As gold prices soar to unprecedented levels, an increasing number of Malaysians are turning to pawn their jewelry, reports Free Malaysia Today. Pawn shops across the Klang Valley, notably Pajak Gadai United Tapah Resources in Kuala Lumpur, have noted a 30% surge in gold pawning activity.

The driving factors behind this trend are attributed to rising living costs and financial hardships, prompting individuals to liquidate their valuable jewelry.

Furthermore, pawn shops observe a prolonged redemption period for pawned items. Typically, items are redeemed within three to five months, but with the surge in gold prices, this period has extended beyond six months for many individuals. Some items remain unredeemed, leading pawn shops to resort to auctioning off the jewelry.

Spot gold prices hit an all-time high of USD2,353 (RM11,183) yesterday, representing a notable 28% increase from USD1,833 (RM8,712) on October 6, 2023.

Despite the steep prices, Malaysians continue to invest in gold, perceiving it as a safe haven amidst economic uncertainty.