However, as it will be traded on the futures market, you would need to open a trading account with one of the stockbrokers in town. I wonder how would the regulators make this offering available to the wider mass - those who never traded on a stock/furtures exchange before.
In any case, this will be a great complement to the existing gold savings/investment accounts offered by the banks, which I have discussed earlier here: http://newentrepreneursmalaysia.blogspot.com/2013/09/gold-investments-in-malaysia.html
In any case, it must be remembered that GOLD DOES NOT HAVE CASH FLOW, hence it is a pure trading instrument. It could go down as well as up to better be careful when making your investment.
The reproduction of the STAR article is as follows:
GEORGE TOWN: Bursa
Malaysia will introduce gold futures trading in local currency on Oct 7
in a move to stamp out illegal gold trading activities in the country.
According to industry players, Bursa Malaysia’s decision to introduce gold futures trading is due to the popularity of such trading in the country and the recent crackdown on illegal gold trading activities.
On Oct 7, the new gold futures counter will remove the need for Malaysian participants to purchase foreign currency to trade, thereby eliminating exposure arising from foreign currency fluctuations.
According to the Bursa Malaysia website, each gold futures contract is equivalent to 100 grams of gold bullion.
“The small size is designed to provide accessibility to all and also flexibility for those wanting greater exposure.
“For the retail player wanting smaller exposure, it provides affordability. For the industrial user requiring larger exposure, the contract can be traded in multiple lots at a time.
“As a cash-settled contract, no delivery of physical gold is required. Instead, the gold futures contract would be settled on expiry using the cash equivalent of the amount of gold purchased,” the website said.
The gold futures contract allows market participants exposure to international gold price movements at a lower entry cost.
Bursa Malaysia will hold a press briefing on the new gold futures counter tomorrow.
According to industry players, Bursa Malaysia’s decision to introduce gold futures trading is due to the popularity of such trading in the country and the recent crackdown on illegal gold trading activities.
On Oct 7, the new gold futures counter will remove the need for Malaysian participants to purchase foreign currency to trade, thereby eliminating exposure arising from foreign currency fluctuations.
According to the Bursa Malaysia website, each gold futures contract is equivalent to 100 grams of gold bullion.
“The small size is designed to provide accessibility to all and also flexibility for those wanting greater exposure.
“For the retail player wanting smaller exposure, it provides affordability. For the industrial user requiring larger exposure, the contract can be traded in multiple lots at a time.
“As a cash-settled contract, no delivery of physical gold is required. Instead, the gold futures contract would be settled on expiry using the cash equivalent of the amount of gold purchased,” the website said.
The gold futures contract allows market participants exposure to international gold price movements at a lower entry cost.
Bursa Malaysia will hold a press briefing on the new gold futures counter tomorrow.
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