Kijang Emas Bullion (Gold Coin)

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The 1971 gold Malaysian coin; was not a gold bullion coin, although it was made up of 91.7% gold. True gold bullion coins are more than 99.5% gold.

Introduction:— The "Kijang Emas" coin is a series of three gold bullion coins that were first issued by the Malaysian "Bank Negara Malaysia" company, at the turn of the millennium (2000). When they were first minted, they were given a face value of RM50 ringgits (containg 7.780g of gold; or 1 troy ounce), RM100 ringgits (15.550g; 0.5 troy ounce) and RM200 ringgits (31.105g; 0.25 troy ounce), all with a purity of 99.99% (24K gold).[1][2][3] Although Malaysia has released other gold coins prior to the year 2000, they were never gold bullion coins in the true sense.[1] It is imperative to understand the difference between normal gold coins and gold bullion, anything above a purity of 99.5% gold can classified as bullion, whereas anything below this value isn't.[4] In actual fact the first gold coin to be minted in Malaysia after their independence in 1957 was the RM100 ringgit 18.660g (0.5502 troy ounces), 91.7% purity 1971, gold coin.[1] The current face value of the gold bullion coins are however $11.95 dollars,[5] $23.91 dollars[6] and $47.82 dollars,[7] but have an actual weight-value of $1,298.66 dollars,[8] $649.18 dollars[9] and $324.80 dollars by November 2nd, 2016.[10] The purchase price of the gold coins is actually based on the international gold price, and is quoted daily.[2] Additionally, these gold bullion coins are available for public purchase, whether from jewellery shops or certain banks themselves.[2] It should also be noted that this only forms the physical gold market in Malaysia, but there is a paper gold market as well.[2]

History:— With the mintage of the coins, according to Bank Negara, Malaysia became the 12th country in the world to mint their own bullion, with some of the other countries being the Mexican "libertad" (1991—Present), UK "britannia" (1987—Present), Austrian "viena philharmonic" (1989—Present), Australian "nugget" (1986—Present), US "eagle" (1986—Present), Chinese "panda" (1982—Present), Canadian "maple leaf" (1979—Present), and the South African "krugerrand" (1967—Present).[11] However these currently do not account for more than 99.5% purity, these are just the current gold coin production as of 2015.[11] Canada's first 99.99% gold coin was issued in 1979, Australia 1987, China in 1986, Austria 1989, USA 2006 and UK 2013.[12] This would make Canada the first country to produce 99.99% pure gold coins, and Malaysia the fifth. Despite saying this, Malaysia does not trade it's gold bullion heavily internationally. When compared to other Muslim countries, the highest amount of gold reserves is held by Turkey (474.4 metric tonnes), Saudi Arabia (322.9 metric tonnes) and Lebanon (286.8 metric tonnes).[13][14] Kazakhstan has approximately 208.14 metric tonnes.[15] Malaysia by contrast has 37.9 metric tonnes.[15] Globally, the US is the leading contender, with a staggering 8,133.5 metric tonnes of gold, followed by Germany with 3,378.2 metric tonnes, and bizarrely the IMF which has 2,814 metric tonnes of gold.[13] The reasons for countries buying gold is to safeguard against inflation.[13] Malaysia also has a second gold bullion coin, issued by the Perak State Government.

Malaysia's second 99.99% pure gold bullion coin, minted in 2011.[16]
The effects of the Asian financial crisis, caused by Thailand.
Financial Crisis:— As of 2014, Malaysia does not have a significant role in global gold trading, unlike it's counterparts the United Kingdom and the United States.[17] However gold serves an important source of economic security during troubling times, from where the idea of first minting gold bullion first arose.[17] During the 1997 Asian financial crisis for instance, which had profound and devastating consequences across East Asia, policy makers in the country, as well as investors, showed great interest in gold investment opportunities.[17] The crisis was so bad that once it began to spread, resilient economies such as South Korea even began to see it's economy falter. This ended the "Miracle on the Han River" and threatened to destabilise, at the time, the worlds 11th largest economy, which it did, with the country forced to get a $58 billion bailout package from the IMF.[18] This was reinforced when the second more serious western financial crisis hit the country in 2008, where citizens also exhibited similar interest.[17] As a result the Malaysia's coin was officially created in 2000.[17] The price of the gold coins are not done through stock price, but rather from the cental bank.[17] The Kuala Lumpur Composite Index (KLCI) represents the stock market prices of the country, whereas the prices for the Kijang Emas are collected by the Central Bank of Malaysia.[17] Together gold prices and stock returns are computed using continuous compounded return.[17] In other words, prices are found on a per day basis, and, covering for holidays, gold prices are set for the previous working day of trading.[17]
Packaging
.
A gold bullion coin, seen in actuality.
The obverse of the gold bullion coins.
Property Coin 1 Coin 2 Coin 3
Face Value RM200 RM100 RM50
Gold Purity 99.99% 99.99% 99.99%
Weight 31.105g 15.550g 7.780g
Diameter 37mm 28mm 22mm
Ringgit Value RM5,736 RM2,922 RM1,488
US Dollar Value $1,298 $649 $324
The RM50 ringgit gold bullion Malaysian coin; note the Arabic writing, which was not there on the older 1971 coin.
The RM100 ringgit gold bullion Malaysian coin; note the Arabic writing, which was not there on the older 1971 coin.
The RM200 ringgit gold bullion Malaysian coin; note the Arabic writing, which was not there on the older 1971 coin.
The 1971 gold Malaysian coin; was not a gold bullion coin, although it was made up of 91.7% gold. True gold bullion coins are more than 99.5% gold.

