INTRODUCTION TO PUBLIC GOLD

 




































































     

     



















Prepared by:

WAN MUHAMMAD YUSRI BIN WAN ALWI
PUBLIC GOLD AUTHORISED DEALER
PG00067660
Whatsapps: 012-8871702
wanyusri@gmail.com

WHY GOLD INVESTMENT?

Money or paper currency debasement over the years forced people to buy precious metal (gold/silver). Gold has been known as inflationary hedge to protect your wealth. Public gold or any other gold companies in Malaysia offer gold for trading and investment. Public gold offer gold accumulation program (GAP) to help people accumulate gold. A minimum transaction of RM100 worth of gold or 1g gold can be purchase. Once your personal target achieved, you can withdraw it from the GAP account for you to keep. Another good thing about public gold bar/coin is that it is easy to sell with low spread (5-8%) compared to some bank and jewellery shop (gold price controlled by FGJAM) that offer spread as high as 25%. Public Gold bars & coins are London Bullion Marketing Association (LBMA) approved meaning they are exempted from GST as it is considered as investment gold (LBMA series only).

Source:financialservicesindonesia.wordpress.com

Some investors chose gold for portfolio diversification.  Criteria to diversification in investments are to find investments not closely correlated to each other. Gold has been known (from history) to have negative correlation to stocks and other financial products (if stock market plummet gold price will increase). Professional investors would combine gold with stocks and bonds in a portfolio to reduce risk and dispersion of investment returns.

Although gold price can fluctuate over short term but it offer hedge against inflation and maintain its value over long term compared to money.

Prepared by:

WAN MUHAMMAD YUSR BIN WAN ALWI

PUBLIC GOLD AUTHORISED DEALER

PG00067660

WHATSAPP: 012-8871702

wanyusri@gmail.com

CHOOSING THE RIGHT INVESTMENT FOR YOU

“Wealthy people invest first & spend what’s left and broke people spend first and invest whats left” Source: www.relatably .com

Which type of investor do you think you are? I guess if you’re reading this blog means that you belong in the first group.  There are many types of investment. I’m no expert in investments but through sharing with the people who succeeded (by investing the right way and manage to make their money work for them instead of the other way around) I can discuss some of the types of investment with you. There is no doubt that we need to diversify our investment as logical thinking tells us it will be safer than dumping all your money into just one investment. I will briefly explain about (my point of view) stock market, real estate, fixed deposit/mutual funds/insurance and of course gold.

Stock Market/Equity Market

Shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. Investors will have ownerships rights depending on the percentage of shares bought. As investors we need to know the financial track records of the company(s) of interest to make sure we gain profit instead of loss. All this translate to high risk investment but done in a proper and correct way with professional guidance will ensure a good return of investment in relatively short period of time.

 Real Estate

Real estate investment need to have a huge bank account as deposit for say a RM 1 million building will be RM100k (usually 10% of the building price). 

In real estate investment we either buy property(s) to sell it later when the price is good (taking into consideration the real property gain tax rules) or taking part in real estate investment trust (REIT).  To be successful, one needs to have a good strategy and of course guts as it involves a lot of money.  

Fixed Deposit/Mutual Funds/Insurance

Fixed Deposit is more affordable with low investment risk but the investment return will be low as well.  For example the fixed deposit effective profit rate in Malaysia is 3.05% p.a. For a RM10,000 investment, quarterly payment will be: 10,000 x 3.05% p.a. x (4months / 12months) = RM101.6. Money make money…. If you have a huge bank account (more zeros) then you would get more return.

A mutual fund is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, other money investments. Money managers operated the mutual funds who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. Mutual fund can be short, ultra-short or long term investment depending on the investor.  

Investment-linked insurance combines investment and protection. The premium paid will be divided between insurance protection and investment fund. We must take note that the return on an investment-linked insurance is not guaranteed. This is because the price of the units that you hold may rise or fall depending on the market value of the investment. Maturity period ranges between 10 to 25 years depending on the terms and conditions at time of purchase.

Gold

The current market situations which I can say hostile towards investment made many people turn to gold as their wealth protector.  Gold investment is more affordable compared to the other investments mentioned and as we know gold is held up as inflation hedge investment.  Public Gold provide lots of opportunity for anyone interested to invest in gold. Through its Gold Accumulation Program (GAP) it allow us to buy gold for as low as RM100 or 1g gold whichever we can afford. Once we achieve our personal gold target, we can withdraw the gold into physical gold which we can keep. Gold market is easier for "non-investment-smart" person because what they or we need to do is just keep the precious metal until the price increase and then sell it to get profit. In view of the current demand in gold this wouldn't take long.

   Table: Comparison between different types of investments

Prepared by:

WAN MUHAMMAD YUSRI BIN WAN ALWI

PUBLIC GOLD AUTHORISED DEALER

PG00067660

Sms or Whatsapp: 012-8871702

wanyusri@gmail.com

INFLATION. WHAT IS IT? HOW DOES IT STEAL MY MONEY'S VALUE?





Inflation is increased level of prices for goods and services.  It is measured as annual percentage increase. The higher the inflation the less amount of goods your ringgit can buy. Let say inflation rate for Malaysia is around 4%. With RM1 today you can buy a pack of nasi lemak but a year later due to inflation the nasi lemak price will hike to  ~ RM1.04 (as you would predict the nasi lemak guy/lady will increase the price to maybe RM1.10).  This means your RM1 can no longer get you a pack of nasi lemak.







Why is this so?

This is due to the imbalance between supply and demand. If too much money chasing after too few goods then the price will increase.  As goods prices increase the companies need to increase prices to maintain their profit margins.















Inflation is not always a bad thing as long as we anticipate it and take precaution to avoid losing to it. Gold investment is a good way of protecting your wealth. As we know gold is widely considered an inflationary hedge. Meaning it provide protection against the decrease value of currency. Some investment can have a breaking down inflation hedge for example if we invest in stock market that gives return of investment of 3% but our inflation rate is 4%, then you are actually losing your buying power.















A common example used by my friends in Public Gold to emphasize the inflationary hedge of gold is the goat and 1 dinar example.  Centuries ago the price of one goat is one dinar (4.25g gold).  Now the price of goat is still one dinar.















Prepared by:
Wan Muhammad Yusri Bin Wan Alwi
Public Gold Authorised Dealer
PG00067660
SMS or Whatsapp: 012-8871702
wanyusri@gmail.com