HelloGold has said goodbye, here are 6 other SC-approved gold investment options in M’sia

For centuries, gold has been a timeless choice of investment for many people, and for good reason.

This precious metal is scarce and serves as a store of value, meaning that it’s more stable than fiat money, and can even rise in value during economic uncertainty or high inflation periods.

Dictionary time: Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.

Source: Investopedia 

Therefore, you don’t have to worry about the stock market or inflation rates.

It’s also a less risky long-term investment in comparison to buying stocks and bonds. When paired with other forms of investments (e.g. unit trusts), gold serves as a good portfolio diversifier for new and seasoned investors.

Its appeal clear, businesses have jumped on the opportunity to help users invest in gold, a local one being HelloGold, which officially launched its service in 2017.

However, just recently it announced the closure of its B2C fintech services (though it will still operate B2B), and users were wondering what similar alternatives there were in Malaysia.

There are lots of options for gold investment fintech platforms, but few are actually licensed to operate in Malaysia by the Securities Commission.

We looked into this and found six licensed operators as of January 2023. Here’s what to know about them across various criteria.

1. Maybank

Known for being one of the most secure banks in Malaysia, Maybank makes a safe option for you to invest in gold. It offers 999.9 fineness gold.

Trivia: Millesimal Fineness, a system denoting the purity of gold, measures the purity by parts per thousand or the percentage of gold, instead of karats. Under this, the stamp of 999 on your gold means that your 24K gold is 99.90% pure and other metal constitutes only 0.1%.

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Your investment records are noted in a passbook. The bank also keeps the gold in safe custody for you, so you don’t have to worry about its security or any interest charges.

It currently offers two types of gold investment accounts—Maybank Gold Investment Account (MGIA) and Maybank Islamic Gold Account-i (MIGA-i). The latter is, of course, Shariah-compliant.

Maybank Gold Investment Account (MGIA)

Minimum Age Requirement: All ages are welcomed. However, those below 18 years old must be present with a parent or legal guardian to act as a trustee.

Starting Out: You can open an account over-the-counter at any Maybank branch with an initial purchase of 1 gram of gold (equivalent to RM285.32 at the time of writing).

Minimum Account Balance: You’re required to have a minimum of 1 gram of gold in your account at all times.

Transactions: You can sell or buy gold via Maybank2u.com.my or at any Maybank branch.

Physical Gold Redemption: MGIA does not offer the redemption of physical gold.

Annual Management Fees: N/A

Maybank Islamic Gold Account-i (MIGA-i)

Minimum Age Requirement: All ages are welcomed. However, those below 18 years old must be present with a parent or legal guardian to act as a trustee.

Starting Out: You can open an account via Maybank2u.com.my with an initial purchase of RM10 or its equivalent in grams based on the prevailing bank selling price.

Minimum Account Balance: You’re not required to have a minimum balance in your account. However, the Bank has the right to close your account if there is no balance for a consecutive period of three years.

Transactions: You can sell or buy gold via Maybank2u.com.my or at any Maybank branch.

Physical Gold Redemption: You may convert the gold balance in MIGA-i to get the physical gold bar from 1 gram to 1,000 grams. It can either be arranged for self-collection at a selected Maybank branch or couriered to your preferred location.

Annual Management Fees: Maybank will impose an agent fee of up to 0.5% per annum (p.a.) based on the average value of the gold balance in your MIGA-i account.

As for gold deposits, the bank only accepts physical gold that was previously purchased from Maybank itself. Others, like your heirloom gold jewellery, would be better kept somewhere else.

2. Public Bank

Similar to Maybank, Public Bank also offers 999.9 fineness gold and two different types of accounts for customers to choose from—Gold Investment Account (GIA) and eGold Investment Account (eGIA).

Gold Investment Account (GIA) 

Minimum Age Requirement: Individuals need to be 18 years old and above.

Starting Out: You can open an account over-the-counter at any Public Bank branch with an initial purchase of 5 grams of gold (equivalent to RM1,426.60 at the time of writing).

Minimum Account Balance: You’re required to have a minimum of 2 grams of gold in your account at all times.

Transactions: You can sell or buy gold via PBeBank.com or at any Public Bank branch.

Physical Gold Redemption: N/A

Annual Management Fees: N/A

eGold Investment Account (eGIA)

Minimum Age Requirement: Individuals need to be 18 years old and above.

Starting Out: You can open an account via PBeBank.com with an initial purchase of 1 gram of gold.

Minimum Account Balance: You’re required to have a minimum of 1 gram of gold in your account at all times.

Transactions: You can sell or buy gold only via PBeBank.com.

Physical Gold Redemption: N/A

Annual Management Fees: N/A

Based on the information available, it seems like the only distinction between the two options is the method of transaction and the rates to start out.

3. CIMB Bank

The bank with the infamous red octopus mascot offers 999.9 fineness gold investment opportunities through CIMB Bank’s e-Gold Investment Account (eGIA).

Its services are available online through the CIMB Clicks website and app, where users are able to enjoy digital convenience. This includes the flexibility to buy and sell gold without stepping a foot outside your home.

