Investing in Gold in Malaysia, what are the options and how?

Investing in Gold in Malaysia, what are the options and how?

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 Coin

The Malaysian gold bullion coin, the Kijang Emas issued by Bank Negara Malaysia launching in 2001.

From 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.

For details on buying from Maybank, click here. In Penang Island, you can only transact at the Main Branch at
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

This is a very very important link that is not easy to google, Bank Negara Malaysia's (BNM) link to see daily trading prices, and also to compare prices since 1997 till-date.
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 Gold Wafers @ 10, 20, and 50 can be withdrawn at selected branches. A conversion charge to cover the shipping and insurance will be charged for the physical gold withdrawal.
•	Cash The amount of gold holdings can be converted to Ringgit Malaysia equivalent at the prevailing market (gold) price. The amount in RM will be credited into a Maybank deposit account of customer.

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 GSPA

Gold 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