Malaysians catch Gold fever

There's a lot of talk about gold these days. More Malaysians are investing in the precious metal and even criminals seem to have caught on to the gold bug.

Last month, police nabbed five kidnappers in Klang who demanded 10 one-kilogram gold bars (worth RM1.44mil at that time) from the victim's family. It is believed to be the country's first-ever kidnapping case involving the use of gold bars as ransom.

More recently, the Malaysian Anti-Corruption Commission (MACC) reportedly discovered gold bars in the homes of several Customs officers during raids.

There is good reason why gold is sought after it recorded an all-time price hike this week, reaching US$1,500 (RM4,500) an ounce for the first time in history.

Over the last year, the price of gold has risen approximately 23%; and in the last three years it has risen 98%. While unrest in the Middle East and the situation in Japan are cited for record gold prices in recent months, shaky financial systems are the main reasons why the price of gold has been shooting up over the years.

Glittering investment: The box Jamaluddin is holding is worth approximately RM43,000. In early 2009, the same box was worth approximately RM27,000.

Companies are now aggressively marketing gold in the form of bars and coins while banks are offering gold-related savings accounts.

In cyberworld, there are countless numbers of websites offering gold products and online forums are hotting up with discussions on investment in the glittering metal.

According to RH Investment Services Labuan director Richard Hull, the rise in the gold price is predominately linked to the amount of US currency in circulation.