Minimum Age Requirement: Individuals need to be 18 years old and above.

Starting Out: You can open an account via CIMBClicks.com or the CIMB Clicks app with an initial purchase of 1 gram of gold.

Minimum Account Balance: N/A

Transactions: You can sell or buy gold via CIMB Clicks between 8.30AM and 11.30PM, from Monday to Sunday, excluding national public holidays in Malaysia.

Physical Gold Redemption: N/A

Annual Management Fees: CIMB will impose an annual service fee of RM5 in the event the gold balance in your eGIA falls below 5 grams as of December 31 each year. A closing fee of RM10 will also be imposed should your eGIA be terminated within six months of its opening.

4. United Overseas Bank (UOB)

Rated one of the world’s top banks, this Singaporean finance house has two types of gold investment schemes—Premier Gold Account (PGA) and Gold Savings Account (GSA).

Unlike the others in this list, UOB does not provide the option to virtually buy and sell 999.9 fineness gold. Instead, you’re welcome to visit any UOB branch to complete transactions during banking hours. 

Considering the cost of the initial investment, we can understand why it would be safer to deal with this in person. 

Premier Gold Account (PGA)

Minimum Age Requirement: Individuals need to be 18 years old and above.

Starting Out: You can open an account over-the-counter at any UOB branch with an initial purchase of 1 kilogram of gold (equivalent to RM285,320 at the time of writing).

Minimum Account Balance: N/A

Transactions: You can sell or buy gold at any UOB branch during banking hours, 9.30AM to 4.00PM excluding weekends, KL holidays, and public holidays.

Physical Gold Redemption: You may request to convert the gold balance in PGA to get the physical gold bar. A conversion fee will be charged.

Gold Savings Account (GSA)

Minimum Age Requirement: Individuals need to be 18 years old and above.

Starting Out: You can open an account over-the-counter at any UOB branch with an initial purchase of 20 kilograms of gold (equivalent to RM5,706,400 at the time of writing).

Minimum Account Balance: You’re required to have a minimum of 10 grams of gold in your account at all times.

Transactions: You can sell or buy gold at any UOB branch during banking hours, 9.30AM to 4.00PM excluding weekends, KL holidays and public holidays.

Physical Gold Redemption: You may request to convert the gold balance in GSA to get the physical gold bar. A conversion fee will be charged.

As for interest charges, there are none. However, details about UOB’s management fees are not available on their website. Deposits in the form of physical gold are also unclear, so it’d be best to give them a call before registering.

5. Kuwait Finance House (KFH)

One of the more recognised Islamic banks in Malaysia, KFH provides customers with the choice to invest in gold through its Gold Account-i. Unlike the others in this list, KFH deals in 995.0 fineness gold.

Being Shariah-compliant, the specific concepts used are Bai’ As-Sarf and Qardh. There are also no charges imposed on safekeeping and withdrawals. Although, deposits in the form of physical gold are not accepted and you can’t purchase gold in cash. 

Minimum Age Requirement: Individuals need to be 18 years old and above. However, those below 18 years old may open a Junior Gold Account-i.

Starting Out: You can open an account over-the-counter at any KFH branch with an initial purchase of 10 grams of gold (equivalent to RM2,853.20 at the time of writing).

Minimum Account Balance: You’re required to have a minimum of 2 grams of gold in your account at all times.

Transactions: You can sell or buy gold at any KFH branch during banking hours, 9.30AM to 4.30PM excluding weekends, KL holidays, and public holidays.

Physical Gold Redemption: You may request to convert the gold balance in Gold Account-i to get the physical gold bar.

Annual Management Fees: N/A

6. Versa

Previously mentioned in our licensed robo-advisors list, Versa has expanded its services to include gold investments. It’s Shariah-compliant and uses the Affin Hwang Shariah Gold tracker fund to follow the performance of gold prices. 

Just like other banks, the investments are held in physical gold that’s kept in a secured vault. However, what makes it different is the lower cost of initial investment required to start, which is RM100.

Minimum Age Requirement: Individuals need to be 18 years old and above.

Starting Out: You can open an account via the Versa app with RM100.

Minimum Account Balance: N/A

Transactions: You can sell or buy gold via the Versa app at any hour of the day.

Physical Gold Redemption: Versa does not offer the redemption of physical gold.

Annual Management Fees: Versa will impose an annual management fee of 0.30% and a trustee fee of 0.03%.

A similar platform to consider is Raiz Malaysia, which is also Shariah-compliant and makes use of the Affin Hwang Shariah Gold tracker fund. 

Not much information is shared on their website, but the app is a joint venture between its Australian namesake and Permodalan Nasional Berhad. 

It allows users to link their bank cards in partnership with Visa to make micro-investments.

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Before applying for any of the investments above, do take note that you need a current or savings account opened at each respective bank.

Gold-related investment products or accounts are also not insured by the PIDM (Perbadanan Insurans Deposit Malaysia), so we recommend visiting the banks to get more information and to clear any doubts you have before committing.

• You can read more on what we’ve written about fintech here.

Featured Image Credit: Unsplash