Tuesday, June 21, 2011


Below is the Chart of Prices of Kijang Emas 1oz for the period over 2 years.

Source : Bank Negara Malaysia

The maximum price for Kijang Emas 1 oz was recorded on 21st June 2011 at RM4968. The minimum price was RM3439 on 9th July, 2009. Over the period of 2 years, the Kijang Emas has an increase in price of RM1529 ie 44.5%. The spread for Kijang Emas is 4% currently. Should investor sells their physical Kijang Emas, net return is 40.5% or 20.25% per annum.

Below I shall show you Public Gold Prices :

If you buy PG 20g gold bar on 22nd June, 2009, you have to pay RM2,234 at 'We sell' price. If you want to sell now, you will receive RM3,188 ie at 'We buy' price. Your profit will be RM954 and return of investment is 42.7%. If you annnualised the return, the return of investment is 21.35% per annum (42.7% diivide by 2 years).

Average 20 - 25% return is very likely for physical gold investment. It is certainly worth to diversify your asset portfolio. Bear in mind, the return will be more if you take the opportunity to become PG dealers as you can create you home business from it. You gain more by getting the spread.

In a Hadith, Rasulullah saw mentioned that 9 out of 10 sources of livelihood are to be found in the pursuit of trade, commerce and business. Well, physical gold business may be your additional source of passive income.

I will give you an example. You have a pool of customers. Those buying from you after some time will want to sell. If they are selling today, you buy their gold at today's price 'We buy'. Another customer wants to add more to their investment, you can sell the same gold at 'We sell' price. Instantly you gain the spread (difference between 'We sell' and 'We buy').

Using today's price above :
Customer A is selling 100g gold bar at RM15,959.
Customer B wants to buy 100g gold bar. You sell at RM16,799.
You gain RM840 (sometimes without using you own money).

It is indeed a good source of income. Daily prices are always updated in this blog (at the right hand side of the blog, if you have not notice) or the official website of Public Gold www.PublicGold.com.my and www.PublicDinar.com




Most people are. They tend to be very protective of what they want to 'sell'. For instance, a Unit Trust (UT) Agent will definitely say that their UT portfolio is the best. An Insurance agent will say the same to their products.

As for myself, I have not said that Gold Bars & Silver Bars should solely be your assets. I was saying that Gold & Silver should be considered as one of your investment portfolio. Many people have not been aware of this opportunity. They took wrong moves by not asking the correct questions to the correct person. They buy jewelleries, thinking that Gold & Silver Investment is buying jewelleries. They shopped at jewellery shops and get discounted (sometimes up to 25%-30%) when they wanted to sell.

You can actually gain about 23% per annum with physical gold. But you have to be smart doing it. See the forecast here.

Shayne McGuire in his book "Hard Money : Taking Gold to a higher Investment Level", a moderate-risk investor should have 5 - 9% investment in Gold & Silver. A high-risk investor can have up to 25% - 30% Gold & Silver Investment.


I quote the sayings of Bengt Saelensminde, TheRightSide@moneyweek.com
Three tricks for being more objective about your investments

First, let diversification help you. A diversified portfolio helps reduce risk and gives you the option of changing your investment mix as opportunities show up. But on top of that, it can help you kick a bias…

Recently I argued that creating a balanced portfolio will often push you into holdings that you don’t even like.

That’s why I still hold a slug of government bonds. I don’t like the investment. I hate the idea of lending my money to a government sliding ever closer to insolvency. But as part of a balanced portfolio, I hold anyway. And because I hold those bonds, I feel a little more generous towards the sector. Though the child looks ugly, I can see its better qualities. I see its steadfastness as my equities get buffeted around.

The second way to kick a bias may sound a bit ‘school-boy’. But I’m a great believer in it. And that is keeping an investment diary. Every trade you make, you note down why you made it and what you expect it to achieve.

By regularly reviewing your notes you’ll find that you can judge your investments and returns more objectively. Your notes will help you see the error of your ways. If your reason for buying a stock turned out to be wrong, then it’s better to dump the stock before the rose-tinted specs blur the view.

My final way of clearing away the biases is to make an effort to read more widely. It’s hard to read articles that don’t sympathise with your views. But you can still disagree with the article. And only by understanding the enemy can you see their weaknesses and ultimately win the battle.

So, what do you think? Be open minded especially regarding managing your money wisely. Unlearn, learn and relearn. Leaving you with my two-cents, Knowledge is nothing. APPLIED Knowledge is Something. Always be able to see opportunities when it comes knocking at your door.

Have FUN browsing the blog.

