This Article Volume 3 Issue 1
First published June 2013, doi : 10.7187/GJAT312013.03.01
Publisher Kolej Universiti Islam Sultan Azlan Shah, Perak, Malaysia.
Gold Investment Account in Kuwait Finance House (M) Berhad and Maybank Berhad
Syed Alwi, Suhaimi, M, Mohamed Kamil, M. M.
Syed Alwi, Suhaimi, M, Mohamed Kamil, M. M.
Abstract 
Banks in Malaysia offer gold investment accounts to customers who will make deposits when prices of gold are low and withdraw at a profit when prices rise. The objective of this paper is to determine the major differences and similarities between the nature of gold investment accounts operation in Islamic bank, Kuwait Finance House (M) Berhad (KFH) and the conventional bank, Maybank Berhad to come up with the best options between their two products. This research adopts the qualitative method as the main research methodology. The information on gold investment accounts are gained from semi-structured interviews conducted with bankers in these two banks that are directly involved in the operation. This research discovered that the gold investment account offered by KFH is the best choice as compared to Maybank Berhad because the subject matter which is gold exists during the transaction between the depositor and the bank. Thus, it provides safety for the customer to possess a real physical gold. The clarification in this research will help the public to decide the best preference in gold investment either in Islamic or conventional bank.
Keywords: Gold investment account; Islamic and conventional banks; Comparison; Differences; Similarities
References
Aal-Tarmidhi, M. I. A. I. (n.d.) Al-Jami’ Al-Sahih. Dar Ihya al-Turath al-Arabiyy, Beirut, Lebanon.
Al-Zuhayli, W. (2003). Financial Transactions in Islamic Jurisprudence, v. 1. Dar Al-Fikr, Damascus, Syria.
Cizakca, M. (2011). The Islamic Gold Dinar – Myths and Reality. ISRA International Journal of Islamic Finance, 3 (1): 49 – 63.
Haneef, M. A. & Barakat, E. R. (2002). Gold and Silver as Money: A Preliminary Survey of Fiqhi Opinions and Their Implications. Paper presented at the 2002 International Conference on Stable and Just Monetary System: Viability of the Islamic Dinar, 19 – 20 August, 2002, International Islamic University Malaysia, Kuala Lumpur, Malaysia.
Haron, S. & Azmi, W. N. W. (2009). Islamic Finance and Banking System: Philosophies, Principles and Practices. Mc Graw-Hill (Malaysia) Sdn Bhd, Shah Alam, Malaysia.
Ibrahim, M. H. (2012). Financial Market Risk and Gold Investment in an Emerging Market: The Case of Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 5 (1): 25 – 34.
Lee, G. H. Y. (2011). Gold Dinar for the Islamic Countries? Economic Modelling, 28 (4): 1573–1586.
Maybank. (2011). Maybank Annual Report 2011. Retrieved from http://www.maybank.com.my/files/Maybank_Annual_Report_2011.pdf. Retrieved on 2 May 2012.
Maybank. (2012). Maybank Gold Investment Account. Retrieved from http://www.maybank2u.com.my/mbb_info/m2u/public/personalDetail04.do?channelId=INV-Investment&cntTypeId=0&cntKey=INV03.02&programId=INV03-Gold&chCatId=/mbb/Personal/INV-Investment. Retrieved on 4 March 2012.
Meera, A. K. M. & Aziz, H. (2002). The Islamic Gold Dinar: Socio-economic Perspectives. Paper presented at the 2002 International Conference on Stable and Just Monetary System: Viability of the Islamic Dinar, 19 – 20 August, 2002, International Islamic University Malaysia, Kuala Lumpur, Malaysia.
Meera, A. K. M. (2002). The Islamic Dinar. Pelanduk Publication, Kuala Lumpur, Malaysia.
Meera, A. K. M. (2011). The Case for the Islamic Gold Dinar. ISRA International Journal of Islamic Finance, 3 (2): 73 – 89.
Muhamad, N. H. N. (2010). Pemakaian Prinsip Hibah dalam Sistem Kewangan Islam di Malaysia: Tumpuan Kepada Industri Perbankan dan Takaful. Jurnal Teknologi, 52: 69–81 (In Malay)
Muhammad, N. M. N. (2011). Public Acceptance Towards Kelantan Gold Dinar. Business & Management Quarterly Review, 2(3): 79 - 87.
Rab, H. (2002). Problems Created by the Fiat Money, Islamic Dinar and Other Available Alternatives. Paper presented at the 2002 International Conference on Stable and Just Monetary System: Viability of the Islamic Dinar, 19 – 20 August, 2002, International Islamic University Malaysia, Kuala Lumpur, Malaysia.
Securities Commissions Malaysia. (2009). Islamic Commercial Law (Fiqh al-Muamalat). LexisNexis Malaysia Sdn Bhd, Petaling Jaya, Malaysia.
Utusan Malaysia Online. (2012). Labur Emas Mengikut Syariah. Retrieved from http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0202&pub=utusan_malaysia&sec=Bicara_Agama&pg=ba_4.htm&arc=hive. Retrieved on 2nd February 2012.
