Gold Buying Rush Phenomenon in Indonesia

2025 has witnessed an intriguing trend in Indonesia: people from all walks of life are flocking to buy gold. From local jewelry shops, gold boutiques, to digital investment platforms, the surge in gold buying activity has become a hot topic.

So, what is driving this trend?

1.      Global Gold Price Surge and Economic Uncertainty

One of the main drivers is the rise in global gold prices due to global economic instability. Geopolitical tensions, the weakening of the U.S. dollar, and the threat of a global recession have made many people turn to gold as a safe haven asset—something they believe can weather uncertain times.

2.      Concerns About Inflation and the Value of the Rupiah

Domestically, there is growing concern about rising inflation and the weakening of the rupiah. Gold is seen as an investment vehicle that not only provides stability but also preserves value in the long term.

3.      Support from Digital Platforms and Investment Education

The ease of purchasing gold through digital platforms has played a significant role. Platforms like Pegadaian Digital, Tokopedia Emas, and other e-commerce services now allow people to buy gold in small amounts. Additionally, the surge in financial education on social media has helped raise awareness about the importance of diversifying assets.

4.      Cultural and Social Significance

Many people are buying gold for cultural reasons, such as weddings and gifts. However, the latest trend indicates that the primary reason for purchasing gold is not just for consumption, but as a long-term financial strategy.

Opportunities and Challenges in the Business World as a Whole

This gold-buying phenomenon is not only affecting sectors directly linked to gold trading but is also having a broader impact on the overall business world. Here are the advantages and challenges emerging from this trend:

Opportunities:

1. Boosting Consumer Confidence in Investments
   As more people invest in gold, there is an overall boost in confidence in the investment market. This encourages more individuals to invest in other financial instruments, such as stocks, mutual funds, or bonds, which could lead to increased activity in the financial sector. For banks and financial institutions, this opens up opportunities to offer a broader range of investment products.
2. Increased Demand for Related Goods and Services
   The gold-buying trend also stimulates demand for goods and services related to gold. For example, insurance companies offering protection for gold investments and logistics companies specializing in the safe delivery of precious metals. These businesses benefit from the increased demand for their services.
3. Stimulating the Technology and Fintech Sectors
   From a broader business perspective, this trend could accelerate growth in the technology and fintech sectors. Digital investment platforms that make it easier to buy and manage gold portfolios are gaining popularity. This could also speed up the adoption of digital payment solutions and asset management technology, benefiting tech companies providing these services.
4. Opportunities for E-Commerce
   The surge in gold buying online has boosted the e-commerce sector. Online gold shops, as well as platforms that allow secure buying and selling of gold, are profiting from this trend. This could drive innovation in how valuable items are sold and distributed online, expanding business opportunities for e-commerce companies.

Challenges:

1. Macroeconomic Challenges and Market Uncertainty
   One of the negative effects of the gold-buying trend is the increased economic uncertainty. When many people choose to store their wealth in gold, it may indicate concerns about the national or global economy. This could result in reduced consumption of goods and services, as people tend to cut back on non-essential spending and focus on securing their assets.
2. Inflation and Decreased Purchasing Power
   The increased demand for gold could also signal that people are becoming more concerned about inflation and decreased purchasing power. When many people focus on gold investments, they may reduce spending on other goods and services. This could decrease demand in business sectors that rely on consumer consumption, such as retail, entertainment, and tourism.
3. Impact on Currency Value and Financial Stability
   If the trend of buying gold continues to grow rapidly, it could affect the currency exchange rate and financial stability. A massive increase in gold purchases could lead to an outflow of domestic currency, which in turn might affect the rupiah’s value and the stability of the foreign exchange market. This would pose a challenge for business sectors that rely on economic stability and a strong exchange rate.
4. Shift in Investment Focus
   If too many people shift their focus to gold as an investment vehicle, there could be a decline in investments in other, potentially more productive sectors, such as stocks or industrial innovation. For example, if people move their money away from the property sector or stock markets to buy gold, this could slow down economic growth in those areas. This might lead to a decrease in innovation and investment in other industries, such as technology, education, and services.

References

1. https://www.gold.org/goldhub/data/gold-prices
2. https://www.bankindonesia.go.id/en/moneter/inflasi
3. https://www.pegadaian.co.id/emas
4. https://www.bankmandiri.co.id/en/personal/investasi
5. https://www.allianz.co.id/en/wealth-management/insurance-for-investment
6. https://www.fintechnews.id/2025-gold-investment-indonesia/
7. https://www.tokopedia.com/emas