Posts Tagged ‘Spread’


Where to buy Gold & Silver in Malaysia has a good compilation of comprehensive reviews on dealers that sells Gold and Silver for our Malaysia market. The author took time to explore each individual website and compiled a review chart for easy reference. You will find unbiased and straight forward review on the dealers.

Political - Dealer Review Chart
^ Malaysian Gold & Silver Dealer Review Chart – captured on 28th Feb 2012

Political - Unbiased and Comprehensive Review
^ Unbiased and Comprehensive Review on – captured on 28th Feb 2012

Reviews are structurally broken into a few smaller part: Products, Pricing & Ordering, Payment & Delivery, Currencies, Premiums, Storage and Buy Back. We were delighted that took time to give review on our store as well.
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Gold Silver Resources ( VS Publicgold VS

Here is an interesting development in our local scene lately. We have a new comer in providing locally branded silver by Gold Silver Resources Sdn Bhd. is by Gold Silver Resources Sdn Bhd Malaysia
^ is by Gold Silver Resources Sdn Bhd Malaysia – Screen captured on 11-Feb-2012

Gold Silver Resources’ Background

Gold Silver Resources Sdn Bhd is a privately held company founded on 16 November 2011 and headquartered in Shah Alam. GSR is the initial for the company and just like how Tomei did it, they appended “” for their web address to make it truly Malaysian. With that, we have They product offering includes silver bars, silver rounds and gold jewelry.

Bunga Raya Malaysia and Harimau Malaya 1oz silver bar by
^ Truly Malaysian – The Bunga Raya Malaysia and Harimau Malaya 1oz Silver Bar by

GSR took the extra effort in making silver bars with local appearance. Currently, they have silver bars with Bunga Raya and Harimau Malaya emblem. They are scheduled to have Rhinoceros Hornbill and Dragon 1oz silver coins by sometime in February. Looks like GSR is also herding on the Dragon boat for 2012! Apart from that, they also have silver bars with various weight from 100 gram to 1 kilogram.

GSR’s Spot Price and Spread check!

Let’s do a quick calculation on GSR’s spot price and spread. At the time of writing, the silver spot price is USD33.59/ozt which is approximately RM102.90/ozt.
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How Much is PublicGold’s Silver Spot Price?

I have been asked this question many times over dining table. Today we will look into how to calculate PublicGold’s spot price for their Silver bar product.

^ Prices published by Publicgold on 07/10/2011

We will take 250 grams as example. The steps to calculate PublicGold’s silver spot price are as followed:

Step 1: Calculate Silver Spot Price in Ringgit Malaysia

At current time of writing, the price is USD $31.95/oz. PublicGold’s US dollar exchange rate is 3. Therefore, USD $31.95 x 3.0 = RM95.85/oz
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Kijang Emas Spread Margin Check!

Kijang EmasI was doing my regular check on Kijang Emas price via Bank Negara website and to my surprise, the difference between the buying and selling price for 1 oz of Kijang Emas is now RM233!

Wow, that’s a huge gap!

I previously wrote an article about spread back in July and I shared with you how we can calculate the spread for gold and silver. You can read the post here: Understanding Spread for Buying and Selling Gold or Silver

It’s a little bit passed 2.00 am now so the price I am referring now is actually yesterday’s price. The buying price for Kijang Emas is RM6,014 and selling price is RM5,781. RM233 is an huge price gap in Kijang Emas price history.

Armed with Excel, I dived into the historic data on Kijang Emas prices and crunched it to check if the spread is still the same during this current wild bull ride on precious metals.

Formula for Buy and Sell Spread:

(Sell Price – Buyback Price)/Buyback Price X 100 = Spread %

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Understanding Spread for Buying and Selling Gold or Silver

It’s crucial to understand how does spread works before we start investing in precious metals. Spread in short means the margin between the buying and selling price. The formula is as followed:

Formula for spread:

(Sell Price – Buyback Price)/Buyback Price X 100 = Spread %

Example of calculation:

1 oz of Kijang Emas selling at RM5,060, buying back at RM4,864.

Apply the formula and therefore it’s: (5060 – 4864)/ 4864 x 100 = 4.03%

With that, the spread for 1 oz of Kijang Emas is 4.03%.

The higher the spread translate to the more ‘expensive’ it is to trade with the vendor while the lower the spread is the vice versa. Many of the time, we won’t feel the pinch immediately after purchasing our bullion. This is because most of the time, we don’t sell it back on that day same day that we bought.  But if you happened to do that for whatever reason, you will immediately lose out the spread. This is where the vendor makes their profits.

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