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How to Track Realized and Unrealized Profit on Physical Gold in Malaysia

Jasmine YapFounder & Lead Developer · Aug 10, 2026

Physical-gold investors in Malaysia should record realized profit only when gold is sold or otherwise disposed of for value. Gold that remains unsold should be reported as unrealized profit or loss, based on a dated and executable dealer buyback quote. Gold pledged under Ar-Rahnu should be tracked separately as net equity, because financing proceeds are debt rather than investment profit.

A practical workflow is:

1. Record every purchase as a separate lot, including its all-in cost.

2. Calculate the remaining cost basis after any partial sale.

3. Value unsold gold using a dated dealer buyback quote for the correct purity and product.

4. Record realized profit only when gold is sold or disposed of for value; redemption of pledged gold is normally a financing settlement, not a sale.

5. Track Ar-Rahnu principal, charges, maturity dates, and collateral equity separately from portfolio return.

What is the difference between realized and unrealized profit?

Realized profit is the gain or loss from a completed sale or other disposal for value. Unrealized profit or loss is the estimated result on gold that is still held.

Redeeming gold from Ar-Rahnu does not normally create realized profit. Redemption is usually the settlement of a financing obligation. It becomes a realization event only if the redeemed gold is subsequently sold or transferred for value.

Use this formula for a completed sale:

Realized profit = net sale proceeds − allocated cost basis − selling fees − directly attributable costs

Net sale proceeds means the amount actually received after buyer or dealer deductions. Directly attributable costs may include delivery, assay, storage, insurance, payment charges, or other transaction costs when applicable.

For gold that remains unsold:

Unrealized P/L = current liquidation value − remaining cost basis

Where:

Current liquidation value = net gold weight × executable dealer buyback price − expected selling deductions

This is a valuation estimate, not cash income. A dashboard should label it clearly so users do not confuse a displayed gain with spendable money.

Why should valuation use a buyback price instead of a selling price?

Use the price a dealer is realistically willing to pay, not the higher price the dealer charges a buyer. The difference between the two prices is a spread that the investor must overcome before breaking even.

For example, Public Gold’s page displayed a 999-gold selling price of RM583 per gram and a Public Gold buyback price of RM530 per gram. The page showed a last update of 28 July 2026. The RM53 difference is approximately 9.1% of the RM583 selling price:

RM53 ÷ RM583 × 100 ≈ 9.1%

The same page also displayed a non-Public Gold 999 buyback price of RM520 per gram. These figures are time-sensitive: the page was retrieved on 2 August 2026, displayed a 28 July 2026 update, and may change during the day. Treat them as a dated example rather than an evergreen rate. (publicgold.com.my)

The break-even calculation is more useful than the spread percentage alone. If an investor pays RM583 per gram and there are no other costs, a RM530 buyback quote produces an immediate RM53-per-gram shortfall. The investor needs a later buyback price above RM583 per gram merely to recover the metal purchase price. If the investor also paid a premium, delivery, storage, or selling fees, the required break-even price is higher.

Dealer spread is not necessarily the investor’s full total cost. Total cost may also include:

• Product premium or workmanship charges
• Delivery and handling
• Storage or insurance
• Assay or testing fees
• Payment or platform charges
• Selling or shipping deductions

For portfolio valuation, record the following:

• Dealer and product brand
• Purity and product type
• Net gold weight
• Current buyback quote
• Whether the quote applies to that dealer’s own product or non-dealer gold
• Quote date and time
• Expected deductions
• Source of the quote

Bank Negara Malaysia’s Kijang Emas prices can be used as a market benchmark, but they are not necessarily the price an investor can obtain from a Malaysian dealer for a particular bar, coin, or jewellery item. Prioritize an executable dealer buyback quote for portfolio valuation. (corpwb01.bnm.gov.my)

How do you calculate cost basis for physical gold?

Cost basis should include the acquisition costs assigned to the gold being measured, not only the headline gold price.

For each purchase lot, record:

• Transaction date
• Lot ID or serial number
• Dealer
• Product type and brand
• Purity
• Gross weight
• Net gold weight
• Metal price
• Premium or workmanship charge
• Delivery and handling
• Storage or insurance allocated to the lot
• Other directly attributable acquisition costs
• Total acquisition cost

For a simple portfolio-level management view:

Weighted-average cost per gram = total allocated acquisition cost ÷ total net gold grams held

For example, if 20 grams cost RM11,000 including directly attributable charges:

RM11,000 ÷ 20 g = RM550 per gram

At a dealer buyback quote of RM530 per gram:

20 g × RM530 − RM11,000 = −RM400 unrealized P/L

The result remains unrealized until the gold is sold.

