We have seen a few movie showing women from northern Malaysian wearing so many jewelery, which most of it was gold. In general, our community especially women, loves gold. Even men was also wear gold nowadays. Be it in form of necklaces, bracelets and some in form of watches.
Well gold was not only loves by the community but was also favored by country. In fact recently China has bought some gold from world central bank (if i'm not mistaken). This is to reduce the dependent to the weakening US Dollar and to hold to more stable commodity as the reserve.
Gold is a stable commodity as there is no new source of gold were found in the world at least in the last 20 years. Thus, the price of gold actually won't really change except when there is purchase of gold by any country with premium price. Gold is also consider as inflation resistant as it is not effected by the inflation in any kind.
Yesterday, India also brought 200 tonnes gold from IMF, worth of USD6.7 billion. That amount of gold was half of the gold held by IMF. That is another signed that USD currency was not regarded as the world anymore as it becoming weaker during this economic crisis. Many people already suggested to change the world currency to other currency than USD. China is one of them even with a large amount of USD dollar kept by them in the US central bank (need to further justify).
This is article regarding this matter by Matthias Chang: http://futurefastforward.com/feature-articles/2751.
I remember some years backward, our former Prime Minister, Tun Dr. Mahathir Mohamad used to mentioning about using gold as the world currency (In form of Gold Dinar and Dirham?). Even recently Tun did mentioning regarding changing of the US currency: http://chedet.co.cc/chedetblog/2009/10/sound-bites---the-us-dollar.html#more. But will Malaysia government buy more gold for the reserve?
To know more about Gold, the topic will be discussed in Bijak Wang this Saturday.