Wednesday, June 25, 2008

Public Bank Bhd's Gold Investment Account

In view of the world food crisis and the increase in inflation in Malaysia's economy, I have recently sold all my investment in shares listed on Bursa Malaysia and use the sale proceeds to invest in Gold. The gold fineness is 99.9% and it is a good hedge against inflation.
The invesment in gold is by way of a Gold Investment account with Public Bank Berhad. A minimun initial investment of 20 gram is required to open the account and subsequent investment of 5 gram. However, the account must be maintained with a minimum balance of 2 gram. You will be provided with a passbook to record your investment and divestment.
The daily gold price is available from Public Bank website and as at today, Wed, 25 June 2008, the prices are :-
Selling : RM95.52/gram; and
Buying : RM92.52/gram.
Please note also, Malayan Banking Berhad has also a similar product called Gold Savings Passbook and their pricing as at today are as follow :-
Selling : RM97.87/gram; and
Buying : RM90.63/gram.
Please also note on the different of the spread between the selling and the buying price, Public Bank RM3/gram and Maybank RM7.24/gram!
Trusting that the appreciation in gold prices will offer me a good hedge against the rising inflation in Malaysia.


See Teck said...

As at today, 3 Jul 2008, PBB quoted selling/buying price are RM101.46/g and RM98.46/g. If i wish to divest my gold investment, i will make a profit of RM2.85/g (RM98.46-RM95.61 i.e a profit of 2.98% for a period of 9 days (from 25 Jun 2008 until today) and the annualise profit is a whopping 120.86%!

See Teck said...

Sold 200g on 19 Feb 2009 @ RM113.38/g. Realised profit RM15.0518/g or RM3,010.36 for a period of 240 days. Annualised profit was 23.28%!