HSBC Gold Investment

About HSBC

HSBC is a vast financial services company that provides banking and market solutions to over 40 million customers worldwide. The organisation has operations in 64 countries, including Europe, Asia, the Middle East and Africa, North America, and Latin America.

What is a Gold Investment Account (GIA)?

Gold investment accounts allow investors to invest in gold without having any physical assets. Gold can be beneficial if you want more diversity within your portfolio while maintaining stability through diversification with other investment products. In Malaysia, only certain banks provide gold investment services.

About HSBC Gold Investment Account

  • A non-interest-bearing account that gives the customer opportunity to place deposits in non-physical gold and where the amount of the deposit can convert and be recorded in GLD units
  • Customers are required to maintain demand deposits accounts in Malaysian Ringgit MYR, where monies are used to buy and sell GLD
  • Customers cannot take physical delivery or possession of gold

Why should I choose an HSBC gold investment account?

  • An ideal way to diversify your investment portfolio by providing more direct exposure to global gold prices
  • Opportunity for potential capital gain from gold price appreciation
  • Quick conversion to cash when you buy and sell GLD units through HSBC Bank

Who can open an HSBC gold investment account?

Customers must be 18 years old and above to open an account.

What do I need to know before opening an HSBC gold investment account?

  • Statement of the HSBC Gold Account (“the Account”) will be included in the customer’s monthly composite statement account
  • No physical deposit or withdrawal of gold to or from the Account is allowed
  • No ATM/ debit card or chequebook will be issued with the Account
  • Customers are required to open/ maintain an MYR current or savings account with the bank to convert:
    • MYR to the amount of GLD needed to be credited to the Account
    • From GLD unit to MYR
  • The Account may be operated as a sole account or a joint account
  • A minimum initial deposit of 10 GLD is required. All minimum subsequent deposits/ withdrawals will be in multiples of 1 GLD or any amount determined by the bank

What are the risks of having a gold 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 HSBC gold investment account?

  • A minimum initial deposit of 10 GLD is required.
  • 1 GLD unit represents 0.1 unit of XAU.

XAU is the international standard currency code for 1 troy ounce of gold. 1.00 XAU represents 1 troy ounce of gold, which equals to 10.00 units of GL.

What are the standard fees of an HSBC gold investment account?

There are no fees for the HSBC Gold Account.

What is the process of opening an HSBC gold investment account?

  • You are required to open/ maintain an MYR current or savings account
  • You can buy/ sell GLD in the account as you wish
  • All monies used to buy and sell GLD, including proceeds from the increase in GLD unit price, after spot conversion at board rates, will be settled in the above MYR account

HSBC Gold Account is made available through the HBSC Bank branch network only. All applications and transactions on your HSBC Gold Account can only be conducted over the counter.

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).