Investing in gold is another great option where we can further to diversify our entire investments portfolio. The public demand in gold investment is getting aggressive recently.
The combination of rising geopolitical and sovereign risk concerns boosted bullion prices. Another surge in oil prices triggered inflation-hedge buying in gold. The increase in oil prices is largely a function of unrest in the Middle East generally and the civil in Libya specifically, according to the Energy Information Administration. We believe any further deterioration in risk, either in the Middle East or on sovereign debt issues, could propel the bullion market to new highs. A bedrock factor in the long-run bullion rally is the growth in emerging markets demand.
There are various types of gold investment options available today namely gold saving account, gold unit trust fund, gold coin (Kijang Emas gold coin), direct investing into gold mining shares, purchase gold bullions, gold future & etc.
For any newly gold investors, I would suggest gold saving account and gold unit trust fund account would the better option to choose for its simplify product feature & structure.
You can consider opening a gold saving account yourself to benefit from the current appreciation of gold pricing in near term. An account that lets you invest in gold in a convenient, more secure and cheaper way. Suggestion is not more 10% of your total portfolio in gold investment and makes it as your long term investment strategy. Adopt “Dollar Cost Averaging” method by buying in regularly.
Always remember a simple investment rule that “Whatever go up today, would come down tomorrow when situation change drastically!” Most importantly, do you believe that gold price would appreciate due to demand & supply factor over a long term period? If your answer is YES, then you may put gold investment as part of your total investment portfolio today. If you like to have gold investment as part of your portfolio, but you doesn’t have time to monitor the gold pricing yourself then gold unit trust fund would be a better choice for you. Let the professional fund manager to manage the investment risk on your behalf.
How to choose the best gold saving account that suits you the most? Please refer to the table below that show the comparison among banks offering gold investment saving account in Malaysia:
- CIMB Bank Gold Deposit Account (GDA)
- Kuwait Finance House KFH Gold Account – i (GAI)
- Maybank Gold Savings Passbook Account (GSPA)
- Public Bank Gold Investment Account (GIA)
- United Overseas Bank Gold Savings Account (GSA)
Conclusion
Buying gold is another kind of investment for diversification of our risk. It is a moderate risk kind of investment where it suits those medium to long term investors.
Gold investment is much safer investment comparatively to stock market but the returns is also much weaker if compared to stock market on a bull run.
