Gold, one of the most precious metals in the world has for centuries been an exchange medium from one of the earliest civilizations. To date, it is still being used as such. It is a symbol of status as well as one of the most significant mediums used to store value. In the past decade or so, gold has been perceived to be one of the most stable forms of investments and that is quite similar in Malaysia as well.
How does investing in gold works?
Like any other form of investments, gold has a value known to appreciate over time. The same mechanics work when you invest in gold. You buy it at a price and then sell it for a higher price and then you earn the profit.
Why should you invest in gold?
A few main reasons will help you make that decision. Investing in gold makes good money sense because it is almost an inflation-proof market. When you look at paper money, the value will lose over time because of inflation and that is more prominent in economies which are unstable.
- Safe – When you invest in gold, you put your money in a safer market as compared to many other money investments. In fact, it is very common for investors to move towards gold investment when there are foreseeable reasons of an economic crisis
- Diversification – Besides the usual shares, bonds and unit trusts, investing into gold provide investors the platform to diversify their portfolios.
- Appreciation – Unlike other forms of investments, gold prices are known to appreciate better and faster. This is a lot more evident today especially in light of rising demand from fast-growing economies like China
How to invest in gold?
The most common method to invest in gold is to buy the actual item. This can be done by visiting any goldsmith or shop and then choosing the item that you like before buying it. Then, you can keep the item in a safe place and sell it when the price is right.
- Tip: Keeping the actual gold in your possession means you need to contend with safety issues.
Another safer way to investing in gold is to put your money into a gold investment account. This means you are actually investing in gold without needing to physically hold or own the actual item. In fact, opening a gold investment account is one of the best (and popular) methods to put your money into this market. There are several banks in Malaysia that offer you such options namely:
- CIMB Bank – Gold Investment Account
- Maybank – Gold Investment Account
- HSBC Bank – Gold Account
- Public Bank – Gold Investment Account
- Kuwait Finance House (KFH) – Gold Account-i
- UOB – Premier Gold Account or Gold Savings Account
How this works exactly is that you will be investing in among the purest of gold when you put money into the accounts (99.9% purity). Certain banks would have different forms of conditions where some might want you to deposit a minimum deposit which could be 1gram of 99.9% gold. To buy the gold, you can do so through bank transfer, cheque or cash whichever you prefer. The banks offering the investment will let you know about the current price to buy or sell depending on the current market force.
Why you should invest in gold?
The reason is simple and very straightforward. Investing in gold means you are investing in a very stable market. Having a gold investment account means you do not need to worry about the safekeeping of the gold as you do not have to possess the actual item. Another reason why you should invest in gold is that it is now easier. You can do so online. Besides that, you can withdraw your investment whenever you want to which means you enjoy very high liquidity.
A new way to invest in gold
Besides opening and maintaining a gold investment account, you can now use a new way to put your money into this market which is through the HelloGold app. This FinTech app has been creating waves where it has already disrupted many markets. The company was established in 2015 where it is designed to let you buy and sell gold at your convenience. In fact, it is the first digital app in the world which is Syariah compliant. You can actually buy 99.99% gold from an amount as low as RM1 where you can sell them later. The value that you have in your account meanwhile means you can transfer it through the HelloGold app or you can even request to have the physical item too which can be delivered to you.