INDONESIANS ARE REPUTABLE GOLD BUYERS

Report of PT Aneka Tambang Tbk [Antam] had it that price of gold in domestic transactions was still showing downturn. Price of gold bars of PT Aneka Tambang Tnk [Antam] during transaction in May 2013 was monitored at Rp519, 000 for 1 gram gold bars up to Rp479, 000 per gram for big size gold bar, i.e. 500 gram. This sales posted downturn up to Rp4, 000 per gram compared to transactions the day before, which was in the position of Rp523, 000 for 1 gram gold bars. Meanwhile price of buyback for Antam gold bars showed downturn of Rp3, 000 per gram compared to previous trading to become Rp46, 000 per gram.

               

The downturn of gold price stimulated people to buy gold or invest in gold. To quote report of the World Gold Council [WEC] Indonesia it was mentioned that Indonesia was one of the biggest old buyers. Not just for jewelleries, the commodity was also used for investment. WEC noted that over the first 3 months of 201, expenditure for gold of Indonesians come to 17 tons. The amount consisted of gold in the form of jewelleries 11.2 tons and gold bars and coins for investment totaled 5.8 tons.

               

However, the amount was showing downturn of 12.82% compared to end of quarter l 2012, where total consumption of gold in Indonesia was posted at 19.5 tons. The amount consisted of gold for investment 8.9 tons. In view of the amount spent, in January-March 2013 Indonesians spent USD 889 millions or around Rp 8.6 trillion buying gold, whilst for quarter l -2012, gold buying spree of Indonesians broke through USD 1.60 billon or equal to around Rp 10 trillion. ‘”Indonesians had high passion for gold buying and selling” Murabakah, Executive Director of internal finance executive, Bank Indonesia made the statement in Jakarta on Tuesday [21/5]

               

Murabakah stated that BI had bought gold to the amount of 30,000 troy ounce of equal to 933   kilograms so the total stock of BI’s precious metal become 73.93 tons by end of 2012. He said that the stock in the form of gold by end of 2012 was 2.37 troy ounce [equal to 73.93 tons], up by 30 thousand troy ounce due to purchases in 2012. Mubarakah explained that in BI’s financial balance per December 2012, the recorded asset in gold was Rp38.24 trillion, an increase of Rp 333.51 trillion against previous year.

               

In total, BI’s was posted at Rp 1,519 trillion by end of the 2012, an increase of Rp1, 371 trillion by end of 2011. Meanwhile the biggest asset in the form of promissory notes which was posted at Rp874.34 trillion increased against Rp843.12 trillion of previous year. Gold was stored by BI as a form of forex reserve which might be used just in case to manage the monetary affairs and to maintain national economic stability.

               

Gold seemed to be value as safe instrument of investment, even by housewives who bought or pawned gold. The Director of pawnshop Suwhono said that housewives were the highest buyer or seller at the pawnshop. He disclosed that up to April 2013 sales of gold at the pawnshop was posted at Rp659 billion. By end of 2012 sales of gold was posted at Rp 1 trillion. This year the pawnshop sets sales target for gold at Rp 2 trillion. (SS)

Business News - May 24,2013