Opening Remarks- The Seriousness of Gold Dinar

This post should have come earlier before all the 3 parts of the speech. If you've read all the 3 posts (you deserve a pat on the back for this, bravo!), they all point back to these earlier matters. I plead you to read this till the very end, a remarkably powerful message from our very own leader.

THE GOLD DINAR IN MULTI-LATERAL TRADE SEMINAR by Tun (then Dato' Seri) Dr Mahathir Mohamad

1. I would like to thank the organizers for inviting me to speak at this seminar on the Gold Dinar in Multi-Lateral Trade. I hope I can help to make clear the idea and the concept of the Gold Dinar.

2. For some time now the Muslims and their countries have become synonymous with backwardness, authoritarian and frequently unstable Governments and lately with terrorists and terrorism. Yet Islamic states were not like that before, nor were Muslims involved in acts of terror. In fact Muslim countries were where the persecuted of Europe, in particular the Jews, sought refuge. The pogroms and the inquisition in Europe forced the Jews to migrate to the Muslim countries in North Africa. Yet before that when Muslims ruled Spain, the Jews, the Christians and the Muslims were able to live together in peace.

 

3. If today there is so much animosity between Jews and Muslims it is not because of religious differences. The fact is that the Europeans who in the past never liked the Jews and massacred them every now and then, wanted to get rid of the Jews. Together with the Zionists they took Arab land in Palestine and gave it to the Jews for the setting up of the state of Israel. In the process the Palestinian Arabs were expelled from their homes and their land and ever since these people have been living in makeshift refugee camps in Lebanon and Jordan.

4. When the Arabs attacked Israel in a conventional war, they were not only defeated but more of their land was seized by Israel. The Israelis were able to win because they were strongly supported by Europe and then America. Every time the Arabs fought to get back their land, they actually lost more land.

5. The conflict is therefore about land, not about religion as it is made out to be. If the Palestinians indulge in acts of terror today, if other Muslims indulge in acts of terror, it is because conventional war has become impossible for them. We do not condone acts of terror by anyone. Suicide bombing against civilians must be considered as acts of terror. So are the killings of Palestinian children and civilians by the Israeli armed forces -- all are acts of terror. And the Israeli army is no less a terrorist organization now as is Hamas, as was the previous Jewish Irgun Zvai Leumi, the Stern Gang and others, all are terrorist organizations.

6. The events of September 11 2001, have however focused the world's eyes on Muslim terrorists and this has lead to a very distorted view of Islam and the Muslims. This view has affected Muslims in all areas. They are being discriminated against everywhere.

7. This unfortunate repercussion of September 11 has resulted in the whole world's economy being unable to grow. And now, as a direct consequence we are being threatened by a war against Iraq, a Muslim country and a major oil producer. Without doubt this will make the economies of the world even less able to grow, especially those of Muslim states.

8. The West and in particular the Americans are very angry. So are the Muslims. Angry people cannot act rationally. But if we want to solve the problem we have to strive to be rational, to remain calm and not let emotions control us.

9. At the moment most Muslims are only bent on revenge. They are hitting back because of anger. They do not seem to care whether they achieve ultimate success or not. Every time they hit, the other side would hit back. And every time the other side hits back they would retaliate in kind.

10. The question is how long will we go on like this. The Palestinians have been fighting for the past 50 years. Their position has not improved. In fact it has become worse. In fact the position of the Muslims worldwide has become worse. And if what is happening now is any indication it would continue to be so for decades. The Muslims of this world, all 1.3 billion of them, will continue to be oppressed and humiliated.

11. There are of course some of us who believe that it is the fate of the Muslims to be oppressed in this world because in the akhirat we would be in heaven. If this is the fate of the Muslims, why did the Prophet strive to save the Muslims from the oppression of the Khuraish? Why did he and his followers migrate to Madinah; why did he unite the Ansars and the Muhajirin and gather them into a strong force in order to repel the enemy? Indeed the Al-Quran enjoins the Muslims to equip themselves for their defense, to educate themselves, to achieve success in life even as they must seek merit for the hereafter, so they may impress the Jahilliah and spread the teachings of Islam. In a matter of 100 years the Muslims had created a powerful Muslim world extending from Spain in the West to China in the East.

