黃金投資渠道多 市民該如何選擇 Paper Gold or Physical Gold?

"If You Don’t Hold It, You Don’t Own It."

[caption id="attachment_178" align="aligncenter" width="630"] Check out this beautiful infographic that best explains where gold comes from and to where it goes... up to the different forms of gold investment that you may have considered of[/caption]

For those wanting to invest in Gold, there are many options widely available to us in Malaysia. First of all, there are two distinguishable type of investment, one being physical gold such as ingots, gold bar/bullions, nuggets, coins and jewelries while the other being the paper gold such as the Gold account passbook, Exchange Traded Funds (ETFs), Mining Stocks, Futures and unit trusts.

[caption id="attachment_160" align="alignleft" width="431"] 黃金投資渠道多 市民該如何選擇 There are many ways to invest in Gold. There are from paper gold - funds and stocks and physical gold while physical gold is the most practical way for most consumers. Among jewelries, coins, and gold bar, it would be more practical to invest in gold bar due to the lower premium compared to other end products.[/caption]

Physical gold is the real thing that you can hold in your own hands, take possession of (often anonymously) and store them in your own place or a 3^rd party safe deposit service which ever you are comfortable with. For those concerned about another financial meltdown, physical gold allows them to invest outside of the financial system. It is not tied to any currency and it is not correlated to other investment asset which is exactly why most people invest in the physical form.

On the other hand, the paper gold allows you to “own” gold too, but you do not keep them with you. Instead, you get paper certificates that guarantee a conversion of their value into actual gold such as those mentioned above. In other words your investments get exposure to the gold price by buying various types of security. Given the time when the economy is good and the company managing your investment performs, the paper gold generally cost less to buy into than physical gold and so it tend to yield higher profits.

There are many resources on the internet that you can read about if you need to investigate more in order to make a decision that is best suited for your investment strategies and requirements. In order to understand better and make your [caption id="attachment_164" align="alignleft" width="300"] Precious Metal Investment Pyramid[/caption] own conclusion on physical vs paper gold, let’s take a look at the some of the selected articles taken from other sources:-

* Paper Gold vs Physical Gold by Jonathan Quek

* The Differences Between Physical Gold & Gold ETFs by Blanchard

* The 'secret' gold market that could enhance your profits in Moneyweek

Among them, the Precious Metals Investments Pyramid shows that physical gold has an increasingly high liquidity as to money while decreasing in risks compared to paper based gold investments. All in all, gold and silver should be taken as a long term strategy while taking into consideration the many risks that may be associated with them. At the end of the day, it's hard to deny that physical gold and silver remain as one of the best way to invest.