Gold investment in Malaysia has not been very big and is not as popular as Unit Trust, which has taken Malaysia by storm, some earning big time, some not in Unit Trust. For people like me, I made a little in the initial days of Public Ittikaal, but with most of the funds launched in recent years, have lost much.
Notice that eventhough Public Mutual claims that it has won awards again and again, most of the awards are for 'older' funds. The newly launched once do not fare that good, even in the 1 year category.
So now what? There's a couple of options I guess, but let's talk about investing in Gold. Some sources say gold is a good hedge against inflation. Doing some more detailed research, it seems this might not always be true, as price of gold also does go down. Would a price of a Roti Canai ever go down? Well that's my 2 cents.
Anyway, gold is always gold. What we call precious metal, and I would think currency might devalue by so much during financing crisis, but Gold would still have value right?
From my research, among others there are 3 main ways to invest in gold so far.
Option 1: Kijang Emas Gold Bullion Coins
The Kijang Emas Gold CoinFrom Bank Negara's Press Statement
Malaysia is the 12th country in the world to issue its own gold bullion coin. The Kijang Emas now joins the ranks of other international gold bullion coins.
The design of the obverse of the Kijang Emas depicts a barking deer ("kijang") in its natural habitat in the Malaysian jungle. The reverse side features the hibiscus, the national flower of Malaysia.
The detailed specifications of the Kijang Emas is as follows:
| Size | Face value | Weight (grams) | Diameter (mm) | Gold purity |
| 1 troy ounce | RM200 | 31.105 | 37.0 | 99.99% |
| 1/2 troy ounces | RM100 | 15.550 | 28.0 | 99.99% |
| 1/4 troy ounces | RM50 | 7.780 | 22.0 | 99.99% |
The purchase and reselling price of Kijang Emas is determined by the prevailing international gold market price. The daily market price will be posted on the BNM web site.
The Kijang Emas is minted by the Royal Mint of Malaysia and distributed by Maybank Berhad and Bumiputra Commerce Bank Berhad, which will also entertain further enquiries.
Cons: PENANG MAIN OFFICE SSC
9, Lebuh Union,
10200 Penang,
P.O. Box 297,
10730 Penang
Price based on last traded day of blog entry
International Gold Price : USD 837 per ounce
Kijang Emas Daily Prices
SIZE (oz) | SELLING (RM) | BUYING (RM) |
ONE | 2949 | 2857 |
HALF | 1502 | 1428 |
QUARTER | 765 | 714 |
http://www.bnm.gov.my/index.php?ch=12&pg=141
Cons:
You can only buy and sell your Kijang emas at certain branches.
You have to physically store the gold.
Pros:
You have a physical gold, and it should carry it's own value.
Option 2 : Maybank Gold Savings Passbook Account GSPA
This is more like a savings passbook, but you 'buy' gold instead. You do not get the physical gold, but just a passbook to state the current grams you own.
From Maybank Website :
Maybank GSPA Features
| Eligibility | |
| • | Individuals |
| • | Joint account - maximum of 4 persons. |
| Features & Benefits | |
| • | 999.9 Gold |
| Minimum purchase | |
| • | 5gm for opening GSPA. |
| • | Subsequent deposit/investment must not be less than 5gm. To maintain a minimum balance of at least 1gm at all times. |
| Trading unit | |
| • | Minimum 5gms in multiples of 1gm |
Withdrawals
The withdrawal of gold from GSPA will be converted into Ringgit Malaysia at prevailing gold price.
GSPA account holders are allowed to withdraw the gold in below format:
| • | Physical gold |
| • | Cash |
Record / Passbook
A GSPA passbook will be given to the account holders upon complete the procedure of opening the GSPA account.
The passbook is for deposit and withdrawal purposes. Deposit, withdrawal and closing of GSPA are available at any of the Maybank branches.
Fees and Charges
Withdrawal of physical gold is subject to conversion charge to cover the shipping and insurance. The fee is various and depending on total physical gold to be withdrawn.
Questions? Our FAQ may help.
Current price per gram based on GSPAGold Savings Passbook
DATE | SELLING (RM/g) | BUYING (RM/g) |
22 - Aug - 2008 | 94.51 | 87.42 |
Option 3 : Public Bank Gold Investment Account
The concept is pretty similar to that of Maybank. Some excerpts from their website:
Gold Investment Account
Key Benefits
- To earn potentially higher return from appreciation in gold price.
- Convenience of investing in gold as trading is carried out through a passbook.
- Small difference between selling and buying prices.
- Affordable initial purchase and subsequent investment.
- Invest in gold without having to keep the gold physically.
- Gold is the best possible hedge against inflation.
