Economists Urge Investors To Buy Government Bonds During High Gold Prices

JAKARTA - Financial economist and capital market practitioner Hans Kwee recommends the public or investors to buy Government Securities (SBN) or government bonds in the midst of continuing to strengthen the price of gold at the global level.

He considered buying gold instruments at a time when the price was high at this time was not appropriate, because the increase tended to be limited.

"Gold is still attractive, but buying now is not right because the increase is limited. It's better to buy government bonds when yields rise," Hans said, quoted by Antara, in Jakarta, Thursday, April 17.

Regarding the diversification of the investment portfolio, he reminded that there must still be cash (cash) with a percentage of 50 percent, then debt securities (bonds) of 30-40 percent, and shares of 10-20 percent.

"There must be cash 50 percent, then bonds 30 to 40 percent, and stocks 10 to 20 percent," said Hans.

According to him, the current increase in world gold prices indicates that the global economy is not in good condition, along with the main tariff war between the United States (US) and China which puts the world at risk of dealing with recession.

"So gold was bought and the weakening of the US dollar made gold rise. The weakening of the US dollar is an indication that the world does not believe in the US economy due to the trade war," Hans said.

At the auction on March 18, 2025, Minister of Finance Sri Mulyani Indrawati conveyed that the performance of Government Securities (SUN) showed excellent results in the midst of the dynamics of the stock market.

For the auction in that period, the government set an indicative target of IDR 26 trillion, with an incoming bid value equivalent to 2.38 times the indicative target, of which IDR 13.95 trillion or 22.59 percent came from foreign investors.

"The incoming offers or incoming bids are very strong, which illustrates investor confidence in the government and the state budget, which is IDR 61.75 trillion," said Sri Mulyani.

Trading data this Thursday at 15.05 WIB, global gold prices are at the level of 3,333.46 US dollars per troy ounce, or a decrease of 12.94 points or 0.39 percent in today's trading.

Meanwhile, Antam's gold price, which was monitored from the Mulia Metal page on Thursday morning, experienced a jump of Rp. 32,000, from the initial figure of Rp. 1,993, to Rp. 1,975,000 per gram.