Sunday, June 01, 2008

Invest Gold in Malaysia through Public Bank

Finally here comes the “easiest way” to invest Gold in Malaysia. Last month in April, Public Bank announced a Gold Investment Account that allows you to purchase the purest available gold commodity.

You’re no longer need to invest Gold indirectly (e.g. mutual funds that invest in Gold). Whether you want to buy gold directly or indirectly in Malaysia is it always not that convenient (to me) although there are few companies offer this. Most importantly (to me) I’m not sure those company is trustable.


Why I Invest in Gold?

(1) I’m inspired by Jamy - a friend of mine. She earns a lot of money investing in commodities and recommends me and most of us to invest in Gold. See the interesting conversation we had in my previous post.

(2) Last year, gold prices jumped 31% since the end of World War II. Maybe one year of history does not really convincing. Let’s look at chart below, 5 years is about increased by 200% and 10 years is about 400%.


Source: goldprice.org

(3) I invest in property, unit trust and stocks but just not commodities. Why don’t I give it a try? :)

(4) With the recent increase of oil price, do you still think that property, unit trust, stock or whatever investment can still overcome the inflation rate? Which investment has higher chances to overcome inflation? If you look at the history of gold price, it seems like the one.


How to invest Gold through Public Bank?
  1. Go to any Public Bank in Malaysia. Press the “Customer Service” button and wait for your turn.
  2. Tell them you want to invest in Gold. They will get your I/C and prepare the Gold Investment Account book for you.
  3. Then, later you need to take this Gold Investment Account to the normal counter (No need to press for a number, just straight away go to any counter) and they will settle everything for you.
  4. If you have Public Bank Saving account, you can buy Gold by transferring money from your saving account or you can just buy in cash.
  5. Finally, you will get this book! This book is exactly same with the normal saving account book. When you want to invest next time, just take this book to normal counter. It is really very that convenient.


Please note that the initial gold investment is 20g. I bought it at RM 99.72 per gram which is RM 1994.4 for 20g investment. The subsequent minimum trading would be 5g.

Remember this is neither a saving account nor the fixed deposit (i.e. FD), this account would not pay any interest and the minimum 2g of gold must be maintained to ensure the account remains active. You can not deposit the physical Gold but you can withdraw the physical gold in denominations of 100g, 500g and 1,000g.

[Service Fee]
RM 10 annual service fee will be ducted from your saving account if your Gold Investment Accounts falls below 10 grams as at year end.

To know more about Gold Investment in Public Bank, check out their official website announcement.

[Updated: 2 June 2008]
I just found out MayBank also offer the similar package - Gold Saving Passbook Account. [Updated: 22 Sept 2011]: The MayBank link for Gold Saving Passbook account is no longer valid and I lazy to update it here.You can try Google it and find it out. It is kind of stupid for website (and some more this is bank) that do not maintain consistent URL and keep changing the URL. See,  Public Bank has no such problem? The link is still valid since 2008 until today...

[Updated: 17 August 2008]
To get the latest Gold Price in RM, you can refer to the public bank website here.

[Updated: 15 Jan 2011]
  1. You can watch the latest gold history trend (1,5 and 10 years) in MYR and USD for  here
  2. Also, you can now perform Gold Trading (sales and purchase) through Public Bank Online (i.e. PBeBank). What you need to do is to enable the "Gold Trading" in your Public Bank online account and you can start buying or selling your gold in grams.
P/S: One final note here, there are no 100% guarantee in investment. It is all depending on the supply and demand. When more and more gold mine to be discovered, the Gold Price will drop. Another risk is the global recession that caused by the U.S. recession which will lead to a fall in demand for commodities. Good luck!

82 Comments:

jamy said...

Champdog,
Thank for linking me.

When you mentioned gold in Malaysia. I feel so sad and so geram.

After my dad passed away, we bought a smaller house for my mom (cos she does not want to live in our old home anymore cos of many years of memory), my sister in law hired a live-in maid for my mom, a dayak girl.

All in all after 2 months the maid lived with my mom, all my mom gold disappeared except a few ear rings and rings.

We told my mom many many times to put the old in the bank safe deposit, she does not want. She put her gold underneath her bed (mattress), ya, in the day and age, you still have the kind of mentality like my mom.
Of course, we did not search the girl room, neither her body but beside her and my mom, there is no one else, no break in with security gate.

That is the reason though I was a born as Malaysian, I hate the people mentality, culture and ethics there.

With the gold price now, I think those gold bracelet, chain (darn heavy and thick) at least cost a few 100 thousand and many of them came from imperial China where her father was a minister then.

I told my brother if I were there, I would do a search on the girl room and body but they are scare that these ingenous people have black magic (gontow) and can put on them. I say for goodness sake why you people still believe in that kind of things ?

