How The Gold Price Is Determined By Our Banks
On a previous article #76. Public Bank Gold Investment Account, I made a comparison between investing in Public Bank's Gold Investment Account and Maybank's Gold Savings Passbook Account.
In this article, I will highlight another difference between these two Accounts. The difference is on the gold price that the two banks offer.
Maybank
For Maybank, as shown above, the selling and buying price is based on the previous day's internation gold spot price. Or possibly based on the price in the morning when Maybank opens it's bank's doors as shown in the picture above - 8:24:34 AM.
Thus, on 3 December 2008, the buying and selling price in RM will be set based on the USD776 price.
The buying and selling price remained unchanged throughout the whole day of 3 December 2008.
If the price in the day goes up higher, you will gain as you will be buying based on the USD776 price. However, as in my previous article #76, it's best to buy from places where the buying and selling price gap is smaller.
Public Bank
Public Bank's gold price is updated regularly throughout the whole day. You can see in the above picture, the price is last updated in the afternoon.
When you are in the branch to do your investment, you will likely be given a different price by the cashier. This is because they based their price on real time international gold price movement. You can literally make some profit within the same day if the price changes a lot from morning to evening right before the bank closes it's doors.
Well, be a smart gold investor and choose which bank you want to put your money with.
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2 comments:
This is interesting.
Do these account allow internet transaction?
No, they don't. I wish they have too.
There are some websites on the internet (U.S. based) that allow internet transactions though.
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