Gold Investment in Malaysia: Its Operation, Contemporary Applications and Shariah Issues

This paper provides a comprehensive discussion on the gold investment, its operation and contemporary applications in the context of Malaysia. This paper follows qualitative or descriptive research method, relating to the shariah compliance issues in relation to the status of Malaysia as a country that practices a dual financial system. Gold investment in Malaysia offers a rewarding and secure asset class for investors through two different ways, physical gold or gold account “paper gold”. Gold account allows investor to make deposits when gold prices are low and withdraw the funds at profit when the gold price rises. This paper provides a clear picture of gold investment in Malaysia, the pros and cons of the different ways of gold investment. On the other hand, the shariah compliance issues have been discussed to clarify the status of gold investment from Islamic perspective. Therefore, it serves as good practices of investor’s guideline. This study contributes to the literature since