Environment and culture can really change a person thinking. My brother studied and lived in Australia for many years, married a white girl and both went back to Malaysia to live. The girl adapt to Malaysia life/culture/'adat' to the extend sometimes I wonder who is more of a Malaysian lady, she or me ?

I dislike playing bridge (anything that take away time from investing is a no no for me and that include gossip and blogging that does not bring value, in short nonsense) or joining Datin club, she play bridge religously with the local Datins. She goes to Chinese temple with those Datins and I never set foot in one except taking some photographs for my blog.

My brother and I are good friend but when all those 'patang lalang' come across in our conversation, we will end up fightings and not talk to one another for days, sigh !

I bought something like that years ago with Kitco, they store the gold in London but it was so slow moving that I decided to close it a year ago.

I prefer to buy gold and silver stock. I do believe some Canada online stock brokers take in foreign investor. Google and you might find some.

This summer I am slowing moving in to buy more gold stocks. My mentor told me to buy bigger gold company this year and stop buying smaller companies this year. We earned a whole lot last year on small company.

One of the companies that I am going to start buying is Newmont, I think Newmont is the largest gold company in the world. They have a lot of mines in Indonesia too.

It is only $40+ now, with the kind of mines they have, their price should be $100 by now.

When I bought AEM : Agnico-Eagle Mines Ltd, years ago (2002), it was about $12, now it is above $70 and I believe AEM will be $100 in time to come.

When we (me and my mentor), we only bought non hedge gold company, ie company who believe gold price are going up and they do not sell forward, we did not like Newmont then cos they hedge, but since they stop hedging cos they lost big junks of $ from hedging, so now they are good company without hedging, and I will invest in them.

I like to invest in company which has good management , like when I was a director for the school in Brunei, I like to invest in staff who has good working ethics, honest and have integrity, likewise that is the same kind of principal I invest in company.

I do not care if a company make tons of $. I ask our family fund manager to withdraw our investment on Warren Buffet fund cos I did not agree on some of the charity money he gives from the investment. Sorry, money is important but it is not all about life. You do not take a single cents of your money when you give up your ghost. And I learn that first hand when I saw my dad gave up his last breath. It was very sad for me because I always think he would live longer life than that but who would imagine such a healthy man would lost his life on a brain tumor , so would our Senator Kennedy soon.

Thank you for the link and I love to read all the investment related posts that you have posted.

Keep up the good work and I love your new theme.

Regards,
Jamy

Alvin Lim said...

i thought gold is a bit too expensive now?

daniellechua said...

Do you think now is the right time to invest in GOLD. Was thinking to go public bank to open the Gold Account.

ChampDog said...

@Jamy
Your grandpa was a minister in China? This is really amazing. I think my grandpa is just a normal business man. :D

I do not believe in black magic too. Even if they’re such thing, I don’t think the normal maid will know how to do it. If she does, she won’t be a maid already.

Btw, playing bridge as playing the cards game? I first learned it from my brother and I found it was pretty interesting. It is fun to me because it is psychology game. You don’t gain any investment knowledge but you di learn others things from it.

Thanks for the sharing on Gold stock investment. As usual, I appreciate that you share your experiences to all of us. That justify how you earn 4000% in 5 years. :D

@Alvin
I do not know whether now is considered high or not. From the history, the gold prices keep booming. So now the question is are we facing the end or just beginning? Some experts (are they?) do think that the gold prices will continue to climb up but who knows?

It doesn’t really border me so much if the gold prices drop because I’m going to buy again when it drops. When it drops again, I buy more again. I do believe in long run (perhaps 10 years?) the gold prices will go up therefore I’m investing in it.

@ daniellechua
The way I look at it, buying gold is a high risk investment and it is even high risk then buying stocks. But if you look at it from different perspective, gold price is typically not very volatile as compared to some of the blue chip stock. Then that makes it a low risk? If you ask Jamy, Jamy will tell you not buying gold is even high risk.

To me, I still consider buying Gold in a high risk investment. What you can do is buy the Gold periodically, perhaps twice a year no matter what the Gold price is. This technique is called “dollar cost averaging”. It is a very useful technique to reduce risk and you earn no matter what ONLY IF the gold price goes up again in long term. Hope this helps.

Michael Tsen said...

champdog, ur grandpa inlaw's cousin was a minister in teochew too and one of his nephew is still holding miniter position today.

now with inflation, food crisis and natural disaster, it does make sense to buy gold to preserve wealth.

just curious, why don't I just buy the gold instead of getting a book from a bank ? i thought the idea of gold was that I can run anywhere in the world and start new coz everywhere recognize gold and any big bank can open accounts with gold.

ChampDog said...

Really? I don’t know about that. Another point to buy Gold is to protect your country currency especially if your country’s currency is dropping such as in U.S. now.

