HelloGold has been around for quite some time – I registered for it few years back but never really got started until recently, when gold price rallied tremendously recently.
I believe it’s time to write a comprehensive HelloGold review so my readers can make an educated decision on how to where to buy gold.
Should you still invest in gold?
I believe that gold has a role to play in your overall portfolio. Nick Magiulli has written about it, backed by data. Click here to read more about why gold is valuable.
This means that while gold is not good to hold on its own, it’s good to hedge against other risks due to its negative correlation with other asset classes.
HelloGold Review
Why did I choose HelloGold to start my gold accumulation journey? I did some research by comparing HelloGold against other ways to buy gold, detailed below:
- HelloGold vs Public Gold
- HelloGold vs Gold Investment Account (banks) – coming soon
- HelloGold vs Gold ETF – coming soon
I believe HelloGold has some merits and the pros outweigh the cons.
HelloGold Features
- Easy-to-use mobile app
- Live gold prices
- Send and receive gold – if you can’t think of any gifts to buy, it’s always a good idea to gift someone gold. Stand out from the crowd!
- Secure – all the physical gold is stored in their vaults in Singapore.
- SmartSaver program – invest in gold consistently from as low as RM30 with automatic direct debit
HelloGold Advantages
- Low barrier of entry: start as low as RM1
- Lowest price to buy LBMA grade gold in Malaysia compared to jewellery shops, gold trading companies and banks
- Lowest spread (difference between buying and selling price). In general, the narrower the spread is, the lower the price gold has to climb before you make a profit off the initial investment.
HelloGold Disadvantages
- Fees – though I believe the benefits outweigh the downsides
If you buy physical gold (such as from Public Gold), you’ll have to contend with all the headache that comes with it, such as transport and storage.
Security is a top concern as theft and burglary could happen, even if you store your physical gold in a safe inside your house. Not to mention other security and disaster risks, such as fire and floods.
You can opt for safer storage solutions in the market, but if you intend to store for long-term, the costs might be more expensive than the annual 2% charged by HelloGold.
If you value peace of mind, HelloGold might be a better solution.
Should You Buy Gold with HelloGold?
There is no right or wrong answer, as it depends on your objective.
If your goal is to take advantage of the swing in gold price, buying a gold ETF might be more cost effective.
Personally, I choose to use HelloGold because of the speed and convenience as everything can be done online.
If you decide to open a HelloGold account, please feel free to use my referral code and both of us will get RM5 when you buy RM50 worth of gold for the first time.
With the 2% charge, won’t you be losing money if the gold average gold proce remains the same throughout the year?
Think of it as holding cost. If you’re buying physical gold and keeping it somewhere secure, chances are you’d be incurring costs as well (unless you’re comfortable keeping your gold at home).
But hypothetically yes, you’ll lose money if gold price stays flat or even decreases.