12. Did the Prophet preach to his followers that they should suffer in silence because for them there will be heaven in the next world? In fact he prepared them to defend Islam with their wealth and their lives, to defeat the enemy. He did not advocate just seeking revenge upon the enemy in anger through attacks and killings.

13. It is clear that we Muslims are openly and blatantly ignoring the clear teachings of our religion in favour of quarrelling over contentious issues and interpretations while ignoring the oppression by the enemies of Islam, while failing to prepare for the defense and safety of the ummah and Islam.

14. One of the clearest teachings of Islam is that all Muslims are brothers and that no one should question the religion of anyone as long as he takes the oath that "there is no God but Allah and Muhammad is His Prophet." The split amongst the Muslims into hundreds of different sects is due to the denial of the Islam of rival groups in order to justify the fight against them.

15. All who submit to "Allah and His Prophet" must be considered as Muslims and must be brothers of each other. Race and nations and borders should not stand in the way of Muslim unity nor should ideologies and political parties. There is only one Islam that was brought by the Prophet. The breakup of the Muslims into sects and groups all occurred after the death of the Prophet. It follows that the differences in the interpretations of Islam, differences which lead to the many splits and the formation of splinter groups, which are opposed to each other, is due to different interpretations of the teachings of Islam. But we all subscribe to the basics and it is a basic creed of Islam that all Muslims are brothers. If we can forget our differences in the interpretations of Islam, if we go back to the basics which we all accept then it is possible for us to unite. Certainly now, when the Muslim ummah everywhere is threatened and oppressed, when our holy places are being desecrated, when we are so weak and poor, particularly poor in knowledge and skills in this age of technology, certainly now we must forget our differences and unite.

Image credit: thevoiceofummah.blogspot

16. However, our unity should not be for the purpose of futile attacks on the enemy. We should unite in order to build up our capacity and our strength. Simply by being united and strong, we would be freed from oppression. It will take time but Allah has enjoined upon us to be patient.

17. "Innallah hamaassabirin". The Prophet was patient; He did not seek revenge for the humiliation and oppression he was subjected to. He retreated to a safer place in order to build up his strength. And he created sufficient wealth among his followers to support his struggle to return to Makkah.

18. We have to do the same. The Muhajirin and the Ansars among us must unite, must build up our capacities in terms of wealth and technology, in terms of stable Islamic communities, in terms of following all the undisputed injunctions of Islam.

19. Pure materialism is abhorred by Islam but there is no injunction against the legitimate acquisition of wealth. Tithe must be paid on our wealth but we are also enjoined to be charitable. We know that the third Caliph, Saidina Othman, was wealthy. During the campaigns by the Prophet he donated camels and other supplies for the defense of the Muslims.

20. If the Muslims are going to protect themselves they must have sufficient wealth. Allah has endowed Muslim countries with inexhaustible wealth. These need to be administered for the good of the ummah. (this point is the beginning of Part 1)

To my brothers and sisters, let's ponder upon whats been delivered by this great leader of ours and act on it. Simply by being UNITED and STRONG, we would be freed from oppression. To be united we have to leave the differences, be it in politics, ideologies, skin colour, status all behind us. To be strong, we have to master and apply the knowledge in technologies, economics, financial systems etc. Above all, we should strive to beautify our akhlaq and do good deeds while calling others with patience towards true way of life- Islam.

Norazharina Mat Amin

PG040197

0132092404

azharina.amin@gmail.com

The seriousness of Gold Dinar- Part 3

This post (final part) continues from Part 2

41. In different countries the price of gold will differ in terms of the currency of that country. That is a function of the currency of the country. The value of one gold dinar is one gold dinar no matter what the exchange rate of a currency is against the gold dinar. If the value of goods or services is expressed in gold dinar, the value remains the same no matter which country is involved in the trade.