You have a point that with Gold, you can go anywhere in the world just in case anything happen to you. But, I think most of the people are *not* able to buy Gold directly as it is quite expensive. 100g would cause around RM10K. Ya, maybe those rich guys who stay in the Bungalow do keep Gold but definitely is not me *yet*. :D

If I were to buy Gold directly, where do I put in a safety place? To me, getting the passbook is more safety… Unless War really happens but I don’ think so, do you?

Another reason I can think of is Gold trading. Unless you don’t plan to trade (buy and sell), using passbook is convenient. I don’t think I want to bring Gold to the bank every time I want to sell my gold. :)D

Anything else? Maybe if Jamy reads this, she probably has some comments.

debt consolidation unsecured said...

When I read "Invest Gold in Malaysia" I don't know why I associate this with the Gold in Philippines, even though would be interesting investing if the banks are facilitating it, it's matter of money.

Jose said...

Actually, I am curious, is owning gold in USD the same as owning gold in RM? Is the public bank gold in RM? Is there a currency risk, i.e. USD goes up in the future?

This is a good source of info in understanding types of gold investment http://en.wikipedia.org/wiki/Gold_as_an_investment

ChampDog said...

@debt
Associate with the Gold in Philippines? Why?

Yes, the bank will earn some services charges from us.

@jose
Good question! Actually I have never thought of that. I think you make a very good point. If you look at the relationship between USD and Gold Price now, it goes in opposite direction. As long as USD keeps dropping, the gold price will continue to increase. So if USD goes up in the future, the Gold Price will drop and we will then not only lose due to gold price drop but also the currency exchange. Yes, I will think there is a currency risk then. Correct me if anyone of you thinks it is not making sense.

So another way to look at it whether we should invest in Gold is as long as you think USD will still keep dropping, buy gold! Does this make sense?

footiam said...

Hi, Champ! Long time no see. Great tips here. Haven't heard of this gold thing in Public bank and your post had me asking about this. It seems Hong Leong Bank does not have this service but one can invest in Gold through Mutual Trust there or so I heard.

Jose said...

Interestingly, precious metals could have the potential to loose most of its values. Take aluminium as an example, it was more expensive than silver, gold or platinum. Over time, however, the price of aluminium has dropped; the invention of the Hall-Héroult process in 1886 caused the high price of aluminium to permanently collapse.

imDavidLee said...

u said initial invest need 20g and this RM99.72 per gram, so everyday will have different price for each gram??

need to maintain 20g in account?? how bout if i wanna quit? will i get back 20g?

jamy said...

Champdog,

Sorry I have been so busy lately. Busy doing my smart money download.
See my new smart money download ?
http://www.seaykopitiam.com/smart-money-download/

I started getting so many requests from people I know (mothers from my son school, ladies from church etc), my hubby laughed at me that I should start distributing business card :).

My maternal mom was from imperial China decent.Very rich, knew 4 languages : French, English, Chinese and Germans (home tutored). Married a general (good friend of Cheing Kiat Sat), they had to escape to Nanyang cos my grandma family was worried for her life cos of the communist revolt.

Well, they got to Nanyang alright and lost all her properties in the savage communist regime. That is why I hated communism, socialism to the maximum. I am a true blue capitalist.

I am not too good explainer why one should buy gold at this era but check out articles on site at :

Gold-eagle.com

The site has lots of smart investors and some of them are in their 70's and 80's, they know what they are talking about.

Hope it help.

Jamy

ChampDog said...

@footiam
Hey, long time no see too. I’m quite busy recently and have less time in the blogging world.  I see, I don’t know Hong Leong bank has Gold Unit trust. If the Public Mutual offers the same thing, I would probably invest too.

@jose
This is really interesting and thanks for the sharing. I think this is caused by a technology breakthrough. Assuming you can replace the petrol with water? What will happen to the oil price?

However, the risk of investing Gold is the speculation which eventually creates bubbles and you don’t know when it is going to burst? As for any technology that will cause the Gold Prices drops, unlikely I think.

@imdavidlee
Yupe, you’re right. Every day you will have different price for each gram. It is the pure Gold that you invest. No 20g, it is 2g.

You bring a very good point, I miss out that if your account has less than 10g, then you need to pay the services charge of RM10 as at year end. Yes, you’re right. If you invest in 20g, you will get back the 20g.

@Jamy
I’m quite busy too these days. Is your smart money download applicable to everyone? I tried to download it but fail. Maybe I would try again later.

Business card as teaching people how to spend their money wisely? That is cool.:)

jamy said...

Champdog,
Sorry, the smart money download is for America consumers.
This is what it is for.
Everyweek, stores have advs on specials and promos, such as buy 1 get 1 free and I will try to get online printable coupons and alert the customers where they can get bargain stuffs.
Eg. the store paid me $1 for 12 packets of macroroni and cheese, 4 packs of Planter peanuts.

If one is resourceful, one can literally get very product free cos every manufacturer gives out free coupons.

