February 02, 2025
Gold Digger

Market Commentary
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Recently, Google Search displayed an incorrect exchange rate for the US Dollar (USD) to Indonesian Rupiah (IDR), showing 1 USD equal to IDR 8,170.65—a 50.04% decline against the rupiah. This anomaly was observed on February 1st, 2025. 

The erroneous rate was significantly lower than the actual market rate, which was above IDR 16,300 per USD at that time. Analysts suggest that the discrepancy may have resulted from a miscalculation within Google's system, possibly dividing the correct exchange rate by two. 

Should that really happened, JCI will definitely surged through the roof despite the big chance of investors shorting the Rupiah as it surged drastically.
 


What really did significantly surged was the price of gold. On January 30th, 2025, gold futures settled at USD 2,845.20 per ounce, surpassing previous records.

During the COVID-19 pandemic, particularly in 2020, gold prices experienced a notable increase as investors sought safe-haven assets amid global economic uncertainty. In August 2020, gold reached a then-record high of approximately USD 2,070 per ounce.

The current price levels, exceeding USD 2,800 per ounce, represent a significant increase from the pandemic period, indicating a stronger investor inclination towards gold in the face of present geopolitical and economic challenges. 

In summary, the recent surge in gold prices is primarily driven by geopolitical tensions, economic uncertainties, and monetary policy factors. When compared to the COVID-19 period, the current prices are substantially higher, reflecting intensified investor demand for safe-haven assets. 
 
5 Years Gold Price Performance


On the back of higher demand for safe-haven assets, we believe it is wise to invest in gold-related companies, such as UNTR and BRMS.

Should one seek better value, we suggest going long on UNTR.
UNTR has a diverse business portfolio, one of which is a gold mine. Among the listed gold mining companies in Indonesia, we believe UNTR has one of the best fundamentals-to-value ratios.
 


However, we also see that BRMS has the momentum to move higher. Despite its high P/E multiples, words on the street says that BRMS has a good chance for MSCI inclusion, which could drive its share price up.

Therefore, if BRMS's share price falls sharply, investors may want to pay attention to it as a potential buying opportunity. Meanwhile, we see that UNTR still offers undemanding valuation with a solid financial performance which makes current price a lucrative entry level.

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