Banking Expert Suggests Gold Over U.S. Dollar for Investment

RRI.CO.ID, Jakarta - Recent global developments have led some people to consider certain currencies as investment instruments. Nevertheless, banking practitioners recommend gold as an alternative investment because of its advantages.

The strengthening of the US dollar and the global geopolitical crisis have caused weakening of several world currencies against the US dollar, including the Indonesian rupiah, which has now reached Rp17,600 per US dollar.

Area Micro and Pawning Manager of Bank Syariah Indonesia (BSI), Dodi Iskandar, said that, in principle, all investment instruments are good as long as investors understand their strengths and weaknesses. However, the growth trends of the US dollar and gold over the past 20 years have shown different movements.

“So the US dollar has risen, everything has risen as well, including gold. But when we compare it with gold, the dollar has increased, though not as much as gold,” Dodi told Radio Republik Indonesia Voice of Indonesia on Monday, May 18, 2026.

In addition, Dodi conveyed gold is considered a universal financial instrument because it is accepted everywhere. This differs from the currency of a particular country or region, which may not necessarily be accepted in other countries.

“Recently, Iran refused to accept trade payments in dollars and only wanted to accept the Chinese yuan. This is one of the factors that could eventually make the dollar less dominant than before,” Dodi said, referring to the de-dollarization phenomenon in several regions.

“In contrast, gold, God willing, can always be sold anywhere because gold is a very universal form of currency,” he said.

Bank Syariah Indonesia, one of Indonesia’s state-owned banks, became one of two financial institutions appointed by the government as a gold bank in early 2025. The other institution appointed was Pegadaian, the state-owned pawnshop company.