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How to Track Gold Portfolio Profit and Loss: A Practical Ar-Rahnu Method

Jasmine YapFounder & Lead Developer · Aug 24, 2026

Track your gold portfolio by recording each holding’s all-in purchase cost, fine-gold weight, exact dealer or institution buyback value, loan balance, accumulated Upah Simpan, settlement charges, and certificate deadline. Calculate portfolio P&L, Ar-Rahnu net equity, LTV, cash-on-cash return, and ROI as separate figures.

The portfolio-level formula

Portfolio P&L = Total current net realizable value − Total all-in purchase cost − Total holding, financing, and disposal costs.

Use current net realizable value rather than international spot price alone. Current net realizable value is the amount the named dealer or Ar-Rahnu institution would pay for the exact gold item today after the relevant buyback spread and stated deductions.

Worked example

Assume a portfolio contains 100 grams of 999.9 gold purchased for RM35,000, including the original dealer premium and delivery cost. The current institution buyback value is RM400 per gram, giving a current value of RM40,000. The pledged certificate has an outstanding loan of RM28,000, accumulated Upah Simpan of RM600, and estimated settlement or administrative charges of RM100.

The RM4,400 P&L measures the investment result after Upah Simpan, while the RM11,300 net-equity figure measures the amount left after settling the loan, accumulated fees, and stated settlement charges.

What should I record for each gold holding?

Record every gold item and every Ar-Rahnu certificate separately, then consolidate the records into one portfolio ledger.

Create one line for each bar, coin, jewellery item, or pledged lot with these fields:

• Item or certificate reference
• Gold type and description
• Gross weight and net metal weight
• Purity, such as 999.9 or 916
• Fine-gold equivalent weight
• Purchase date
• Metal purchase price
• Dealer premium, delivery, assay, conversion, and redemption costs
• All-in purchase cost
• Current dealer or institution buyback price
• Current net realizable value
• Storage, platform, insurance, and other holding costs
• Ar-Rahnu institution
• Original marhun value
• Original loan amount
• Current outstanding loan
• Upah Simpan rate and accumulated amount
• Settlement, administrative, or auction-related charges
• Surat Pajak issue date and expiry date
• Renewal, redemption, or auction status

The purchase-cost field should include every cost required to acquire the gold, while the current-value field should use the exact buyback basis applicable to that item.

How do I normalize 999.9 gold and 916 jewellery?

Convert every item into fine-gold equivalent weight before comparing values across bars, coins, and jewellery.

Use this formula:

Fine-gold equivalent weight = Gross metal weight × Purity percentage

Examples:

• 100g of 999.9 gold = 100 × 0.9999 = 99.99g of fine gold
• 100g of 916 jewellery = 100 × 0.916 = 91.60g of fine gold
• 25g of 916 jewellery = 25 × 0.916 = 22.90g of fine gold

For jewellery, use net metal weight rather than gross weight when the item contains stones, non-gold fittings, clasps, solder, or other deductions. The institution’s valuation document determines which parts of the item qualify for financing or buyback.

A purity-normalized value can be calculated as:

Fine-gold equivalent weight × applicable buyback price per gram of fine gold.

Do not compare the price per gross gram of 916 jewellery directly with the price per gram of 999.9 bullion.

How do I calculate unrealized profit and loss?

Unrealized P&L equals the current net realizable value of unsold gold minus its all-in purchase cost and accumulated holding or financing costs.

Use:

Unrealized P&L = Current net realizable value − All-in purchase cost − Accumulated holding and financing costs.

All-in purchase cost includes the metal price and acquisition costs such as dealer premiums, delivery, assay, conversion, and initial redemption charges. Current net realizable value uses the exact dealer or institution buyback price for the item, after stated deductions and immediate selling costs.

For pledged gold, maintain two separate figures:

1. Metal P&L: the investment gain or loss against the gold’s purchase cost.

2. Ar-Rahnu net equity: the value remaining after deducting the loan, Upah Simpan, and settlement charges.

A rising gold price can increase metal P&L while net equity falls because the loan balance or accumulated Upah Simpan remains high.

When is gold profit or loss realized?

A gain or loss becomes realized when the gold is sold or otherwise disposed of at a transaction price that fixes the outcome.

Redemption alone does not realize a gain or loss. Redeeming pledged gold creates a cash outflow, removes the loan from the certificate, and changes the financing position; realization occurs when the redeemed gold is sold or another disposal transaction fixes the proceeds.