42. Thus an exporter can declare the agreed price in dinar to the importer in another country and to the Central Bank in his country. Depending on the agreement reached the Central Bank will pay the exporter the current local currency equivalent to the gold dinar price. At the importer's end, he would pay to his country's Central Bank the local currency equivalent of the agreed price in dinar. At the end of the week or month the Central Banks will total up the value in dinar of the exports and imports between the two trading countries. If they are not balanced then the country with a surplus will have a credit account against the country with a deficit. The difference can be paid in dinar or in goods or the country with the surplus can hold the dinar for future purchase from the country in deficit.

43. In multi-lateral trade, the process may be a little more complicated but it is entirely, manageable. A clearing house can be set up for a group of trading countries and the deficit and surpluses balanced. The process is not unlike the clearing of the cheques of numerous banks at a central clearing house.

44. Provided there are goods or services to be supplied by all participating countries, the amount of gold dinars that needs to be kept as reserve backing and for payment in the last resort is very small. Ideally there would be no need to transport and pay in dinars. The imports and exports in most instances would cancel themselves. The profits come from disposing of the goods or services domestically when the local currency would be used.

45. There will be problems of course. But there are problems now. Countries with no "hard currency" i.e. U.S. dollars cannot pay for their imports anyway. In addition the U.S. currency is not as stable as gold. Not only can it appreciate or depreciate widely but a country's currency can be made to depreciate so much against the U.S. Dollar that its imports cannot be paid for, priced as they are in U.S. Dollar. The gold dinar cannot depreciate much against the U.S. Dollar.

46. Gold price can also be manipulated but not as easily as U.S. Dollar or other currency. No one can sell gold at below market price because he just will not be able to deliver when called upon to do so. Short-selling will be very difficult if not impossible.

47. However local currency prices of gold can still fluctuate if left to the market. It is up to the country concerned whether to control exchange rates or not. But speculation and manipulation will not be as easy as when local currency is valued against the U.S. Dollar.

48. It must again be stressed that the Gold Dinar is exclusively for international trade. It is not to be used as local currency. In a sense it is like the U.S. Dollar now. Some countries of course use the U.S. Dollar locally for paying hotel bills by foreigners. But the dinar is heavy and cumbersome to carry. So it cannot be used as freely as the U.S. Dollar locally. This again lends credibility to the dinar and the local currency, which has to be used for local payment.

49. We should not be too ambitious as to launch the Gold Dinar for multi-lateral trade at one go. We should begin by pairing off the countries willing to use the Gold Dinar. A pair of good trading countries with a fairly well balanced trade should initiate the use of the Gold Dinar. Problems that arise can be resolved and the system improved. After the bugs have been got rid off then the trade using the dinar can be expanded gradually to involve more countries.

50. Traders in particular will be happy because their prices in Gold Dinar would not be affected by changes in the exchange rates of the importing countries or the exporting countries. In dinar, the prices will always remain the same.

51. It is not the intention to make the dinar a common currency for all countries. It is not really the Gold Standard with a fixed value against local currency. If countries print more local currency there would still be inflation within the country. But trade would be stable and enhanced. Speculators and manipulators will not be able to undermine international trade.

52. Of course the Gold Dinar can be a trading currency, for all countries, not necessarily Muslim countries. But Muslim countries are in the best position to demonstrate the viability of the system. They are in a position to manage their economies rationally and in the process show the world that they are capable of growing with stability and in peace. And this will do more towards countering oppressions by their enemies than the futile violent retaliations.

