Gold Gone Glam: Unveiling the Allure of Investing in Malaysia (2024 Edition)
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Gold is shedding its old-fashioned image and shimmering as a trendy investment pick in 2024.
Forget dusty heirlooms collecting cobwebs in the attic.
Gold is shedding its old-fashioned image and shimmering as a trendy investment pick in 2024.
But what makes this precious metal more than just a pretty face?
Let's delve into the vault and uncover the reasons why you might want to add some golden sparkle to your portfolio.
Timeless Treasure, Timely Investment:
Imagine a shield against inflation, a protector of your purchasing power as prices rise.
That's what gold can be.
Historically, its value tends to climb alongside inflation, offering a hedge against your hard-earned cash losing its shine.
So, while your favourite latte might cost a bit more tomorrow, your gold investment could help weather the storm.
Beyond the Rollercoaster: Diversification is Key
Investing isn't about putting all your eggs in one basket (even if it's a golden one).
Spreading your wealth across different assets is crucial for a balanced portfolio.
That's where gold comes in.
It often reacts differently to other investments like stocks or bonds, providing stability when other markets get jittery.
Think of it as a calming anchor in a choppy financial sea.
Safe Haven in Uncertain Times:
Picture this: global tensions rise, economies wobble, and uncertainty clouds the horizon.
In such times, gold often shines as a safe haven.
Its value tends to hold steady during periods of geopolitical or economic turmoil, offering peace of mind when the world feels shaky.
So, while the news might be filled with storms, your gold investment could be a beacon of stability.
Unlocking the Golden Gates:
Now, how do you actually get your hands on this shiny asset?
Here are the different avenues to explore:
1. Go Glamorous (or Go Big):
Thinking of adding some glitter to your investment portfolio?
Consider physical gold! Bars, coins, and even jewelry offer tangible beauty and potential returns. But before you dive in, keep these points in mind:
Pros:
Tangible asset: Hold your investment in your hands, perfect for those who prefer a physical connection.
· Beauty with value: Gold jewelry can be worn and enjoyed, adding aesthetic appeal to your investment.
Cons:
Storage and security: Storing and securing physical gold comes with additional costs and potential risks.
Jewelry markup: Design and craftsmanship add to the price, impacting your return on investment.
Where to buy:
Banks: Maybank and few other Banks offer Kijang Emas Gold Bullion Coins in various sizes.
Gold shops: Find a reputable dealer for bars and coins like Public Gold
Jewelry stores: Explore options like Poh Kong's Bunga Raya Gold Bars, but be aware of the design premium.
Purity matters:
Opt for 99.99% pure gold bars and bullions for maximum value.
Be cautious with jewelry, as purity and wear-and-tear can affect resale value.
Remember, physical gold is a long-term investment. Weigh the pros and cons, choose reputable sellers, and prioritize purity to make your golden dreams a reality!
2. Ditch the Vault, Go Digital:
Forget bulky bars and hidden stashes.
Embrace the new wave of gold investing with digitized gold accounts!
Buy and sell electronically through banks, sidestepping storage hassles and hefty costs.
Plus, fractional investing lets you start small, perfect for testing the waters.
Here's the magic touch:
Open an account: Check with your bank for gold savings/investment options. Open one, make your initial deposit, and voila! You're a digital gold investor!
Safety first: These accounts are likely the safest and most convenient way to invest in gold in Malaysia. Competitive spreads further sweeten the deal.
Leave the worrying to them: No need to guard your gold from thieves. Let the bank handle security while you focus on profits.
Where to dive in?
2.1. Gold Savings/Investment Accounts:
MIGA-i: This Shariah-compliant account by Maybank lets you buy, sell, and even get physical gold delivered – all online! Start with just RM10 and even support a cause.
How to open MIGA-i via online banking?
🕐 Step 1: Login to your Maybank2u
🕑 Step 2: Select 'Apply'
🕒 Step 3: Select ‘Maybank Islamic Gold Account-i (MIGA-i)’ to create your MIGA-i.
🕓 Step 4: After your MIGA-i has been created, active your account with an initial investment as low as RM10.
🕔 Step 5: Insert this REFERRAL CODE - aib06103 - every time you invest in it.
It is super easy to start investing in Gold using this new Maybank2u service.
Other banks: Check with your preferred bank for similar offerings. They might surprise you!
2.2. Bursa Gold Dinar (BGD) App:
Go local: Buy gold directly from Bursa Malaysia through the BGD app. Register and start investing with just RM10.
Price advantage: BGD often boasts better sell prices and spreads, even compared to Maybank's account! (As of Jan 16, 2024)
Fee watch: Keep in mind the 0.50% annual admin fee and 0.20% purchase/sell fees on BGD.
Remember: Research is key! Compare options, fees, and features before choosing your golden path. Happy investing!
3. Gold Miner (Stock):
Gold stocks offer an indirect way to tap into the gold market, but remember, it's not a guaranteed treasure hunt.
Buckle up for some volatility alongside potential rewards!
How it works:
Buy shares in companies that mine gold (like Poh Kong Holdings Berhad at RM0.86 per share as of writing).
Your profit or loss depends on the company's performance, not just gold prices.
Some companies reward investors with dividends for holding share
The flip side:
Market fluctuations can significantly impact gold stock prices. Do your research before investing!
While gold itself can act as a safe haven in economic downturns, gold stocks might not always follow the same pattern.
Gold prices are inherently volatile, influenced by supply and demand, posing inherent risks.
Before you dig in:
Research: Deep dive into the specific gold mining companies, their track record, and market risks.
Diversify: Don't put all your eggs in one basket. Spread your investments across different assets.
Seek advice: Consult a financial advisor to understand your risk tolerance and create a personalized investment plan.
4. Exchange Traded Funds (ETFs):
Bite-Sized Gold: Dive into Malaysian Gold ETFs for Easy Investment
Gold ETFs: imagine tiny baskets stuffed with gold-backed goodies, waiting to diversify your portfolio with ease. Perfect for beginners or busy bees, they offer:
Easy access: Buy and sell them just like stocks on the stock exchange!
Affordability: Start small and gradually build your gold stash.
Diversification: Spread your risk across gold-related assets, not just the raw metal.
How it works:
ETFs are like mini investment funds holding various securities that track gold's performance.
In Malaysia, your best bet is the TradePlus Shariah Gold Tracker on Bursa Malaysia.
Why choose gold ETFs?
Diversify your portfolio: Gold often bucks trends, rising even when stocks slump, offering a safety net.
Affordable entry point: Invest in gold without breaking the bank!
Ready to start? Here's your shortcut:
A. Wahed Invest: A robo-advisor platform offering gold ETFs.
Get a free Wahed bonus of RM 10 and to claim your free reward make sure you use this referral code when you sign up: AFIRAH1
Download the app https://app.wahedinvest.com/referral
B. Versa Gold: Another option for hassle-free gold ETF investment.
Meet Versa, a digital wealth app that helps you save, invest and grow, so you can achieve financial wellness. Save and invest easily, with the help of expert fund managers from AHAM Capital.
Join me and we’ll both enjoy RM10 reward! 🎁
How to get started:
Download the Versa app
Make your first Cash In of min. RM100
Pretty easy right?
Are You Ready to Strike Gold?
The world of gold investing awaits.
Wits potential for growth, stability, and diversification, it could be the missing piece in your portfolio puzzle.
Remember, this is just a starting point.
Do your research, consult a financial advisor, and then, dive into the world of gold and unlock its potential in your 2024 investment journey.
Just remember, investing involves risk, so make sure you understand your risk tolerance before taking the plunge.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult a qualified professional before making any investment decision.
