Gold is a synthetic component with the image Au (Latin: Aurum) and a nuclear number of 79. It has been an exceedingly looked for after valuable metal for coinage, adornments, and different expressions since the start of written history. Gold is the most pliable and flexible all things considered, a solitary gram can be beaten into a sheet of 1 square meter, or an ounce into 300 square feet. Gold leaf can be beaten sufficiently thin to turn into translucent. Gold promptly makes amalgams with numerous other metals. Top notch unadulterated metallic gold is boring; in keeping with its protection from erosion (it is metal particles which present taste to metals). Gold has been broadly utilized all through the world as a vehicle for fiscal trade, either by issuance what’s more, acknowledgment of gold coins or other uncovered metal amounts, or on the other hand through gold-convertible paper instruments by setting up highest quality levels in which the aggregate estimation of issued cash is spoken to in a store of gold stores. ( Singaravelu,2017)
Besides, based on the research, the age of the working young adults is between 18 years old to 35 years old. A working young adult have the power of purchase towards the gold ornaments. As there is different consumers have different types of purchasing behaviors towards gold ornaments. Their purchase intention can be determined by the design of gold ornaments, the expected future value of the ornaments, their personal self-image and also the social influence.
The gold market is vast and complex. Gold is mined on each landmass aside from Antarctica, sent far and wide to be refined, and sold to an assorted arrangement of end clients: national banks, institutional and retail financial specialists, innovation organizations, and gem specialists. What’s more, since gold is profitable and does not erode, it has an energetic reusing market: gold is always streaming far and wide being refined and re-purified into various items for various end-clients. As a result of this intricacy, excellent information about gold is basic to seeing how the gold market functions and to illuminating venture and business choices.
This informational index gives the gold cost over a scope of time spans (every day, week by week, month to month, quarterly, yearly) returning to 1978, and in the real exchanging, maker, and customer monetary standards. ( World Gold Council,2018)Furthermore, there are more than 40 tons of gold are utilized every year as contributions to adornments creation in Malaysia, the lion’s share of which is then traded.
As per GFMS, Malaysian gold gems creation for 2014 (counting scrap) totalled 40.7 tons, versus 44.6 tons for 2013. Barring reused gold piece, gold gems manufacture in 2014 represented 35.6 tons versus 39 tons in 2013. The heft of Malaysian gold supply is foreign made since there is next to no gold created from local gold mining. As per the World Gold Council, household gems request represented 10.2 tons of gold in 2014, and 8.4 tons in 2015, in this manner roughly 75% of Malaysian gold creation is sent out. The Malaysian government’s way to deal with charge on venture valuable metals and the presence of an endorsed gem specialist conspire facilitiates this import-creation send out round stumbling (Trading Economics, 2018).
Since 2005, gold costs have been on a nonstop ascent, from $502 an ounce in 2005 to $1282 an ounce, which grabbed the attention of financial specialists in the market (Kollewe, 2010). Gold has a few alluring properties to financial specialists, for example, giving swelling insurance, portfolio broadening and dollar fence to counter different dangers in the showcase. As indicated by Baur and Mcdermott (2010), gold is turned out to be a solid safe sanctuary and an approach to decrease misfortunes when confronting extraordinary negative market stuns or emergency. Among a few items and valuable metals that are available in the market, Gold stays as a standout amongst the most favored ware as a speculation decision for financial specialists (Low, Yao and Faff, 2016).
Ghosh, Levin, Macmillan and Wright (2004) demonstrated that gold is a compelling long-run expansion fence against US dollar trade rate, implying that gold costs will increment if dollar somehow happened to devalue against other monetary forms. As proof, gold beat the share trading system and different monetary standards when the United States President‟s race, when the market is in an flimsy state (Creamer, 2016).In Malaysia’s household advertise, there are in excess of 6000 gold trimmings retail locations (Gold Trader Association Malaysia, 2014). It will be helpful for these retail locations to comprehend the economic situations and particularly the working young adults towards the gold ornaments. This is especially essential since gold adornments zone extravagance item and the buy of “extravagance” items includes a solid component of human association (Cornell 2002,p.47).
On the other hand, individuals buy gold ornaments at 23.16 carat which equivalents to 96.5% gold immaculateness in Malaysia’s local market (Gold Trader Association Malaysia, 2014). While, American and European marketss use somewhere in the range of 9 and 18 carat (World Gold Council, 2014) as their basic standard of gold trimmings fineness. The higher level of gold makes the gold ornaments in Malaysia an extravagance decent. Gold ornaments incorporates necklaces, bracelets, earrings and so on which are intended for men, ladies, and young adults and utilized for purposes (Jain,2013).
On the other hand, there are some problems that cause that working young adults do not purchase gold ornaments in this generation. Based on the research, it is because the price of the gold is increasing, this cause the working young adults do not have a sufficient purchasing power towards gold ornaments. Therefore, they will choose to invest on other investment activity such as open a saving account in the bank that provides the highest interest rate. Not only that, the working young adults also will interested to a voluntary long-term savings and investment scheme such as Private Retirement Schemes (PRS).The last but not the least, this study aim to know that how can influence the purchase intention of working young adults towards gold ornaments in Malaysia because working young adults are also having certain potential towards gold industry.