-End of speech-

This is part of Mr Sinclair's conclusion as featured in gold-eagle.com regarding the speech: 

Dear Friends of the Gold Community new and old, this is a very young gold market with a long way to go. It is only in the crawling stage and has done magnificently so far. Soon it will stand up, become strong and be recognized. This time Atlas will not shrug but rather Gold as an economic Atlas will be used to bolster and restore confidence in the US dollar through a revitalized Gold cover Clause. When the next bull market in equities begins it will be gold that will stand as the foundation to that event and not more paper foolishness from any central bank or international derivative traders. The really millennium begins when gold revitalizes world economies not through convertibility but rather through the gold's real role in the monetary system.

Gold is a control item that disciplines the creation of monetary aggregates. That is what the Gold cover clause does and that is why Nixon sterilized it. Mark my words. It is coming and it brings good times, not the four horsemen now looked for as the specters coming over the hill. The ascendancy of gold will be hard fought but will be finally embraced as now popular central bank tools of interest rate manipulation and monetary aggregate expansion are destined by their own definition to fall flat on their political faces. It is amazing that out of Islam comes what will save the Western World's economic system...

James Sinclair, Chairman and CEO of Tanzanian Royalty Exploration and founder of Jim Sinclair’s MineSet, which hosts his gold commentary as a free service to the gold investment community.

Norazharina Mat Amin

PG040197

013-2092404

azharina.amin@gmail.com

The seriousness of Gold Dinar- Part 2

This post continues from Part 1

32. But gold is bulky. We cannot be carrying gold all over the world in order to pay for goods we want to import. But we need not do that.

33. It is not intended to use the gold dinar as currency for everyday transactions in the domestic market. For this we can use national currencies. If there is inflation then the currency can buy less gold and other goods. And vice versa. So there is no necessity to carry bags of gold coins for transaction within the countries.

34. But even for international trade the transport of gold bullions or gold coins would be very minimal. Through bilateral payments arrangements the imports can be balanced by the exports and the differences settled in gold dinars. The Central Bank can provide a guarantee for the gold required for the payments of the balance. In the following weeks or months the deficits may be reduced or a surplus achieved. In that case the payments of the balance can be made through accounting arrangements between the Central Banks. It is only occasionally that a necessity might arise for the actual gold dinar to be used to pay for the purchase of imports.

35. We cannot really verify the amount of money a country has. A country's own currency cannot be regarded as its reserve. But gold dinars or gold bullion or gold ingots can serve as a country's reserve. Still in the end we have to trust each other. If we are good Muslims then the cases of fraud by Central Banks would be minimal.

36. Assuming that Malaysia exports to a Dinar Area country a hundred million Dinars worth of motor vehicles and then imports 110 million dinars worth of oil, then the payment required by Malaysia would be just 10 million dinars. The ten million dinars is credited to Malaysia's trading partner. If in the following month the trading partner buys 110 million dinars worth of Malaysian cars and Malaysia buys 100 million dinars worth of oil, then no payment need to be made by either party. The 10 million dinars that has to be paid by Malaysia's trading partner for the motor vehicle can be offset by the credit of 10 million dinars from the previous month's transactions.

37. Today with computers we can close account and pay more frequently. Through this method it is not necessary to purchase or earn hard currency.

38. Of course there may be some countries which are so poor that they cannot have gold dinars. We can buy some raw materials to be paid in gold dinars. They can be helped to build up the reserves of gold dinars.

39. There will be problems. But if we begin with just a pair of countries we would be able to minimize problems and demonstrate whether it works or not. We will be able to identify the weaknesses and the faults and correct them.

40. Gold is a precious metal. There has never been a time when there was no demand for gold. It is also not so plentiful that its price will fall the way paper currency or even other precious metals can fall. Yet it is not so limited in quantity that anyone or any trader can corner it and manipulate the price.

These points resonate well with Public Gold taglines i.e.

To save your family, buy gold.

To help our nation, keep gold.

To follow your religion, use gold.

If we buy gold (convert cash into gold), then we save our money from being spent unnecessarily. Our wealth is protected from inflation thus helping our family and future generation with the inevitable rising cost of everything.

