Indonesians Exhibit Unusual Habits When Buying Gold

An interesting phenomenon is occurring within Indonesian society regarding gold investment. Instead of purchasing gold when prices decline, a large portion of the public tends to buy precious metals when prices are skyrocketing.

Yos Iman Jaya Dappu, Director of Information Technology and Digital at PT Pegadaian, believes this phenomenon occurs because the majority of the public invests in gold driven by the fear of missing out (FOMO).

“The majority of Indonesians are still driven by FOMO. Consequently, the number of people buying gold actually decreases when prices drop. Our system shows that in recent days, as soon as gold prices began to rise again, the number of gold transactions increased accordingly,” said Yos, speaking after the launch of bluInvest Emas in Central Jakarta on Friday (18/09/2026).

Yos emphasised that this phenomenon proves the primary issue in investing, particularly in precious metals, is not a lack of purchasing power or financial capability, but rather a lack of financial literacy.

“I don’t quite understand the argument regarding purchasing power. It turns out Indonesians are still capable, as we allow investments to start from as little as Rp 10,000,” he added.

Observing this trend, Yos urged the public to shift their mindset regarding gold investment. He noted that periods of declining prices should be viewed as opportunities to buy gold, rather than the opposite.

“It is somewhat strange to only buy when prices are rising. In the current climate, when gold prices are falling, this is actually the time to buy, whether through gold savings or physical gold,” he explained.

He also emphasised that gold is not a short-term investment instrument or a tool for daily trading. If treated as trading, investors will inevitably lose due to the spread between the buyback price and the purchase price.

“If you treat gold like trading, the difference between the selling and buying price will always result in a loss when you sell. You will certainly lose on the price,” said Yos.

“Therefore, the money intended for gold investment should not be money meant for emergency funds. While gold can be used in emergencies, the money used for the investment should not be funds that you suddenly need to withdraw the next day. If you do that, you will certainly lose money,” he added.