I am using Tunku Abdul Rahman Commemorative 100 ringgit gold coin price as a comparison to gold investment. The Tunku gold coin weight at 18.66 gram and.917 fine. I am comparing that gold coin with Malaysia own Kijang emas bullion one troy ounce price. Kijang emas bullion weight at 31.10 gram and at.999 fine. I am using the price from Steven Tan Standard Catalogue of Malaysia, Singapore & Brunei Coin & Paper money for Tunku coin (17th until 19th edition). For the history price of Kijang Emas bullion, I am using BNM Kijang Emas statistic price as a guide.Kijang Emas minted by Royal Mint of Malaysia and retailed by Maybank.
Price per grams for Tunku Coin.
Price per grams for Kijang Emas.
This market value prices are for five years time from January 2005 until January 2010. Both item had an increasing value each year but do mind though that Bullion value depends on International gold market price. While market value of gold coin depends on its rarity, mintage and how many items are in the market. I get the price per gram after dividing the price of gold to the total weight in grams. As you can see in the data, Tunku Abdul Rahman 1971 gold coin value surpassing the value of Kijang Emas bullion in price per grams. This comparison will not be correct 100% but this is just to show which investment got the best value.
People collect coins to keep while they can. People keep bullion as a hedge against inflation. When its time to invest on other investment they will sell their bullion. Numismatic people will not sell their precious coins easily because they know that it will hard to find that coins again in the future. For Kijang Emas, if you cannot get them on the same day, you can always be in Maybank waiting list. In coin collecting, there is no such thing as waiting list. If the price is right, just buy them or other people will buy them first. You can always negotiate with seller about the price of commemorative gold coin that you want to buy. But bullion gold price already fix according to International gold market price. That mean you can always buy coins at a price cheaper than market value for coin collecting.
If you are asking me, my choice will be coin investment rather than bullion investment . Maybe you will say because I know what to collect and where to find it. But have you ever think, what will happened if demand is much more than supply? The price will be bounce up incredulously. Right now many Malaysian who is not a collector already change their investment into coin collecting. Some commemorative coin already a scarce item and very hard to find. In another five years to come, the price of this 1971 Tunku Abdul Rahman gold coin will be four times its value today.