Jakarta, CNBC Indonesia – Financial literacy in Indonesia is increasing. This is reflected in increasingly widespread investment diversification.

This can be seen from the number of office workers or other workers with fixed incomes who are starting to allocate part of their income to investing in gold.

As is known, gold investment is an attractive alternative amidst the current economic uncertainty, because it is considered a step to protect investment value (hedging). Gold is considered as “safe haven” by some because these assets have a value that keeps pace with inflation over long periods of time. It is not surprising that gold prices continue to soar high.

In fact, gold prices continue to break records amidst fundamental changes in US interest rates dovishto continued geopolitical risks.

Finally, the price of gold soared to its peak at US$ 2077.16 per troy ounce last week.

JP Morgan even sees an “increasing rally” for gold in mid-2024, with a peak target of US$ 2,300 per troy ounce on the back of expected interest rate cuts. Likewise, UBS estimates that gold prices could reach a record US$2,150 per troy ounce by the end of 2024 if the cut occurs.

The World Gold Council (WGC), in its 2024 projections, projects that a decline of around 40 to 50 basis points in longer-dated yields, after a 75-100 point rate cut, could result in a 4% rise in gold prices .

Continuing conflict in the Middle East, uncertainty due to elections in major countries, and gold purchases by central banks led by China will increase the attractiveness of gold as an asset safe haven in 2024.

CNBC Indonesia Financial Expert Olivia Louise also believes that investing in gold itself will still be attractive this year. Moreover, this year is a political year, so investors need to diversify their investment portfolios.

“To maintain the current value of wealth, it's not too late to collect gold. Just keep adjusting it risk profile. “By investing in gold we can also protect our purchasing power from inflation,” stressed Oliv.

He also reminded us to at least set aside a minimum of 10% of our monthly income to buy gold, let alone precious metals. According to him, it is not too late to invest in gold because many countries' Central Banks are increasing their foreign exchange reserves in the form of gold.

Meanwhile, CNBC Indonesia Financial Expert Aulia Akbar also said that diversification is necessary, because the aim is to mitigate risk.

“Gold is good and has time all time high last year. “But what you have to remember is that the horizon for gold has to be long term,” concluded Akbar.

On the other hand, Akbar also reminded us to understand various strategies so that we can carry out our investment activities in this precious metal ideally.

After the 2023 Christmas holiday, there was a sharp spike in domestic gold prices (ANTAM), which showed a significant increase compared to before. This confirms analytical predictions which predict the price of gold in 2024 to reach around IDR 1.6 million.

For information, the price of Precious Metal gold produced by PT Aneka Tambang Tbk on Wednesday (3/1/2024) at the LM Graha Dipta Pulo Gadung gold boutique was stable at IDR 1,129,000.

Likewise, the buyback price (the price used when selling gold again) is at IDR 1,027,000 per gram.

[Gambas:Video CNBC]

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