Diversify Your Gold Portfolio

Last Updated On: July 1, 2025 | Category : Investing

🟡 Why Diversify Your Gold Holdings?

When Malaysians think of gold, they usually think of jewelry or physical gold bars.

But did you know there are multiple ways to own gold — and each serves a different purpose?

If all your gold is in one form, you're not just limiting your growth — you're increasing your risk.

This guide shows you how to diversify your gold portfolio so it works for both protection and profit.

🧱 The 4 Main Ways to Invest in Gold in Malaysia

Here’s a breakdown of the most popular forms of gold investments — from traditional to digital:

1. Physical Gold

What: Bars, wafers, dinar, or coins
How: Buy from dealers like Public Gold or Habib
Pros: Tangible asset, no third-party risk, fully syariah-compliant
Cons: Requires safe storage, insurance, less liquid
Best For: Long-term wealth protection, inheritance planning

2. Digital Gold

What: Gold stored and managed digitally, e.g. HelloGold, Public Gold GAP
How: Buy via mobile apps or online platforms
Pros: Easy to buy/sell, start from as low as RM1
Cons: Relies on platform security, limited withdrawal as physical
Best For: Beginner investors, young savers

3. Gold Savings Accounts

What: Gold-linked savings accounts with banks
Where: Maybank Gold Investment Account (MGIA), CIMB Gold Account, KFH
Pros: Convenient, bank-backed, easy to liquidate
Cons: May charge fees, some not fully syariah-compliant
Best For: Regular savers, medium-term planning

4. Paper Gold (ETFs or Unit Trusts)

What: Gold Exchange-Traded Funds (e.g. TradePlus Shariah Gold Tracker)
How: Buy via Bursa Malaysia or brokers
Pros: Liquid, can trade like stocks, some pay dividends
Cons: No physical gold, affected by market volatility
Best For: Traders, advanced investors

⚖️ Comparison Table

Gold Type	Starting Capital	Liquidity	Syariah	Risk Level	Recommended For
Physical Gold	RM1000+	❌ Low	✅ Yes	🔐 Low	Long-term holders
Digital Gold	RM1+	✅ High	✅ Yes	🔐 Low	Beginners, monthly savers
Savings Account	RM10–RM100	✅ High	⚠ Varies	🟡 Medium	Salary earners
Gold ETF/Unit Trust	RM100+	✅ High	⚠ Varies	🔺 High	Traders, high-risk takers

🧠 How to Diversify Your Gold Portfolio?

Here’s a smart example for a balanced investor:

40% Physical Gold — Core long-term asset
30% Digital Gold (HelloGold / Public Gold GAP) — Easy access and flexibility
20% Gold Savings Account — Monthly commitment, low entry
10% ETF — For price exposure or growth

🕌 Prefer syariah-compliant only? Stick with physical, GAP (Public Gold), HelloGold, and TradePlus Shariah ETF.

💡 Bonus: Which Should You Start With?

If you're just starting:

RM100/month budget → Start with HelloGold or Public Gold GAP
RM500–RM1000/month → Combine digital + physical
RM10K+ lump sum → Consider buying certified bullion for long-term

Gold Investment Comparison Table (Malaysia 2025)

Investment Type	Best for Low Capital	Most Liquid	Syariah-Compliant	Best for Long-Term	Estimated 5-Year Cost (Fees)
🟡 Public Gold GAP	✅ RM100+	🟡 Medium¹	✅ Yes	✅ Yes	~2.5% buy-sell spread, no admin fees
🟢 Maybank Gold Account (MGIA)	✅ RM10–RM100	✅ High	⚠️ Mixed²	🟡 Moderate	~1.5%–2% spread, no storage fees
🟣 KFH Gold Account-i	✅ RM100+	✅ High	✅ Yes (Islamic bank)	✅ Good	~1.5%–2.5% spread, varies by amount
🔵 TradePlus Shariah Gold ETF	🟡 RM100+ (via broker)	✅ High	✅ Yes	🟡 Moderate	~0.5%–1% annual management fee
🟠 GoGold by TNG eWallet	✅ RM10+	✅ High	✅ Yes	🟡 Moderate	~1.5%–2% spread, no extra fees (as of 2025)
🟤 Physical Gold (Bar/Dinar)	❌ RM500–RM1000+	❌ Low	✅ Yes	✅ Yes	None (if stored personally), optional RM50–RM200/yr for vault

¹ Public Gold GAP: Sellback is online & fairly fast, but transfers can take 1–2 working days.
² Maybank MGIA: Gold account is conventional, not syariah-compliant unless paired with Islamic account. KFH is fully syariah.

