What is the best way to invest in gold? Buy gold coins from banks? Or invest in gold savings account? Firstly, let see what are the option of gold coins and gold investment accounts we have in Malaysia.
Gold Coins Offered by Banks in Malaysia:
- Maybank Kijang Emas Gold Coins
- RHB Bank Millennium Gold Coins
- UOB Canadian Gold Maple Leaf
- UOB Australian Kangaroo Gold Nugget
- UOB Swiss Kinebar
- UOB Swiss Pamp Gold
- UOB Singapore Lion Gold Coin
Gold Savings Accounts Offered by Banks in Malaysia:
- Public Bank Gold Investment Account
- Maybank Gold Savings Passbook Account
Gold Savings Accounts & Gold Coins Prices Comparison
Note: Gold Price based on 18th September 2009
Buy Gold Coins or Gold Savings Account?
There are two major points to be considered:
- Cost of gold
- Safekeeping storage issue
Decided to buy gold coins due to cheaper cost, maximize the profit, and affordable to take the risk by keeping it yourself in a safe place? Or preferring to invest gold in a passbook savings account for safety purpose since you are heavy-weight gold investor?
Refer to the comparison of gold prices offering by each bank, the % indicates the charges by banks. I hope it could help you to make the right decision according to your unique investment portfolio and strategy.
{ 9 comments… read them below or add one }
I think buying using saving passbook is much more easier and convenient. You don’t have to find a place to keep your gold and also worry about being stolen especially security is a big big problem to us, now in our country.
with current Maybank Gold Saving rate at 115.93 (sell) and 110.08 (buy), its a 5% spread (is too big for my appetite) which means today you invest RM10K and sell immediately, you pay RM500 as transaction fee to bank, correct me if i am wrong.
Ref: http://www.maybank2u.com.my/mbb_info/m2u/public/treasuryRates.do?chCatId=/mbb/Personal/INV-Investment&programId=INV03-Gold&cntTypeId=0&cntKey=INV03.03
My neighbor got robbed by a gang with parang. They took his entire gold bars from his safe. They were having a party at the time. 6 guys with parangs came in and subdue the entire people in the party. They threaten to rape his daughters if he did not open the safe.
They came with a small lorry to load the gold.
If you plan to buy gold yourself beware people will know about it.
Every one want to save there wealth physically gold bullion is good choice.Thanks for the great reading, we buy gold coins in a recession. I will pass this on to our Ira clients to read.
gold coins
I’m absolutely new to gold investment.
Why is there such huge difference in charges in certain Gold coins like the Swiss Kinebar?
Is Gold ETF just as safe?
I read from certain licensed e-gold sites that the spread is smaller eg, 3% or none at all. What should I look out for?
Appreciate all useful comments. Thanks
Gold saving account is not a halal choice for muslim. I’m a muslim and i prefer to keep the physical gold in my house. Even 1 kg is actually not that big. The trick is just a matter of where to keep it safe. For me, we should think like a thief to keep us safe, don’t show off and keep a low profile. between gold bar or gold coin, I go for gold coin.
no1giveadamn,
Could you pls enlighten me on how gold savings acct is not halal for us muslims? I’m new too.
Let me explain how a gold savings account / certain gold transaction can be profane (haram ) due to certain syariah ruling in Islamic economic to avoid gharar ( dubious trasaction ) , creating interest/ profit on non physically available gold , ( that’s how the Rothchilds family and Fed Reserve become wealthy through the issuing of promissory notes (now fiat money) ) etc.
- If the gold bought is not physically redeemable or cannot be inspected onsite or only can be sold in block as in ETF
( hindrance to free selling) unless agreed .
-If the gold is sold to another 3rd party ( i.e you sell yours and the banker get a 3rd party to buy at a markup price ) but there is no initial physical gold present .
- If you cannot redeem your physical gold at anytime .
- If you cannot sell back due to minor physical defects i.e. scratch , seal opened , etc. ( an excuse not to buy back because what matters is the purity and weight ).
- If trading gold without physical gold backup .
- If account not backed by physical gold
Bottomline is , if you can see your gold or proof of your gold in safe hand ( a certificate / etc. ) and you can sell/ buy anytime then it is HALAL from Islamic jurisprudence .
I agree with your points. It is a hassle free investment in gold savings account using a passbook instead of buying gold coins.