Posted by KH »
Add Comment »Collectors! This is a news for you guys!
Bank Negara has just recently released gold, silver and nordic gold commemorative coins in conjunction of the 50th Anniversary of World Wide Fund for Nature. All three comes in limited mintage and would be a great collector item.
1. Gold Commemorative Coin (proof)
This coin is as good as a gold bullion coin as it is made out of 999.9 fine gold. It weighs 7.96 grams which is approximately 0.256 troy ounce. It has a face value of RM100 and is yours for RM1,800. Mintage quantity is limited to 250 pieces.
^ Gold Commemorative Coin with RM100 face value
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Posted by KH »
2 Comments »
I 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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Posted by KH »
1 Comment »In this post, we will investigate in details our 3rd series coins. This is in response to my previous post, 10 facts about Malaysia’s new 3rd series coins. I will share with you how I discover my facts.
^ I was at Bank Negara yesterday to check out the new coins first handed
The engineering of my facts are simply breaking down the metal content of the coin in percentage and matches it with current metal market price. Four metals are involved in today’s baking lesson. They are namely Nickel, Copper, Zinc and Stainless Steel. Sadly, none of them are in the precious metals group.
Let’s crunch some numbers.
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Posted by KH »
2 Comments »
^ Image from http://www.bnm.gov.my website.
Today, we welcome the news from Bank Negara that we will be having a new set of coins to replace our current aged design. I took the effort to investigate and compare the newer coins with our existing coins and found some interesting facts. Below are the 10 facts I found interesting and that all Malaysian should know.
10 facts about the 3rd series Malaysian coins
Fact #1: 50 sen shrinks 39.3% in weight.
Fact #2: 5 sen gain 21.9% in weight.
Fact #3: 50 and 20 sen have Nickel Brass content.
Fact #4: 5 sen is the only one gain in diameter with 9.4% gain.
Fact #5: 1 sen is officially retired.
Fact #6: Stainless steels are now our new 5 and 10 sen.
Fact #7: 100% nickel 50 sen is still 20% off its face value.
Fact #8: None of it has metal value that matches it’s face value.
Fact #9: None of it has value higher than the previous coins.
Fact #10: None of it has any precious metals in it.
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Posted by KH »
3 Comments »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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