I was inspired by a lady from Texas who spend $800 on her annual grocery budget the last 4 years and that include meat, veg, orange juice, milk, shampoo, everything that a household need to use for daily living.

I was really excited. Now, I do not go to store without finding out what is on sales and what coupons I have to even get more bargains for these sales.

Nowsaday, I am getting less than 50cents for every of pack of the cereals I eat :).

I enjoy doing it :).

Hope the explanation is clear.

Jamt

ChampDog said...

This sounds like really a good idea. Good luck to you! :)

New Gold Digger said...

Hi Champdog,

I am trying to locate a chart tat helps tracking gold price in Malaysia............ do you know any of them? It will be good if the chart includes monthly and yearly trend of gold price. So that I can use it as a reference. I found international gold prices easily on net but not in Malaysia, especially those quoted by Public Bank.

Thanks.

New Gold Digger

keeyit said...

I bought unit trust from public bank. Should I invest other things also?

ChampDog said...

@New Gold Digger
Interesting question. I don’t know the answer too because most of the chart are not showing in RM. Can we just do the conversion to RM?

So, what I did is just refer to public Gold Investment page.:) Hope it helps.

@Keeyit
I think now is a good time to buy since the price is quite low. What you can do is probably invest monthly to reduce the risk. This technique is called – “dollar-cost averaging”. Btw, which funds you buy? There are in general, aggressive and conservative funds. I would go for aggressive if you think the economy will recover in the future.

Anonymous said...

Keeyit, be careful as often dollar-cost -averaging is like trying to catch a falling knife, or buing a pair of shoes 5 sizes too small. You may instead diversify in contemporary art. First, it outperformed the SP and the Hedge Fund Index (Source: http://artbank.ch/art.html), secondly, if you diversify into true negatively-correlated assets (where gold is not as), 3) if all fails you can donate it (http://artbank.ch/giftstax.html#usa) and IRS will give you a large tax break based on MARKET VALUE. Assuming you have a strategy where you are able to legally source the artworks at 70% discount to auction prices (which forms the 'market value'), then you may get more back from IRS than you actually paid for this art asset.

Please, tell me why you dont have any of those?

Anonymous said...

The market will keep going down till 14 december 2008.

On the 9 september it will have a brif recovry for exactly 11 days-don't laugh, the 9's and 11's are not random numbers. On the 20 september the market will tank down again in a large move and you will see no buyers till 14 december. Who wants to bet a case of vodka that it will be this way to a date?
www.artbank.ch

ChampDog said...

You mean the Gold market or you mean the stock market? Why are yo so sure of that? Any reasons behind? :)

jamy said...

Champdog,

A lot of times I get 100% discount.

For eg this week :

This big chain store Walgreen is giving out $5 coupon for every $20 you purchase (can be printed from their web site).

3 good deals I sported

1. Gillette fusion razor

Cost = $9
Coupon by P&G = $4
Store cash back = $4

2. Febreze products (buy 4 get back $5)

Air fresher starter kit = $7
Fabric softener = $5

Total cost = $14+$10=$24
P&G coupon $5x2=$10
There is a Buy 1 get 1 free P&G coupon for fabric softerner = $5
Store cash back $5

3. Loreal cleanser $7
P&G coupon = $1
Store month end rebate = $7

Total pay = $9+24+7=$40
P&G coupon = $15
Internet coupon = $5
Rebate = $7
Store cash back = $9

Net = untung $1

Only in America lah, how on earth you can get 1 Gillette razor , 2 fabric softener + 2 air freshener kits + 1 Loreal cleanser for free + $1 cash back ?

I do not care what people say about America, this is the best place I have ever found on earth, it really bring out my investment potential.

So, now with all the $ I save from my house hold bills, I invest in gold and silver.

Gold and silver will go up one. Just wait ! I bought silver coin around $3.50 and sold some around $18. When I first bought gold coin, it was $350 an oz, gold is $800+, it is still way high than I first bought it.

Habis cerita and have a nice raya.

jamy

kayatan said...

Miscalculate :

Total cost = $40

Total P&G coupon = $20
Rebate = $7
Cash back $9
Internet coupon = $5

Total P&G coupon, rebate, cash back,store internet coupon = $41

So I untung $1 :).

mszinc said...

Hi
I notice the gold price rate is different between maybank and public. maybank buy rate little bit high.why is it like that?

ChampDog said...

@Jamy
What have you done, really impress me. :) I'm here now in Ireland checking the grocery store and looks like pretty expensive after the conversion to RM. Hopefully we can find a second Jamy here. Hahaha..

@mszinc
I"m not really sure. Could it be due e the service charges? Maybank charges slightly higher than Public Bank. Feel free to correct me if you find out the real cause. :)

Gold and Oil just drop badly recently, should we buy? I will still buy as I believe in long term. See how it goes...

jamy said...

