Al Rajhi Bank have established themself as the most popular bank in Saudi Arabia, with over 500 branches and 4,100 ATMs throughout their network. They also have 46,000 POS terminals installed for merchants around town! With these accomplishments under their belt, Al Rajhi opened an overseas office in Malaysia’s capital city Kuala Lumpur back in 2006.
What is a Gold Investment Account (GIA)?
Gold investment accounts allow investors to buy, sell, and trade gold without having any physical assets. Gold has been a beneficial addition for those who want diversity within their portfolio while still maintaining stability through diversification with other investments products. In Malaysia, only certain banks provide this service.
About Al Rajhi Gold-i investment account
It is Shariah-compliant
Musawamah
Wakalah
Option to buy physical gold offered by the bank
Option to subscribe to safekeeping services provided by the bank
Asset diversification
Real precious metal
Why should I choose an Al Rajhi Gold-i investment account?
It is a Shariah-compliant gold investment
Immediate cash conversion
Potential capital appreciation
Safe custody for peace of mind
Who can open an Al Rajhi Gold-i investment account?
Individual account holder/ joint account holders (resident and non-resident) aged 18 years and above
Non-individual account holder
What do I need to know before opening an Al Rajhi Gold-i investment account?
Gold’s buying and selling shall be subject to the bank’s daily gold price
Method of payment shall only be by way of credit and debit from the customer’s account maintained with Al Rajhi Bank
There are fees for the safekeeping services and Takaful coverage
What are the risks of having a gold-i investment account?
Pricing Risk
Your investment may be volatile and exposed to market forces. If the conditions change for the worse, your funds may also lose their value.
Market Risk
In the event that market conditions change, your investment may be at risk. Though gold is considered one of the world’s safest investments due to its durability and security from inflation or significant fluctuations in value- it will not protect you against losses!
Returns Risk
Prices of gold may fluctuate daily. Customers may gain profit if the international gold price appreciates above their initial payment. However, there is no guarantee that the price will go up and fall.
Principal Risk
When you withdraw your GLD from the account and convert it into MYR, you may not receive the exact amount as the initial payment.
Not protected by authorities
A gold investment account is not covered by Perbadanan Insurans Deposit Malaysia (PIDM).
What is the minimum purchase for an Al Rajhi Gold-i investment account?
Minimum initial purchase
10 grams
Subsequent purchase or sale
A minimum of 5 grams and in multiples of 5 grams
What are the standard fees of an Al Rajhi Gold-i investment account?
Safekeeping fee
0.50% p.a. of the value of gold
Takaful fee
N/A
What is the process of opening an Al Rajhi Gold-i investment account?
Customers can visit the nearest Al Rajhi Bank to open the Al Rajhi Gold-i investment account.
What are the common terms of gold investment?
Minimum initial purchase
The amount of gold you need to start an investment account. It depends on the bank and type, but it can be as little as 1 gram or more!
Minimum balance
The minimum amount of gold needed to maintain your gold investment account.
Minimum subsequent purchase/ sale
The minimum amount of gold you must involve in any transactions when buying or selling via your gold investment account.
Buy-sell spread
The difference between a bank’s selling price and buying price for gold investments account. For example, you get gold at RM240, and the bank repurchases it at RM230. The buy-sell spread is RM10 (RM240 minus RM230).
