain elevated at RM19,297.81 per ounce, RM7,755.49 per tola and RM620.43 per gram as of yesterday.

While gold continues to be viewed as a long-term investment, Chiah said buyers are increasingly purchasing in smaller stages rather than committing to large quantities at once.

“This reflects a broader shift away from purely decorative purchases towards wealth preservation and financial planning,” he said.

Tomei managing director Datuk Ng Yih Pyng said retailers have adjusted product offerings in response to higher prices, producing jewellery that is lighter and thinner while remaining visually appealing.

Ng, who is also an adviser to FGJAM, said gold gifting has declined, although festive seasons are still expected to drive an uptick in demand.

He added that the move towards gold bars, coins and wafers has been evident for several years and became more pronounced from around October last year.

“Some may see greater value in purchasing gold products as the same price may only get you a small piece of jewellery. However, demand for jewellery is still there,” he said.

Ng also noted that Malaysia’s gold retail sector has not seen sudden shop closures similar to those reported in Thailand.

On January 26, the Thai Gold Traders Association warned that rising gold prices could force more gold shops to shut this year, following closures last year. 

It said the closures were linked to profit-taking during periods of rising prices rather than losses from gold trading.

Malaysian Indian Goldsmith and Jewellers Association president Abdul Rasul Abdul Razak said members have begun offering lighter items and a wider range of gold grades, including 750 and 585, to cater to different budgets.

Abdul Rasul, who is also vice-president of the Malaysia Gold Association, said smaller jewellers, particularly those operating on the outskirts or facing high rental costs, remain the most vulnerable.