Sunday, November 9, 2008

Kijang Emas Gold Coins

The Kijang Emas Gold coin is the official bullion gold coin in Malaysia, also being the 12th country in the world to issue its own gold coin joining the ranks of the Canadian Gold Maple Leaf, Australian Gold Nugget, American Gold Eagle and the Krugerrand.

It is available from
certain Maybank Branches in Malaysia. It is minted by the Royal Mint of Malaysia and was first minted in December 2000. Even the former prime minister Tun Dr Mahathir Mohamad officiated the launching of the Kijang Emas in July 2001.

The design on the obverse of the Kijang Emas depicts a barking deer ("kijang") in its natural habitat in the Malaysian jungle. Also appearing on the obverse are the words BANK NEGARA MALAYSIA, for the central bank of Malaysia as the issuer of the coins; KIJANG EMAS; the weight; gold purity; and the year of minting.

The reverse side features the hibiscus, the national flower of Malaysia together with the denomination face value, as well as the words BANK NEGARA MALAYSIA in Jawi (Arabic) script.

The Kijang Emas has a purity of .9999 millesimal finenessis and is avalaible in 3 different sizes being 1oz, 1/2oz and 1/4oz. Each has their own denomination value of RM200, R
M100 and RM50 respectively. The purchase and resale price price of the Kijang Emas is determined by the prevailing international gold market price. For example on 7th November 2008 the:

- Internation Gold Spot Price = USD 729 (RM2632)
- Kijang Emas Selling Price (1oz) = RM2744 (price maybank sells to customers)
- Kijang Emas Buying Price (1oz) = RM2657 (price customers sell back to maybank
)

So, as you can see the Kijang Emas price is very close to the International Gold Spot Price. Of course there is a little increase for the minting costs, transportation, insurance, profit margin, etc. Still, the Kijang Emas' price can be considered attractive.
Another attractive attribute
of the Kijang Emas is the low difference between the buying and selling price(called spread). Lets take the above example:

- Kijang Emas Selling Price (1oz) = RM2744
- Kijang Emas Buying Price (1oz)= RM2657


The difference between selling and buying price is RM87 or 3.2% which can
be considered quite an acceptable spread rate. I would consider the Kijang Emas is good physical gold option to buy because:

- it is easily available to be bought and sold at many of Maybanks (Malaysia's No.1 Bank)
branches

- the low spread difference

- it is of 999 purity


However it should be noted that although the Kijang Emas is available in 1oz, 1/2oz and 1/4oz, it is advisable to buy the 1oz coin. This is because there will be quite a difference in
price. Take the same example as above, on 7th November 2008 the Kijang Emas prices were as follows:

- Kijang Emas (1oz) Selling Price = RM2744 Buying Price = RM2657

- Kijang Emas (1/2oz) Selling Price = RM1398 Buying Price = RM1328
- Kijang Emas (1/4oz) Selling Price = RM 712 Buying Price = RM 664

So, if you buy the 1/2oz coin, you will not be paying RM2744 / 2 = RM1372, but you will be paying RM1398. This is an extra 1.9% that you'll be paying.

Even more so it you buy the 1/4oz coin, you will not be paying RM2744 / RM4 = RM686, but you will be paying 712. This is an extra 3.8% that you'll be paying.

However, if you really feel that you want a Kijang Emas but don't have the ability to get the 1oz coin, it is fine to get the 1/2oz or 1/4oz. The Kijang Emas could also be a good present or bonus for employees.


For a list of the Maybank branches that offer the Kijang Emas
Click Here. You can also find the kijang emas historical prices here.

For further information and enquiries, you contact contact maybank at 1300-88-6688

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