Buying Gold As Investment
Based on the forecast on long-term investment, the gold value will be getting higher. But it might turn another way round. Someone bought 7 years ago at MYR 39/gram but now more than MYR 95/gram.
If you look at the relationship between USD and Gold Price, it goes in opposite direction. As long as USD keeps dropping, the gold price will continue to rise. So if USD goes up in the future, the Gold Price will drop. Obviously, there is a currency risk. Nowadays, gold price very hard to predict since it’s going up and down as crazy as stock market.
Gold investment is always regarded as the best possible hedge against inflation but 1 distinct disadvantage is you don’t earn any interest from it.
Where Can Invest?
Now, you can go Public Bank to open Gold Investment Account that allows individual customers to purchase the purest gold commodity based on daily prices in Ringgit Malaysia per gram.
You need to have 20gram of gold to open account, which cost around MYR 1900.
This 20g will still remain permanently in my account even if you did not do top up. You can buy additional grams but min is 5g and after that will be in the increment of 1g.
Requirement:
1. Saving account or current account
2. Stamp duty fees RM10
**At the end of year, you need to maintain 10g, if not they will deduct RM 10 from your saving accounts.
**A minimum of 2g of gold is to be maintained to ensure the account remains active.
At last, if you really want to invest. Please do not put all your eggs in 1 basket, do diversify your investment to crude oil, silver, etc. All this commodities have brighter future. Did u think about what would happen if the gold price comes down in the future?
Question ???
Why the gold rate for Maybank & Public Bank is different since all gold are traded in one market?
June 22nd, 2008 at 3:02 pm
Nice post dude. I agree with you. Gold is really a good investment nowadays. Here in the Phils. I bought some stocks of a Gold mining company a few years back at .70centavos. My friends laughed at me because the stock has been at that level for almost 5 years. I purchased sizeable amount. After 2 years it went up to 7pesos. Now its trading at 15 pesos on the average. Not bad ain’t it?
June 23rd, 2008 at 12:06 am
Perhaps the answer to that question can be answered by looking at the currency exchange…
Currencies have the same value but banks decide how much they want to make from the buying & selling of these currencies…
That’s why different banks offer different exchange rates.
It’s the same with gold…
But that’s only my opinion/pure speculation…
Need a banker to confirm this.
June 23rd, 2008 at 1:27 pm
bloggista: u bought it in physical gold like traded in the market?? is it more worth to buy rather than gold investment account?
do u know where could we buy it?
ah kam: it seems like Gold value can be increased from time to time? is it a good time for us to invest since now USD value depreciate while Gold value high, right??
June 23rd, 2008 at 1:45 pm
Well, its stocks from a Gold Mining Company. You can try to buy stocks from them too, aside from buying Real GOld just like you did. If you got some extra cash then its best to put your eggs in more than one basket.
June 24th, 2008 at 2:33 pm
Gold mining company? is it offline trading or online trading? sorr, im not sure about those handy Gold stuff..
June 26th, 2008 at 5:15 pm
You can buy shares from KLSE listed companies both online & offline.
My father is a remiser & he has wisdom & experience in the stock market.
Want to be his client?
haha~~
July 4th, 2008 at 4:47 pm
When a friend from USA told me I should invest in gold, I thought he was joking.
A month later the price of gold in Singapore dropped LIKE MAD before it went back up. So if I invested in gold at the right time, I woulda gotten a chance of selling it too for a nice profit (cos people thought the price was gonna be more expensive!)
Stocks and shares have their drawbacks. Nowadays, Singaporeans use their CPF to invest for guaranteed returns. When they buy unit trusts, guaranteed returns every year in April and Oct.
I will not divulge the name of the funds though. It’s best you do your own research and come up to your own conclusions on what’s good for investing.
Keep up this good blog David!
P.S. Twit me at http://www.twitter.com/qutequte
September 17th, 2008 at 11:55 pm
Nice thinking and different aspect of the topic. Liked it.
September 30th, 2008 at 5:16 am
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November 18th, 2008 at 5:36 pm
Nice way to pass on the msg and i am happy to see that u r getting positive comments on your post