Seeing the value in gold

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    In August of 2020, business tycoon Warren Buffett bought shares in the Canadian mining company Barrick Gold Corp., reinforcing the value of gold, whose price soared above $2,000 per troy ounce, in the world market. This shows that despite the ongoing global pandemic, the value of gold continues its upward trend.

    Chamber of Pawnbrokers of the Philippines, Inc.(CPPI) President, Jean Henri Lhuillier knows the value of gold, all too well, proving how valuable this rare metal is and why Filipinos should realize its importance as a good investment asset.

    “Gold remains to be one of the best commodities to invest on because it is a highly liquid asset. There is always a strong local and global market demand for gold and besides this,owning gold also acts as a hedge against inflation and even deflation, because its price tends to rise when the cost of living increases,” said Lhuillier.

    ”Locally, more and more people have been investing in gold and jewelry. In fact, this is further evidenced by the overwhelming response of a growing number of jewelry online selling channels particularly in social media including the buying of foreclosed or what is locally termed as “naremata” items from pawnshops, and then sold via FB Live selling, done by various groups and individuals in the country,” added Lhuillier.

    Based on the actual inventory of Cebuana Lhuillier’s foreclosed jewelry, the number of Filipinos who has been buying these items are growing. In fact, even during the quarantine period, the number of buyers significantly increased.

    Pawnshops have likewise started online jewelry selling and the reception from clients has been quite astounding. It has even unraveled new markets like millennials, who did not used to invest in gold or jewelry previously.

    Moving with the necessity of the times, pawnshops are now utilizing the use of social media sites like Facebook to sell rematado jewelry. In fact, as much as 10,000 people have tuned in to previously held FB Live sessions where items are sold out within the first hour.

    The wonderful reception of clients to online rematado selling, shows that while retail-based jewelry business is declining because of the current situation, more and more people are now finding ways to acquire and invest in gold and jewelry because of the timely initiative of CPPI-member pawnshops in making use of social media, which has not only benefited them but also their customers.