Rising Gold Prices Don’t Always Mean Immediate Profit, Says UNU Jogja Accounting Lecturer

Yogyakarta, Indonesia – Fluctuating gold prices often encourage people to buy or sell the precious metal. Many assume that when gold prices rise, all gold owners automatically make a profit. However, from an accounting perspective, the situation is not always that simple.

Melvin Rahma Sayuga Subroto, S.Pd., M.Acc., an Accounting lecturer at Universitas Nahdlatul Ulama Yogyakarta (UNU Jogja), explained that while gold price movements may create opportunities for both sellers and buyers, profit in accounting terms is only recognized when a transaction actually takes place.

For gold traders, the gold displayed in shops is recorded as inventory. This means that an increase in market price cannot immediately be counted as business profit until the gold is sold.

“A trader only truly earns a profit when the gold is sold. If it’s still in the display case, its value may rise, but the cash hasn’t entered the business yet,” she said.

She added that this misunderstanding happens quite often. Some business owners feel they are making large profits simply because market prices are increasing, even though they have not actually received additional cash.

As a simple example, a trader buys gold at IDR 3.1 million per gram. Later, the market price rises to IDR 3.3 million per gram. In terms of market value, the gold does appear more valuable. However, as long as it has not been sold, the increase cannot yet be recognized as real profit.

“Profit is recognized when the goods are sold, not merely when market prices rise. So even if the value of gold increases, the business cash balance has not grown,” she explained.

The same principle also applies to individuals who buy gold as savings or investment. A price increase indicates potential profit, but that profit only becomes real once the gold is sold.

Therefore, understanding basic financial recording and management is important not only for business owners but also for the general public. By recognizing the difference between an increase in asset value and actual realized profit, people can make wiser financial decisions.

According to Melvin, topics like this are also discussed in the Accounting Study Program at UNU Jogja. Students are taught to understand accounting not only through theory, but also through real-life case studies, including gold trading.

“Through bookkeeping practice, students are trained to calculate, interpret value movements, and analyze risks as well as possible economic decisions in the future,” she said.

She added that these analytical skills are essential so that accounting graduates can view financial conditions more comprehensively and not just focus on surface-level numbers.

Through a contextual and practical learning approach, UNU Jogja aims to prepare accounting graduates who are not only skilled in working with numbers, but also capable of explaining financial issues in language that is easy for the public to understand. [Latifah]