Kijang Emas Coin: 5 Ugly Truths Banks Won’t Admit

Table of Contents

Introduction: Kijang Emas Coins — The Shine That Hides Unknown Risks

When it comes to buying gold, a bank seems like the most logical and safest choice. After all, it’s the financial institution we trust with our salaries, savings, and loans every single day. Iconic products like the Kijang Emas coin from Maybank, issued by the Central Bank of Malaysia, are renowned for their excellent reputation. They boast a low spread and guaranteed quality and purity. Many people think, “What could possibly go wrong with buying a Kijang Emas coin?”

However, behind this reputation of safety, there lies a huge and rarely discussed risk. It is a ‘ticking time bomb’ that could detonate at any moment and wipe out a significant portion of your investment’s value. That risk revolves around one simple question: what happens if the Kijang Emas coin you bought gets damaged, even slightly? The answer can be a financial nightmare for the unwary investor, turning a supposedly safe asset into a costly liability. This is the hidden reality of owning a Kijang Emas coin bought from a bank.

Risk-Free Investment… Or a Silent Trap?

Many new investors, and even some experienced ones, choose to buy a Kijang Emas coin at a bank because they perceive it as a “risk-free” option. They think, “I’m buying from the bank, so of course I can sell it back to the bank anytime.” This assumption is, technically, correct. But it comes with a very strict, hidden condition: your Kijang Emas coin must remain in perfect, factory-fresh condition, forever. This is where the risk that so many are unaware of lies, until the day they try to sell it back.

1. The Physical Reality: Gold is an Incredibly Soft Metal

First of all, we need to understand the natural properties of gold itself. Pure gold (24 Karat or 999.9 purity), the primary material of a Kijang Emas coin, is a very soft metal. It is not hard like iron or steel. This softness is what allows it to be shaped into beautiful and intricate jewellery. The benefit of this softness is that it is proof of its high purity. But from a storage perspective, it is a weakness. Any Kijang Emas coin is very easily scratched, scuffed, or dented if it is accidentally dropped on the floor or knocked against a hard surface.

2. The Bank’s Perspective: Selling a Kijang Emas Coin as a ‘Collector’s Item’

This is the most critical difference in perspective. To an investor, the value of a Kijang Emas coin lies in its gold content—its weight and purity. It is a commodity. But to a bank, a product like the Kijang Emas coin is treated more like a premium numismatic or ‘collector’s item’. Just like a stamp collector wants a stamp in perfect ‘mint condition’, the bank places the same requirement on the Kijang Emas coin it sells.

The benefit of choosing another seller who sees gold as a commodity (like Public Gold) is that the physical condition becomes less important, as long as the weight and purity are intact. But for a bank, physical perfection is everything. They want to be able to resell the Kijang Emas coin they buy from you to a new customer in the exact same pristine condition as when they first sold it. This differing perspective is the root cause of their extremely strict buy-back policy.

The Investor’s Nightmare: The Bank’s Extremely Strict Buy-Back Policy

This is the core of the risk of buying a Kijang Emas coin at a bank. Their buy-back policy is incredibly inflexible, non-negotiable, and does not favour the investor. Popular investment literature has revealed several true cases where investors have been left high and dry. If your Kijang Emas coin has any defects, no matter how small, be prepared for immense disappointment when you try to sell it back to the bank.

1. The Official Policy: SCRATCHED, DENTED, BENT = INSTANT REJECTION

This is the official policy practised by banks that sell investment gold, such as Maybank. When you bring your Kijang Emas coin back to be sold, the bank officer will inspect it meticulously, often using a magnifying glass. If they detect any physical imperfection, no matter how minor—a fine scratch, a tiny dent on the rim, or a slight bend—they have the absolute right to reject the transaction immediately. The bank will not buy back your Kijang Emas coin. There are no negotiations, no compromises, and no exceptions.

2. The Bank’s Reasoning: Difficulty in Reselling to a New Customer

The reason given by the bank is logical from their business perspective, but detrimental from an investor’s standpoint. They claim that a new customer who comes to buy a Kijang Emas coin would naturally want a product that is in perfect condition. Nobody wants to pay a premium price for a coin that is already damaged. Therefore, to avoid holding stock that they cannot sell or would have to sell at a discount, they take the easy way out by rejecting any imperfect gold outright.

