The Return & Demand of Silver

In the previous post, I mentioned:

  • When Obama took over US in 2008, silver price was less than $15.
  • Right now, silver price in year 2012 is about $32.
  • So, how much silver price be when Obama leaves office in year 2017?

The following is the Total Return Performance of Major Financial Assets during the Obama Presidency: 4th November 2008 to 5th November 2012.

Source: http://www.caseyresearch.com/gsd/sites/default/files/Total%20Returns.jpg

Silver is a clear winner (more than 200% return). Imagine you put RM1,000 into silver in 4/11/08 and you cashed out 4 years later on 5/11/12, your RM1,000 has turned into RM3,000. Gold was only about 1/2 of the return of silver. In other words, if you put RM1,000 into gold in 4/11/08 and you cashed out 4 years later on 5/11/12, your RM1,000 has turned into slightly more than RM2,000 only.

During Obama’s presidency, Quantitative Easing (QE) 1, 2 and 3 were introduced by Federal Reserve. QE1 was supposed to fix the financial crisis in 2008 but it didn’t work. Hence, there came QE2. Unfortunately QE2 didn’t work out as good as the expected, that’s why there was QE3. One of the greatest scientist Albert Einstein said, “insanity is doing the same thing over and over again and expecting different results“. What Federal Reserve doing fits the definition, perfectly!

Tun Dr. Mahathir bin Mohamad said, QE is a privilege for the rich nations only. When Greece lost money, it cannot print currency notes or issue cheques to pay debts. Greece needs to borrow money from European countries to repay loans. Again no currency notes would be involved. The amount lent would be credited to the Central Bank of Greece which then would issue cheques to the commercial banks. We hear that banks like Goldman Sachs have recovered and are able to pay back the loans given them by the Federal Reserve Bank. The quick recovery is through borrowing the Q E money from the Fed at no interest or minimal interest and then buying Government bonds. Buying Government bonds is actually lending money to the Government. The Government has to pay interest on the money borrowed, which gives Goldman Sachs a good return. Hence the quick return to profitability of Goldman Sachs.

When US is doing all the QE they want, let’s take a look at what happened to China.

33% of the China demand comes from jewelry and coins, with the rest from industrial use in photography, solar and electrical appliances. Chinese investors want hard assets such as silver, especially when it’s cheaper than gold and requires less funding.

China government have been encouraging their citizens to invest in precious metal since 2011 hence the spike of Panda coin production in 2011. Being the 3rd largest silver producer in the world, yet China has been a net-importer for silver for MANY YEARS. In layman terms, net-importer means China consumes more silver than it has produced – by importing more silver into the country. In other words, although China is the 3rd largest silver producer in the world, the production is not enough and China has to import more silver from other countries.

Practical Guide For Investing Silver In Malaysia is the No.1 eBook available in Malaysia for investing silver in Malaysia. You will get a solid fundamental for investing silver in Malaysia & learn how to maximize silver investment return. Click here to find out more.

Silver Is Rarer Than Gold

Knowing how great the opportunity in silver is not enough. Every great success is always started by one ACTION. Have you taken your action in silver investment?

Unlike stock, unit trust, and property, investing silver in Malaysia is a very different investment, I have written the eBook titled: Practical Guide For Investing Silver In Malaysia. It is the No.1 eBook available in Malaysia to show you how to invest in silver.

Investors Abandoning Paper Silver To Buy Physical Silver

Silver exchange-traded products (ETP) are typically known as paper silver. When someone buys ETP, he is buying paper silver and NOT physical silver. Some might argue that silver ETPs are backed by physical silver but I would keep this simple. When you buy silver ETP, do you receive physical silver? The answer is NO, that means you are buying paper silver. Simple.

Take a look at the black color bar, the addition to silver ETP (paper silver) is getting less and less since 2009. In fact from year 2010 to 2011, there is a negative growth for paper silver. Clearly, the investors no longer want to put money into paper silver.

Take a look at the orange color bar, investors have tripled their silver bullion purchases since 2007. The investors are buy more and more physical silver and abandoning their paper silver because they sense something wrong with paper silver.

Data showed gold sales for the whole year in 2012 were 525,000 oz. Silver sales were 2,449,000 oz just for the month of October 2012. For the whole year, silver sales were 28,244,000 oz. In other words, silver sales  is 54 times higher than gold. The gold silver ratio in earth crust is only 10 times more but investors are buying silver 54 times faster. How long can this sustain? Don’t be surprised that one day when you wake up, there is no more silver left for you to buy.

Silver is cheaper than gold. However it tends to follow the same upward trends. This would make silver an attractive alternative for investors. In fact, silver has even proven itself to outperform gold. Silver is a finite resource with infinite usage. The opportunity in physical silver is enormous. It is one of the most undervalue precious metal known to man.

Investors who understand what is happening already parking their wealth into physical silver, what are you waiting for?

