62) Unit Trust vs Gold pieces as Investments

62) Unit Trust vs Gold pieces as Investments

1) Actual gold pieces risk of lost, robbery, damage, fire, flood, etc.

2) Gold pieces need a safe place to keep. May need to pay for safe deposit box rental in the bank.

3) Gold investment can only increase in value when the gold price increase. Risk of gold price drop and never recover.

4) Gold ornaments price have to add workmanship charges. Lost value if sold back to goldsmith shop.

5) Gold pieces are not easy to divide to others. Not advisable to cut the gold ring into 2 pieces. Units Trusts units can be easily divided into various quantity to transfer to loved ones.

6) Difficult to manage and track many small pieces of gold ornaments.

7) Gold must be bought in certain minimum quantity to form an ornament. Easy to buy & sell Unit Trusts in small quantities.

8) Gold cannot be changed to other assets. Easy to switch Unit Trusts to other asset types between Equity, Bond and Money Market.

9) No reason to keep gold in other countries. Unit Trust can be diversified into different country funds.

10) Gold weight & size still remain the same over time. Unit Trust asset will normally increase over time.

11) Can instruct bank to do monthly Direct Debit Instruction (DDI) to buy Unit Trusts with minimum of RM100.

12) Can use 3PF money to invest in Unit Trusts but not to buy gold pieces.

The GOOD about Gold Pieces
 
1) You can decorate and beautify yourself with gold pieces.

2) Can show off your wealth with gold. Nothing to show off your Unit Trusts assets. Unless you hang on your neck and show people your Unit Trusts account statements.

3) You can feel your ownership with gold. Something to see and hold. Also can hear to sound of gold.
Nothing exciting about seeing, feeling & hearing sound of a piece of paper with numbers only.

4) Gold ornaments have sentimental value. You can remember your grandmother who gave you the piece. How happy you were when you received it. Nothing much to remember about Unit Trusts.

4) You can pawn your gold pieces to get some money. Although I don't really recommend you to do this.