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Monday, June 20, 2011


Why gold (and to a perhaps lesser extent silver) is the asset of choice to hold in uncertain economic times when any one - or all - of inflation, stagflation or deflation may become prevalent

Author: Julian Phillips (Reuters)


In this article we look at some critical fundamental features of precious metals that are rarely considered or accepted in the developed world markets. Expert investors like Warren Buffet look at inactive, buried gold with amazement, because he is focused on companies that produce things and earn money. And most of us wish we had his skill and money behind us.

George Soros and the like invested in gold as an anti-deflationary measure. Most analysts appreciate the anti-inflationary value of gold and silver. The protection of gold and silver in stagflationary environments are a combination of both abilities.

But why are gold and silver capable of giving such protection in bad times as well as good times?

They have certain qualities that shine forward at times when other investments fail.


In times of monetary stability and soundness, safely-stored cash never fails. Most consider cash in the bank to be the safest conservative investment, and in the distant past, the days of our grandfathers, this was largely true.

But that horrible word, inflation, came into being where prices kept on rising and cash saved would buy less-and-less. Interest rates compensated for this inflation, but then interest rates stopped rising. When interest rates did rise, it was at a slower pace than inflation. Cash lost its buying power as time went by. Bank charges would eat away any gains that might be made. At first inflation would occur one country at a time, and the exchange rate on those currencies fell, hurting international buying power even more. Today inflation is a global phenomenon.

Investors would have to move out of cash and into businesses or other investments that offset the cost of inflation. This was not easy unless inflation happened while growth was vibrant. And this benefitted those middle classes that enjoyed such growth. The poor, whose income rises slower than inflation, feel the pinch.

Suddenly, booms turn into busts and businesses don't do well. The value of businesses and its shares fall, losing investors money. Even self-managed businesses fall in value, putting rich people into bankruptcy. This is deflation, a monetary mood that causes values to shrink. In deflation the value of cash grows as prices fall.

Those who believe they are skilled investors answer, sell, then cheaply buy back. We look at that timeless story of an investor who did that just before the Wall Street Crash. His friend did not do so well selling only when the fall was half way down. But our hero who sold at the top, overwhelmed by his own skill bought back in, when the fall was half way down. His friend did not buy back in, but stayed in cash. It's not so easy!

Then you get a situation when the bust happened and all of the markets plummet because forced selling drives investors out. Interest rates fall to negative levels. If cycles are consistent, there should have followed a boom period. But growth was so anemic that stagnation set in. Businesses and the economy struggle to find small amounts of growth and some cut back, turning over at survival level.

Suddenly, something that shouldn't happen in a downturn happened. It was inflation, driven by factors no government can control. It came from energy and food and became uncontrollable. This type of inflation is deflationary. Businesses covering expenses suddenly found their costs ate away at profits much the same as deflation and inflation would have done. This is ‘stagflation', a climate where stress levels steadily eat away at sanity.

Surely bills and bonds are a way out of the hole, as they pay an interest rate, while being almost like cash?

The trouble with this thinking is that interest rates have fallen so low that the bill and bond markets are so high as to be heading for a fall, far worse than any Wall Street Crash.

Next interest rates rise to stop negative interest rates from rising higher. Then the prices of fixed interest securities have to fall, while their yield rises. Investors rush to exit those markets the moment that happens.

Surely there is no escape from these three economic ailments?

Well, there is....

For a long time, our Asian friends have suffered through poverty, hard times, government corruption and mismanagement. They have found refuge in good times and bad times. They want financial security and their investments to last for more than one generation. Correctly invested, their savings provide financial security for many generations.

You would have thought that Europe in particular would have learned the same lessons with their history of currency collapses and wars.


Gold (and to a lesser extent, silver) is more than a barbarous relic from yesteryear. Its rising price is telling us that it is a very modern investment preference because

· It is both cash and an asset.

· In the long term, it outperforms cash because of these qualities...

· It has all the features that makes cash valuable, even capable of earning an income(when lent out).

· It is an enhanced version of cash, in that it is not subject to the vagaries of interest rates solely dictated by central banks and banks.

· It carries no national obligations. It does not rely on nations to supply collateral to honor payment. If you ask the Fed to honor the value of your dollar, they will simply exchange it for another.

· It is not dependent on the creditworthiness of the nation issuing money.

· It has the same value in Mongolia as it has in the U.S. or Europe.

· It is collateral in any transaction and of greater value than the price it can be exchanged at.

· It cannot be issued at will, with the intention of being withdrawn from the system later.

· It does not decline when an individual currency declines (and does not rise when that currency rises in value). It is a ‘counter to currencies'.

