Antam's gold price jumped sharply in trading on Saturday (22/2). Quoting the Logam Mulia.com website, the price of gold rose by Rp11,000 per gram in the range of Rp804,000 per gram compared to the previous day's recorded at Rp793,000 per gram. The increase in the purchase price of gold was also followed by the selling price or buyback of Rp. 11,000 at Rp.

World gold prices in world trade yesterday jumped more than 1.5% or to the highest level in seven years as many investors turned to gold as one of the safe assets (safe heaven). The move was taken following increasing fears of global economic collapse due to the rapid spread of the coronavirus to several countries.

Quoted from Reuters, the price of gold in the spot market rose 1.75% to the US $ 1,646.89 per ounce or reached the second-highest level since February 13, 2013, in the range of US $ 1,648.75. Meanwhile, US gold futures closed up 1.7% at US $ 1,648.80.

Antam's gold price almost broke the record high of Rp 799,000 / gram it achieved on Wednesday, January 8, 2020. It is not impossible that this record price could be surpassed in the next few days.

Better to Sell when Gold Prices Are High

Head of Indonesian Capital Connection Research, Alfred Nainggolan said that high gold prices are better to sell, not to buy for investment purposes. "We see not for investment. It's better to sell, so it's not for investment but rather for trading," Alfred told AFP on Friday (2/21/2020).

Alfred explained the current price of gold is quite high if it is to be purchased. He predicts there is a chance the price of gold will be corrected if the coronavirus has died down. "If you want to invest, the price is quite high now. So it is better to wait after the correction, which we believe will occur when the coronavirus has subsided," he said. Alfred said the rise in gold was influenced by market concerns about the coronavirus.

"This increase is more influenced by increasing global market concerns, especially talking about the global issue of the coronavirus," Alfred told AFP on Friday (2/21/2020).

"So that's when gold touches high prices cautiously because the increase is not due to an increase in the need for gold, but rather to market concerns," he continued.

Sales price transactions are subject to tax, in accordance with the PMK No. 34 / PMK.10 / 2017. resale of gold bars to PT Antam Tbk with a nominal of more than 10 million, subject to income tax 22 of 1.5 percent (for NPWP holders and 3 percent for non-NPWP). Income tax 22 for buyback transactions is deducted directly from the total value of the buyback.

There will be a Price Drop in Gold if It Has Experienced a Price Increase Quickly

With the rapid rise in gold prices, he predicts that gold prices will decline so quickly as well. "That must be watched by market participants to address the relatively high gold price in 1-2 days," he said.

Sales price transactions are subject to tax, in accordance with the PMK No. 34 / PMK.10 / 2017. resale of gold bars to PT Antam Tbk with a nominal of more than 10 million, subject to income tax 22 of 1.5 percent (for NPWP holders and 3 percent for non-NPWP). Income tax 22 for buyback transactions is deducted directly from the total value of the buyback.

"The market is once again worried because the coronavirus outbreak is spreading outside of China. There is a large amount of safe-haven demand due to the economic slowdown in Panda, Japan and Germany is expected to last in the first half of this year, "said a senior market analyst at OANDA broker Edward Moya.

"Expectations are quite high that the central bank will provide overall stimulus. That will continue to sustain the price of gold, "he continued. South Korea reported 52 new cases, bringing the total number of corona infections in the country nationally to 156 cases.

While Japan reported the first death of a cruise ship which is the largest collection of infections outside China. Until Saturday (22/2) the number of victims killed by the coronavirus increased to 2,360 people worldwide. The 2,345 deaths occurred in China and 15 other deaths occurred outside the region.