Kawan,

It is a pity that retailers in Malaysia are not as creative as those in the US.
In fact, coupons and all these extra bucks rewards or coupons for next shopping trip are in fact keeping the $ within the retailers :).
The 2 stores that I shop the most are opening 1 store every 6 months.

Now I am basically blog about how to get good deals, I have about 100 friends, coworkers who I send regular emails whenever I blog about the bargains that I find every week.

I calculated this month on how much I spend since I started couponing, it is amazing, I cut down my household expense to more than 80%. It is just amazing !

Now I am in the hunt for buy 1 get 1 free house, ha ha ha ha.

Jamy

Elvis said...

well, what a nice conversation which i met coincidentally..

i'm a poor malaysian student which is in my final year of undergraduate studies which i had no any single cents to buy any gold.
but if i had any, i will buy the gold as much as i can immediately.coz i'm really not sure how "soon" it will arrive the second round
of financial "catastrophe"

To explain why the gold will appreciate is somehow complicated.the story starts from the breakdown of the bretton woods system in 1973.
(In bretton woods system, US$35 backed by 1 ounce of gold, and the world currencies pegged to the dollar in fixed rate relatively)

after the breakdown in the bretton woods system, dollars is not backed by any kind, but created out of thin air.
after the collapse of bretton woods system, in terms of U.S politically, economically, military strong, the world is holding dollar merely based on the "confidence on the U.S.D" . just like stock market is only backed by the confidence behind it.

The world financial system is dominated in dollar standard today. but , the dollar in fact is controlled by a private bank, namely,the Federal reserve.

In the past decade, U.S is fixing an extremely low interest rate to fuel economic boom, which eventually lead to the housing assets bubbles.

To achieve low interest rate, one of the way is increasing money supply, simply by borrowing or printing money.


however, due to the current "dollar standard‘ , as the world economic growth, more and more dollars are flooded into the world financial system, the U.S public debt has already reached the astronomical enormously big numbers.any layman know how much is 1 trillion? but the U.S debt has accumulated around 11 trillion dollars.
U.S has borrowed a lot from China and Japan and up to date, the U.S public debt owed about $11 Trillion dollars. (sources from :http://www.brillig.com/debt_clock/)

very soon, the world counterparties are become less willing to lend to the U.S as they saw the soaring u.s indebtedness level..at this level, the fed reserve tends to monetizing the debt, means printing more money by itself...or Obama called it "quantitive easing " to solve the current financial crisis problem

thus, as China is the largest creditor of the u.s,just not long ago, the Chinese Premier Wen Jiabao has expressed worries about the u.s assets http://www.reuters.com/article/topNews/idUSTRE52C0JF20090313

and just b4 the meeting of G-20,the Chinese Central bank Zhou xiao chuan had asked for an international monetary reform to solve the current global financial problem and the trade imbalance.

very soon, if the "confidence" shaken or by trigger by any extraordinary events.. if the world start to dump dollars on their hand..the world will become panic..
and gold is only thing at the last resort to restore the confidence.

with limited supply and tremendous demand, anyone of you sure know how does it impact on the price.

as the chinese saying, $ 美金,dollars are not more backed by gold, as the chinese describe finance ,金融...in today's international monetary system, gold is ceased to functioned.

but i believe, the gold finanlly will come back to its position to play its role in the international monetary system...

sorry for my too lengthy of words...

i'm inspired by the author of this blog and jamy
we gonna made some history today.. ahahahhaa


elvismun

ChampDog said...

First of all, I’m glad that you commented on my blog. I love this kind this discussion and I can honestly admit that I’m not really an expert here, maybe you are. :) So whatever I commented and wrote it here could be wrong and of course it could be right too. :D

I have read your comment few and I think you had explained that very well why USD drops and Gold raise and why they’re going at the opposite direction. I think this will benefits to all the readers here. Great sharing!

I like the words “confidence on the USD” too and other words for it I like to call is “impression or perception” on the USD. But I have never thought of the real depth meaning of the Chinese words 美金 and 金融.

Actually I only have 1 comment to be discussed:

(1) Isn’t that the Gold is also based on the “Confidence or Impression or Perception” of Gold? USD is no longer backed by Gold but what back the Gold? All of us?

We thought USD is no longer backed by Gold, therefore the Gold shoots up until today. So the question now is how far the Gold’s price can go? When is it going to stop? Isn’t it still back to the basic fundamental – it is backed by the “Impression of Gold”. Who creates the impression? Yes, it is all of us.

I do believe the impression of gold now is in the upward trend but is it the real? I don’t know. I think the good thing about Gold is you can’t simply create more out of it unless there are new discovered mines. Unlike the money, you can simply print as much as you like.

Natural Skin Care said...

Quite interesting and informative. Thanks for sharing.

Web Design Services UK said...