FIFO, lot-by-lot, and weighted-average methods

Use lot-by-lot tracking when you know which bar, coin, or jewellery item was sold. Assign that item’s actual cost and related costs to the sale.

Use FIFO when your records identify units by acquisition sequence but not by physical item. FIFO treats the earliest acquired units as sold first.

Use weighted-average cost as a practical management convention when many similar purchases are combined. It is useful for dashboards, but it is not automatically the only legally or accounting-required treatment for every investor. If formal financial reporting or tax treatment is involved, obtain professional advice.

How to allocate premiums and fees when only part of a lot is sold

Suppose a 10-gram bar was acquired for:

• Metal price: RM5,400
• Premium: RM100
• Delivery: RM50
• Total cost: RM5,550

The all-in cost is RM555 per gram. If 4 grams are sold and the lot is homogeneous, allocate:

4 g × RM555 = RM2,220 allocated cost

The remaining 6 grams retain:

6 g × RM555 = RM3,330 remaining cost basis

If the premium or delivery charge relates specifically to the entire bar and is not transferable, allocating it pro rata is a reasonable management convention. If a fee relates only to the sold portion, allocate it entirely to the sale. Document the method and apply it consistently.

For mixed-purity jewellery, do not allocate cost solely by gross weight. First separate gemstone weight, non-gold components, purity, and any workmanship value that the buyer may not recognize.

How should 999, 916, and 750 gold be valued?

Track 999, 916, and 750 gold as separate positions unless a dealer provides a clearly defined conversion method. Their buyback prices, deductions, resale demand, and lender valuations can differ.

• 999 gold: approximately 99.9% fineness
• 916 gold: approximately 91.6% fineness
• 750 gold: approximately 75.0% fineness

For jewellery, distinguish between gross weight and net gold-bearing weight.

Worked jewellery example

Assume a 916-gold ring has:

• Gross weight: 10.0 grams
• Gemstones: 1.2 grams
• Net metal weight: 8.8 grams
• Dealer’s 916 buyback quote: RM420 per gram
• Dealer deduction: 2% of the calculated gold value

The estimated gross buyback value is:

8.8 g × RM420 = RM3,696

The 2% deduction is:

RM3,696 × 2% = RM73.92

Estimated net proceeds are:

RM3,696 − RM73.92 = RM3,622.08

If the dealer instead quotes a 999-equivalent price, calculate fine-gold equivalent weight first:

8.8 g × 0.916 = 8.0608 g fine-gold equivalent

Then apply the dealer’s stated 999-equivalent quote. Do not mix these methods. Confirm whether a quoted price is based on gross jewellery weight, net metal weight, fine-gold equivalent weight, or a dealer-specific deduction schedule.

How should Ar-Rahnu gold be tracked separately from investment profit?

Ar-Rahnu financing proceeds are debt. They are not realized profit, income, or an increase in the gold’s cost basis.

Track at least:

• Current dealer buyback value
• Lender’s marhun value
• Outstanding principal
• Accrued profit charges
• Paid profit charges
• Redemption or settlement fees
• Storage, insurance, or safekeeping charges, if applicable
• Possible auction or disposal costs
• Maturity date
• Status of the ticket

Use a detailed net-equity formula:

Net equity = current liquidation value − outstanding principal − accrued profit charges − redemption fees − storage or insurance charges − applicable auction-related costs

Separate paid financing charges from accrued charges so that the dashboard shows both cash flow and the amount required to settle the ticket.

The lender’s marhun value is not the same as the investor’s market value or profit. For example, Agrobank states that its Ar-Rahnu financing can be up to 80% of the current gold price or marhun value displayed by the bank, with an 18-month tenure and profit payments at specified intervals. Bank Rakyat’s Virtual Ar-Rahnu-i page also states financing of up to 80% of marhun value and an 18-month structure, but its product is limited to eligible eGold holdings maintained with iRakyat. Terms, eligibility, valuation rules, and charges differ by institution. (agrobank.com.my)

A loan increases cash on hand and increases liabilities by the same financing amount. It should appear in a cash-flow view as financing received, not as investment return.

How can investors manage Ar-Rahnu maturity and auction risk?

Track every Surat Pajak separately and verify the lender’s current written terms before the payment or maturity date. Do not assume that an extension, renewal, or automatic rollover is available.

