Your Ad Here for $0.03 per day!

Tuesday, August 29, 2006

Gold Investment - II

This is my second series on gold investment. In my first blog, I only managed to explore the gold investment opportunities offered by Maybank. This time, thanks to Nik2004 from another Real Estate Forum, I came to know the gold offering by UOB Bank, which is much better than of Maybank.

UOB Bank offers a number of physical gold tradings, such as Australian Nuggets, Gold Maple Leaf, KineBar, Pamp Gold and Singapore Lion. Similarly, they come in several sizes in ounce (oz) or gram (g). And of course, the most economic in term of buy/sell spread is again the largest size gold, which is 1 oz. I found that 1 oz Aust Nuggets, Gold Maple Leaf and Singapore Lion has the cheapest spread, which is about 2.24% base on bank selling price. Compare to Maybank Kijang Emas which is about 3.18%, UOB offerings definitely more attractive. I found an intriguing fact which is this buy/sell spread determined by bank with each type of gold investments are actually not fixed. As of today, the spread with the few types of gold from UOB is RM56-57, but in a few weeks back, it was actually at RM65-66. Same case to Maybank, very puzzling! Nevertheless, with the quite big of gap between UOB and Maybank gold, I believe that UOB ones will still be a better buy at anytime. For UOB daily gold price, please refer to this link.

Again, I made a call to UOB bank to confirm that these golds are not actually available at their every branches. Only selected branch will sell certain types of gold but most of them will able to buy back all types of gold in their offering. So, in order to make sure your gold trading can be done at specific branch, make sure you call them to check out before make your visit. All UOB branches and their contact numbers can be found here.

To store your gold, it is also best kept in a safe deposit box in a bank, by paying a small annual fee. Unfortunately, I checked through UOB website and safe deposit box is not one of their service / product offered. It is a pity that one has to carry out the gold from UOB and keep it with other banks that offers such service. Of course, it will not be a problem if one has a safety box at home...hahaa. This is the part of gold investment that I hate most.

I have decided to allocated about 20% of my total investment value in gold. And after much consideration, I will buy the 1 oz Gold Maple Leaf because of its reputation and cheaper cost. At current entry price of gold about USD610-630 per oz, I think it is a good bet with the hope that gold will bounce back later this year and thus hedges partial of my money from inflation.

What do you think about gold? Please feel free to leave your comment.

This blog is best viewed with Firefox browser. Download link at side bar.



Blogger SS said...

I didn't know that investing in Gold is actually buying the gold coins. I thought it is like buying share on KLSE. Thank anyway, for the info.

3:06 PM  

Post a Comment

<< Home