According to Mark Walters (proarticles.net; 2007-08-18), gold has not been touched by inflation over the last sixty years. The same amount of gold that purchased one gallon of gas in 1940 will buy 1 gallon of gas today.
Why is that so? Because gold and other precious metals such as platinum, silver etc are becoming scarce. As the demand for gold - jewelery, industries keep building up, the supply is limited.
Investing in gold is a safe hedge against inflation. We can earn a potentially higher return from gold price appreciation. A few minutes ago, despite of the recent petrol price hike, the price of gold had gone up by RM 0.04 per gram.
In Malaysia, you can do so at Public Bank (Public Bank Gold Saving Account) and Maybank (Gold Saving Passbook). Be sure to check for affordable initial purchase and subsequent investment, small difference buying/selling price and ease of redemption.
The key is to educate yourself before going into deep. As an alternative, you can also invest in unit trust which focus on precious metal e.g Am Precious Metals Fund.
- cmt -
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