Introduction:— The "Kijang Emas" coin is a series of three gold bullion coins that were first issued by the Malaysian "Bank Negara Malaysia" company, at the turn of the millennium (2000). When they were first minted, they were given a face value of RM50 ringgits (containg 7.780g of gold; or 1 troy ounce), RM100 ringgits (15.550g; 0.5 troy ounce) and RM200 ringgits (31.105g; 0.25 troy ounce), all with a purity of 99.99% (24K gold).[1][2][3] Although Malaysia has released other gold coins prior to the year 2000, they were never gold bullion coins in the true sense.[1] It is imperative to understand the difference between normal gold coins and gold bullion, anything above a purity of 99.5% gold can classified as bullion, whereas anything below this value isn't.[4] In actual fact the first gold coin to be minted in Malaysia after their independence in 1957 was the RM100 ringgit 18.660g (0.5502 troy ounces), 91.7% purity 1971, gold coin.[1] The current face value of the gold bullion coins are however $11.95 dollars,[5] $23.91 dollars[6] and $47.82 dollars,[7] but have an actual weight-value of $1,298.66 dollars,[8] $649.18 dollars[9] and $324.80 dollars by November 2nd, 2016.[10] The purchase price of the gold coins is actually based on the international gold price, and is quoted daily.[2] Additionally, these gold bullion coins are available for public purchase, whether from jewellery shops or certain banks themselves.[2] It should also be noted that this only forms the physical gold market in Malaysia, but there is a paper gold market as well.[2]

Malaysia's second 99.99% pure gold bullion coin, minted in 2011.[16]

History:— With the mintage of the coins, according to Bank Negara, Malaysia became the 12th country in the world to mint their own bullion, with some of the other countries being the Mexican "libertad" (1991—Present), UK "britannia" (1987—Present), Austrian "viena philharmonic" (1989—Present), Australian "nugget" (1986—Present), US "eagle" (1986—Present), Chinese "panda" (1982—Present), Canadian "maple leaf" (1979—Present), and the South African "krugerrand" (1967—Present).[11] However these currently do not account for more than 99.5% purity, these are just the current gold coin production as of 2015.[11] Canada's first 99.99% gold coin was issued in 1979, Australia 1987, China in 1986, Austria 1989, USA 2006 and UK 2013.[12] This would make Canada the first country to produce 99.99% pure gold coins, and Malaysia the fifth. Despite saying this, Malaysia does not trade it's gold bullion heavily internationally. When compared to other Muslim countries, the highest amount of gold reserves is held by Turkey (474.4 metric tonnes), Saudi Arabia (322.9 metric tonnes) and Lebanon (286.8 metric tonnes).[13][14] Kazakhstan has approximately 208.14 metric tonnes.[15] Malaysia by contrast has 37.9 metric tonnes.[15] Globally, the US is the leading contender, with a staggering 8,133.5 metric tonnes of gold, followed by Germany with 3,378.2 metric tonnes, and bizarrely the IMF which has 2,814 metric tonnes of gold.[13] The reasons for countries buying gold is to safeguard against inflation.[13] Malaysia also has a second gold bullion coin, issued by the Perak State Government.