When we as individuals buy and demand for gold, there has to be supply of gold from within or outside the country. When our gold reserve is increased, the impact of economics instabilities will be less compared to the impact towards currency.

As we know, gold dinar has been used since the time of Rasulullah SAW and economics activities were prosperous back then even with the non-Muslim regions. That has enabled Islam to spread its power in the Europe and Asia. It is not impossible that with Islamic economies and dinar, the world financial system will be much better than it is now.

The next post will be the final part of the speech. Stay tuned.

Norazharina Mat Amin
PG040197
013-2092404
azharina.amin@gmail.com

The seriousness of Gold Dinar- Part 1

This is a very powerful speech delivered by our beloved Tun Dr Mahathir Mohamad, ex-PM of Malaysia. Alhough it was delivered in Oct 23, 2002 during The Gold Dinar in Multi-lateral Trade Seminar held in Kuala Lumpur, which marked the turning point in monetary history, every word uttered is true to this very day. Who can deny the intrinsic and ever-lasting value of gold?

Image credit: web.usm.my

This is the comment from James Sinclair, Chairman and CEO of Tanzanian Royalty Exploration (formerly known as Tan Range Gold) as featured in gold-eagle.com on Nov 20, 2002:

There is an Islamic currency coming. That is a fact. There is a high chance that this is it. The Dinar is a tactic nuclear monetary weapon of self-protection in the Islamic perspective. It is a statement by them of Islamic Self Consciousness and Islamic Self Esteem. It is an Islamic rally point for all 1.2 billion of that persuasion. It is coming soon and it is real. It may not be viewed objectively by the West, in the environment of a weak dollar now existing. That weak dollar situation looks to me as if it will get significantly worse before it gets significantly better. This is not low amplitude noise. This is a NOISE that may scream soon the unthinkable word, Remonetization. Here are the words of its architect. Pay close attention to the final point in the words of this Minister of finances own words. They need to be understood completely in order to understand what is coming. 

(Point #1-19 was omitted by Mr Sinclair since it dealt with the conflicts of religions- or lands, as Tun put it- and has to be read with an 'open-mind'. But I will be happy to share it with you in a later post because it's too good not to be shared).

The Honorable Dr. Mahathir Bin Mohammed
THE GOLD DINAR IN MULTI-LATERAL TRADE SEMINAR

20. If the Muslims are going to protect themselves they must have sufficient wealth. Allah has endowed Muslim countries with inexhaustible wealth. These need to be administered for the good of the ummah.

21. But wealth can also be acquired through commercial activities, through the production and distribution of goods and services and through trade.

22. Today trade between Muslim countries is small. It is not suggested that we reduce our trade with the non-Muslims. But we should endeavour to increase the trade between Muslim countries.

23. We can trade through the exchange of goods, through barter. But today we use money. Since we don't have a currency which is strong enough and stable enough in exchange rate terms, we have to use the American dollar. But the dollar is also not stable. Today the dollar has depreciated against many other currencies. This means that despite the increase in the price of oil for example, we are actually earning less due to the devaluation of the dollar. It is the same with the other currencies. It is the same with our own currencies. They all fluctuate in value. And they are all subject to speculation and manipulation as happened in Malaysia and other East Asian countries, in Russia and in Latin America.

24. The reason for this is that paper currency has no intrinsic value. You can print any figure you like on currency notes but in exchange rate terms the figure means nothing. The Malaysian Ringgit is 3.8 to one U.S. Dollar. The Turkish Lira is 1.5 million to one U.S. Dollar. The Indonesian Rupiah is 9000 to one U.S. Dollar. The purchasing power within the country is different from the purchasing power outside the country. Sometimes countries have as many as four exchange rates -- one official, one for domestic economy, one for export and one for import.

25. Clearly this situation in terms of international finance is chaotic and anarchic. But since the system benefits the powerful countries they are unwilling to correct it.