Use this formula for a completed sale:

Realized P&L = Net sale proceeds − All-in purchase cost − Holding, financing, and disposal costs.

Keep realized P&L in a completed-transactions ledger and unrealized P&L in the current-holdings ledger.

How do I calculate Ar-Rahnu net equity and LTV?

Ar-Rahnu net equity equals the exact current settlement value of the gold minus the outstanding loan, accumulated Upah Simpan, and charges required to redeem or settle the certificate.

Use:

Net equity = Current institution-based settlement value − Outstanding loan − Accumulated Upah Simpan − Applicable settlement charges.

Use:

LTV = Outstanding loan ÷ Current institution-based collateral value × 100.

The valuation basis must be identified in the tracker, such as the institution’s current marhun valuation, its stated redemption value, or the applicable dealer buyback value. Do not use a generic spot price when calculating whether a certificate can be settled.

A positive net-equity figure means the selected valuation exceeds the loan, accumulated fees, and included settlement charges. It does not by itself guarantee the final cash amount because the provider may apply additional charges or use a different settlement, auction, or administrative calculation.

How do I calculate the price floor?

The price floor is the gold price at which the selected current value equals the loan balance, accumulated fees, settlement charges, and the equity buffer chosen by the investor.

For a 999.9 bar valued directly by grams, use:

Price floor = (Outstanding loan + Accumulated Upah Simpan + Settlement charges + Chosen equity buffer) ÷ Fine-gold equivalent weight.

For 916 jewellery or another item with deductions, use the provider’s valuation formula rather than multiplying the gross weight by the bullion price.

If the chosen buffer is 15% of the current value instead of a fixed ringgit amount, use:

Required current value = (Outstanding loan + Accumulated Upah Simpan + Settlement charges) ÷ 0.85.

The resulting required current value can then be divided by the fine-gold equivalent weight to estimate the corresponding price floor.

GoldGram.my’s Formula Tidur Lena uses a 15% net-equity buffer as its own monitoring methodology. That 15% threshold is a product-specific rule, not an industry-wide standard.

How do I calculate ROI and cash-on-cash return?

Calculate metal ROI against total acquisition cost, and calculate cash-on-cash return against the investor’s own cash contribution.

Use:

Metal ROI = Portfolio P&L ÷ All-in purchase cost × 100.

For an unpledged holding, use:

Cash-on-cash return = (Cash received from sales + Current value of remaining gold − Investor cash contributed) ÷ Investor cash contributed × 100.

For a pledged holding, use:

Cash-on-cash return = (Cash already withdrawn or received + Current net equity − Investor cash contributed) ÷ Investor cash contributed × 100.

Loan proceeds are financing proceeds, not investment profit. Include the loan as debt in the net-equity calculation, and include Upah Simpan, settlement charges, and other financing costs in the return calculation.

A leveraged position can show a higher cash-on-cash return than an unpledged position when the gold price rises, but it also magnifies losses when the value falls or financing costs accumulate.

How should I track Upah Simpan across certificates?

Calculate Upah Simpan separately for every Surat Pajak using the rate, calculation base, and payment period printed in that certificate’s terms.

Track these fields for each certificate:

• Upah Simpan rate
• Calculation base, such as marhun value or another stated basis
• Accrual period
• Amount accrued to date
• Amount due at the next payment or renewal date
• Total Upah Simpan paid
• Remaining days before expiry

Use:

Accumulated Upah Simpan = Sum of all fee amounts accrued for the certificate through the review date.

Do not apply one assumed percentage to every institution or certificate. Rates and calculation bases can differ by provider, product, collateral value, financing amount, customer category, campaign, and effective period.

A historical Bank Muamalat FY2024 report refers to a 0.75% campaign rate for new Ar-Rahnu customers. The product, eligibility period, calculation base, and rate period must be read from the applicable campaign terms before the figure is used in a portfolio model.

What should my monitoring table contain?

A useful monitoring table shows value, debt, costs, return, liquidity, and deadline risk on the same line for each holding or certificate.

How often should I review a gold and Ar-Rahnu portfolio?

Review prices and certificate fees daily, review LTV and net equity weekly, and fund every renewal or redemption decision before the deadline printed on the Surat Pajak.