Hi
As at the present situation Gold is the best metal to invest. Your article is such an motivative and really thanks to you that you have also mentioned that how to invest and from where to invest.
Is Malaysia much better then all the countries?

ChampDog said...

I think Gold is pretty standard across the countries. There shouldn't have much differences for example between U.S. and Malaysia. Correct me if I"m wrong... :)

Geronimo Bunkus Gadfli said...

Abiut weather to invest in gold in Malaysia or not......

First of all, grateful thanks to the person who set up this blog. It is such a relief to read your posts and know that I am not the only one who is confused. By your sharing, I have got a little more confident about the investment of gold.

Now to my comment.......
When one buys gold in Malaysia either in bars which you keep under the mattress or at the bank, as a Gold Account, - we are doing so because we have no faith in the currency being able to buy next year what it can buy this year. We are expecting that the MYR is falling and will continue to fall. This one can see at any currency converter eg. xe.com What I would like to know is - how is the MYR backed up? Has it a gold standard or is it backed up by GDP and Balance of Payments as well as other country assets?

As a word of caution;
If someone were to reply that the MYR is backed by the assets pf the oil and gas fields off Bintulu and other ongoing and future fields off the coasts, then this answer must be weighed upon the fact that a large part of these field profits have already been promised to Western Conglomorates to pay for the price of exploration and drilling.

So what really does really back up the Malaysia Ringgit?

ChampDog said...

Thanks for your comments and I really appreciate that. I have to honestly tell you that I don't know the answer.

I recently posted a discussion saying that money is now backed by our own impression or perception. Whether what impression or perception we have towards MYR, I can't really sure about that.

I think they're backed by many things, natural resources, gas and oil would be one of them. Anyone wants to help me here?

I think you bring up a very good point about currency risk. But if I'm not mistaken, you can still exchange with the real gold from Public Bank with this Gold Investment Account Book.

Teck Wyn said...

Some time back I bought Kijang Mas from Bank Negara. The spread on 1oz coin was about 3.8% but since 17 September 2009 BNM increased the spread to 6%. For some reason they seem not to be that interested in buying back the gold they sell to people. I don't understand why.

ChampDog said...

Wow, 6% so high? Public bank is still around 3.8%. Maybe we should stick to public bank?

For those who doesn't know, spread is the difference between selling and buying price.

So if spread is 6%, then we got to make sure we go to make sure investment return should at least >6%.

Anonymous said...

i just invested in gold at public though i wish i know where they stash my gold or is it just virtual golg, that's risky. where do i buy silver coins.
apprentice

ChampDog said...

In fact, you can retrieve the Gold bar from Public Bank if you really want to (assuming you Gold is enough). I think the dropping of the Gold price risk is higher than the Bank to cheat you. So if I were you I won't worry about that.

As for Silver, I do not aware of any Bank is offering it right now. :)

stock market for beginners said...

i believe, the gold finanlly will come back to its position to play its role in the international monetary system...

ChampDog said...

Whether it will or it will never be...

If I have to guess, I will bet the answer is it will never be. This is due to the fact that our monetary system now cannot be easily replaced.

Even if we go back to square one, how do you know it won't eventually evolve until like today?

Anonymous said...

Hye there,

If i do open a PB gold saving account, how much that it cos me to do any withdrawal/deposit per transaction?
Another things, as at todate the selling price is 119.87 so i really need ur advise weather should i wait or just open a saving book at this price?

ChampDog said...

I think the service charge is the difference between selling & buying prices. I think it is around 4%.

Perhaps you can wait until it drops a bit then you buy. At least you confirm you're NOT buying at the peak. However, no one can guarantee it whether it will go up or down later on.

You may want to consider to apply Dollar Cost Averaging when investing in good. Good luck!

graphic design and marketing services said...

Thanks! for your kind information I will try in future to invest my money ………….

Michael said...

I am keen to invest in physical gold or silver in Malaysia, either in bullion or coins. Where is the most cost effective way of getting these items. Is there a GST tax on purchase? Thanks Michael

ChampDog said...

I think you can buy physical gold through bank (e.g. Maybank)in Malaysia. It can be in the form of gold coin or cold bar (if you have enough money). Yes, I think it shouldn't have any GST tax.

Anonymous said...

Thanks Champ. If there is no GST, then it may be worth buying them in Malaysia.

I have been invested in PM mining stocks and royalty companies for a number of years now, and have done well. Will want to transfer some of my proceeds to either gold/silver bullion or coins later.

Cheers to all you Goldbugs here. Our Time has Come.

Michael

ChampDog said...

Good luck to you! I think that is a nice move too. You sound like a professional investor, I'm sure I can learn a lot from you. I'm glad that you comment on my blog. Thank you!

Anonymous said...

Hi Goldbugs,

Get invested in Gold/Silver before the rest of the world wakes up to it's true value.

