Investing in Gold

This morning a friend was asking my opinion about investment in gold. For long, gold has been a very attractive type of investment. Even when we look up history, traders and invaders have travelled far and wide in search of this shiny metal.

My 2-cents opinion on this matter is listed below.

Why invest in Gold?

• Gold is the most liquid asset.
• Gold can play a vital role in diversifying your portfolio.

Why investors may shy away from investing in Gold:

• One must remember that gold, like any commodity, can move down just as aggressively as it moves up. In mid-March this year, gold was seen traded at more than US$1,000 an ounce and earlier this month, it came down to less than US$750. So, it is possible to lose value in gold as well as other investment.
  
• Another point worth noting is that gold was not an interest-bearing asset.

People preferred to keep gold coins rather than gold bars but the buying of physical gold was quite rare due to “security issues”.

Ways to purchase/invest in Gold:

• Gold Bullion Coins - Kijang Emas (you can get it from selected Maybank branches)
• Gold Savings Passbook Account