Public Bank Gold Investment Account: Physical Gold Withdrawal Option is Temporary Not Available!?


OMG! What does it means? The option to withdraw physical gold from Public Bank Gold Investment Account (GIA) is currently not available until further notice!? Why? It makes me ‘think’ a lot of negative things! Why Public Bank put such a clause like this?

Whereas Maybank’s website has highlighted their Gold Savings Passbook Account is 100% backed by physical gold and in collaboration with the World Gold Council. Does it make any difference?

Anyone would like to comment on these?

{ 26 comments… read them below or add one }

SS

All while since 2008, Physical Gold Withdrawal Option was only available for Maybank, never got it launched for Public Bank. So, no difference in fact and we can always choose to take cash which is much more flexibile. :-)

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Horlic Lim

Refer back to my previous post on the comparison between MBB GSPA vs. PBB GIA, dated 16 April 2009, the Physical Gold Withdrawal option is available for Public Bank.

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Esa

Would you say Gold investment is better than property investment or the opposite is true? And why?

In my opinion, Gold is a good investment for capital appreciation but property gives both capital appreciation and positive cash flow if done correctly.

Loooking forward for your response. TQ

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Horlic Lim

Why not we take it as diversification purposes rather than comparing which one is better?

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Jianchung

Probably Public Bank is just doing a virtual gold account and no gold reserves? Withdrawal would mean they would have to store actual gold?

Or keeping the gold quantity in check so that they have a better hedging?

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Kris

IMHO, if i were a banker, there is no need to even hold physical gold for customers. Of the following reasons,

1. Customers will not withdraw huge chunks of gold bar to keep.
2. The spread between buy and sell should be profitable enough for the bank to buy from open market, in case of a bank rush for physical golds.

All in all, i think it is normal for not holding physical gold, as profit/loss is everything on paper like any of the commodities trading (palm oil, rubber, tin). People use it to hedge and not usually use it to stock up the goods.

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Dreamslink

Hi Esa,

I agree what you mentioned above, Gold/Silver just an “insurance”, it cannot give us “cashflow”. Property can generate a cashflow for us and capital gain.

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Dreamslink

Myself only have 7% of my investment portfolio in Gold/Silver account.

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Wong Ah Kow

Yes, why keep phsical gold? Increase the risk of snatch cases only.

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JAS

I would disagree with Kris’s opinion base on few reasons:
1) On paper and gold bank book, you are always at the mercy of the bank selling and buying price. Not the market price.

2) With actual physical gold, be it gold bulion or coins, you have higher selling power than going through the bank where you can convert it instantly to whatever market price deemed at the moment.

3) Keep physical gold, increase snatch thief? Err..I hope you are not seriously putting it in your purse or wallet right?

This I can attest to as a good friend of mine has ran into a scenario where he opened a Public Bank Gold investment account on 2009 where the selling price was sold to him at RM131 per gram The market gold price at that moment. By year 2010 when the market price of gold reaches RM1310 plus or what not the buying price of the bank retained at around RM131 per gram. When he called Public Bank the answer they kept repeatedly gave was the Bank’s selling and buying price. So this is like the bank has pegged the price at a higher number while buying it back from you at the lower while market price has went up. So you are literally at their mercy. Get it?

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buying gold as an investment

There is a risk to keep physical good as an investment

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88

due to the currency uncertainty , gold become a good tools for protect your paper money. gold price already up 20+ % from this year ! who said who cannot generate positive cash flow ?

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Gold Chaser

Bravo to JAS. Same encounter I had before with banks .. NO more at their mercy. Early November this year, Gold market was at at a record high of $1420 and bank was still mantain at Sept level. Diversify our wealth is the key motive. Why put all in one basket?
I am a arden fan of physical gold investor. With the uptrend of gold price and lucrative yields gained so far, I am cumulating my wealth thus far. I can share further – lenlenma@gmail.com

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Gold Mistress

Hi5 JAS & Chaser! I’m a fans for pysical gold too..Beside points both JAS & Chaser shared, a good reason to hold pysical gold on hand instead of paper/passbook issued from banks is simply because to be secured.
Lehman Brothers, a renowned 158 years old finance giant became bankrupt overnight!
Ofcourse, we do not want to see incident like this happen in our lovely country but em…it’s still hard to predict what could be happen tommorow isn’t it?

So, at least holding pysical gold, there’s no party to be blame IF u did not keep it safely n lost it…

Secondly, in Tun Mahathir’s blog, under the title “The Wealth Of Nation” : #4 They discovered that banks could create money out of thin air; without Government control (free market) any amount of loans of non-existent money could be given by the banks; the sale of commodities need not involve the commodities at all. It is the same with selling shares and currencies; having physical possession is not necessary. Sell and buy imaginary shares and make tons of profit.

