Why Gold Remains the Ultimate Safe Haven as Global Currencies Falter – And What it Means for Indonesia
Gold had massive momentum in the first four weeks of January 2026. Amid the high degree of global uncertainties (which are mostly triggered by US President Donald Trump’s controversial and unpredictable policies), gold (known by the world as the ultimate safe-haven asset) continuously hit record highs prior to 28 January 2026.
What this record gold price reflects is massive currency devaluation. And this should not be a surprise given the enormous increase in the money supply that the world has seen in recent years. The printing of new money, naturally, devalues a currency, and considering global debt is currently at record highs, it is likely that central banks are going to print more money in the period ahead (a policy that is known as ‘debt monetization’).
So, for example, while back in 2015 a USD $100 bill would buy you around 2.7 grams of gold, that same bill would only buy you less than 0.75 grams of gold at the start of 2026. As such, currencies have lost a lot of value against gold in recent years.
And on the topic of currency devaluation, there is something quite interesting in the case of Indonesia when discussing gold. The Indonesian rupiah has been weakening against the US dollar while at the same time the US dollar is losing value against gold (as gold is priced, globally, in US dollars). This double whammy effect has made gold an incredibly powerful (and expensive) asset for Indonesians over the last year. In other words, it is a crucial hedge against inflation and against rupiah weakness for an Indonesian individual (or investor). So, even if the US dollar is losing value, the rupiah is losing it faster. Gold now captures the devaluation of both, simultaneously.
A Gold Rush Supported by Bullion Bank Pegadaian
This is not unimportant, as the real value of savings held in rupiah is eroding much faster than the country’s official 3.55 percent headline inflation rate suggests. Many Indonesians seem to be aware of this. What is the evidence? Well, gold pawn shops and jewelry stores in Indonesian shopping malls are remarkable busy. One could even label it a ‘gold rush’ after gold prices went up steeply in the first four weeks of January 2026 (a topic that is often discussed in Indonesian media), while the rupiah remains under pressure against many foreign currencies.
Internet technology certainly also supports this gold rush. Pegadaian is Indonesia’s state-owned pawnbroker and one of the country's oldest and most trusted financial institutions. Founded in 1901 in West Java, Pegadaian has evolved from a traditional pawnshop into a modern financial services giant. Today, it operates as a subsidiary of state-controlled Bank Rakyat Indonesia (BRI).
Besides offering services related to loans based on collateral (pawning), Pegadaian is especially known for being the primary destination for Indonesians to save in gold. Through its mobile app, Pegadaian allows people to buy, sell, and store 24-karat gold virtually (called Pegadaian Gold Savings). As Pegadaian is backed by the Indonesian state, it is considered one of the lowest-risk places to store gold in Indonesia (unlike any private startups).
This virtual gold balance works similar as a bank account, but instead of rupiah (or other currencies), the balance is stored in grams of gold (while Pegadaian physically stores the gold for buyers). One can already buy virtual gold from as little as 0.01 gram (around IDR 10,000). This is important because it is very expensive for most people to instantly buy one gram of gold, hence Pegadaian essentially opens gold for a wide market in Indonesia. It also offers the opportunity to buy gold via installments for a pre-determined (fixed) price (meaning it won’t be affected by rising global gold prices).
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