Latest news with #MeerHabib
The Sun
24-04-2025
- Business
- The Sun
Concern over pricey lab-grown diamonds
AMPANG: Once reserved for costume jewellery and non-premium markets, synthetic gemstones are now making their way into mainstream jewellery stores, raising concerns among industry players. Habib Group executive chairman Datuk Seri Meer Habib said the damage to the reputation of natural diamonds is not due to the emergence of lab-grown alternatives per se, but stems from profit-driven jewellers who sell them at unjustifiably inflated amounts, often without proper disclosure of its origin. 'For example, a natural diamond worth RM10,000 might be compared with a lab-grown gem priced at RM3,000. But that lab-grown stone may be vastly overpriced relative to its actual cost. 'It's not the synthetic diamonds that are the problem, it's the lack of honest disclosure that's hurting the industry.' Meer said with higher profit margins on lab-grown diamonds, some jewellers have started promoting them more aggressively, often without giving customers the full picture. He said unlike certified natural diamonds, which follow transparent pricing guidelines based on standard characteristics, lab-grown diamonds are often marked up extensively. Meer said this pricing ambiguity has led to widespread confusion, particularly overseas, where markets in places like Singapore, Europe and the US saw a surge in lab-grown gem sales. He highlighted that the influx of synthetic diamonds into the global market has also triggered a sharp decline in natural diamond prices, falling by as much as 40%. 'Fortunately, prices have recently begun to recover, a sign that the market may be stabilising as consumers become more aware of the differences between lab-grown and natural stones. 'In contrast, Malaysia's major jewellers, like Habib, have largely refrained from retailing lab-grown diamonds, maintaining a commitment to authenticity,' he said. Meer emphasised that there is nothing wrong with choosing a lab-grown diamond if it suits one's budget or preference, but it should not be priced like a natural diamond as it does not cost nearly as much to produce. He added that the average consumer would not be able to tell the difference between a natural and lab-grown diamond by sight alone, which is why transparency is critical. 'What's different now, is that synthetic diamonds are being sold as premium products, often at inflated prices. How can something created in a few days be valued the same as one formed over millions of years? 'At Habib, we have stringent quality control processes. Every single diamond that comes in is tested in our lab before being offered to customers. We use advanced equipment to analyse formation patterns and other properties to ensure authenticity,' he said. Meer added that diamonds have long been associated with meaningful life milestones such as engagements, weddings and anniversaries, and once customers experience the emotional and symbolic value of natural diamonds, they often return for future purchases. However, he said the Covid-19 pandemic has led to a significant decline in global diamond demand. 'With fewer orders, many diamond-cutting facilities, especially those with a large workforce have turned to cutting synthetic or lab-grown diamonds. 'These man-made diamonds are chemically identical to natural ones, composed of pure carbon. But they're produced in a laboratory over a few days, unlike natural diamonds which form under the Earth's surface over millions of years.' Meer said Malaysians, particularly frequent buyers, are well-versed in the fundamentals of diamond quality – the 4Cs (cut, colour, clarity, and carat weight) and are, in fact, more savvy than consumers in many Western countries. He said demand for diamond jewellery remains strong in Malaysia, especially in the Klang Valley, Penang, Johor and tourist hotspots such as Kota Kinabalu and Alor Setar, where sales are boosted by international visitors from China, Korea and Indonesia. 'Habib has adapted to changing tastes by offering modern touches such as alphabet pendants and charm pieces. 'Diamonds may not offer quick investment returns, but they are a reliable long-term hedge against inflation, retaining value better than cash over time,' Meer said.
The Sun
23-04-2025
- Business
- The Sun
More M'sians investing in gold as safe-haven asset
AMPANG: As global uncertainties renew interest in safe-haven assets, more Malaysians are turning to gold – not just as ornamental pieces, but as a trusted form of savings and investment. Homegrown jeweller Habib Jewels has seen a steady rise in demand over the past five years, driven by strong cultural ties, surging gold prices and shifting consumer preferences post Covid-19. Group executive chairman Datuk Seri Meer Habib told theSun that gold remains deeply embedded in the purchasing habits of Malaysians, whether for milestone events, financial security or asset diversification. 'The motivation is deeply rooted in culture across all major ethnic groups in Malaysia. Long before formal banking systems were established, gold served as a trusted store of value. 'Families would buy gold to be sold later when funds were needed for the haj pilgrimage, children's education or property purchases. To this day, gold remains a symbol of security and trust for many Malaysians,' he said. He added that gold-buying behaviour changed significantly during the Covid-19 pandemic in 2020. The resulting global economic disruptions and rising national debts prompted many to turn to gold as a hedge against inflation. 'Since January 2020, gold prices have surged by approximately 126%. In 2023 alone, prices increased by about 28%, and this year has seen even more dramatic growth, with a 31% rise recorded in just the first few months. 'Overall, prices have climbed about 44% since early 2024, making gold one of the most stable and high-performing assets in today's financial climate.' He noted that while younger Malaysians were once more inclined towards cryptocurrencies such as Bitcoin, there is now a growing shift in preference towards gold. 'This is quite a rare scenario where you're able to purchase something, enjoy wearing it and later sell it for a profit. That's the unique advantage of gold jewellery.' During the pandemic, many Malaysians withdrew their EPF savings, but those who chose to invest in gold have since seen significant returns. 'Even with gold prices at record highs, public confidence remains strong. Despite my own caution that prices may have risen too fast, Malaysians continue to invest. Their confidence has even surpassed my expectations.' While digital gold investments are gaining traction, Meer said many Malaysians still prefer physical gold due to the sense of security and tangibility it offers. He attributed this preference to Malaysia's mature gold ecosystem, where gold remains highly liquid and can be easily sold at jewellery stores or even abroad. 'Habib's own gold bars, certified by the London Bullion Market Association, are internationally recognised and can be traded worldwide.' He described the current surge in gold prices as unusual, driven by global factors such as inflation, pandemic-related debt and ongoing geopolitical tensions. 'China and Russia are buying more gold as confidence in the US dollar drops, especially after sanctions during the Russia-Ukraine war. 'Recent US trade policies and political uncertainties have further accelerated this trend. In times of uncertainty, gold remains a reliable safe haven.' Habib Jewels also introduced collectible gold wafers – an innovation now widely adopted across the industry. He emphasised the brand's commitment to craftsmanship and its annual focus on promoting traditional Malaysian arts through limited edition 0.2-gram gold pieces. This year, the focus is on the wau (traditional kite), with Habib creating designs inspired by the cultural symbol. 'It's not just about the gold value, but also the collectability and uniqueness that people find appealing. 'Habib is a proud Malaysian identity. We're as good as, if not better than, international brands. It's time Malaysians recognise the value in local craftsmanship, and Habib is committed to putting Malaysia on the map with our world-class jewellery designs.'
