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Wednesday, September 24, 2008

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

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