In my previous post on What Can You Invest With RM1000, I have shared on where can you buy Gold via Bank or other platform. Today we will be looking at How To Invest in Gold in Malaysia. Before we start, lets watch a mind blowing video on some Interesting Fact about Gold & its Origin.
And now you must be thinking of buying this Extraterrestrial Commodity since its not from Earth. Dont worry Grasshoppa, you wont need to contact your Extraterrestrial Friend to help you to buy it since you can buy it on Earth. LOL.
Lets look at Long History of Gold Price since 1915.
Why Invest in Gold?
For Investor, most of them Invest in Gold to Hedge Against Currency & it is considered a Safe Haven by Investor. One thing for sure, it is definitely a demand for many especially for our “Uncle & Aunty”. Gold is also a form of Diversification since it usually behaves differently to stocks & bonds.
How To Invest in Gold in Malaysia
There are many ways to Invest in Gold in Malaysia. Depending on your preference to suit your investment needs. Below are the 5 Ways You Can Invest in Gold in Malaysia :
1. Physical Gold Bullion
There are many shops, bank & website that are selling Physical Gold Bullion. Best part of owning Physical Gold Bullion is , you can keep it yourself but you might need to invest extra on a Safe Box. There are companies that are offering a package to store your Gold as well. Bare in mind that your purchase price vs your selling price might be different depending on how well you take care of your Physical Gold Bullion. Different price varies among different buyer & seller.
2. Gold ETF
Recently, Affin Hwang Asset Management have launched a Gold ETF called TradePlus Shariah Gold Tracker (GOLDETF). The fund will be allocating 95% of its Net Asset Value (NAV) to Physical Gold Bullion & 5% to Islamic Money Market Instrument. The benefit of investing in Gold ETF is you can buy & sell anytime whenever the Stock Market is open. The disadvantage of it is, you dont actually own the Gold since its just a financial asset. You will also have to purchase minimum of 100 units as a start.
3. Gold Investment Account
Why want to have a hassle of keeping your Physical Gold or have minimum purchase of 100 units when can just invest as low as RM1? There are banks & other platform that are offering Gold Investment at affordable rates. All you have to watch out is on their Management Fee, Buy-Sell Spread Difference & Physical Gold Withdrawal Charges. Those additional fee might affect your Investment Profit so please remember to do your research before you invest.
Recommended Platform :
Public Bank Gold Investment Account
UOB Bank Gold Investment Accounts
Maybank Gold Investment Account
CIMB Bank Gold Investment Account (Black Belt Millionaire Choice)
Why not? This is something our parents, grandparents, uncle & aunty usually do whenever they buy Gold. It can be partly for investment & partly for personal use.
5. Alternative Investment
Alternative Investment include investing in companies that are selling jewelry such as Gold, Diamonds, Platinum & others. You can also invest in Mutual Funds that are investing in Gold & other commodity such as Precious Metal.
Gold is definitely a good alternative investment to many investors out there. According to Billionaire Ray Dalio, he recommends each investor to allocate 5-10% of their portfolio in Gold to hedge against any possible risk. Although Gold can be volatile in short term but it will always maintained its value in long term. It is definitely a good investment to hedge against inflation. Before you made any investment, make sure you do your homework to avoid any potential scam or risk.