Gold Investment Strategy: Should You Sell Now or Add to Your Collection?

As gold prices continue to climb, reaching approximately IDR 3 million per gram as of early March 2026, investors are grappling with a critical question: is now the time to sell, or should they continue to accumulate gold as a strategic asset?

The Importance of Financial Goals

Financial planner Melvin Mumpuni emphasizes that the decision to sell gold should not be driven solely by price fluctuations. Instead, investors should align their actions with pre-defined financial goals. “If the goal has been achieved, for example for education, and it’s time to sell, then it’s time to sell,” Mumpuni stated at a recent event in Jakarta .

Potential for Continued Price Increases

Mumpuni believes that gold prices have the potential to continue rising, urging investors to prioritize clear financial objectives over simply following market trends. He suggests that without a specific goal in mind, there may be little reason to sell gold holdings.

Gold as a Protector of Value

Yos Iman Jaya Dappu, Director of Information and Digital Technology at PT Pegadaian, actively adds to his gold portfolio, both in digital and physical forms, rather than selling. He views gold not merely as a commodity, but as a robust safeguard for future value. Dappu illustrated this point by comparing the purchasing power of 1 kilogram of gold in the past to its current value.

He noted that although 1 kg of gold might have previously been equivalent to the price of a Honda Astrea motorbike, it now holds a value of approximately Rp. 3 billion – enough to purchase a substantial home.

Avoiding Temptation and Focusing on Long-Term Investment

Dappu cautions against being swayed by short-term price increases without a genuine need to sell or pawn gold. He warns against adopting a purely transactional mindset, emphasizing the importance of viewing gold as a long-term investment for securing future financial stability.

Indonesia’s Gold Market Resilience

Despite reaching record-high prices, Indonesia’s gold market demonstrated resilience in 2025, with consumer demand increasing by 2% year-on-year, reaching 48.2 tons. The World Gold Council (WGC) noted a clear shift in buying behavior, with households increasingly favoring gold as an investment rather than for jewelry.

Demand for Gold Bars and Coins Surges

Demand for gold bars and coins surged by 29% to 31.6 tons, driven by a desire to preserve wealth amid a weakening domestic currency and economic uncertainty. Shaokai Fan, Head of Asia-Pacific (ex-China) and Global Head of Central Banks at the WGC, highlighted gold’s role as a strategic asset in household investment decisions.

Key Takeaways

• The decision to sell gold should be based on achieving pre-defined financial goals, not solely on price trends.
• Gold is increasingly viewed as a strategic investment for wealth preservation, particularly in times of economic uncertainty.
• Indonesia’s gold market remains resilient, with growing demand for gold bars and coins.
• Long-term investors should consider gold as a protector of value and avoid being swayed by short-term market fluctuations.