--- title: "Malaysian Investment Banker Reveals The Future of GOLD" description: "Uncover the future of gold in Malaysia with insights from a Malaysian investment banker. Learn how gold's role is evolving in today's economic climate." url: "https://www.mrmoneytv.com/articles/malaysian-investment-banker-reveals-the-future-of-gold/" category: "Investing & Market" author: "Finlit" published: 2024-09-24 source: "Mr Money TV" --- # Malaysian Investment Banker Reveals The Future of GOLD Uncover the future of gold in Malaysia with insights from a Malaysian investment banker. Learn how gold's role is evolving in today's economic climate. ## Key takeaways - Kelvin Ho, Head of Derivatives at Affin Hwang Investment Bank, sees gold holding its role as a safe-haven asset and store of value, driven by inflation, geopolitical tensions, and de-dollarisation. - Central banks are increasingly stocking gold to hedge against a weakening US dollar, keeping it a reserve for wealth protection. - Gold futures trading lets investors lock in prices for future transactions and hedge against market volatility. - Gold's physical, tangible nature makes it more reliable than crypto because it does not depend on technology, so it holds value even through power outages or regulatory changes. - Adding gold to a portfolio works as a hedge that can mitigate losses during market downturns and diversify risk. Gold has been a reliable asset throughout history and regained importance as both a **safe-haven asset** and an **investment tool**. But why is it so valuable? With geopolitical tensions, inflation, and the [shift toward de-dollarisation](https://www.jpmorgan.com/insights/global-research/currencies/de-dollarization), gold is used for hedging, its growing relevance in futures trading, and it’s **still considered a reliable store of value**, even with the [rise of cryptocurrency](https://www.forbes.com/advisor/in/investing/cryptocurrency/why-is-crypto-going-up/#:~:text=Considering%20the%20market%20capitalization%20of,%242.58%20trillion%20in%20March%202024.). Kelvin Ho, the Head of Derivatives at Affin Hwang Investment Bank, shared his insights on this subject matter with Peter (founder of MrMoneyTV) in [a recent video](https://www.youtube.com/watch?v=kkoJvZkO8po&t=1349s) on [our channel](https://www.youtube.com/@MrMoneyTV), titled ***Malaysian Investment Banker Reveals The Future of GOLD***, where they talked about gold’s evolving role in the financial world, especially in today’s economic climate. ## The Role of Gold in Today's Geopolitical Landscape ![A man holds up a 20 US Dollar note](../../assets/articles/malaysian-investment-banker-reveals-the-future-of-gold/img-1.jpg) Undoubtedly, gold’s value has surged due to inflation, geopolitical tensions, and de-dollarisation. Kelvin highlights how [central banks are increasingly stocking gold](https://www.investopedia.com/central-banks-are-looking-at-record-high-gold-purchases-8665264) to hedge against the weakening US dollar, demonstrating gold’s continuing role as a reserve for wealth protection. ## Gold Beyond The Physical: Futures Trading Gold has also moved beyond just a physical asset. Kelvin explains how [gold futures trading allows investors to](https://www.reuters.com/markets/commodities/how-investors-buy-gold-what-drives-market-2024-09-20/) [**hedge**](https://www.reuters.com/markets/commodities/how-investors-buy-gold-what-drives-market-2024-09-20/) **(***meaning:* *a way of protecting oneself against financial loss or other adverse circumstances***) against market volatility**, offering a way to lock in prices for future transactions, making it an attractive option for those seeking to balance risk in unpredictable markets. ## Gold's Predictive Power In the past, gold prices have risen during times of instability, like wars and pandemics, making it a **key indicator of global economic health**. Kelvin points out how this trend continues, with gold acting as a **safe-haven asset in times of crisis**, reflecting investor sentiment toward market risks. ## Gold vs. Cryptocurrency: A Fair Comparison? ![A stack of physical Bitcoins on the laptop](../../assets/articles/malaysian-investment-banker-reveals-the-future-of-gold/img-2.jpg) During this conversation, gold was compared with cryptocurrency, highlighting how gold’s physical, tangible nature makes it more reliable. It’s mentioned that, unlike crypto, **gold doesn’t depend on technology**, making it a **secure store of value**, especially in the face of uncertainties like power outages or regulatory changes. ## Gold in Investment Portfolios Gold still remains a **vital hedge** for investors looking to protect their portfolios. By incorporating gold into investment strategies, investors can mitigate potential losses during market downturns, making it an essential asset for diversifying risks in today’s volatile economic environment. ## Final Thoughts: Gold in Malaysia Matters Now More Than Ever Given today’s global uncertainties, gold stands out as a trusted, stable asset for investors and governments alike. Whether through central bank reserves or futures trading, its importance in finance continues to grow, **offering security in an unpredictable world**. Hungry for more knowledge? Check out this [video](https://www.youtube.com/watch?v=kkoJvZkO8po&t=1349s) on [our YouTube channel](https://www.youtube.com/@MrMoneyTV) for more in-depth insights into **how gold can play a crucial role in your financial strategy**. *Subscribe to our* [***financial newsletter***](https://www.mrmoneytv.com/) *for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.* ## Frequently asked questions ### Why is gold considered a safe-haven asset? Gold holds its value during instability like wars and pandemics, which is why it acts as a safe-haven asset in times of crisis. The article notes its price has historically risen during these periods, making it a key indicator of global economic health. Kelvin Ho points out this trend continues, with gold reflecting investor sentiment toward market risks. ### Is gold better than cryptocurrency? The article argues gold's physical, tangible nature makes it more reliable than crypto. Unlike cryptocurrency, gold does not depend on technology, so it stays a secure store of value even through power outages or regulatory changes. That independence from technology and shifting rules is the key difference raised when the two were compared. ### Should I add gold to my investment portfolio? According to the article, gold still works as a vital hedge for investors protecting their portfolios. By building gold into your investment strategy, you can mitigate potential losses during market downturns and diversify risk in a volatile economic environment. It frames gold as an essential asset for spreading risk, not a way to remove losses entirely. ### What is gold futures trading? Gold futures trading lets investors lock in prices for future transactions, according to Kelvin Ho. It offers a way to hedge (a way of protecting yourself against financial loss) against market volatility. The article describes it as an attractive option for those wanting to balance risk in unpredictable markets, showing gold has moved beyond just a physical asset. ### Why are central banks buying gold? Central banks are increasingly stocking gold to hedge against the weakening US dollar, according to Kelvin Ho. This shows gold's continuing role as a reserve for wealth protection. The article ties this buying to de-dollarisation and gold's value as a store of wealth for governments, not just individual investors.