After your own online banking account creation Malaysia, you are probably thinking of investing into gold too after noticing such as one of your bank’s investment options. Maybe you think that investing in gold online is somewhat similar to investing in online stocks.
Before you think of investing gold in the first place, it is recommended that you are aware of the different types of gold investments that you can dive into. Each bears their own pros and cons, and it is up to you on whether that method is worth using. Enough research can allow you to choose one that fits you and the investment strategies that you have learnt so far.
Gold Investment Account
Starting from the first method that you may likely stumble upon in your online bank account, this requires you to open an investment account in its platform to trade 99.9% pure gold without actually owning the physical thing. With the possibility of investing pure gold online, this method fits like a glove if you are going full digital.
There are zero risks of theft since you do not keep one in your own place anyway, and storage costs are also non-existent. The downside of investing through a gold investment account is that it neither has interest or dividends, nor it is insured by Perbadanan Insurans Deposit Malaysia (PIDM).
Your bank might also charge you services and conversion fees, the former is required if your gold is under the required minimum balance to invest.
Physical golds
Gold bars and coins are some of the physical gold that you can invest with. Maybe you are curious as to why people still prefer this method. The answer is that unique properties such as size and design are among the staples of their value.
Gold bars vary in sizes, ranging from 25 grams to one kilograms. One full gold bar could be priced at thousands to hundred thousands of Malaysian ringgit. However, it is easy to store and costs cheaper than gold coins, though you have to pay storage costs if you are putting them in a safe deposit box.
Gold bars are not the best option if you are planning to liquidate. This is because you can only liquidate the full size of the bar and not a quarter or half of it. This is inconvenient if you want to get just enough cash to meet your needs today, and no more.
If you store your bars at home, you are only asking for them to be robbed in case of burglary.
If you are still looking to liquidate only small amounts of gold, you get gold coins instead of bars. Due to their smaller sizes, it is also easier to store and it is a good choice if this is your first time investing in physical gold. Furthermore, if the coins themselves are rare at the moment, their value increases.
A particular downside of purchasing gold coins is that it is more expensive than gold bars due to extra minting costs.
Gold mining stocks
Want to invest in a company that is behind the mining of gold? This is the method to use. Similar to company stocks however, your returns are based on its own performance and status though it allows indirect exposure to the gold performance.
And like stocks, this method is volatile and risky so unless you know about the company’s current state, do not simply jump into this method.