Gold Investment from Islamic Perspective: The Case of Malaysia

Gold investment in Malaysia offers a secure asset class for investors through two different ways, physical gold and “paper gold” (gold account). Investment in physical gold enables investors to diversify their portfolio. Gold account, on the other hand, allows investors to make deposits when gold prices are low and withdraw the funds at profit when the gold price rises. It is noted that there is insufficient studies examining the issue of gold investment in Malaysia. Accordingly, this paper is expected to be among the first studies seeking to provide a comprehensive discussion on the gold investment in the context of Malaysia, examining its operations, contemporary applications; and the associated shariah compliance issues. In this respect,it attempts to clarify the status of gold investment from an Islamic perspective. The study adopts the qualitative research method. The discussion is limited to Gold Bars, Exchange Traded Products (ETPs), Gold Savings Account, Central Bank Gold Financing and Mining Companies. This study serves as a good guideline for Muslim investors.