Unfortunately, this policy transfers 100% of the risk of damage onto you, the investor. The bank bears no risk whatsoever. You are the one who buys it, you are the one who stores it, and ultimately, you are the one who suffers the consequences if any accidental damage occurs. This is a very unfair condition for a product like the Kijang Emas coin, which is labelled as a ‘safe investment’.

3. The Consequence: You Are Stuck with an Asset That Has Lost Its Liquidity

When the bank rejects your Kijang Emas coin, what happens? You are now trapped with a piece of gold that cannot be sold at its proper market price. The advantage of the low spread offered by the bank now becomes completely irrelevant. Your only remaining option is to sell it to a regular jewellery shop or a private buyer. A jewellery shop will treat it as ‘scrap gold’ and will buy it at a price far lower than the market rate, possibly with a discount of 20% or more.

In an instant, your Kijang Emas coin investment, which should have been profitable, turns into a significant loss. You could lose hundreds of Ringgit simply because of an unintentional tiny scratch. This is the most frightening risk and can destroy your investment portfolio. You bought a premium asset but are forced to sell it at a scrap asset price.

How to Protect Yourself from This Risk: 2 Safer Alternatives

The good news is, you do not have to be exposed to this unreasonable risk. There are other alternatives on the market that offer far better protection for your gold investment. The key is to choose a seller who understands that gold is a commodity investment, where its value lies in its weight and purity, not its cosmetic perfection. Such a seller prioritises the interests of the investor, not just selling a collector’s item like the Kijang Emas coin.

1. Choose a Seller with an Unconditional Damage Buy-Back Guarantee

Before buying any physical gold, do your research. Find a company like Public Gold that explicitly and publicly states in their policy that they will buy back their branded gold even if it has scratches, scuffs, or dents, as long as the weight and purity are the same. This policy is an incredibly important ‘safety net’. The benefit is that it gives you absolute peace of mind. You are free to store and handle your gold without constantly worrying that its value will plummet if it is accidentally damaged, unlike the fate of a Kijang Emas coin owner.

A policy like this changes gold from a fragile ‘display piece’ back to its true function as a robust ‘store of value’. You no longer need to keep your Kijang Emas coin wrapped in cotton wool as if it were a delicate egg. You can store it with confidence, and more importantly, you can use it (for example, as collateral) without fear.

2. Consider a Gold Accumulation Account (If You Don’t Want to Hold Physical)

If you are someone who is very worried about the risks of physical damage or loss, there is another modern alternative to consider. Use a Gold Accumulation Account (like the Public Gold GAP) which is 100% backed by physical gold. In this account, you buy and save gold in digital form (grams), but every gram is allocated to real physical gold held securely by the company. This is a good alternative to the physical ownership of a Kijang Emas coin.

The benefit is that you do not have to store the gold yourself, so there is zero risk of damage or theft on your part. You can buy and sell digitally at any time with ease. When you are ready and more confident, you can then withdraw the physical gold from your account. This is a great way to start saving gold without having to bear the risks of physical storage in the initial stages, especially if you are worried about damaging your precious Kijang Emas coin.

Conclusion: Understand the Risk Before You Invest in a Kijang Emas Coin

Buying a Kijang Emas coin at a bank might seem like the safest option at first glance, but the hidden risk related to its strict buy-back policy is simply too great for a smart investor to ignore. A minor bit of damage to your Kijang Emas coin can lead to a major financial loss, a risk that is not worth the low spread they offer.

• A good investment asset must not only have a stable value, but it must also be easily liquid without any problems or unreasonable penalties. The strict policy of the banks means their gold products like the Kijang Emas coin fail this most crucial liquidity test.
• Before making any purchase of physical gold, including a Kijang Emas coin, always ask the seller this critical question: “Will you buy this back at the full price if it gets scratched?”. The honest answer to that question will determine whether your investment is truly safe, or just a risky gamble.

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