People said : Gold attract gold. If you bought one gram of gold. You will buy more eventually.
I bought One gram of Gold. I committed to bought another RM10,000.00 of Gold on 2 Aug 2019 via Gold Accumulated Program ( GAP ) . I was offer to become Public Gold 's Priority dealer at RM10,000 ( Approximately 50 grams ) compare to original 500 grams.
As I want to buy the gold anyway. Why not just buy it and become a dealer, killing two bird in one stone. The only disadvantage is I bought it in one day at the same price. Not average the price out over few years. If gold price drop after I bought. I might be making loss. But I feel gold have intrinsic value. People bought jewelley, which comprises labour cost or wages, to store value. My order is gold bar. which is excluding labour cost o wages.
Price keep going up following week while waiting for my cheque to clear. It is not sure which price Public Gold use when I bought the gold eventually.
Please be reminded that I do not have cash with me nor my bank account. The cheque is from my company Arbirage Sdn Bhd. Not from me. It just that I unable to open a company account under Public Gold. Thus, Have to hold the gold on behalf of my company.
I also pay extra RM200 for Wealth card. Which comprises 0.5gram of Gold.
Let see today price if I like to buy or sell back "physical Gold " to Public Gold. How much is it ?
I bought at RM203 per gram but now I only able to buy at RM255.00 per gram. This is 25.61%. But , this is selling price.
Remember there is a spread between buying and selling price. What is the selling price to Public Gold?
RM234.firstname.lastname@example.org gram = RM11,535.29
This is return of 15.35% in 10 months. Less than one year.
Of course, this is significant higher than current Fixed Deposit ( FD rate ), which , has been lower by Bank Negara recently. This never account for possible devaluation of Ringgit Malaysia cause by drop in Petroleum price and higher deficit due to Covid-19. The return also higher than my investment in unit trust, which has a CAGR of 9% only
While I have become dealer of Public Gold since August 2019. I never market it aggressively. This week, I get whatapps from friend intended to buy gold. I get my first customer during this covid-19 low FD interest rate period. Expecting more to come.
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