- Alternative investment avenue to build up personal gold portfolio which is cheaper compared to invest in gold jewellery as the latter will incur additional cost on workmanship.
What is a Gold Investment Account?
- Gold Investment Account is an account which allows individual customers to purchase the purest available gold commodity in 99.9% fineness at daily prices for 1 gram in Ringgit Malaysia (RM).
- A passbook will be provided to the account holders and every purchase/sale order will be recorded in the passbook.
| Eligibility |
| ||||||
| Minimum Initial Purchase | 20gms | ||||||
| Minimum Balance in the Account | 2gms | ||||||
| Minimum Subsequent Purchase/ Sale | 5 grams and must be in multiple of 1 gram | ||||||
| Gold Purchase |
| ||||||
| Gold Sale/ Withdrawal |
| ||||||
| Account Opening Requirement | Customer is required to maintain either a savings account or current account prior to opening a GIA to facilitate the debiting of service fee, if any. | ||||||
| Service Fee | An annual fee of RM10 will be levied on the designated deposit account on the first day of the calendar year if the account balance is below 10gms as at year end. |
Don't miss out on this golden investment!
The returns of Gold Investment Account are subject to prevailing market conditions. Terms and conditions apply.
Note:
* This option is currently not available until further notice.
For more information, please visit your nearest Public Bank branch or call free phone at 1-800-88-3323 during normal working hours.
Summary:
As you can see, it seems over short term, there is still the buy low sell high challenge as gold prices fluctuate significantly just between days.
You will also always bear the 1st day losses of and when you purchase, as Bank's Selling Price is higher then Buying Price.
Personally, if I could afford it, I'd buy some for a long long term investment
An interesting Malaysian blog specifically on gold investment, options and types I have come across is http://jutawanemas.com/
All the best.
ADDED on 25th Feb 2010:
Dear readers, as many have been asking about the many gold investment taking companies in this blog, and also many have been promoting certain schemes or companies, I advice you to be very careful in making your decision. I do not endorse any of the comments here either. In fact I reject some comments that I find rather dubious. Recently I received the below comment :
"hi guys..im raziman frm BNM. fyi as for today gold label sdn bhd is an legitimateorganization that are registered under bnm and mof. pls take notetq
Posted by Anonymous to For Your Information at February 24, 2010 1:26 PM"
Being cautious, I sent an email to BNM (Bank Negto double confirm, my email being
"Dear Sir/ Madam,I have received the below comment from a user, would like to confirm thevalidity if BNM first"for today gold label sdn bhd is an legitimate organization that areregistered under bnm and mof. pls take note". If yes, thank you for the confirmation. If it is not registered, pleaseadvice."
BNM's reply as below
Thank you for your e-mail dated 24 February 2010.
Please be informed that Bank Negara Malaysia (Bank) never gives licence or approval to the abovementioned company to collect deposit from members of the public. For your information, if the investment scheme clearly offers an investment opportunity by collecting deposits from the public and investors are promised investment returns within a certain period of time, whereby the original investment will be refunded, it maybe contravene Section 25(1) Banking And Financial Institutions Act (BAFIA). This investment activity is against the law and you are investing at your own risk. Please invest only with licensed financial institutions only.
An easy way to identify and verify whether or not a company is licensed by the Bank, you can refer to the licensed institutions list on our website by following this URL http://www.bnm.gov.my/index.php?ch=17&pg=54&ac=57 If the company is NOT LISTED on our list on the website, it simply means that the company is NOT LICENSED NOR APPROVED by the Bank to offer any financial services or products.
You may also cross check with Securities Commission's (SC) licensed/alert lists on their website :1. http://www.sc.com.my/eng/html/licensing/licenseMain.html
2. http://www.sc.com.my/eng/html/licensing/investors/Alert_list.html
3. http://www.sc.com.my/eng/html/licensing/investors/IApg_other.html
You may also refer to the Financial Fraud Alert site in our website that aims to enhance public awareness on the dangers of falling prey to illegal financial schemes by providing access to vital information on these schemes at http://www.bnm.gov.my/index.php?ch=232 If you have any information pertaining to illegal deposit taking activities or illegal foreign currency dealings (forex) or a victim of such activities or scams you can send details of such information or complaint together with the documents to the Bank as follows:
Special Investigation Unit Bank Negara Malaysia
Jalan Dato' Onn 50480
Kuala Lumpur
Fax: 03-26987467
I have yet to check with MOF (Ministry of Finance). So finally are these companies legal? Well, please do the due checkings as adviced by the above reply. I would also like to say syabas to BNM on their quick reply, (in ~2 working days) and also that their website offers options to the Rakyat to gain advice and f/back.
Happy investing.
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