Here’s the link to Tun Mahathir’s blog :)
http://chedet.co.cc/chedetblog/2010/01/the-wealth-of-nations.html#more

That’s all to share for now…
Good night all~~

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Shah Alam Blogger

I closed my PB GIA account due to this. When it is not backed by physical gold, it is just on paper and anything can happen. Better to open at KFH although it is only 995.

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Man

I’m agree with Jas,Gold Chaser and Gold Mistress…since I’m also a gold trader..if u want a gold..give cash and get gold..this is exactly how to deal with gold..not just give a number of amount in a pieces of paper…because if the bank going bankrupt,how will happen to your gold? gone..
and if you are needed of cash..just go to pawn house (ar-rahnu,agrobank,Yapeim etc)..put in there(one tool of risk management.rather than you hold them in your wallet.hee~.)..you got cash and still the gold in your posession..

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Gold_Miner

Hi, im a newbie in gold investment. After realising the price of gold is kept increasing, i felt it is good for me to venture on gold. However, after read all these comments , i felt hesitate to open gold acc, either at maybank or pb. Anyone could suggest the best way? through my reading, if we just buy gold at the golden shops, then after a few moments, when we sell off the gold, the buyer (shops) would buy at after 15-20% of current price reduction. so still the best way is buying the gold from maybank and pb isnt it???

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Man

hi.Gold_Miner…
You r right…..15-20% of current price reduction…
It’s normal seller to get reduction price..
so what u need just search for the less reduction..
There are another way for you to maximize your return by get goldbar or gold coin with reduction 5%-6%…
Please do contact me at 019 – 3454 999..

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John hardick

Any price which is not more than 5% off the international spot price on both sides oif selling and buying is acceptable. Becareful to get your currency conversion right.

It is afterall a hedge against falling value.

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V Qiong

Don’t believe that your gold saving account with any bank is backed by physical gold. Your passbook may say so and it is just an invitation to treat because the agreement proper if read in whole, says that you cannot have any claim to any physical gold even if they have it.
Read the agreement properly. It is for the same reason, if you buy physical gold, it is more expensive.

Another catch is that many investor will think that it is cheaper to open a gold saving account and when the price shoot up, he or she can quickly cash-out. Dream on because the agreement said that if there is a hefty fluctuation in the price, they have the right to suspense quotation, meaning you cannot withdraw.

Gold savings account allow the bank free use of your money, not even the miserable interest they pay for cash saving. What is their justification for not paying you interest on gold saving? They say they keep your gold for you-storage cost. It is big business lie.

Buy physical but make sure you can safe keep them. Again when the price shoot up, the bank may not have a quote for your to sell. Buy you can sell elsewhere or to whoever want to buy.

They work on a daily safe average margin for self protection against price fluctuation, above which they will play act.

Don’t ever speculate on a windfall. Gold is not a viable investment but a hedge against cashing saving being diluted to trash when hit by hyperinflation, which can happen in the next year or so. It is more relevant to US dollar assets and even the euro than any others currencies.

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lee

is that true about your opinions about gold investment in passbook that stated about the hefty fluctuation in gold prices and the bank play around their tricks in gold prices? i am planning for gold investment…..any ideas which you can share?

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Andy

If you are interest in physical gold investment, dop me an email at boon.andy@yahoo.com I can share something interesting with you.

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Strawberrymilkshake

Dream on….the newly revised Maybank Gold accounts agreement has added the same clause and applies retrospectively. Meaning there won’t be any physical gold available if and when you really need it. If you’re looking for store of value, by all means buy the physical bars and keep it urself (10,20,30,50,100grams) easily available in market. No need to go through banks. If u r looking to play with ur extra $, go ahead and invest in the accounts. I’d say at least it offers better returns than the stock markets. But keep ur eyes open wide with the anticipation that in the end, it can only be redeem in fiat $$ (RM). And lookout for RM depreciation (forex fluctuations) which may render whatever u gain into worthless papers.

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abdul kader

how do I buy physical gold in denomination of20gm,50gm, 100gm with cash and collect immediately,don’t like Public Gold arrangement of by buying physical gold through order,payment and collect later

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Mohammad shafiqei

It’s like this, we wanna play gold but everyone is saying go out and buy better then the scams that the banks are pulling…. but where to buy bro… I’d like to start somewhere

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aszawani

hai..can u heip me to get the daily past historical data of public bank GIA within 11 years from 2002 until 2012?

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