3 Key Truths About Kijang Emas Coin: Worth It?

Table of Contents

Introduction: A Safe Reputation That Hides a Danger

For anyone who starts to research gold investment in Malaysia, the name Maybank Kijang Emas coin will inevitably come up. As the official national gold bullion coin issued by the Central Bank of Malaysia since 2001, it holds a prestigious and trustworthy reputation, and is often considered the best ‘gateway’ into the world of physical gold investment. Many veteran investors in Malaysia began their journey by purchasing a Kijang Emas coin. But that was in the past, during a time when other options were still limited.

The question now, in today’s more mature financial landscape with the emergence of various other market options, is this: is the Maybank Kijang Emas coin still relevant as the best investment choice today? Although it appears safe on the surface, behind this reputation lie several significant practical risks and weaknesses. These risks are rarely discussed openly but can turn a supposedly profitable investment into a frustrating experience. This article will explore whether the Kijang Emas coin is still worth investing in today.

Advantage #1: The Main Reason for Its Popularity – An Extremely Low Spread

Undeniably, there is one primary reason why the Maybank Kijang Emas coin became a legend among gold investors in Malaysia: its spread. To this day, it remains one of the physical gold products with the lowest spread in Malaysia, especially for the one-ounce size. This is its main attraction, which is difficult for other products to compete with. A low spread is a critical factor in any investment, and the Kijang Emas coin excels in this aspect.

1. Faster Profit Potential

The spread for a 1-ounce Maybank Kijang Emas coin is often below 5%, while for smaller sizes like the 1/2 ounce and 1/4 ounce, it’s around 4% to 8%. These figures are very competitive and attractive. For comparison, the spread for a gold bar at a jewellery shop can be as high as 30%. The benefit is obvious: you don’t have to wait for an extremely high price increase in gold to start seeing a profit. Theoretically, a 5% rise in the world gold price is enough for you to break even if you buy the 1-ounce Kijang Emas coin.

This makes it very appealing from a mathematical investment standpoint. It shortens the time required for your investment to get into the ‘green zone’. For investors with a medium-term goal or those who want to maximise their paper returns, the low spread on the Kijang Emas coin is a huge advantage and the main reason why it continues to be mentioned to this day.

2. Guaranteed Quality and Fully Recognised Nationwide

As an official national product minted by The Royal Mint of Malaysia and exclusively distributed by Maybank, its purity (999.9 gold or 24 Karat) and weight are fully guaranteed. The benefit is that you don’t need to worry about authenticity or quality issues when you buy a Kijang Emas coin. It is also highly recognised and accepted for pawning at almost all Ar-Rahnu branches across the country. This makes it a very liquid asset, meaning it’s easy to convert to cash when needed. This combination of a low spread and high liquidity, in theory, makes the Kijang Emas coin an almost perfect investment product.

Disadvantage #1: ‘Mission Impossible’ – The Chronic Stock Shortage Problem

Despite its attractive low spread, this is where the bitter reality starts to sink in for prospective buyers. The beauty of the Kijang Emas coin on paper is often not attainable in the real world. Trying to find a Maybank Kijang Emas coin to buy, especially at a good price, is like trying to find a needle in a haystack. This is the first practical weakness that can disrupt your entire investment strategy and lead to prolonged frustration.

1. You Can’t Buy It When You Need It Most

The best time to buy any investment asset, including gold, is when its price is falling. Unfortunately, this is also the exact time when the stock of the Maybank Kijang Emas coin will instantly run out at almost all branches nationwide. Demand will suddenly surge, but because Maybank’s core business is not selling gold, their supply is very limited. The benefit of choosing a specialist gold dealer with a consistent stock is that you will never miss out on this golden opportunity.

With Maybank, you often have to watch that opportunity pass you by. By the time new stock arrives a few weeks or months later, the price of gold may have already climbed back up, and the advantage of buying at a low price is lost. This is a very chronic problem that has been reported by many investors. The difficulty in buying makes the low spread of the Kijang Emas coin meaningless if you can never get your hands on it.

2. No Modern Booking or Price-Locking System

To complicate matters further, Maybank does not offer an online booking or price-locking system. You cannot ‘lock in’ the attractive price you see on the website today and collect the gold later. You must be physically present at the branch, queue up, and hope they have stock on that specific day and time. This is a very inefficient and outdated process. Imagine the price of gold falls overnight; you can’t do anything until the bank opens the next morning.

The benefit is that a modern booking system, offered by other companies, provides flexibility and certainty. You can book at any time, 24/7. The absence of this system for the Maybank Kijang Emas coin makes the buying process heavily reliant on luck and is a huge waste of time. You may have to call several branches before finding stock, a very tedious process for a serious investor.

Disadvantage #2: The Biggest Risk – No Forgiveness if Your Kijang Emas Coin is Damaged

This is the critical weakness that can turn a paper profit into a real-world loss in an instant. The buy-back policy for the Maybank Kijang Emas coin is extremely strict, inflexible, and does not favour the investor. It is a hidden risk that you must know before deciding to buy even a single Kijang Emas coin. This risk is related to the physical nature of gold itself and how the bank views this product.

1. A ‘Zero Tolerance’ Policy Towards Any Physical Imperfection

Maybank treats the Kijang Emas coin as a premium numismatic item that must be in perfect mint condition. This means that when you want to sell it back to them, the coin will be meticulously inspected. If it has any defects—even a fine scratch, a small dent on the edge, or a scuff—Maybank has the absolute right to **refuse to buy it back**. This policy is final and there is no room for negotiation.

2. You Bear 100% of the Risk of Damage for Life

Pure gold is a soft and very easily damaged metal. With such a strict bank policy, all the risk of accidental damage throughout the period you own it rests entirely on your shoulders. The benefit of choosing a seller that has a guaranteed buy-back regardless of damage (like Public Gold) is that you are completely protected from this risk. With Maybank, one small mistake in handling or storing your Kijang Emas coin can leave you stuck with an asset that is difficult to sell at its proper value.

3. You May Be Forced to Sell at a Huge Loss

So, what happens if Maybank rejects your scratched Kijang Emas coin? Your only option is to sell it elsewhere, usually at a regular jewellery shop. The jewellery shop will treat it as ‘scrap gold’ and will offer you a much lower price, possibly with a discount of up to 20-25%. Suddenly, the 5% low spread advantage you were proud of vanishes into thin air. Your investment is now facing a very significant loss.

The benefit is that by buying from a more flexible seller, you always have a guaranteed ‘exit route’ at a fair market price, regardless of the physical condition of your gold. This buy-back risk is the biggest factor that makes the Kijang Emas coin investment highly unsuitable for beginners who may not be skilled in the proper handling of gold.

Conclusion: So, Should You Buy a Kijang Emas Coin?

After weighing the pros and cons in detail, the answer to the question “is the Maybank Kijang Emas coin still relevant?” is: **It depends on your tolerance for risk and your patience.** It is a product with two very different sides. The first side is its mathematical beauty, while the second side is its practical weakness.

• In theory, the Kijang Emas coin is an excellent product because of its low spread, which can potentially deliver faster profits. However, in practice, it comes with two massive hurdles that can negate all its advantages: it is very difficult to buy at the right time, and it is very risky to sell back if it’s not in perfect condition.
• For new investors or anyone who wants peace of mind, its buy-back risk is probably too high to bear. There are other options on the market that may have a slightly higher spread, but come with the peace of mind of a guaranteed buy-back policy. Make a choice that is not only profitable on paper, but is also safe in reality. Choose a platform that is truly on your side as an investor.

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