Maybank: Discontinuation of Physical Gold Wafers
Maybank no longer backs its paper gold with physical gold. They may say they does. You will never know.
Dear Valued Customer,
With effect from 16 May 2011, Gold Savings Passbook Account (GSPA) has been renamed as Maybank Gold Investment Account (MGIA). In line with MGIA’s enhanced features, existing GSPA accountholders who wish to withdraw from their account in a form of gold wafer may do so, subject to availability as per Clause 16.2 of the GSPA Agreement with a premium charge applicable. Accountholders have until 2 September 2011 to withdraw in the form of wafers, after which the available options of payment will only be in the form of cash or credit into their accounts.
For GSPA accountholders who are holding Maybank gold wafers, you may convert the gold wafers to cash or credit them to your account at the prevailing market price at selected Maybank branches from now till 2 September 2011. The selected Maybank branches are listed below:
Kuala Lumpur Main Penang Main Kuantan Main Bukit Bintang Alor Star Main Seremban Kota Bahru Main Malacca Main Shah Alam Tawau Ipoh Main Wisma Satok Kota Kinabalu Lahad Datu Should you still wish to have the option of retaining the gold in physical form, we would suggest that you opt to purchase the Kijang Emas gold coin issued by Bank Negara Malaysia which is available at selected Maybank branches.
Thank you.
Those who invested in Gold Savings Passbook Account (GSPA) will have until 2nd of September to withdraw their physical gold wafers. Thereafter, your gold investment will in paper format – a passbook.
The new vs old saving account
The main differences between the previous Gold Savings Passbook Account (GSPA) and Maybank Gold Investment Account (MGIA) is as followed:
| Features | Gold Savings Passbook Account (GSPA) | Maybank Gold Investment Account (MGIA) |
| Minimum Initial Purchase | 20 grams | 1 gram |
| Minimum Subsequent Purchase/Sale | 5 grams and must be in multiples of 1 gram | Multiples of 1 gram |
| Gold Sale/Withdrawal |
Physical Gold Wafer, Cash, Crediting of current/savings account |
Cash, Crediting of current/savings account |
From the comparison table, we can tell that the newer investment package has been tweaked to be investor friendlier. It offers lower initial investment and lower subsequent investment. While I applause Maybank for revising the package, I also give it a big BOO as it no longer allows withdrawing in physical gold wafers.
Alternatives
For investment account with physical gold backed, this leaves us nothing more than Public Bank’s Gold Investment Account (GIA) or UOB’s Gold Savings Account (GSA). Otherwise, look abroad.
I strongly recommend investor to invest in physical gold or silver. It is the paper that causes the recent drama in Europe and U.S. Also, if you want to push the price of your precious metal higher, buy physical!
The lesser the physical gold or silver in the market, the higher the price will be! The simple rule of supply & demand.
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