✅ Summary Highlights:

Low Capital: GoGold, Maybank MGIA, KFH Gold Account
Most Liquid: GoGold, MGIA, TradePlus ETF
Syariah-Friendly: Public Gold, KFH, GoGold, TradePlus ETF
Best for Long-Term: Public Gold (GAP), Physical Gold, KFH
Lowest Long-Term Cost: TradePlus Shariah ETF

✅ Risk Warning & Storage Tips Every Gold Investor Should Know

Before you put all your trust (and money) into gold, it’s important to understand the hidden risks and how to protect yourself.

Diversifying isn't just about returns — it's about security and peace of mind.

🔻 A. Risk of Putting All Your Gold in One Form

Relying solely on one type of gold — whether digital, ETF, or physical — exposes you to unnecessary risk:

All physical: risk of theft, loss, fire
All digital: platform may shut down or limit withdrawals
All ETF: tied to financial markets, no physical delivery

✅ Solution: Blend 2–3 types of gold holdings based on your goals, timeline, and trust level.

🏠 B. Physical Gold Storage Options

If you hold gold bars, dinars, or coins — where and how you store it matters.

Option 1: Home Safe

Affordable, immediate access
But higher risk of theft, fire, or flood
Use fireproof, bolted safes with password or fingerprint lock

Option 2: Bank Safe Deposit Box

Secure and insured
Yearly cost: RM100–RM300 depending on size & bank
Access limited to banking hours

Option 3: Vault Storage by Gold Dealer (e.g. Public Gold GAP)

Stored under your name
Comes with insurance and third-party audits
Access through buyback or conversion to physical

⚠️ C. What If a Digital Platform Shuts Down?

Digital gold is convenient — but it depends on third-party companies. If the platform ceases operations (like HelloGold did in 2024):

You may lose access to your balance temporarily
Buyback or refund may take weeks or months
If the company is not regulated or insured, losses may be unrecoverable

✅ How to reduce the risk?:

Choose licensed or regulated platforms (e.g. Touch ‘n Go GoGold, Public Gold GAP)
Avoid storing your entire portfolio in one app

🗂️ D. Importance of Backups & Records

Many investors forget to track their digital gold purchases or physical holdings.

Make sure to:

Download transaction history (monthly or quarterly)
Keep copies of receipts and delivery orders
Screenshot or export your portfolio balance regularly
Store documents securely (cloud + encrypted USB or printed copy)

🧠 Final Tip: Treat gold like a long-term insurance policy. Protect it like you would protect your family or house.

✅ Syariah-Compliant Certification Highlights

For Muslim investors, Syariah compliance is essential when choosing gold products.

Not all gold accounts or platforms follow Islamic finance principles (e.g., avoiding riba or deferred ownership).

📋 Syariah Compliance Summary Table (Malaysia, 2025)

Platform / Product	Syariah-Compliant?	Certification Body / Notes
🟡 Public Gold GAP	✅ Yes	Amanie Advisors — certified as Syariah-compliant
🟢 Maybank Gold Investment Account (MGIA)	⚠️ Partially	Not syariah-compliant by default; check Islamic Account pairing
🟣 KFH Gold Account-i	✅ Yes	Offered by Kuwait Finance House (Islamic bank)
🔵 TradePlus Shariah Gold Tracker ETF	✅ Yes	Listed under FTSE Shariah Malaysia Index
🟠 GoGold by Touch ‘n Go eWallet	✅ Yes	Compliant (per TNG’s Islamic finance disclosures)
🟤 Physical Gold (bars, dinar)	✅ Yes	Must meet gold weight & purity rules (e.g. 999.9 fine, immediate ownership)

📝 Notes:

1. Physical gold is naturally syariah-compliant if:

It’s purchased in full
Delivered or ownership is transferred immediately
It’s not used for speculation (i.e., you're holding, not trading)
Maybank MGIA requires further review if strict Syariah compliance is required, as it’s not structured under Islamic banking by default.

🔎 Interested in learning more? Explore our gold guides and insights:

→ Investing in Gold: How RM100 Can Secure Your Future
→ How to Build Passive Income with Gold in Malaysia (From RM100/month)
→ Understand the Gold Cycle in Malaysia – When to Buy, Hold, or Sell Smartly
→ Diversify Your Gold Portfolio – Tips for Smarter Gold Investing