It is just a savings account secured by gold. Just like when you put in your money in the bank, you get a bank book and you get interests per year at say 3.5%. When you want to withdraw, you just take out your original amount you put in. That's in a nutshell.

10 August 2012, THE STAR, Nation, Page 33:

Gold traders: It could be a misunderstanding

GEORGE TOWN: Some gold trading companies could have entered Bank Negara’s consumer alert list due to a misunderstanding, said the Gold Bullion Entrepreneurs Association of Malaysia (GBEAM).

GBEAM secretary-general Datuk Joseph Kow said the misunderstanding might have occurred when some customers misunderstood the gold products they had bought from these companies.

“When they make certain queries with Bank Negara regarding their gold purchases, they could have used terms like interest and investment to describe the transactions.

“The terms investment and interest could have triggered Bank Negara’s alert system, prompting it to place these companies under its consumer alert list,” he said.

Kow was commenting on news reports about some gold trading companies that had appeared on the consumer alert list.

He explained that a gold trading company will need a banking licence from the authorities if they are selling gold as a form of investment that generates interest.

Noted with thanks. However, adding my contact numbers is for those who would like to call me directly for further clarification as I'm not online 27/4 to entertain LYN forumers. Thank you.

---

Added on August 13, 2012, 11:18 am
I beg to differ as that is definitely not my intention.
That is to quote the SOURCE, proof of the pudding, not meant to lead others to discuss elsewhere as you assumed. Thank you.

I beg to differ again. I note that you have deleted my reply to edyek below, which does not support your stand  above.
ADDED NOTE: cherroy, much appreciated if you could reinstate the rest of my replies at this thread (if you've deleted them) so forumers following this thread are better informed. Thank you.

Cheers and have a blessed GOLDEN day! 

Pat Lu, (012) 210 4898 or email: goldgoose.my@gmail.com
Senior Consultant @Work
with The World’s Most Innovative Gold Industry Leader
Member, Gold Bullion Entrepreneurs Association of Malaysia (Gold-BEAM)

The banks are probably trading illegally as well.....

DO they have the phsysical gold backing their gold accounts?  i wonder?
Why do they discourage taking up delivery of the physical? i wonder? 

And how do we know that its backed by anything?
Dont the customer have a right to know whats the backing as it is not PIDM?
Isnt doing this tradimg of other gold derived instrsuments conflict of interest as evidenced
by Goldman Sucks housing loan contracts? 
Thats why theres call for banks to separate commercial and investing activities completely.

i dont think they tell you in the prospectus...

when i first invested in PBB gold account in 2008 i think, they allowed physical gold withdrwals.
Then abruptly they discontinued this....wonder why?