Our Time Has Come!!!

Good Luck

Michael

ChampDog said...

I thought my blog is supposed to wake up everybody? lol

Cowfriend said...

Hi.. Everyone..
I'm new cos I became curious on the current gold price hike..

Found This forum quite interesting..

My perception is like This..

1) Case studied 1(all figure's round up)

15 years ago, gold is $10/rm40 a gram. 4 friend decide to invest..

A bought a gram gold, B invest in stock, C put it in bank.. D bought a ring..

Today .. Assume gold is $50/Rm150..

A fortune is x 5
B is x 0.5, C x 2, D x 5.. And their friend M in malaysia also buy gold x4.

So One day.. Talks about gold.. Like here..

So B and C change and buy gold,.. A and D buy more.. But D see something.. demand increase, price increase..

And M FIND a conclusion.. My gold is same as yours(but x4 only) even my country is doing very well..
feb2011.. Malaysia celebrate 160 month of trade surplus.. And rank 10 in world..

So.. dollar is benchmark..

One year later.. US trade surplus.. And currency x 4 against Malaysia..
Price 60/240..

They gather again..
A initial $10 x 6, B x 0.6,C x 2.4,D x 18 , M x 6..

But B said if only I abstain.. My 10 became x3 cos share I sold x 3..for econ better..

M will say.. Hey my gold worth the same..but x 6 cos US trade surplus.. D say I change to share..

What you see?

Its like gold hedge dollar better when econ bad..

Thats why they use future money.. And accrue cost to predict gold price in 2012..

Alot of thing happen now affect gold price.. Japan need cash to... And what japan option.. So you hedge the changes.. Dump reserve and Treasury..
So what US will do.. China? The latter did some buy..

In japan..some start buy share to hedge..

Who? Speculator, Banker(do you know public bank use your saving for what)

By allowing you buy gold.. They can buy too.. Not gold.. But share.. Mining company gain more when..
And dividend..

So what you see..

I myself not like speculating but I did own 200g + some change to jewel..

When I a kid.. Granny is tin miner.. Just worker and have license..to sell their tin to mining giant.. So do 15 auntie then.. I make sure they have enough tea and they usual far from pool banks.. When dulang..

So I make sure they have drinks and snack ready..
They pay in gold..:-D
Till today I seen it twice.. But its for emergency..
Granny pass away.. Few year ago..
Mom now hold the license.. And me too..(inherite)
Mining place is dangerous.. Many people die in 1989..

So what you see in gold...
Make the person in you...
I almost drown when I was 10...

And what happen.. Gold rush..
Govt do what.. Minning company do what...
What make 85..

The breakpoint will come.. I dont mind..

Just dont everything gold.. Try see what life around you..

Life better than gold.. This I learn..

ChampDog said...

Wow, such a long story or case study! I really appreciate that. If I get you right, you’re saying that don’t put all your eggs in one basket (i.e. don’t invest everything into gold). Is that true? I totally agree with this strategy then and I don’t think anyone wants to purely invest in gold because that is too risky especially given the current gold price trend now. :) Diversify...

kah kit said...

Thanks for the information. Apparently, u all can try on Menara Standard Charted Kuala Lumpur (Jalatama Management) which also helping client to invest primarly on gold and silver, which i found out it is quite good. They promised 3 to 5 percent per Month ( better than u put on bank)which they able to achieve tat every month for half year. I think it is quite good …

U can call this person which i deal with . Steven 016 2727326

ChampDog said...

Promise 3 to 5 % per month?

alan said...

Hey guys, i found out tat beside tis, there are also private company, who doing gold investment trading for us which is very good..the company called JALATAMA MANAGEMENT SDN BHN located in Menara Standard Charted.. They help alot in the gold trading..

U can call Steven ( My Financial advisor) 0162727326

kah kit said...

they didnt say promise but 90 percent can get ur return 3 to five percent per month.. i did for last year, and i get 30 percent return of my total amount...U guys should find the reliable company as i mentioned

ChampDog said...

Hi guys, a piece of advice from me, invest at your own risk especially from those private companies. You may need to be careful too especially if someone tells you that investment return is guarantee. :)

Anonymous said...

Yup I totally agree with u, in times like now we should not fall for anything that is too lucrative... to lure the greedy / unaware investors. Call bank negara to check on them first.

piodavil said...

Hi guys, i am a new bird here, i wanna invest in gold but just donno what time is most suitable to invest? Because if depends to the chart then only year start is a great timing to invest, and so please give me some advice! Thanks a lot!

ChampDog said...

How about invest monthly? Don't invest just one time. :)

Calvin K said...

Currently the gold price is dropping down... Anyone got any idea what happening?

ChampDog said...

Yes, down to RM143 from RM150. I have no idea why. :)

Calvin K said...