26. If we want to avoid being short-changed we must have a currency that has intrinsic value. Gold does fluctuate in price but the fluctuation is minimal. It is not possible to devalue gold by one hundred percent or one thousand percent. Nor is it possible to revalue gold by the same percentage. The fluctuation in the value of gold can only be by a few percentages, up or down.

27. When the Allied nations met in Bretton Woods to determine the principle for the rate of exchange of international currencies in order to facilitate trade, they decided to use gold as a standard. The value of the U.S. Dollar was fixed at one dollar for 1/35 ounce of gold or 35 U.S. Dollars per ounce. All other currencies were valued in gold through the rates of exchange with the U.S. Dollar.

[As of 4th Apr 2014, gold is valued at USD 1286/oz- USD 1302/oz by the end of the day- see how much the devaluation of USD is in such a short period of time]

28. This worked quite well until some countries wanted to devalue their currencies in order to become competitive in the international market. Then other countries also decided to devalue in order to remain competitive. Finally the U.S. Dollar was devalued against the Gold.

29. At this stage the gold standard could not be sustained. The market claimed that it could determine the exchange rate through the demand and supply of currencies freely traded in the market. But profiteers moved in and they manipulated the value of the currencies so that there was chaos in terms of exchange rates of currencies. Business became very difficult. Indeed many good businesses went bankrupt when the domestic currency gets devalued. The hedge Funds which claim to insure the value of the currencies made huge sums of money speculating and manipulating the values of the currencies.

30. This anarchy in the international financial regime will remain because it benefits the rich and the powerful. If we want to protect ourselves we must evolve our own payment system, our own trading currency.

31. The Gold dinar can provide the currency for trade between nations. If we value all trade items against gold, then we will have no problem with the exchange rate. We know that in the last resort we can melt the gold and sell it in the market. You obviously cannot do that with paper currency, worst still with figures on a computer. They have no intrinsic market value as gold has.

The next pointers will be shared in later posts, so stay tuned!

Norazharina Mat Amin

PG040197

013-2092404

azharina.amin@gmail.com

What is AGSS

AGSS is the short form of Allocated Gold Storage Service. It's when you purchase your gold together with the storage service, so you do not need to be physically present to collect and store the gold yourself.

Public Gold Marketing together with its sister company, Public Safe Management provide the product and service. Here's the illustration.

You know the gold is reserved for YOU when you are given the item serial number and packet photos. The gold will not be used for any other reason whatsoever.

Your allocated gold will be stored in the security vault with full liability protection (visit publicsafe.com.my for more details of vault). You may request to withdraw/collect the item anytime. Or when the gold price appreciates, you may opt to sell it back to Public Gold and the best thing is you can do this from the comfort of your home, online.

Normal storage fee is 1% of the gold item price (2% for silver) annually, or minimum RM 50 per item, whichever is higher.

So, how to get this deal? Easy. If you're a new buyer, you need to register first via this link. Click 'Register' at the bottom of the Login page. Fill in your details (kindly ensure you get my details on the Introducer part, so I could help on the follow-ups. Should you encounter any problems or need further clarification, I will be able to assist too, inshaAllah). You will get an activation email after the registration, just follow the instruction given.

Now, you have to login (use your temporary username and password) so you can access the Place Order page (under Order). Tick the top box where it says 'Use the storage service for this order'.

**The screenshot might differ a bit with improvements done by PG**

Then, choose the item(s) you want to purchase by putting in the quantity required. Put in your details at the bottom of the page and click 'Update Cart' to see the Grand Total with the actual Storage Fee. When you are satisfied with everything, click 'Check Out'.

Next is the Agreement page, when you're done going through it, click 'I Accept' accordingly. You'll come to the final Order Placement page, which looks like this:

Click 'Request TAC' and a Transaction Authorization Code (TAC) will be sent to your mobile no. (should work for overseas no. too). Enter the TAC. Kindly note the remarks given at the bottom of the page where you have to courier your original payment slip to the stated address accordingly (unless you do Internet Transfer, I'll come to this shortly). Now click 'Confirm Order' and you've completed your booking!

