Using gold and silver as an investment were acceptable and norm ways to diversify your investment nest. You can invest on bullions, coins or jewellery and waiting for right moment to sell it for profit.
In Malaysia, gold was sell by local manufactures and distributor by introducing and producing their own brands. There were many excellence goldsmiths and distributor for international recognize brand like PAMP Suisse. Gold coin and silver coin products were making into several types that applicable to Malaysia market.
Popular gold products.
Primary type of gold popular in Malaysia was jewellery at 91.6% purity or 22K. Most shops sold and purchase this type of gold jewellery. The goods were sold base on their weight, design and craftmanship. The shop will charge base on current market price and extra charges for craftmanship.
Secondly, gold bar and coins with purity 99.99% or 24K. These product popular among gold investors and collectors. There were two major different of coin products that differentiate Malaysia market with others.. Their very own produce `Kijang Emas ` (Barking deer ) gold coins weighted either 1 oz, ½ oz and ¼ oz respectively. This product issue by Malaysia central bank and distributed by major local banks. Another product is gold `dinar` coin weighted by several size of 4.25g, 8.5g or 21.25g and 42.50g.
Buying or selling Spread.
All gold shop are having their own selling or buying spread. Their business plan was simple. Higher spread value and they are making profit. When your are selling or resale of gold, the shop try to buying at lowers possible price, make a new jewellery from that gold and sell it at higher rate. Most gold shop have worst gold price spread between 12 - 15% of gold value.
Gold bullion offer much more better spread rate between 5% -9%. Several bullion manufacturer's publish their rate following world spot market and offer an hourly updated price.
Investment opportunity's
Gold products purchases were tax free investment. No tax apply for selling or buying gold in Malaysia and also no tax for export or import of gold products. There is requirement for export permit and Malaysia central bank approval.
Gold was considered as precious metal that can be use as collateral for obtaining private loan. The typically pawn brokering service give your gold appraisal value and give money up to maximum of 60% value of your gold at market price.
Using pawn brokering service will give you option to inquired more gold. You only need to invest 40% cash to buying more bullion. It is continue into several tiers. It is advisory to repeat the process up to 3 times or less. The last gold bullion is key to unlock your investment.
An increased in gold price will give effect directly to your total assets values less all loan taken and payments. What will happen if the price is decreasing? There several new option can be done.
Firstly, typical pawn broking periods can be extended for 6 months or more. This will give your extra time for price movements and trends changes.
Secondly, buying more gold when prices were at downtrend. You can a get lower average price per gram from total gold that you own. When the trend change, it is possible to sold it with profit.
Buy back policy and customer trust.
Gold bullion business were monopoly by several local Malaysia gold manufacturer like PG gold and CGPC gold. Several others small minor manufacturers which selling under their own brands. Gold can easily traded by buy, sell or exchange. For example your are having 5 units of 1gram gold bullion. When someone interested in 5 grams bullion you can sell all 1 grams bullion in exchange of 5gram.
All manufacturer have this buyback policy to increase sale, flexible and encourage people to make saving in form gold bullion. It is also function as trust and confident for the manufacturable able purchase back their sold gold as needed.
Trading gold bullion in Malaysia was still at new stage. Using internet and social networking to discuss, review and advertisement, online gold trading was a very successful and comparative business. Many stockist buy or sell almost the same brand name. The only advantages that the stockists had were differential gold stock in weight and stockist location. As a gold stockist, they were making profit in tier sale commission and gold exchange scheme as a gram is a gram of gold. I.e. 5 items 1 gram for 1 item of 5 gram of gold.
There many more future development and facilities like safe deposit rental and delivery service for valuable metals or exchange center for gold could be increase the people knowledge and start to invest in gold.
Project Accountant & Procurement Dept Have an interest in gold and forex trading. i have travel in many Asian region and doing cross border trading for my company. Primary trading is in cooking oil and palm oil finish products
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