It's a gold rush

Several Maybank branches in the Klang Valley had run out of Kijang Emas gold bullion coins issued by Bank Negara Malaysia.


BANKS are running out of gold literally, as investors seek a safe haven from falling equities, and tumbling economies across the world.

Cold calls done by Business Times show that several Malayan Banking Bhd (Maybank) branches in the Klang Valley had run out of Kijang Emas gold bullion coins issued by Bank Negara Malaysia (BNM).

"People are rushing to buy the gold coins because of rising gold prices. They are anticipating gold price to hit RM200 per gramme," said a Maybank branch manager, who spoke on condition of anonymity

At yesterday's price, the 1oz, 1/2oz and 1/4oz gold coins were selling at RM5,371, RM2,736 and RM1,391, respectively.

On July 27, the 1oz, 1/2oz and 1/4oz gold coins sold at RM5,063, RM2,579 and RM1,313, respectively.

The price for the 1oz gold coins has increased by RM2,200 in the last two to three years.

The Kijang Emas is Malaysia's very own gold bullion coin. It was launched on July 17 2001 by BNM and minted by Royal Mint of Malaysia Sdn Bhd.

BNM issues the Kijang Emas coins in three denomination, namely the 1oz, 1/2oz and 1/4oz gold coins.

Maybank, the country's top bank, is an acting agent for the coins. The gold bullion coins are available at 32 selected Maybank branches.

On the global front, gold climbed above the US$1,700 (RM5,100) an ounce level for the first time in history, having surged more than 21 per cent this year.

The lust for gold comes at a time when major global equity markets across the board have given up all of their year to date gains. On a year todate basis most major bourses are trading at a loss currently.