E-Gold vs Physical Gold

[ruenie88]

Hi , been seeing prices of gold going up , seeing RM is going down . Everywhere info is being bombarded. I'm lost
Is it advisable to buy physical gold coin/bar 916 that are being sold in jewellery shops nowadays or advisable to buy e-gold bar by banks like Maybank or advised to just invest in ASM ?
Truth is I'm quiet new to all these, and I'm a young adult with just rm4k in my bank. Only investment I have now is rm10k in ASM ( given by my parents to me ) and 5k that I top up after my few months contract work. Not going to work because I have decided to pursue my postgraduate.
Background middle class and only breadwinner in my family is my dad .

 

[biblequestions]

@ruenie88 You have less than RM10K. Keep the cash and don't waste it buying gold lol

 

[ruenie88]

@biblequestions Thank you.

 

[retroprophet]

@ruenie88 To me the main objective of buying gold is to preserve the value of your money, it needs to be reminded that gold itself does not generate value. Also you will need to find space to store when you are buying physical one, factor this cost into your gold purchase too. Buying gold is mostly speculative and it is no different from forex trading ,e.g. buying usd and observe the market (however buying foreign currency has an added advantage which is enabling you to have access to the investment instrument denominated in that currency, e.g. keep your usd in the fixed deposit account of US bank).

Do take note of the opportunity cost when buying and holding gold. It is not a bad choice since gold value is unlikely to drop to zero(unlike currency) but do not assume that it will aways appreciate against time. Each has its pros and cons, research and choose what is best for your situation.

 

[georgiew]

@ruenie88 Why gold? Are you only doing it because someone else is doing it? Why do you think gold is a good 'investment'?

 

[lynq]

@ruenie88 I dont believe in gold investment nor do i condone gold investment. But just here give some amateur advice.

But if you want to invest in physical gold, then 999 gold is the way to go. Buy 999 gold bar / coin whatever you may call it.

916 gold is for jewellery not for investment. I mean you can still treat it as investment but it's not worth it. When you buy the jewellery you are also paying for the workmanship to turn it into necklace and bracelet. It is worth nothing when you sell.

If not mistaken the buy sell spread is lower for 999, hence that.

Buying e gold has its benefit. I mean you dont need to store it. Later you lose your physical gold due to house break in, then it is total loss. If you put it at safe deposit box then you have to pay few hundred to maintain which is alot of money for people who probably bought very little gold...

 

[ruenie88]

@lynq Thanks

 

[mattmanticus]

@ruenie88 You are not working, you don't have cash to invest. Just concentrate on your studies and read up on investing,you can invest later wine you have ethe cash

 

[ruenie88]

@mattmanticus Thanks

 

[johndaniels]

@ruenie88 Ok you’re studying. Means you’re young. If you don’t need the money for another 40 to 50 years, I suggest open an IBKR account and buy CSPX. Leave it there and do nothing until you retire.