I just bought the gold from public bank 2 weeks ago, that time it was RM152, after that, i noticed it keep going down... Wondering should i keep continue invest on it? Or should i wait for awhile...

ChampDog said...

Do you invest a lot? I can't give any comment on that or else you will kill me if anything goes wrong. :) If what you invest is not a lot, you can consider not to sell. :)

Calvin K said...

not a lot.. i was thinking to invest monthly, perhaps now is the good timing too? :) will keep on eye on this... anyways, thanks for your article that inspire me to start invest. learn alot from you... Hope you could find out some source about gold market too. :p

Low Ting Meng said...

I believe investing in gold is the best investment at the moment. this is because of the total debt US has is at astronomical levels. There are many was to invest in gold. I personal prefer physical gold because any paper gold investment is not 100% guaranteed.Buying physical gold can be complicated at times because we have to buy close to the work spot price as possible. Gold shop usually mark up gold price by 15% to 25%. There are a few places you can compare gold price in Malaysia like Nubex, Public Gold. I personally prefer http://www.malaysiangold.blogspot.com/ as the price is usually low. Sometimes certain jewelery shop will sell their gold at low price because they have excessive stock on that day. I think the most important is to research the lowest price and smallest margin before purchasing physical gold.Of course if u research too long the prices might have just shoot up.

ChampDog said...

If I were to buy physical gold, I would prefer to buy "Gold Bar" from the bank directly. It is not cheap though. :)

Swiflet Henry said...

@ Chamdog,

Gd morning.

Usually which bank u purchase d gold bar..i always buy from UOB.

ChampDog said...

Swiflet Henry, I haven't bought any physical gold bar before. :):)

Anonymous said...

hai all.

i was just checking out on how to invest on gold and found this. great sharing.

i dont haf public bank or UOB account. can i open an account of investment gold only in these banks? are there any requirement? i do haf maybank account but i dont think i want to invest there. the different between selling and buying are too high. :/

thanks.
Evie

Elias said...

silver is an alternative. since gold and silver go together. IMO, buying precious metals are not much of an investment anymore. It's more for retaining the value of what u have now, or in another words, to protect your net worth from inflation of the fiat currency.

ChampDog said...

But if you compare silver vs gold, I think gold is more popular. :)

ChampDog said...

@Anonymous, Maybank chargers is higher? I think that is possible that without a saving, you can still open the Gold Investment account through Public Bank.

The only concern is you need to pay cash at the counter, do you want to do that?

Calvin K said...

I do open a public bank gold investment account. Perhaps i can share some info here. You're required to open a saving account(If you don't have one) and the gold account will link with the saving account. For the 1st purchase/opening, minimum 20grams purchase at the counter. After that, you may buy the gold online from you saving account(min 5grams). This is the part i love the most... No hassle to go to counter to purchase. Unlike Maybank...

ChampDog said...

Oh, must open the saving account? My previous comment was wrong then, sorry about that. I thought you can pay cash directly. Thanks for the information, Calvin. :)

Yeah, buying and selling gold online is most fun part and you no longer need to go to the counter.

Calvin K said...

You're most welcome... I'm your follower actually, getting a lot of inspire from you.

Public Bank is convenient compare to others bank in invest gold. But the part i don't like is the transaction time only available from 9.30 - 4.30pm. Besides, their rate is only updated 3/4 times in a day. Sometimes u might miss the lower selling rate.

Btw, Champ, do you have any others website recommended for this gold investment? Something like available 24 hours or lower spread?

ChampDog said...

You're very kind. Thanks a lot and I really appreciate that. :)

Sorry I think I can't help as I haven't tried any other websites before. You know there are a lot these kind of websites but whether there are reliable or not, I don't know. :D

Elias said...

Major correction could be starting. It looks like the time when the masses are starting to get in. Could it be the start of stage 3? If so, it'd be the time to get out, and go back in later. But my bias is still to the upside as long as 1475 holds with weekly closing.

ChampDog said...

Major correction? It looks to me the US economy now is getting worst. Next year will be pretty bad. Thus the gold will become stronger? I have no ideas but my instinct tells me won't be happen that soon. :)

I've already sold my first batch of gold investment. I"m still thinking whether I should get in now.

Jeremy said...

How do you think gold is expensive now? Why you don't keep physical gold rather than gold investment account?

ChampDog said...

I can think of few reasons:
(1)Not enough money to buy a Gold Bar unless I want to go to Gold coin?
(2)No safest place to keep the Gold.
(3)Trust the gold investment account is reliable.

Does that make sense? I do no know whether it is expensive now but I think it will be still going up.

nutrigrace said...

Hi ChampDog,
I am a novice in this, and would like to explore more. How long have you tried commodity trading? Is there any gov tax for commodity trading, and if there is, how much?

ChampDog said...

I don't recall if I need to pay any tax for that. :) I think no. :)


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