· This century it has moved away from the control of the U.S. and Europe to global control. In the years to come, rising Asian demand will dwarf demand from the developed world, making it a fully internationally-valued asset again.

· In a deflating global economy (just as cash is a national protection) gold is better than cash even when local currencies are not deflating.

· In an inflating global economy, gold acts as an asset, when currencies are cheapening. There are no other currencies that are deemed as assets, like gold.

· In a stagflationary economic environment, gold acts both as cash and an asset.

Julian Phillips is a long time specialist analyst of the gold and silver markets and is the principal contributor to the Gold Forecaster - www.goldforecaster.com - and Silver Forecaster- www.silverforecaster.com - websites and newsletters

Original source

Tuesday, June 14, 2011


Best is yet to come for commodities
Written by Celine Tan of theedgemalaysia.com
Tuesday, 14 June 2011 17:36

KUALA LUMPUR: Prices of commodities — from precious metals and industrial metals to foodstuff — experienced a dramatic decline in early May.

On May 6, silver fell 30% while crude oil, lead, nickel and copper fell 7% to 12%. Soft commodities fared little better, with coffee declining 3.3%, sugar 2.5% and cotton 4.6% the day before.

The Reuters-Jefferies CRB Index, which tracks 19 major commodities including crude oil, gold, silver, copper, aluminium, soybean and sugar, ended the week with a 9% drop, its biggest weekly decline since December 2008.

The dramatic sell-off was led by silver and oil. John Stephenson, author of The Little Book of Commodity Investing, says the catalyst for the metal was the London Metal Exchange’s three increases in margin for the silver contract in a single week.

“Generally, the catalysts for this decline include investors re-thinking their tolerance for risk, the faster-than-expected rate hikes in India as well as earlier (interest rate) moves in China and other emerging markets.

“(These factors) remind investors that there are limits to global growth. The European central bank failed to boost interest rates, a move that was widely expected. This helped to reverse the trade into the euro and sent the US dollar flying with the dollar index rising 1.5% in a single day. With the US dollar soaring and the realisation gradually dawning on investors that emerging market economies were taking steps to slow growth, the rout in commodities was on.”

Globally, commodity traders and analysts are of the view that commodities denominated in the US dollar are becoming increasingly expensive and the sharp sell-offs were prompted by fears of a slowdown in global economic growth. However, experts do not expect the fall in commodity prices to be prolonged. CLSA Asia Pacific Markets (Malaysia) in its weekly report says the current sell-off is “another healthy corrective phase”.

The report says, “according to technical guru Laurence Balanco, historic price patterns show that the fallouts after an accelerated advance tend to lead to a prolonged period of range trade before the long-term trend can reassert itself. We believe that the long-term gold price uptrend remains intact and once this correction runs its course, further gains are anticipated. Our US$1,800 upside target [for gold] remains intact. And, silver’s run is still far from over.”

Stephenson concurs that the recent fall of commodity prices does not signify the end of the commodity boom.

Commodity booms last on average 20 years, so we are halfway through. The average mine cost about US$1 billion (RM2.48 billion) to build and takes a decade to begin production. Sluggish supply coupled with voracious demand from Asia is the primary reason why commodities will continue to be in the forefront of investing for at least a decade.”

The overall view is that commodities are still good investments for the next 20 years. “The ‘best’ is yet to come. Investors should understand that oil and copper are linked to global growth, agricultural commodities are linked to weather patterns as well as changing diets globally, and precious metals are linked to the US currency weakness and financial distress,” says Stephenson.

Monday, June 6, 2011


Muzaffar Rizvi
5 June 2011
Gold prices will continue to rise in the foreseeable future and may hit $1,800 an ounce by the end of this year due to its strong demand in India, China and other emerging markets, a top official of Pure Gold Jewellers said.

Pure Gold Jewellers chairman and founder Firoz G. Merchant said investors’ appetite for the yellow metal is on the rise due to its better rate of investment returns in the past couple of years.

He said high oil prices, economic instability in major global economies and a fear of a double-dip recession in Europe and the United States also played a key role in attracting investment in gold that keep its outlook bright in the near future.

‘Asia will be engine of growth in days to come and Middle East countries will lead the recovery in global economies as the higher crude prices will help the regional governments to spend the surplus funds on development and infrastructure projects,’ Merchant told Khaleej Times in an interview.

Pure Gold Jewellers, established in 1989, is one of the fastest-growing jewellery houses in the UAE and GCC countries. The group, which counts a jewellery and accessories line in its portfolio, operates 52 outlets in the UAE and has massive expansion plans in GCC and India.

