Friday, March 22, 2013

Just Bought Your First Gold, Then What?

I get many responses from friends and families on what to do with the gold they just bought. Keep it at home? Oh it’s too risky.


Ok, imagine this – you’re planning to invest in a long-term, high-return, low-risk market and you chose properties. In property investment, you have options to put your money in securities i.e.  real estate unit trust, amanah saham hartanah, property company stocks etc. or you can buy physical property – house, or a shop lot etc.

You finally decided to buy a physical property – a house. You thought that investing in securities isn’t safe enough, given the present and future financial markets. This market is going to crash globally and will bring down along your stocks, unit trusts etc.

Say the market did crash and World War 3 looms – or they didn’t happen, you still have a house to live in, to rent out, or to help shelter your friends and families, in good or troubled times. You own this house and you can do whatever you want with it for as long as you live and pass it down to your children for generations to come. What would the house price be by then? Much higher of course.

So you have to think about insuring your house from fire, natural disaster, etc.. but theft? Let’s say somebody broke into the house and stole our laptops that contain all the important and valuable stuff – all we could do is lodge a police report and wait for the police to inform you some good news. But good news is very rare.. Say you have the laptop insured and the insurance company gave you the money that is due to you, can you buy back all those lost valuable data? No.

So the point here is, owning a physical gold is quite like owning a physical property. We can do whatever with it because we own it – but we don’t buy a house (or gold) today and decided to sell it the next week to cash in some profit – this is not the way to go. We’re in this for a long term. The risks that come with it, the thefts etc, we have to think about how to manage it i.e. how to secretly keep our gold (or laptop) at home etc. Connect with our gold-keeping friends and you’ll be surprised to find out how weird and funny they keep their gold.

Or, you could keep the gold in safe deposit for little charge. Visit for more info and total peace of mind.

Finally, owning physical gold is much like owning other personal valuable stuff that we want to be extra careful with when storing them. Importantly, don’t worry too much about keeping the gold. There are many solutions. But worry about how to add another dinar in your storage..

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