The effects of the Asian financial crisis, caused by Thailand.
Financial Crisis:— As of 2014, Malaysia does not have a significant role in global gold trading, unlike it's counterparts the United Kingdom and the United States.[17] However gold serves an important source of economic security during troubling times, from where the idea of first minting gold bullion first arose.[17] During the 1997 Asian financial crisis for instance, which had profound and devastating consequences across East Asia, policy makers in the country, as well as investors, showed great interest in gold investment opportunities.[17] The crisis was so bad that once it began to spread, resilient economies such as South Korea even began to see it's economy falter. This ended the "Miracle on the Han River" and threatened to destabilise, at the time, the worlds 11th largest economy, which it did, with the country forced to get a $58 billion bailout package from the IMF.[18] This was reinforced when the second more serious western financial crisis hit the country in 2008, where citizens also exhibited similar interest.[17] As a result the Malaysia's coin was officially created in 2000.[17] The price of the gold coins are not done through stock price, but rather from the cental bank.[17] The Kuala Lumpur Composite Index (KLCI) represents the stock market prices of the country, whereas the prices for the Kijang Emas are collected by the Central Bank of Malaysia.[17] Together gold prices and stock returns are computed using continuous compounded return.[17] In other words, prices are found on a per day basis, and, covering for holidays, gold prices are set for the previous working day of trading.[17]
Packaging
.
A gold bullion coin, seen in actuality.
The obverse of the gold bullion coins.
Property Coin 1 Coin 2 Coin 3
Face Value RM200 RM100 RM50
Gold Purity 99.99% 99.99% 99.99%
Weight 31.105g 15.550g 7.780g
Diameter 37mm 28mm 22mm
Ringgit Value RM5,736 RM2,922 RM1,488
US Dollar Value $1,298 $649 $324
The RM50 ringgit gold bullion Malaysian coin; note the Arabic writing, which was not there on the older 1971 coin.
The RM100 ringgit gold bullion Malaysian coin; note the Arabic writing, which was not there on the older 1971 coin.
The RM200 ringgit gold bullion Malaysian coin; note the Arabic writing, which was not there on the older 1971 coin.

Sources

References

  1. ^ a b c d e f Arthur L. Friedberg; Ira S. Friedberg (2009). Gold Coins of the World: From Ancient Times to the Present: an Illustrated Standard Catalogue with Valuations. Coin & Currency Institute. p. 587. ISBN 978-0-87184-308-1.
  2. ^ a b c d e f g h Van-Nam Huynh; Vladik Kreinovich; Songsak Sriboonchitta (28 December 2015). Causal Inference in Econometrics. Springer International Publishing. p. 229. ISBN 978-3-319-27284-9.
  3. ^ a b Kijang Emas Gold Bullion Coins. Maybank. Retrieved November 2nd, 2016.
  4. ^ a b Joe Duarte (7 November 2014). The Everything Investing in Your 20s & 30s Book: Learn How to Manage Your Money and Start Investing for Your Future--Now!. "F+W Media, Inc.". p. 192. ISBN 978-1-4405-8085-7.
  5. ^ a b RM50 Ringgits to US Dollars. Wolfram Alpha. Retrieved November 2nd, 2016.
  6. ^ a b RM100 Ringgits to US Dollars. Wolfram Alpha. Retrieved November 2nd, 2016.
  7. ^ a b RM200 Ringgits to US Dollars. Wolfram Alpha. Retrieved November 2nd, 2016.
  8. ^ a b Price of 31.105g in US Dollars. Wolfram Alpha. Retrieved November 2nd, 2016.
  9. ^ a b Price of 15.550g in US Dollars. Wolfram Alpha. Retrieved November 2nd, 2016.
  10. ^ a b Price of 7.780g in US Dollars. Wolfram Alpha. Retrieved November 2nd, 2016.
  11. ^ a b c d Mark Anthony Benvenuto (16 October 2015). Industrial Inorganic Chemistry. De Gruyter. p. 120. ISBN 978-3-11-033033-5.
  12. ^ a b GOLD BULLION COINS AN INTERNATIONAL GUIDE. pg. 2. Gold Bars Worldwide. Retrieved November 3rd, 2016.
  13. ^ a b c d e f Gold reserves by country as of August 2016 (in metric tons). Statista. Retrieved November 3rd, 2016.
  14. ^ a b Will Martin, Elena Holodny (August 13th, 2016). The 16 countries with the biggest piles of gold. Business Insider (UK). Retrieved November 3rd, 2016.
  15. ^ a b c d Jasmine Ng, Ranjeetha Pakiam (August 24, 2015). Kazakhstan, Malaysia Boost Gold Reserves; Colombia Cuts Holdings. Bloomberg. Retrieved November 3rd, 2016.
  16. ^ a b A.M. Hafizi, Noreha Halid, Norzalita Abdul Aziz, Hawati Janor (2012). Gold Investment in Malaysia: Its Operation, Contemporary Applications and Shariah Issues. pg. 10. Retrieved November 3rd, 2016.
  17. ^ a b c d e f g h i j k l m n o p q r Van-Nam Huynh; Vladik Kreinovich; Songsak Sriboonchitta; Komsan Suriya (15 December 2014). Econometrics of Risk. Springer. p. 210. ISBN 978-3-319-13449-9.
  18. ^ a b Frank Holmes (March 3rd, 2016). Your Country Needs Your Gold. Bullion Vault. Retrieved November 3rd, 2016.

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