Legal Gold Investments In Malaysia: A Comparison

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

Features	Description
Minimum Initial Purchase	1 gram
Minimum Subsequent Purchase/Sale	In multiples of 1 gram
Minimum Balance in the Account	1 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 Operation	Passbook
Interest	No interest payout
Stamp Duty Fee on Agreement	RM10
Replacement of Lost / Spoilt Passbook	RM15 (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 Price	Buying Price
1 gram	RM 185.0300	RM 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 Requirement	Customer 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 Fee	An 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: Minimum 5 grams per transaction Maximum RM50,000 equivalent per GIA account per day for both gold purchases and sales.

No.	Type of Charges	Amount
1	Gold 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 passbook	RM10-00 plus stamp duty
3.	Stamp duty for Gold Investment Account Agreement	RM10-00
4.	Physical Gold Withdrawal - Denomination of gold bar available in 50g and 100g. Fee charged is on per piece basis.	Gold Collecting Branches 50g 100g Jalan Sultan Sulaiman RM220 RM240 Pulau Pinang/ Bagan Ajam RM250 RM270

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.

Selling	Buying
Gold Deposit	182.700	177.300

Minimum Initial Deposit	10 grams
Minimum subsequent Purchase / Sale	5 grams and must be in multiples of 1 gram
Minimum Quantity for Physical Gold Withdrawal	100 grams and in multiples of 100 grams
Account Opening Requirement	Customer 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 Operation	Passbook
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
Interest	No 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
1	Physical Gold Withdrawal		RM1 per gram of gold ordered (inclusive of insurance and transport charges)
2	Fee 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)
3	Annual Service Fee		RM5 in the event gold balance falls below 10grams at year end
4	Replacement of Lost / Spoilt Passbook		RM20 (Inclusive of Stamp Duty on Letter of Indemnity)
5	Closing of GDA (within 6 months of its opening)		RM10

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