Yaacob, Salmy, E., Mohd Al Adib, S., Mohd Izhar, A. M. K., Ezad Azraai, J., & Mohamad Zulfazdlee, A. H. A. (2011). Dinar Emas Sebagai Mata Wang dan Komoditi di Beberapa Negara Terpilih. Jurnal Melayu, 7: 147 – 172. (In Malay)
Banks in Malaysia offer gold investment accounts to customers who will make deposits when prices of gold are low and withdraw at a profit when prices rise. The objective of this paper is to determine the major differences and similarities between the nature of gold investment accounts operation in Islamic bank, Kuwait Finance House (M) Berhad (KFH) and the conventional bank, Maybank Berhad to come up with the best options between their two products. This research adopts the qualitative method as the main research methodology. The information on gold investment accounts are gained from semi-structured interviews conducted with bankers in these two banks that are directly involved in the operation. This research discovered that the gold investment account offered by KFH is the best choice as compared to Maybank Berhad because the subject matter which is gold exists during the transaction between the depositor and the bank. Thus, it provides safety for the customer to possess a real physical gold. The clarification in this research will help the public to decide the best preference in gold investment either in Islamic or conventional bank.
Keywords: Gold investment account; Islamic and conventional banks; Comparison; Differences; Similarities
References
Aal-Tarmidhi, M. I. A. I. (n.d.) Al-Jami’ Al-Sahih. Dar Ihya al-Turath al-Arabiyy, Beirut, Lebanon.
Al-Zuhayli, W. (2003). Financial Transactions in Islamic Jurisprudence, v. 1. Dar Al-Fikr, Damascus, Syria.
Cizakca, M. (2011). The Islamic Gold Dinar – Myths and Reality. ISRA International Journal of Islamic Finance, 3 (1): 49 – 63.
Haneef, M. A. & Barakat, E. R. (2002). Gold and Silver as Money: A Preliminary Survey of Fiqhi Opinions and Their Implications. Paper presented at the 2002 International Conference on Stable and Just Monetary System: Viability of the Islamic Dinar, 19 – 20 August, 2002, International Islamic University Malaysia, Kuala Lumpur, Malaysia.
Haron, S. & Azmi, W. N. W. (2009). Islamic Finance and Banking System: Philosophies, Principles and Practices. Mc Graw-Hill (Malaysia) Sdn Bhd, Shah Alam, Malaysia.
Ibrahim, M. H. (2012). Financial Market Risk and Gold Investment in an Emerging Market: The Case of Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 5 (1): 25 – 34.
Lee, G. H. Y. (2011). Gold Dinar for the Islamic Countries? Economic Modelling, 28 (4): 1573–1586.
Maybank. (2011). Maybank Annual Report 2011. Retrieved from http://www.maybank.com.my/files/Maybank_Annual_Report_2011.pdf. Retrieved on 2 May 2012.
Maybank. (2012). Maybank Gold Investment Account. Retrieved from http://www.maybank2u.com.my/mbb_info/m2u/public/personalDetail04.do?channelId=INV-Investment&cntTypeId=0&cntKey=INV03.02&programId=INV03-Gold&chCatId=/mbb/Personal/INV-Investment. Retrieved on 4 March 2012.
Meera, A. K. M. & Aziz, H. (2002). The Islamic Gold Dinar: Socio-economic Perspectives. Paper presented at the 2002 International Conference on Stable and Just Monetary System: Viability of the Islamic Dinar, 19 – 20 August, 2002, International Islamic University Malaysia, Kuala Lumpur, Malaysia.
Meera, A. K. M. (2002). The Islamic Dinar. Pelanduk Publication, Kuala Lumpur, Malaysia.
Meera, A. K. M. (2011). The Case for the Islamic Gold Dinar. ISRA International Journal of Islamic Finance, 3 (2): 73 – 89.
Muhamad, N. H. N. (2010). Pemakaian Prinsip Hibah dalam Sistem Kewangan Islam di Malaysia: Tumpuan Kepada Industri Perbankan dan Takaful. Jurnal Teknologi, 52: 69–81 (In Malay)
Muhammad, N. M. N. (2011). Public Acceptance Towards Kelantan Gold Dinar. Business & Management Quarterly Review, 2(3): 79 - 87.
Rab, H. (2002). Problems Created by the Fiat Money, Islamic Dinar and Other Available Alternatives. Paper presented at the 2002 International Conference on Stable and Just Monetary System: Viability of the Islamic Dinar, 19 – 20 August, 2002, International Islamic University Malaysia, Kuala Lumpur, Malaysia.
Securities Commissions Malaysia. (2009). Islamic Commercial Law (Fiqh al-Muamalat). LexisNexis Malaysia Sdn Bhd, Petaling Jaya, Malaysia.
Utusan Malaysia Online. (2012). Labur Emas Mengikut Syariah. Retrieved from http://www.utusan.com.my/utusan/info.asp?y=2012&dt=0202&pub=utusan_malaysia&sec=Bicara_Agama&pg=ba_4.htm&arc=hive. Retrieved on 2nd February 2012.
Yaacob, Salmy, E., Mohd Al Adib, S., Mohd Izhar, A. M. K., Ezad Azraai, J., & Mohamad Zulfazdlee, A. H. A. (2011). Dinar Emas Sebagai Mata Wang dan Komoditi di Beberapa Negara Terpilih. Jurnal Melayu, 7: 147 – 172. (In Malay)