Wednesday, August 3, 2011

POH KONG BUNGA RAYA GOLD BAR

I was at Jaya Jusco Tmn Setiawangsa last weekend and I came across Poh Kong outlet. As the gold prices continue to rise, I was curious to enquire about the gold bar they sell, the Bunga Raya. I asked about the gold bar prices. Obviously they use the Federation of Goldsmiths and Jewellers Association of Malaysia (FGJAM) prices.



The price of 20g is RM3660. (Roughly 20g * RM183/g = RM3660) Please note the smaller the gold bar, the higher the price per gram as the goldsmith will include the processing fee. Eg additional RM10 for 10g gold bar.

I asked the salesperson, how much do I get if I sell back. He mentioned that I have two options:-
  1. to exchange with a different gold bar/ jewelleries - the spread will be 3%
  2. to get my money back - the spread will be 12%
Wow! That is a lot of money! I have to wait until the price goes up to at least 12% to break even. That will not be good for my investment strategy. Why? Because, if my target is to achieve 12% per annum, I have to wait until the price to move up 24%.

I asked the salesperson again. If I open the case, will you be accepting the Bunga Raya Gold Bar? Yes, he said. At a higher discount, depending on whether the gold bar is damaged or not. Chances are that they will buy back the Bunga Raya at 25% discount. Double WOW!


This is Public Gold prices :-


Can you see the spread? The spread is the difference between the selling price and buying price. Except for PG 10g gold bar, the spread is just 4% -6%.

Which Investment is better? PG gold bar, of course, due to
1. smaller in spread
2. transparent price update
3. updated gold prices reflecting the movement of the live gold price
4. easy to get the products
5. high liquidity (can sell at any point of time)


Poh Kong promotion for your info.






4 comments:

  1. Where can I check the latest (FGJAM) price?

    Thanks.

    ReplyDelete
  2. http://www.fgjam.org.my/index.asp

    ReplyDelete
  3. If I sell 50g
    Gold bar from pohkong without the receipt. ..
    Is it possible. .as it had been a while. .I miss placed it

    ReplyDelete

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