Each ticket should include:

• Lender and branch
• Surat Pajak number
• Pledge date
• Pledged item description and weight
• Purity and lender valuation
• Principal advanced
• Profit-charge rate and payment schedule
• Amount already paid
• Next payment date
• Maturity date
• Extension or renewal conditions
• Current settlement amount
• Status: active, redeemed, extended, overdue, or auction-related

If the gold is auctioned, the lender’s terms generally determine how sale proceeds are applied. Possible deductions may include outstanding principal, accrued profit charges, storage or handling costs, legal or auction expenses, and other contractually permitted charges. If proceeds exceed the applicable debt and costs, a surplus may be payable to the customer; if proceeds are insufficient, the treatment of any shortfall depends on the lender’s terms and applicable law.

Do not rely on a general assumption about Lebihan Tunai. Review the applicable Surat Pajak, product disclosure sheet, auction notice, and lender correspondence. Ask the lender directly how proceeds, fees, surplus, and any shortfall will be handled.

Illustrative “Tambah Emas” scenario

Assume an investor has an Ar-Rahnu ticket nearing maturity. The investor owns additional unpledged 999 gold and considers pledging it to obtain funds for settlement or renewal.

A possible sequence is:

1. The lender revalues the additional gold under its current purity, product, and branch rules.

2. The lender determines the eligible marhun value and financing margin.

3. The investor compares the new financing available with the old ticket’s settlement amount, accrued charges, and any fees.

4. The investor decides whether the arrangement reduces immediate auction risk without creating an unmanageable larger debt.

5. The investor records the new ticket separately and does not treat the additional financing as profit.

This is an illustrative financing scenario, not a recommendation or guaranteed renewal strategy. Approval may depend on lender eligibility, branch policy, valuation, acceptable gold types, customer repayment history, available margin, and current documentation. Confirm the lender’s written terms before pledging additional gold.

What data model should a GoldGram.my user maintain?

Whether the records are kept in GoldGram.my, a spreadsheet, or accounting software, use a structure that separates transactions, holdings, sales, valuations, and financing.

Purchase-lot fields

• Transaction date
• Lot ID
• Dealer
• Product type
• Brand or refinery
• Serial number, if available
• Purity
• Gross weight
• Net gold weight
• Metal price
• Premium
• Delivery and handling
• Storage or insurance allocation
• Other acquisition fees
• Total cost basis
• Payment evidence location
• Status: held, partially sold, sold, or transferred

Sale fields

• Sale date
• Lot ID or allocation method
• Gross and net weight sold
• Purity
• Buyer or dealer
• Quoted buyback price
• Quote timestamp
• Gross proceeds
• Selling fees and deductions
• Net proceeds
• Allocated cost basis
• Realized P/L

Valuation fields

• Valuation date
• Valuation source
• Dealer and product category
• Quote timestamp
• Buyback price
• Net gold weight valued
• Expected deductions
• Current liquidation value
• Remaining cost basis
• Unrealized P/L

Ar-Rahnu fields

• Lender
• Branch
• Surat Pajak number
• Pledge date
• Pledged lot IDs
• Purity and weight
• Lender’s marhun value
• Principal advanced
• Profit charges accrued
• Profit charges paid
• Redemption fees
• Storage or insurance charges
• Possible auction-related costs
• Maturity date
• Next payment date
• Status
• Settlement amount
• Net equity

Complete end-to-end example

Assume the following figures are illustrative management assumptions, not live market quotes.

1. Purchase

An investor buys a 10-gram 999 bar:

• Metal and product cost: RM5,400
• Premium: RM100
• Delivery: RM50
• Total cost basis: RM5,550
• All-in cost per gram: RM555

2. Current valuation

The investor records an executable buyback quote of RM600 per gram, timestamped on the valuation date.

10 g × RM600 = RM6,000 current liquidation value

Before any sale or pledge:

RM6,000 − RM5,550 = RM450 unrealized P/L

3. Partial sale

The investor sells 3 grams for RM600 per gram and pays a RM15 selling fee.

Gross proceeds = 3 g × RM600 = RM1,800

Net proceeds = RM1,800 − RM15 = RM1,785

Using lot-by-lot or pro-rata allocation:

Allocated cost basis = 3 g × RM555 = RM1,665

Realized profit = RM1,785 − RM1,665 = RM120

4. Remaining holding

The investor has 7 grams left.

Remaining cost basis = 7 g × RM555 = RM3,885

At the same RM600 buyback quote:

7 g × RM600 = RM4,200

Remaining unrealized P/L = RM4,200 − RM3,885 = RM315

The investor’s realized profit is RM120, while the remaining unrealized profit is RM315. They should not be combined without labeling the two categories.

