The Public Bank gold investment, known as the Gold Investment Account, represents an excellent opportunity to discuss various gold storage programs. In April of 2008, the Malaysian bank launched the program to meet growing demand for gold as a hedge against inflation, and was no doubt influenced by the voracious appetite China and India were, and are, displaying for real money.
Public Bank Gold Investment Is Redemption Prohibitive
The Public Bank gold investment is essentially a passbook, which tracks gold purchases. One must open an account with a 20 gram purchase, and can add incrementally in lesser amounts. Since the account doesn’t pay interest, it is designed ultimately to provide the benefit of rising gold prices, but ultimately be paid back in the native currency. This is evident by the fact that physical delivery through the account is available in larger increments of 100, 500, and 1,000 grams.
Nevertheless, the question arises as to what happens when someone with a Public Bank gold investment, or similar service, seeks redemption? In the spring of 2010, there was word that the Public Bank gold investment physical delivery program was temporarily unavailable. This was later restored, but it begs the question as to just what level of difficulty you might need to go to if you wanted to put your hands on your gold.
Public Bank Gold Investment Lacks The “In-Hand” Peace Of Mind
The moral of the story is rather simple, I believe. If you want to own gold, and (especially) silver, there is no substitute for physical delivery and protecting your own wealth. You have to control the process if you want to control the end result. And if you ultimately want to own precious metal, I would put it in my hands. By contrast, if you have lingering faith in fiat currencies and are looking to either hedge inflation, or even hopefully tap stellar returns, then you may view bullion merely as an investment class and being able to touch your gold may not matter.
Public Bank Gold Investment Diversification
That said, there are still some great tips you can deploy to stack the deck in your favor. There is an inherent trust factor any time you are banking on someone else holding your gold. Hence, it’s a good idea to diversify, not only across custodians, but also across geo-political landscapes as well. What’s my point? Well, if you already have a Public Bank gold investment, why not put future investments into related products as a diversified way to buy silver and gold? If the physical redemption option with the Public Bank gold investment is again on hold, you’ll have other outlets. And if some outfit vaporizes, or else makes off with your gold, you don’t have all your eggs in one basket.
There are a number of popular alternatives. Note that you will generally have the option of selecting a pooled account or allocated account. In a pooled account, your precious metal is stored as part of an overall total of physical bullion. It doesn’t have your name on it. By contrast, of course, an allocated account involves your physical metal being segregated from the pack.