Gold ETFs Empower Investors Amid Rising Prices
Since early 2025, Indonesia has faced significant economic uncertainty, raising alarms among investors. Global market volatility and instability across various sectors have highlighted the precarious nature of the economy. As a result, more retail investors are turning to safe-haven assets, particularly gold.
Gold has traditionally been viewed as a stable investment during crises. By October 2025, gold prices saw a dramatic increase, exceeding US$4,000 per ounce, which marks a 55 percent rise year-to-date. J.P. Morgan predicts that prices could escalate to $5,400 by the end of 2027.
Gold Prices in Indonesia
The surge in gold prices has been even more pronounced in Indonesia. Since the beginning of 2025, local gold prices have risen by 59 percent, hitting Rp 2.41 million ($143.74) per gram. Despite this rising trend, investing in gold in Indonesia presents challenges.
Challenges of Traditional Gold Investment
- Accessibility: Access to physical gold is primarily limited to establishments such as Aneka Tambang (Antam), UBS, and Galeri 24.
- Liquidity: The high demand has led to shortages of physical gold bars, making it difficult for even reputable producers to meet daily consumer needs.
- Rigid Purchasing Options: Investors can only buy gold in fixed sizes (1 g, 2 g, or 5 g), forcing them to accumulate larger amounts for trading.
- Additional Costs: Storage, security risks, and wide market spreads increase the cost of traditional gold investment, making it unsuitable for many retail investors.
Gold ETFs: A Modern Solution
Gold exchange-traded funds (ETFs) provide an innovative alternative to these traditional investing hurdles. Gold ETFs allow investors to gain exposure to gold prices through the stock exchange while ensuring the security of assets backed by physical bullion.
- Fractional Ownership: Unlike traditional gold purchases, ETFs enable fractional ownership of gold.
- Real-Time Trading: Investors can trade in real-time, providing flexibility and minimizing market entry barriers.
- Lower Costs: Gold ETFs generally come with lower transaction costs, eliminating the need for physical storage or minimum weight requirements.
The growing popularity of gold ETFs is reflected globally. By the final quarter of 2025, gold composed 2.8 percent of the total assets under management in global equities, largely driven by inflows into ETFs. As gold prices continue to rise, these funds are becoming an increasingly viable option for investors, particularly retail and middle-income individuals.