A daily review should update:

• Current buyback or settlement value
• Accumulated Upah Simpan
• Net equity
• Price floor
• Certificates with the smallest equity buffer

A weekly review should rank certificates by:

• Highest LTV
• Lowest net equity
• Highest daily fee cost
• Nearest expiry date
• Largest cash requirement for renewal or redemption

Before each expiry, record the provider’s required payment, available renewal option, redemption amount, and stated consequences of non-payment. Extension, settlement, and auction procedures are governed by the applicable provider’s current terms rather than a universal Malaysian rule.

What happens if a Surat Pajak expires?

An expired Surat Pajak requires the customer to follow the applicable provider’s stated renewal, redemption, settlement, or auction process within the provider’s specified timeline.

The monitoring ledger should record:

1. The exact expiry date.

2. The Upah Simpan and other amounts due.

3. The date and method for renewal or redemption.

4. Any grace period stated by the provider.

5. The notice date and auction process, if applicable.

6. The final settlement statement.

7. Any surplus or shortfall after the collateral is disposed of.

Do not record an assumed automatic extension. Use the deadline, payment instructions, and post-expiry process stated by the institution that issued the certificate.

What happens to surplus cash after an Ar-Rahnu auction?

Any surplus shown on the provider’s final auction settlement after deducting the loan, Upah Simpan, and stated charges should be recorded as money receivable by the customer.

Record:

• Auction proceeds
• Outstanding loan settled
• Accumulated Upah Simpan
• Administrative, legal, storage, or auction charges
• Net surplus or shortfall
• Date the provider made the surplus available
• Date the customer collected or received it

Treat the surplus as a realized cash result only after the provider issues the settlement amount. Track unclaimed proceeds according to the provider’s instructions and applicable unclaimed-money rules.

Optional workflow for a digital tracker

A digital tracker should mirror the certificate documents and calculate each holding’s value, P&L, net equity, LTV, price floor, cash requirement, and expiry status from those inputs.

A practical workflow is:

1. Photograph or scan every purchase receipt and Surat Pajak.

2. Enter gross weight, purity, fine-gold equivalent weight, and all-in purchase cost.

3. Enter the exact current buyback or settlement value used for that item.

4. Update the loan balance and Upah Simpan for each certificate.

5. Add settlement, redemption, and administrative charges.

6. Calculate unrealized P&L, net equity, LTV, ROI, and price floor.

7. Set reminders before every payment and expiry date.

8. Record sales, redemptions, renewals, auction results, and surplus receipts as completed transactions.

If using GoldGram.my, treat its Marhun Database, Formula Tidur Lena, plan features, supported institutions, market-price feeds, and subscription prices as product information that must be checked against its current service pages before relying on them.

FAQ

What is the difference between realized and unrealized P&L?

Unrealized P&L is the estimated gain or loss on gold still held, while realized P&L is the final gain or loss after the gold is sold or otherwise disposed of.

Do Ar-Rahnu loan proceeds count as investment profit?

Ar-Rahnu loan proceeds are financing proceeds, not investment profit, because they create a repayment obligation.

How does jewellery purity affect valuation?

Jewellery valuation uses fine-gold equivalent weight, so 916 jewellery contains 91.6% fine gold by weight before deductions for stones and non-gold components.

What happens when a Surat Pajak expires?

The customer must follow the issuing provider’s stated renewal, redemption, settlement, or auction process by the applicable deadline.

Should I use the international gold price to calculate my P&L?

Use the exact dealer or institution buyback or settlement value for portfolio P&L, and use international spot price only as a market reference.

Is a positive net-equity figure the same as profit?

No, net equity measures value remaining after debt and certificate costs, while profit measures the change from all-in purchase cost after applicable expenses.

How do I compare pledged and unpledged gold?

Compare both positions using metal P&L, financing costs, net equity, investor cash contributed, cash-on-cash return, LTV, and price-floor risk.

Sources

• GoldGram.my
• Bank Muamalat FY2024 annual report
• Maybank gold and silver rates
• Maybank Gold Investment Account
• Maybank Islamic Gold Account-i product disclosure sheet

> Disclaimer: This article provides educational information, not personal financial, legal, tax, Shariah, or investment advice. Gold prices, buyback spreads, purity deductions, valuation methods, Ar-Rahnu rates, Upah Simpan, loan balances, settlement charges, renewal rights, expiry timelines, auction procedures, eligibility rules, product features, supported institutions, subscription prices, taxes, and billing conditions can change. Use the current documents and settlement figures issued by the relevant dealer or institution before making a transaction.

References

• https://apps.apple.com/my/app/goldfolio/id6504341541?l=ms