FAQs ON PUBLIC GOLD

1. What is Public Gold?

Public Gold allows individual customers to invest in physical gold in a convenient, more secure and cheaper way. Customers can purchase gold in 999.9 fineness at all Public Gold Branches at daily quoted gold prices for 20g, 50g, 100g and 500g in Malaysian Ringgit.

2. Why would you want to invest in Public Gold?

Public Gold is one of the best ways for a customer to build up a personal gold portfolio by purchasing small amounts of gold on regular basis over a period of time. This "cost averaging" will ensure that the total gold investment will be acquired at the average gold price.

3. What are the benefits of having a Public Gold?

There are a number of benefits to customers and these include :

· Convenience of investing in gold at any Public Gold branch in Malaysia.

· It is secure, as it in physical forms.

· It is cheaper as the gold prices quoted will be pegged to international gold prices without the usual additional charges.

· Customers can invest in small amounts at a time i.e. minimum 20 grams.

· There is opportunity for capital gain if the gold price appreciates.

· Gold can be a hedge against inflation.

4. How would you make a capital gain from investing in Public Gold?

Internationally, the gold price is quoted in US Dollar per ounce. For Public Gold, the gold price will be converted to the Malaysian Ringgit . You will make a capital gain if the gold price appreciates.

5. When is the right time to purchase gold?

The right time would be when the gold price is low.

6. Will the gold price quoted daily be better than at goldsmith shops?

The price of gold quoted daily will be pegged to the international gold price and will definitely be better than goldsmith shops.

7. What is Bullion?

Means melting place, from the French bouillon, boiling, derived from the Latin bullio). A bullion is a precious metal (Gold) that is valued by its weight in a specific precious metal. Unlike commemorative or numismatic coins which are valued by limited mintage, rarity, condition and age, bullion coins are purchased by investors seeking a simple and tangible means to invest.

8. Why invest in gold bullion?

Making the precious metals part of your financial planning is becoming one of the rules of good investment strategy. And people like the idea of holding something of real value in their hands, instead of trusting everything to a bank or broker. The economic forces that affect the price of precious metals are different from, and often are opposed to, the forces which determine the price of most common financial assets. This independent movement of precious metals to other financial assets can reduce overall portfolio volatility and contributes balance.

Whether you are conservative or aggressive in your investment approach, precious metals can represent an important part of your asset allocation. Some experts suggest that 10-15% of portfolio assets be in precious metals. No matter what level of risk an investor wishes to take, every portfolio needs a secure foundation. Gold are one of the most liquid of all investments. It is readily portable. It is easy to store. It is recognized in every country. It is easily and discreetly bought and sold. It can be easily converted to cash at any time.

9. What should I buy coins or bars?

Bars

For the serious and large scale investor, gold bars are a simple and efficient way to invest in gold. The larger bars are usually available at the lowest premiums over their intrinsic gold value, smaller bars tend to cost more. There is a trade-off however, in that larger bars are not as flexible when it comes to selling. If you own a kilo bar, and you wish to sell, say 3 ounces, it’s not easy to slice off one end of your bar. Your choice of buyer is also more restricted as you will need to sell to a larger dealer, it is unlikely that you will find a private buyer as most people are not familiar with gold bullion bars.

Coins

It is sensible to consider modern one ounce gold bullion coins as being one ounce circular bullion bars. As coins are individually minted they in themselves provide their own authenticity and are available at very competitive prices compared with similar size bars. Because gold bullion coins are almost universally recognised, they are also easy to resell.

10. What is the spot price?

The Spot Price is the internationally agreed price, based on supply and demand, for a 1 troy ounce of gold. Spot prices can change every minute.

11. What is a Troy Ounce?

A troy ounce is the traditional unit of weight for precious metals.

One troy ounce = 31.104 grams 32.151 oz = 1 Kilogram

12. Why do I pay a premium over the spot price?

When you buy any bullion product you are buying a precious metal that has been manufactured and minted into a tradeable form. The premium over the spot price is made up of this manufacturing cost.

13. What is meant by the Margin Spread?

When you buy precious metal you pay a premium above the live spot price, (Lets say 6%). When you come to sell your precious metal you receive a price below the live spot rate (say 1%) Therefore in this example the margin spread is 7 percentage points.

14. Where can I sell my precious metals?

Because Gold is an international standard you will be able to trade coins and bars in most countries in the world.

Public Gold offer the most competitive buy back rates in Malaysia.

15. How do I purchase Gold Bullion?

You can call our Authorised Dealers or Public Gold at +604-643 9999 (Main Office). Fax 604-645 0916.

16. When do I need to pay for my precious metal order?

Public Gold will provide its Ringgit Malaysia account details in the contract that has been emailed or faxed to you. You must arrange for a credit to this account and confirm payment (Cash, Internet Banking, Bank to Bank transfer or Eftpos) within one and a half hours. We require this confirmation as most deposits will not process until overnight. If you do not provide this confirmation Public Gold retains the right to cancel your order.

17. Do I have to pay any commission on my purchase?

While many institutions and dealers charge a commission on trading precious metals, Public Gold does not charge commission.

18. What forms of payments does Public Gold accept?

As is international practice in trading precious metals, Public Gold only accepts the following forms of payment, telegraphic transfer, credit card and Internet Banking.

19. When can I take delivery of my purchase?

This will somewhat dependent on our product schedule but you can expect to take physical possession of your purchase within 5 working days.

20. How are Public Gold coins packaged?

Each coin will be inside individual plastic sleeve to protect them from being scratched or marked by fingerprints. Each coin will be accompanied with Public Gold official Certificate of Authenticity.

21. Do Public Gold margin spread always be maintained at 5% to 6%?

Yes. It will be maintained under normal political and social circumstances. But not during extreme market conditions, such as financial and economic critical, social unrest, political unstable and war. The margin spread will be special adjusted when these conditions happening.