Practical Guide For Investing Silver In Malaysia is the No.1 eBook available in Malaysia to show you how to invest in silver. The investors around the world are moving their wealth into physical silver, not paper silver. If you want to learn the best way to invest silver in Malaysia, click here to find out more:

Why Now Silver Better Than Gold

Peter Schiff, the CEO of Euro Pacific Precious Metals, LLC has always been very generous sharing his knowledge on precious metal investment.The following are the summarized points in the 8 minutes video:

  • Silver price broke out in August. Silver price has huge potential to shoot up much further. Click here for details. It is not too late to buy gold and silver.
  • QE3 is officially announced in September. Click here for details. He knew QE3 was coming because of QE2. Right now, you have an incredible opportunity in silver.
  • If you want to protect your wealth, you must buy gold and silver. Between now and then, there will be currency crisis.
  • Many investor overlook silver. Don’t ignore the opportunity in silver. As good as the gold chart looks, silver looks even better. Silver is going to make a new high.
  • For gold to get back to 2011 peak, gold has to rise 7%; for silver to get back to 2011 peak, silver has to rise 47%, just to get back to the previous high.
  • Even IF gold price DO NOT rise, silver price has to rise 20% just to get back to the average past 25 years ratio.
  • We have been in silver bull market for 12 years and it has a long way to run. Especially Ben Bernanke has promised to print money. Central banks will print money until the economy collapses.

Right now silver price is $35, silver price will easily shoot up to $200. The eBook Practical Guide For Investing Silver In Malaysia will guide you exactly step by step how to invest in silver. It is the best investment guide for Malaysians on silver investment.

How Much Was Property Price In 1980?

Do you know how much property price was in 1980 in Kuala Lumpur? The younger generation most likely cannot tell but let’s take a look a this scenario. Consider here is an average property:

  • Double storey 22 x 75
  • Less than 10km from city center
  • Reasonably good neighbour.
  • Reasonably good road accessibility.
  • Freehold land
  • Built by reputable developer
  • No water leak, not facing west.
  • Generally no problem.
  • Oh ya, no ghost too :)

In 1980, this property cost around RM60,000

We always hear from the property gurus saying that “we earn when we buy, not when we sell“. That basically means we need to buy undervalue property. In other words, buy below market price.

What if I tell you right now in 2012, this property is selling for 10% below 1980 price?

Do you think this is a good deal? Definitely yes! This property would easily cost RM400,000 to RM500,000 today. I would dig out all the cash hiding under my pillow and go for this deal. Unfortunately, this kind of property is almost non-existence. There is NO one thing that still has the price of 1980 in today’s measurement. Everything has gone up in price due to inflation.

However there is one thing is still selling below 1980’s price: SILVER

Everything else including gold price, petrol price, property price, stock market has gone up in price except silver. Silver price was almost $50 in 1980 but right now in 2012, silver price is just around $33. Not only it is below 1980 price, it is 30% below 1980 price!

Interestingly, the amount of available silver in 1980s was 4 billion oz. The amount of available silver in 2012 is only left with 1 billion oz.

The available silver is getting lesser and lesser. But the price is still below 1980 price. The demand for silver is going to push the price up to the sky. After adjusted for inflation, as long as silver has not reach $200, silver is still an undervalue asset for investor to invest.

Right now is the best time to start investing in silver. If you do not take action now, silver price might have just shoot up to sky high without warning and you will miss the opportunity. Click here to download the most complete guide on silver investment in Malaysia:


Bill Murphy: $50 Silver Before The End Of The Year

Bill Murphy, the Chairman of GATA (Gold Anti-Trust Action Committee) have a recent interview with Capital Account. During the interview, Bill said silver is going to explode, if it is not September, then it will be in October. He added that silver is in big shortage, “If you want to get it in size. For example if you want to get it in 5, 10, or 15 million worth of silver, you can’t get it for weeks, or for months! And if you finally do get your silver, it will be current minted silver bar, means the silver has not been around.

Bill explained further, “As the people realize the shortage, that is happening now, JP Morgan will be went after for their short position, that is when the price of silver has gone from $26-$27 to now $32. Silver will be going to $50 by the end of the year.

When being asked, is the suppression scheme over?

Bill answered “JP Morgan has big problem with what happened and what they have done. It is going to be more difficult for them to keep doing what they have been doing. In addition they are running out of physical supply. I would look for price of silver to explode in not too distance of the future.”

You can take advantage of the coming silver price boom, as long as you know how to invest. The eBook,  will show you exactly how you can start investing in silver. If you are downloading today, you will also get a 30 days money back guarantee! 

Is The Golden Era Of Silver About To Dawn?

by Rakesh Neelakandan

“Investment demand for precious metals will take over in any case from industrial demand. And once the gold price heads up then silver will follow. You get 50 times more silver for your money than gold. Historically it was 12 to 15 times the amount of silver for gold, so that also looks like a correction just waiting to happen.”