You'll come to the Order Placed page which details out your order and an auto-generated Booking Order will be sent to your email. You can wait for the Sales Order email (with attachment doc. no. PM******) that will come from the Public Gold personnel itself during working hours.

For the payment, there are various ways to do this and it is EXTREMELY IMPORTANT for you to quote the CSO***** or PM***** no. Doing Internet Transfer would be the easiest since you do not need to courier the payment slip hardcopy. Instead, just copy/Print Screen the confirmation page and e-mail it to payment@publicgold.com.my, cc to the personnel who sent the Sales Order. You will receive an acknowledgement e-mail after that.

You can read more about the payment method in my first post (#3- Make payment). If your payment is successful, you will get to see your Invoice and Receipt under My Account> My Vault. Within 1-2 weeks, you will receive the item serial no. and the images like the one above.

and that's it! 

Any inquiries, you're welcomed to contact me at my details below. ACT NOW! :)

Norazharina Mat Amin

PG040197

013-2092404

azharina.amin@gmail.com

Updated on 24th April 2016

What about gold price

This may seem like a heavy topic to digest (trust me, it's not!), but it is important to master the basics to ensure you get the best deal.

Daily and Spot Price

Gold is traded internationally at an agreed price based on demand and supply. The daily gold price is fixed twice a day in the London exchange at 10.30am (London AM) and 3.00pm (London PM), while also being fixed at the end of the trading day on the New York exchange. This price is usually benchmarked by normal gold retailers.

The spot price refers to the current trading price which moves every minute. This price, together with the USD/RM exchange rate determines the price movement of Public Gold products every 20 minutes as featured on its website.

These prices are available on kitco.com where you could chart your desired historical data of other precious metals too. The quotes are in USD/oz (troy ounce) whereby 1 troy ounce equals 31.104g.

Cost Premiums

All gold bars and coins are sold at a premium over their spot of fixed daily price (at normal retailers). Generally, the premium is the production cost (refining/minting/packaging) to turn the raw gold into sellable items. It is normally set as an amount over the price per gram or troy ounce, which decreases the larger the coin/bar is. Other premium charges might include workmanship, transportation etc.

Buy and Sell price
Just like foreign exchange (FOREX), gold has different buy and sell price. This is called the margin spread. Premiums paid when purchasing gold are usually not taken into account when selling it back to a dealer.

Public Gold price
PG is very transparent in its pricing by displaying the price list on its website 24 hours a day, updated every 20 minutes. This is an advantage to the buyers should the price spikes up or down even for a short duration as opposed to whole-daily price at normal goldsmith outlets. Here is a snapshot.

PG Sell and Buy price of an item has a fixed spread margin as shown in table above on the right.
You can make your own calculation e.g. for a 100 gram Gold Bar, PG Sell price is RM 14,976 minus 5% spread @ x0.95 = RM 14,227.20 (rounded to RM 14,227 which is the PG Buy price). When the gold price appreciates to a percentage higher than the spread, then you are already making a profit because you can sell it back higher than the previous purchase price.

Starting 1st Dec 2014, PG has imposed new premiums (formerly known as Transport Charge) as follows. This is to accommodate the charges of new products with LBMA status manufactured in Turkey

*New spread rating will be announced soon

A good time to lock the price is when the gold price and the USD/RM exchange rate is low. But how low is low is subject to individuals. If you made a purchase before, you might already have a price benchmark. Otherwise, you might want to take a look at the historical data of gold price. 

How PG compares to other retailers
From my observation, many goldsmith shops charge higher premium. True examples
#1- Jan 14th: 10g. bar at WC was priced at RM 1600 when PG price was RM 1449 (10% higher)

#2- Feb 20th: 10g. bar at PK was priced at RM 1710 (buy back at RM 1500, spread of 13% for 'unused' gold, if 'used', minus 25% i.e. RM 1275). PG price was RM 1516 (buy back RM 1422). PK sells at almost 13% higher.
 *Most gold bars at the shops are sealed. To get 'unused' gold buy back rate, the item has to be from the same retailer, seal must be in perfect condition and must bring purchase receipt. Otherwise, it's considered as 'used' gold, automatically devalued at 25% from current market rate.

