Gold prices continue to break records. On Friday, October 3, 2025, gold traded around USD3,855.73 per troy ounce, marking an increase of nearly 50% throughout this year. This remarkable surge has not only captivated global investors but also reinforced gold’s position as an increasingly relevant asset.
Instead of urging young people to jump straight into stocks, Finance Minister Purbaya Yudhi Sadewa emphasized the importance of gold as a foundational investment. He delivered this message during an interview at Bloomberg’s office on Tuesday, September 30, 2025.
“[Choose] saving with gold? Save first, for example through gold. Once you’ve accumulated enough, then move to slightly riskier instruments, perhaps stocks or mutual funds, because those are managed by professionals,” said Purbaya. He added that gold can be a long-term investment choice since its movement is relatively steady but tends to increase year after year.
The message is simple yet meaningful. Many young people find stocks more appealing due to their high return potential. However, the Minister reminded that the stability of gold is precisely the key to preventing the younger generation from getting caught up in market euphoria without adequate preparation.
The current situation further reinforces the reasoning behind Minister Purbaya’s message. The U.S. Consumer Price Index (CPI) rose 2.9% year-on-year through August 2025, while core inflation reached 3.1%. Although the figures have eased, they remain above the Federal Reserve’s 2% target.
This means price pressures are still real, and the global market remains far from fully stable. Stocks may fluctuate with market sentiment, while gold continues to preserve its value. It’s no surprise that gold is regarded as a relevant hedge asset for this generation.
Investment Tips from Finance Minister Purbaya
1. Start by Saving Before Trying Riskier Instruments
Before diving into more volatile instruments, Purbaya emphasized the importance of saving first. Savings serve as a basic financial cushion, providing backup funds during emergencies. With this foundation, taking the next step into investment feels much safer.
2. Use Gold as a Long-Term Foundation
Purbaya believes gold can serve as a solid foundation for long-term investment, especially as its value tends to remain stable during economic turbulence. However, investors must understand that gold prices are also influenced by global factors such as inflation, monetary policy, and geopolitical tensions.
3. Consider Other Instruments Once the Gold Foundation Is Strong
Purbaya stressed that after building sufficient savings, investors can begin exploring higher-risk instruments. Stocks or mutual funds may be considered, but one must be mentally prepared for price fluctuations. The key principle “never chase returns without understanding the consequences.”
4. Learn Investment Theory and Fundamentals to Avoid Following Trends
It is essential for investors to learn basic theories and investment fundamentals before taking action, so decisions are not made merely out of trend or fear of missing out (FOMO). This knowledge helps investors analyze opportunities more objectively while reducing the risk of common mistakes made by beginners.
Why It’s Best to Start with Gold
The Minister’s message is essentially a call for people to be more realistic. Gold can serve as a firm stepping stone before entering riskier investments. Here are several reasons why this approach makes sense:
1. Long-Term Gold Price Trend
Gold prices have risen nearly 50% throughout 2025, even as global inflation remains not fully under control. This fact highlights gold’s consistent long-term upward trend. For investors, this provides a rational foundation to make gold their initial investment base.
U.S. inflation in August 2025 was recorded at 2.9% year-on-year, with core inflation at 3.1%, figures that exceed the Fed’s 2% target. Under such conditions, gold has strengthened instead. This phenomenon demonstrates its resilience compared to other instruments that tend to weaken.
The momentum behind gold’s rally is not merely short-term. Global factors such as a weakening dollar, geopolitical tensions, and monetary policy directions continue to support gold’s upward trajectory. Minister Purbaya emphasized that this trend could serve as a solid footing before venturing into higher-risk assets.
2. More Stable than Other Instruments
Compared to stocks or cryptocurrencies, gold is more stable because it’s less swayed by market sentiment. During periods of global volatility, gold tends to retain its value. This stability is crucial for investors seeking asset security, especially beginners who are not yet accustomed to major market swings.
Stock markets can move wildly due to political issues, interest rates, or investor sentiment. Cryptocurrencies are even more volatile and lack clear fundamentals. Gold, on the other hand, consistently maintains its value amid uncertainty, making it relevant for conservative investors.
Purbaya views this stability as a vital lesson: do not get carried away by market euphoria. For the public, this logic means gold can function as a safeguard. When other instruments come under pressure, gold remains a protective asset that preserves wealth.
3. Simple and Beginner-Friendly
Unlike stocks that require technical and fundamental analysis, gold investment is far simpler. Investors do not need to study financial reports or monitor complex price charts. Even with small capital, anyone can start investing in gold without being overwhelmed by market complexities.
Gold’s simplicity makes it accessible to everyone, both beginners and experienced investors. Accessibility has also improved through digital platforms, making gold investment increasingly practical. This factor makes gold a logical first step before venturing into other instruments.
Minister Purbaya emphasized that building a foundation through gold is essential so that people don’t just follow trends blindly. With this base, investors can be more confident in developing their portfolios in the future. Gold serves as a strategic entry point toward higher-risk instruments.
These factors have driven gold’s growing appeal as a strategic investment instrument. Starting with gold is no longer about following trends but about taking advantage of a global cycle that supports long-term strength. It’s no wonder the Minister leans toward gold.
Minister Purbaya’s message is a timely reminder that gold can serve as a solid foundation before moving into riskier assets. Inflation remains uncontrolled, stocks are prone to fluctuations, while gold shines as a store of value that protects wealth.
In today’s digital era, investing in gold has become easier than ever. Through applications like Treasury, investors can purchase digital gold starting from small amounts, safely and conveniently. The momentum for gold is right in front of us; all that’s left is the courage to begin.
