When I first started investing, one of my first investments was gold. I was in my early 20s, it was the early 2010s, and I bought 20 grams. I’ve since sold some of them, but still keep a small amount.
Why I chose gold as an investment
Briefly, I wanted to diversify my investment portfolio and gold is considered a safe option. There’s a story behind this decision.
During my travels in rural France I met a gentleman who swore by gold, said it helped him sustainably finance his retirement. “It’s great as a long-term investment,” he advised while fiddling a large gold ring worn on his index finger – it’s obvious that he really liked gold. I believed him, but for my own sake I looked up the charts.
He was right. I met him in 2009 – it was mostly smooth sailing for him (look at the historical chart below). I hope he managed to sell it off in 2011, or had the patience to wait out the price drop during 2013-2015. As of writing time, the price of gold is back up again. I’m predicting it to continue its long-term upwards trend.
(Disclaimer: Not an investment advice. Please do your research as well)
How to Buy Gold in Malaysia
You can buy:
- Physical gold – gold coins, gold bullions, gold jewellery
- Gold Savings Accounts / Gold Investment Accounts – an account where your money is turned into gold, which can be fully allocated (i.e. using real physical gold) or unallocated (i.e. the bank will make sure that you get the same result as if you had real gold)
Some places that sell physical gold includes jewellery shops, banks and private gold distributors.
Personally, I’m not a fan of physical gold options. If I wear it, it attracts muggers. If I keep it at home, I’d worry about home security all the time. If I rent safe-keeping vaults, that’s a lot of added expenses.
This article concentrates on the second option – Gold Savings Accounts.
Which Gold Savings Accounts are Available in Malaysia
In the early 2010s, the only (safe and trusted) places that offered Gold Savings Accounts were banks. iMoney has a comparison tool for this.
Now in 2017, I’d like to introduce you to a non-bank, technology-enabled approach to buy gold in Malaysia: HelloGold. Previously I gave them a shoutout in my All the Fintech Products in Malaysia that I Love Now article. That one was not sponsored – was genuinely impressed by the team and the technology they use (blockchain).
Here are some tips and pointers if you choose to use HelloGold to buy gold:
- Insert my referral code and RM5 discount. Click here to download the app (note: referral link) or insert the promo code ‘SURA024F’ to get RM5 discount if you buy RM50 worth of gold.
- You’re buying physical gold. It’s 99.99% investment-grade gold stored in Singapore. I quite trust Singapore’s financial industry, so this is a plus point for me. And it’s certifiable yours, which means you can order and get it delivered to your home or, if things go ‘belly up’, you’ll get your money back.
- You can buy gold from just RM1. If you’ve bought gold before, you know the common practice is to buy gold by grams. This means that last time people with just RM100 or so to spare per month can’t afford to invest in gold, they can’t buy even the minimum 1 gram. Now they can.
- Fees to know: The annual management fee is 2%. The buy and sell transaction fee is 2% of the transaction value. The top-up processing fee is RM1.20. Added up, it’s within the range of what traditional banks charge for this kind of service.
- Try not to buy/sell gold during the weekend. It’s 2% more to buy and 2% less to sell on weekends.
- The user experience is different than other Gold Savings Accounts. It’s more fluid, and the branding/design/layout is fresh. My Gold Savings Account last time was boring, made me feel old :/
- Syariah-compliant 🙂
How to Buy Gold from HelloGold
The simplified process to buy gold from HelloGold is:
- Download the app, register for an account. Alternative: go to Playstore or Appstore, download ‘HelloGold’ and add my code ‘SURA024F’ to get RM5 discount if you buy RM50 worth of gold.
- Upload verification documents (IC card – just snap from phone)
- Top up account with bank transfer
- Buy gold from the app at the price you want
- Keep it until you want to sell it off
To find out more about HelloGold, please visit the official website.
If you want to buy gold in Malaysia for investment purposes, HelloGold is a good option. I find it easy to use, and the team is professional. I also like a value they preach – to enable people with not-so-much spare cash to invest in gold. Financial inclusion for all, woo!
Do you keep gold as an investment?