Gold Vs Dollar

Gold above USD1,000

The gold contract for December delivery climbed to $1,004.70 on the Comex division of the New York Mercantile Exchange, according to Bloomberg. Gold for immediate delivery also breached the $1,000 mark, climbing to $1,002.73 an ounce.

The metal, which has gained 14pc so far this year and is on course for its ninth straight year of gains, is often bought by investors as hedge against the threat of inflation as well as a weaker dollar.

Gold futures reached a record $1,033.90 an ounce in March last year as the world grappled with the economic fallout from the global banking crisis.

"The reasons to own gold as an investment case make sense," Greg Gibbs, a strategist at the Royal Bank of Scotland, told Bloomberg. "It is a hedge against policy makers losing control of fiscal and quantitative monetary policies."

The latest figures show that investors are buying more gold. 222.4 tons of bullion were snapped up in the second quarter, 46pc higher than the same period in 2008, according to the World Gold Council.

Gold Investment

Lately Bank Negara investigated two companies related to gold investment. The main reason was that these companies are giving returns of about 30% per annum which were on the high side, having known that the current interest rate in the Banks were around 2% to 3% per annum.
Here is what BNM says:

Bank Negara Malaysia has commenced investigations into Genneva Sdn Bhd and Etika Emas Estet Sdn Bhd under suspicion of conducting illegal deposit taking activities in breach of Section 25(1) Banking and Financial Institutions Act 1989 (BAFIA) and Section 4(1) of Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA). Section 25(1) of BAFIA 1989 prohibits any person from receiving, taking, or accepting deposits without having a valid license, whereas Section 4(1) of AMLATFA 2001 prohibits any person from engaging in, or attempting to engage in, or abetting the commission of money laundering activities.

The raids on Genneva Sdn Bhd and Etika Emas Estet Sdn Bhd were conducted today at their premises in Klang Valley following information received from members of the public. Relevant assets and documents of the company were seized for the purpose of investigation.

Members of the public are reminded to be cautious of deposit taking schemes and investment schemes offered through various channels such as the internet, phone calls, or seminars conducted by individuals or companies that are not licensed or approved by the relevant authorities.

Members of the public may refer to the list of licensed institutions authorized to accept deposits which is available on Bank Negara Malaysia's website.