‘Major European countries are facing difficulties to overcome inflation and debt crisis, Japan is hit by a natural disaster and the United States is also not yet come out of the recession,’ he said, adding that tougher days are still ahead for the US and other Western countries.

He said oil prices maintained an upward trend but its volatile trade has shaken investors’ trust in black gold, leaving no other option for them to invest in the yellow metal.

‘I believe oil prices are going to be out of control and will be stable at $200 a barrel during the next couple of years.’

By late Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in July rose to $115.12 a barrel from $114.67 the previous week. On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for July eased to $99.75 a barrel from $100.35.

‘Amid considering all these situations, investors consider investment in gold a safe bet with a confidence of getting higher profit returns,’ Merchant said. He said gold prices would continue to maintain an upward trend due to higher demand in India, China and emerging markets.

‘Gold prices will be ranging between $1,700 to $1,800 an ounce by the end of this year,’ he said, adding that the prices may be touching the $3,000 mark in three to five years due to strong demand and investors’ faith in the yellow metal.

Gold rose to $1,540 an ounce by late Friday on the London Bullion Market Gold. The metal enjoyed solid gains in recent times garnering support from its status as a safe haven in uncertain economic outlook in major economies of the world.

Original article in full








Rujukan : http://zakat.com.my/zakat-emas

Emas adalah jenis-jenis logam yang diwajibkan zakat. Kewajipan zakat ke atas logam ini dijelaskan dalam firman Allah S.W.T. bermaksud:

“Dan mereka yang menyimpan emas dan perak dan tidak membelanjakannya pada jalan Allah (mengeluarkan zakat) maka khabarkanlah kepada mereka dengan azab yang pedih, pada hari emas dan perak dibakar di dalam neraka jahanam lalu diselar dengannya dahi dan rusuk mereka dan belakang mereka seraya dikatakan kepada mereka inilah harta yang kamu simpan selama ini buat dirimu, maka rasailah balasan apa yang kamu simpan dahulu”.

At- Taubah; ayat 34-35

Zakat emas dikira dalam dua keadaan.

1. Emas yang tidak dipakai (disimpan)

Emas yang tidak digunakan atau dipakai walaupun sekali dalam tempoh setahun. Jika nilai emas tersebut menyamai atau melebihi 85gram (nisab), maka wajib dikeluarkan zakat sebanyak 2.5%.


2.5% x nilai emas yang disimpan (jika melebihi nisab) Contoh : RM6,000 x 2.5% Jumlah zakat = RM 150

2. Emas yang dipakai

Emas yang dipakai (sebagai perhiasan) walaupun sekali dalam tempoh setahun tidak wajib dikeluarkan zakat ke atasnya. Tetapi jika ianya melebihi ‘uruf’ (nilai kebiasaan pemakaian masyarakat setempat), maka ia diwajibkan zakat dengan kadar 2.5% atas lebihan dari nilai uruf. Nilai yang diambilkira adalah nilai semasa emas sahaja iaitu tidak termasuk batu permata.

Majlis Agama Islam Wilayah Persekutuan menetapkan kadar uruf adalah 150 gram emas.


Berat Emas yang dipakai = 250 gram Uruf Emas = 150g ram

Berat Emas yang layak dizakat = 250 gram - 150 gram = 100gram Zakat yang wajib dibayar = 2.5% x (100 gram x harga semasa) = 2.5% x (100 gram x RM 77.16) = RM 192.9



Rujukan : http://zakat.com.my/zakat-perak

Menurut hukum syarak, logam perak adalah termasuk dalam kategori jenis-jenis harta yang dikenakan zakat. Pada umumnya barang-barang logam perak yang digunakan oleh manusia terdiri dari 4 bentuk utama:

  1. Jongkong perak
  2. Matawang perak
  3. Perkakas atau perhiasan rumah daripada perak
  4. Barang perhiasan/barang kemas perak

Nisab dan kadar zakat perak

Ijma, ulama telah menetapkan nisab perak sebanyak 200 dirham iaitu bersamaan 595 gram.

Dalil zakat perak

Sabda Rasulullah SAW


"..Tidak diwajibkan zakat pada perak jika kurang daripada 5 awsuq (bersamaan lebih kurang 930 liter)". (Riwayat Muslim)


"Pada perak (zakatnya) 1/40...". (Riwayat Al-Bukhari )

Contoh pengiraan zakat perak

Berat barangan perak x harga semasa x 2.5%

Katakan Ahmad menyimpan 1,000 gram perak (telah melebihi nisab) Kadar zakat = 2.5% * harga semasa perak (contoh) = RM 0.62

Zakat = 1,000 gm x RM0.62 x2.5% = RM15.50