Legal Gold Investments In Malaysia: A Comparison

Posted by Kris | Friday, September 09, 2011 | | 3 comments »


If one is scared to be entrapped into a gold investment scams, the safest thing to do to reap the benefits of a soaring gold prices is to invest into the schemes promoted by our local banks.

A spread is the difference between the selling and buying price. The smaller the spread means that less leakage when doing buy/sell transaction. All prices below are on the same date for comparison purposes. (9 September). 

Do note that these investments are not covered by PIDM which provides deposit insurance. Which means that if the bank fails like what is happening in the US, you cannot get your investment back. PIDM covers most of the saving & current accounts for all banks up to RM250K for a single account. (It was previously up from RM60K only, a few years ago. It was introduced in September 2005)


Maybank
Maybank Gold Investment Account
The spread is RM7.48

Minimum gram is only 1 grams :) However no mention of physical gold delivery.

DATE
SELLING (RM/g)
BUYING (RM/g)
9 - Sep - 2011
184.28
176.80



FeaturesDescription
Minimum Initial Purchase1 gram
Minimum Subsequent Purchase/SaleIn multiples of 1 gram
Minimum Balance in the Account1 gram
Gold Purchase Price
- Gold purchase will be based on the Bank's prevailing gold SELLING price quoted in RM per gram
- The mode of payment accepted for purchase of gold are:
  • Cash
  • Debiting of current/savings account maintained with the Bank
  • House cheque
Gold Sale/Withdrawal
- Gold sale will be based on the Bank's prevailing gold BUYING price quoted in RM per gram
- Withdrawal options available are:
  • Cash
  • Crediting of current/savings account maintained with the Bank
Mode of OperationPassbook
InterestNo interest payout
Stamp Duty Fee on AgreementRM10
Replacement of Lost / Spoilt PassbookRM15 (inclusive of Stamp Duty for Letter of Indemnity


Public Bank
The spread is RM7.43
Here you can take delivery of the physical gold with a fee of course. However, the minimum gram for Public Bank is 10grams.



Gold Investment Account as at 09/09/11 3:46 PM
 Selling PriceBuying Price
1 gramRM 185.0300RM 177.6000



Minimum Initial Purchase 10gms
Minimum Balance in the Account 2gms
Minimum Subsequent Purchase/ Sale 5 grams and must be in multiple of 1 gram
Gold Purchase 
Gold purchase will be based on the Bank's prevailing gold SELLING price quoted in RM per gram.
The mode of payment accepted for purchase of gold are :
- cash
- debiting of account
- house cheque
No physical gold deposit is allowed.
Gold Sale/ Withdrawal 
Gold sale will be based on the Bank's prevailing gold BUYING price quoted in RM per gram.
Withdrawal options available are :
- Cash
- Crediting of account
- Collection of physical gold withdrawal at selected branches
Account Opening RequirementCustomer is required to maintain either a savings account or current account prior to opening a GIA to facilitate the debiting of service fee, if any.
Service FeeAn annual fee of RM10 will be levied on the designated deposit account on the first day of the calendar year if the account balance is below 10gms as at year end.
Online Gold Trading via PBeBank.com
Available from 9.30 a.m. to 4.45 p.m., Monday to Friday when the Bank is opened for business in the Federal Territory of Kuala Lumpur.
Gold purchases and sales are offered at a discounted price.
Registration of GIA for PBeBank.com online banking service is required.
Transaction Limit:
Minimum5 grams per transaction
MaximumRM50,000 equivalent per GIA account per day for both gold purchases and sales.


No.
Type of Charges
Amount
1Gold quantity balance of less than 10 grams as at 31 December each year
The aforesaid service fee will be waived for new accounts opened for less than (1) month i.e. opened in the month of December.
RM10-00 per annum
2.Replacement of lost Gold Investment Account passbookRM10-00 plus stamp duty
3.Stamp duty for Gold Investment Account AgreementRM10-00
4.Physical Gold Withdrawal
-Denomination of gold bar available in 50g and 100g. Fee charged is on per piece basis.
Gold Collecting Branches50g100g
Jalan Sultan SulaimanRM220RM240
Pulau Pinang/ Bagan AjamRM250RM270



CIMB BANK
Spread RM5.4 - The lowest among the 3 banks above. Physical delivery is also the cheapest at 1gram for RM1. However the initial minimum investment is at 10grams not 1gram like Maybank.

SellingBuying
Gold Deposit182.700177.300

Minimum Initial Deposit10 grams
Minimum subsequent Purchase / Sale5 grams and must be in multiples of 1 gram
Minimum Quantity for Physical Gold Withdrawal100 grams and in multiples of 100 grams
Account Opening RequirementCustomer to open an affiliate conventional savings/current account (“designated affiliated account”) prior to opening a GDA to facilitate the purchase or sale of gold and other charges. The designated affiliate account is compulsory and customers without a CIMB Bank savings/current account would be required to open one.
Mode of OperationPassbook
Gold Purchase Price
  • Gold purchase will be based on the Bank’s prevailing gold SELLING price quoted in RM per gram

  • The mode of payment accepted for purchase of gold are:
    - Debiting current/savings account maintained with CIMB Bank

  • Gold Sale/ Withdrawal
  • Gold sale will be based on the Bank’s prevailing gold BUYING price quoted in RM per gram

  • Withdrawal options available are:
    - Credit into the designated affiliate account
    - Physical gold

  • InterestNo interest payout
    Benefits
  • Customer will make a capital gain if there is an appreciation in gold price.

  • To earn potentially higher return from appreciation in gold price

  • Invest in gold without having to keep the gold physically

  • Good hedge against inflation

  • Affordable initial purchase and subsequent investment

  • Convenience of investing in gold as trading is carried out through a passbook.

  • Option of withdrawing from the GDA in physical gold.


  • Products/Items
    Charges
    1Physical Gold WithdrawalRM1 per gram of gold ordered (inclusive of insurance and transport charges)
    2Fee for failure of collection of physical gold ordered (in the event of failure to collect the physical gold ordered within thirty (30) business days from the date of the Bank’s notification letter)RM1 per gram of gold ordered (inclusive of insurance and transport charges)
    3Annual Service FeeRM5 in the event gold balance falls below 10grams at year end
    4Replacement of Lost / Spoilt PassbookRM20 (Inclusive of Stamp Duty on Letter of Indemnity)
    5Closing of GDA (within 6 months of its opening)RM10


    Digg Technorati del.icio.us Stumbleupon Reddit Blinklist Furl Spurl Yahoo Simpy

    3 comments

    1. ChampDog // 5:47 PM  

      Nice write up! :)

    2. jj // 11:40 AM  

      i was told last month by public bank that the minimum amount for physical gold withdrawal is 1 KILOGRAM. truly for high rollers heheh

    3. Kris // 8:42 PM  

      @jj,

      I wonder how do they intend to keep physical gold.

      On the serious side, not sure how much the banks are keeping physical gold as reserves. Or most likely, they are holding paper gold.?! Maybe any readers from the banking industry will know this fact. :P