Not Luntur By Time: Gold Value Still Superior For Long-Term Financial Resilience

Photo: Doc. Hartadinata Abadi

JAKARTA - The decline in world gold prices in recent weeks has sparked concerns about the attractiveness of gold as an investment instrument. However, industry players insist that this correction is a reasonable part of market dynamics, without reducing the position of gold as a solid asset and remains relevant in long-term financial strategies.

"Price fluctuations in the short term are commonplace and do not need to be a concern about the value of gold as a savings asset. Saving gold is a strategic step and has been proven to be able to build financial resilience in the long term. So it is not for a moment of profit," said Sandra Sunanto, President Director of PT Hartadinata Abadi Tbk, in a written statement, Thursday, May 22.

Historically, gold prices have shown a consistent growth trend in recent years. Based on gold price data from the World Gold Council, from 2021 to 2022, gold prices rose by 9.28 percent on an annual basis (YoY), followed by growth of 12.45 percent in the 2022 to 2023 period.

On average, gold prices experienced stable growth of around 10 percent per year from 2021 to 2023, supported by post-pandemic economic recovery and rising global interest rates that had an impact on demand patterns.

However, entering the end of 2024, gold prices recorded a significant increase of 34.63 percent compared to the previous year. This trend even continued to strengthen until the first quarter of 2025, with a sharp increase of 45.07 percent compared to the same period in the previous year.

As of March 2025, or year-to-date (YTD), the price of gold has risen by about 16 percent. This surge reflects growing interest in safe haven assets amid economic uncertainty, inflation concerns, and global geopolitical tensions.

PT Hartadinata Abadi Tbk's annual report also shows that public interest in gold continues to increase, especially as a form of family savings and assets that are easily disbursed. This is reinforced by the wider access to gold purchases both through offline stores and digital platforms.

"Gold is a real asset that is inflation-resistant and easy to disburse whenever needed. In the context of households, storing gold is a form of long-term protection against economic uncertainty," added Sandra.

Even though the market is currently experiencing a correction, the long-term trend still shows that gold is a reliable investment. With a strong track record, resilience to inflation, and growing retail demand, gold remains the main choice for people who want to maintain stability and financial resilience in the future.