5. Ar-Rahnu pledge

The investor pledges 4 of the remaining 7 grams. Assume the lender assesses marhun value at RM550 per gram and advances 80%:

Marhun value = 4 g × RM550 = RM2,200

Principal advanced = RM2,200 × 80% = RM1,760

Assume current dealer liquidation value remains RM600 per gram:

Current value of pledged gold = 4 g × RM600 = RM2,400

If accrued financing charges and settlement costs total RM30:

Net equity in pledged gold = RM2,400 − RM1,760 − RM30 = RM610

The RM1,760 received is financing cash, not realized profit. The RM610 is an equity estimate after the stated charges, not a guaranteed amount available without checking the lender’s actual settlement figure.

The investor should show separately:

• Realized P/L: RM120
• Unrealized P/L on remaining gold: based on current value less remaining cost basis
• Financing cash received: RM1,760
• Ar-Rahnu liability: RM1,760 plus applicable charges
• Pledged-gold net equity: RM610 under the stated assumptions
• Cash flow: sale proceeds and financing proceeds, each labeled separately

Portfolio return, profit, cash flow, and net equity are different metrics

A useful dashboard should define its metrics explicitly:

• Realized P/L: profit or loss from completed sales or other disposals for value.
• Unrealized P/L: estimated gain or loss on unsold gold using a dated buyback valuation.
• Portfolio return: realized P/L plus unrealized P/L, compared with the relevant contributed capital or cost basis. State whether fees and financing costs are included.
• Cash flow: money paid or received, including purchases, sales, financing proceeds, repayments, and fees.
• Net equity: current liquidation value minus liabilities and directly applicable charges.

This prevents a dashboard from treating an Ar-Rahnu loan as an investment gain or treating a paper valuation increase as spendable cash.

Monthly physical-gold tracking checklist

At least once a month, reconcile:

• Physical grams held
• Purity by position
• Gross versus net jewellery weight
• Remaining cost basis
• Current dealer buyback quote
• Quote timestamp and source
• Realized sales and allocated costs
• Pledged versus unpledged gold
• Outstanding Ar-Rahnu principal
• Accrued and paid charges
• Next payment and maturity dates
• Current net equity
• Any expected selling, storage, assay, or auction costs

Keep invoices, payment evidence, product identifiers, buyback quotes, Surat Pajak documents, loan statements, settlement receipts, and lender correspondence. Also verify the dealer or financing institution independently; the Securities Commission Malaysia states that its Investor Alert List is not exhaustive, so absence from the list should not be treated as proof of authorization.

Frequently Asked Questions

What is realized profit on physical gold?

Realized profit is the net gain or loss recognized after gold is sold or otherwise disposed of for value. It is calculated after subtracting the allocated cost basis and directly attributable selling costs.

What is unrealized profit on physical gold?

Unrealized profit is an estimate based on the current executable buyback value of gold still held, minus its remaining cost basis and expected selling deductions. It is not cash income until the gold is sold.

Should I use a buyback price or selling price?

Use a realistic dealer buyback price for portfolio valuation. A dealer’s selling price is the price you pay to acquire gold and may overstate what you can receive on liquidation.

How do I calculate cost basis for a partial sale?

Allocate the cost of the sold gold using lot-by-lot cost, FIFO, or a consistently applied weighted-average management convention. Allocate premiums and delivery pro rata when they relate to the whole lot, and assign sale-specific fees directly to the sale.

Should 999, 916, and 750 gold be combined?

Usually not. Track each purity separately because dealer quotes, deductions, lender valuations, and resale conditions may differ. For jewellery, remove gemstone and non-gold weight before applying a gold valuation.

Is Ar-Rahnu financing realized profit?

No. Ar-Rahnu proceeds are financing secured by pledged gold. Record them as cash received and a liability. Redemption of the gold is normally a financing settlement, not a sale. Realization occurs if the gold is later sold or transferred for value.

How do I calculate Ar-Rahnu net equity?

Use current liquidation value minus outstanding principal, accrued profit charges, redemption fees, storage or insurance charges, and applicable auction-related costs. Confirm the final settlement amount with the lender.

What happens if pledged gold is auctioned?

The lender’s terms determine how auction proceeds are applied. Proceeds may be used for principal, accrued charges, storage or handling, auction expenses, and other permitted costs. Any surplus may be payable to the customer, while the treatment of a shortfall depends on the lender’s terms. Check the Surat Pajak and written auction notice directly with the lender.

Can “Tambah Emas” guarantee an Ar-Rahnu renewal?

No. Pledging additional gold may provide a possible source of settlement or renewal funds, but approval depends on the lender’s eligibility rules, valuation, acceptable gold, branch procedures, charges, and repayment assessment. Obtain written confirmation before relying on the strategy.

References

• https://goldgram.my
• https://www.agrobank.com.my/my/product/ar-rahnu
• https://www.bankrakyat.com.my/portal-main/article/virtual-ar-rahnu
• https://staging001.bnm.gov.my/kijang-emas-prices