Wednesday, May 6, 2009

Gold investment with passbook account

Gold is a kind of precious metal that is internationally recognised and accepted to be always interchangeable with cash based on the exchange rate in its own market. It is well-known to be hedge or safe haven against any economic, political, social, or currency-based crises.

Besides keeping the physical gold (in forms of coin, wafer, ornament, etc.), Malaysian can also invest in gold with passbook account in the way similar to passbook savings account with Maybank and Public Bank. The gold price offered by these 2 banks are pegged to international gold commodity prices in the market.

The benefit of investing gold with passbook account is that you don't have to keep the physical gold. This will save you from the hassle or risk of:

  • storage cost (eg. keeping in a safe box)
  • lost, theft, etc.
I have made a comparison between the Gold Savings Passbook Account (GSPA) of Maybank and Gold Investment Account (GIA) of Public Bank as below.



Generally, Public Bank trades with you in a smaller gap between the selling and buying price of the gold. This also mean that Public Bank sells to you at a lower price than Maybank, and buys from you at a higher price than Maybank, which is more beneficial to the investor.

However, Maybank also has some other advantages, such as:
  • They have more branches nationwide available for you to make the gold transaction with them.
  • They allow you to withdraw your gold in physical gold wafer or gold certificate format.
  • They don't impose annual service fee even though your balance is below 10 grams.
  • The minimum initial deposit and balance required is lesser.
The gold price has been in the rising momentum since 2001 until today. There is a nice website (http://goldprice.org) for you to check for current and historical gold price with charts.

Is now a good time to buy gold? What I can tell you is that now the price is at the historical high end of a long term bull. How long can this bull go further? You have to do your own homework.

Click here to check the gold rate of Maybank GSPA.

Click here to check for the gold rate of Public Bank GIA.

1 comments:

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