As I mentioned in my earlier post, after you spend your money for a Gold..its actually you still have that gold as an asset. This gold actually still can be converted to a money. Doesn't mean that after you spend the money for gold, you got no more money especially for emergency cases.
How can your gold convert to money?
People always said that when you play with a gold investment its actually cost you a money and risky. I could say that almost none of the investment plan are not risky..but how risky is your investment is the most important issue. To me, if you don't have an investment it is more risky. You risk your future with just earn an income from a pay cheque. How about if the performance of the company is drop...or how about if the company get bankrupt..or how can you get through the inflation and recession period? During that time your paper money is lost its power of purchase and the value definitely drops.
I like to share a phrase from Shayne McGuire, who wrote a book "BUY GOLD NOW". He said, "Don't be a GOLD bug. Sell it when the time comes". This is something that we could say to minimize the risk of keeping a gold. Let's think of it together...
Ok, back to the topic..how can we convert the gold into money or cash?
Actually, when you need a money for emergency cases or for your business capital..you can use your Gold for the cash. Its better than you apply for a personal loan.. You could use that gold to keep it in the AGRO BANK which is called AR-RAHNU. Especially gold from Public Gold, there is no issue for them to accept and keep for you and lend you some money. Normally, they will calculate the value of the gold base on the current market price and from there they will lend you about 65% from the total amount and weight of the gold.
For every RM100 that they lend it to you, you need to pay some amount to them as a charges for keeping the gold its about RM1 or less per month..and you got 6 months time to withdraw it back.
For example:
Your 20gm gold bar.. Bank gave you RM 3000. So you need to pay them the charges about RM30/month as a deposit charges. And you can pay it monthly or accumulate until 6 months when you want to withdraw your gold back. By the time you withdraw the gold, you need to pay the RM3000 + (RM30 x 6) = RM3180.. or less.
*P/S: This is just a rough calculation as a reference. For more accurate charges or calculation, you can always refer to Agro Bank.