Datuk Louis Ng, the founder and chairman of Public Gold mentioned in an article featured in 'UNRESERVED' magazine (Jan 2014 issue) that PG's premium ranges only 5-8% above the international market. That being said, other jewellery shops put more than 15% margin which is huge money.

Ready to make the right choice? Read here for the step-by-step guide on price booking. Or contact me at my details below.

Norazharina Mat Amin

PG040197

013-2092404

azharina.amin@gmail.com

How I came about gold

When I was younger, I didnt care much about keeping gold bcos I only came across grown-up women who wear them as accesories. My mother used to ask us the daughters to wear the gold chains or bracelets especially when it was Hari Raya. I never really liked the idea but I wore them anyway and quickly took them off and returned them back to her once the Raya celebration was over.

I have to admit that I have many close kins who are in gold business, having own jewellery shops and they are very successful. Once I asked my cousin how did he do it. He told me that when selling jewellery especially those with stones, he could easily mark-up the price as long as it is agreed by the customer (since the gold price is already fixed). Ah, I see..

No, not mine.

When I was engaged and married, I had my own gold rings and a bangle as gifts from my husband. Then again, I didnt wear them bcos #1-afraid they will be scratched #2-I really dont want to be the target of snatch-thieves, so I just kept them in the drawer at home. But that didn't spare me from being a victim of house break-ins. All was taken including a pair of gold bangles belonged to my mother. I'm so sorry, Ummi. I will replace them with something better inshaAllah..

That incident somehow made me appreciate the precious metal more (though I was left with none!). I heard about gold price going up and down, I believe it is the best form of long-term saving/investment but I wasn't sure of the method. I know there are many gold retailers out there but I wasn't sure if I can get the best from them. Afraid that the price might be manipulated by the seller (with the workmanship charge etc).

Until my husband gave me an 'assignment', that is to find the best place to buy gold for our savings. I wasn't really looking very hard, but one day I came across an article regarding financial planning on FB. The article brought me to mohdzulkifli.com owned by En. Mohd Zulkifli Shafie (whom I regard as my mentor now, also happens to be my brother's high school friend- what a small world).

He has written many posts on gold, business, tips and advices on financial matters. He himself keeps gold as wealth protection. I basically read about all important things I need to know about gold from there, so I thank him bcos he has done the homework for me! First thing before you jump into buying gold is to have the KNOWLEDGE so you do what's best for you. Read here for why I go for physical gold and here for the reasons I chose Public Gold.

30th Dec 2013, I placed the first order (on behalf of my husband) and fortunately the price was almost at the lowest point of the year, Alhamdulillah. All done remotely- online, bcos we were not in Malaysia at that time. The purchase also qualified me as a Dealer. The main advantage of being a Dealer to me is I get monetary incentives with my own purchase.

When we went back, we collected the gold for the first time and yeah, it felt good :) I am sure we have made the right decision of protecting our wealth in physical gold. Since then, there was no turning back. I placed more orders as I wanted to grab the opportunity to the max. 

Time has proven that gold is the least risk investment in its own class of asset. I never felt any more confident in investment than this way. Although I am also a Unit Trust Consultant registered with FIMM, I find it hard even to convince myself in unit trusts bcos there is just too much risk. 

Now that I have taken that first step towards gold, I would like to create the awareness amongst others too (especially now when the price point is still good!). I'm beginning with this humble blog of mine dedicated to those who would like to venture into this 'golden journey' with me. Or just anyone who might benefit from my writings, inshaAllah.

Norazharina Mat Amin

PG040197

013-2092404

azharina.amin@gmail.com