Gold continues to be the choice of investors as a hedge, but the methods of storing gold are now increasingly diverse. In Malaysia, two options that are often compared are Maybank Islamic Gold Account-i (MIGA-i) and Public Gold, especially in terms of digital gold storage.
Although both offer exposure to gold prices, their structures, costs and intended uses are different. Understanding these differences is important to ensure that your gold storage strategy is aligned with your individual financial goals.
What is Digital Gold?
Digital gold refers to the storage of gold in the form of grams electronically, without direct physical ownership. The value of the storage moves in line with the market price of gold, and the owner can convert the storage into physical gold subject to certain terms and charges.
In this context, MIGA-i and Public Gold both provide digital gold storage, but through different approaches.
MIGA-i: Focus on Gold Price Investment
MIGA-i is a Sharia-compliant gold account offered by Maybank Islamic. Storage is made in the form of grams of gold and is managed entirely digitally through Maybank's banking platform.
This account is suitable for investors who want to gain exposure to gold price movements with lower transaction costs. The bid and ask spreads are typically narrower than physical gold, making it more efficient for medium-term savings or transactions.
Although MIGA-i allows the withdrawal of physical gold, the process involves higher withdrawal charges, making it less practical for those who actually want to hold gold in their hands.
Public Gold: Digital as a Path to Physical
Public Gold, on the other hand, offers two main components: physical gold and a digital gold savings account known as the Gold Accumulation Program (GAP).
Through a GAP account, users can store gold digitally in units of grams, starting with a small amount. These savings are backed by actual physical gold stocks and can be redeemed for physical gold such as gold bars or dinars when sufficient grams are available.
This approach makes Public Gold more suitable for individuals who view gold as a long-term savings asset and plan to own physical gold in the future. However, the premium and spread costs for physical gold are typically higher than bank gold accounts.
Key Differences between MIGA-i and Public Gold
The most significant difference between the two lies in the purpose of storage.
MIGA-i is more suitable for investors who want to store and benefit from gold price movements digitally at a lower cost.
Public Gold, on the other hand, offers a clearer path from digital storage to actual physical gold ownership.
In terms of flexibility, Public Gold gives the choice of either storing gold digitally or holding physical gold. MIGA-i, on the other hand, emphasizes the convenience of digital transactions without the need to physically hold gold.