The time before monetary easing contributes to a period of uneasiness. Time after easing contributes to a binge.

It is because Quantitative Easings, wherever they are carried out ultimately find their way to commodities and equities. Now China, in an anticipated phase of deceleration predicted for August is expected to announce stimulus measures. US Federal Reserve minutes from the latest meeting of policy honchos is indicative of a round of QE 3 for many.

So, what is the outcome of these measures as and when they happen?

One word: inflation!

When printed money without sufficient asset backing finds its way to markets, it behaves like a tide and in a deluge kills the value of money. Hence you may have to pay that piece of burger or this piece of jewellery, a little more than what you had paid a few months ago.

The next question is how to safeguard your investments and assets from this deteriorating trend.

Investing in precious metals is the best option and investing in silver the bettter-than-best option!

“It does just have to be silver. Consider this: silver is the only major commodity not to have reached a new all-time high in this bull market; silver is still cheaper than it was 32 years ago, prices are astonishingly depressed. Then you can consider the impact of an economic slowdown on silver. Yes its industrial use will go down but so will its production because that is linked to the output of copper and zinc mines.” said Peter Cooper in an article.

[Pure-play silver mines are rare and silver is often obtained from zinc and copper mines in an also-mined fashion.]

“Investment demand for precious metals will take over in any case from industrial demand. And once the gold price heads up then silver will follow. You get 50 times more silver for your money than gold. Historically it was 12 to 15 times the amount of silver for gold, so that also looks like a correction just waiting to happen.” he added.

Nowadays there are talks of a global slowdown about to happen in lines of the 1930s depression. If that turns out to be true, those who possesses nuggets of gold and silver would rule the world.

Now, if the silver prices are being kept low as Theodore Butler has argued, and pent up demand in silver and a mismatch in paper silver and actual silver occurs, God save all those who have not invested in silver.

Practical Guide For Investing Silver In Malaysia is the only eBook you ever need for silver investment. If you think you have been learning a lot from this blog, wait until you see the eBook. The content will totally surprise you. Click below to download it now.

Global Silver Production

Economics 101, when something has high demand and low supply (production), what would happen to the price? Imagine there are only 5 cars available for sales in the market and there are 10 eager buyers bidding against each other, what would happen to the car price? Simple, the price will simply shoot up!

Similarly for silver, in 2011, the total production was about 24,000 tonnes and total demand was about 32,000 tonnes. Demand greater than supply. In fact, for the last 60 years (since 1950), almost every year the industry used up more silver than being produce.

Tighter supply, coupled with increased industrial and investment demand, means that the only way for silver to move is up.

Billionaire investor, Jim Rogers

Billionaire investment guru Jim Rogers has become a big supporter for silver, insisting silver is now a better investment than gold. He added that if he were to invest in one metal today, it would be silver. Indeed, silver is the only metal that has yet to reach a record high in recent history; it remains lower than the peak price of $50 per ounce that it hit 32 years ago. Gold has historically been valued anywhere between 12 and 16 times more than silver, but it is currently worth about 50 times more than silver, making silver an even better bargain! Silver is more volatile than other metals, which gives investors more opportunities to profit.

Federal Reserve Chairman, Ben Bernanke

Right now, the market is anticipating Federal Reserve Chairman Ben Bernanke’s speech at the annual economic policy conference in Jackson Hole, Wyoming on August 31 2012. At that meeting, Bernanke will make his first public appearance since the release of the latest Fed minutes, which suggest that the central bank is ready to move quickly to jump start the country’s economic recovery. Further quantitative easing is expected to trigger another round of asset-buying interest across the board.

If Federal Reserve does trigger another round of Quantitative Easy (QE3), that means the Dollar will be further diluted and consequently affect our Ringgit. All currencies are pegged to US Dollar as US Dollar is still the world reserved currencies. When that happen, our Ringgit will again worth less. Saving your cash into physical silver (the real money) would be a smart financial choice.

Educate yourself with the correct investment knowledge before investing in silver. Invest in yourself for your better financial future. Download the eBook: Practical Guide For Investing Silver In Malaysia today!

Pay Me My Silver Now

It has been a busy week with all the inquiries on the newly launched 2nd Edition eBook Practical Guide For Investing Silver in Malaysia. I’m so happy for many action takers who have purchased the investment guide. I’m sure the guide would help them to excel in their silver investment game.

I would like to share a funny video related to physical silver. Watch this :)

I cannot emphasis how important to buy physical silver. Whenever I give talk about silver investment in Malaysia, the audiences would ask me, “How do I buy silver? What?! Buy physical silver? How am I going to store them?!

Obviously they are looking for an option to buy silver on paper (like share, trust, etc). I feel so sorry for them because they still do not see the importance of holding physical silver. From funny video I shared, it showed how critical the manipulation is for physical silver. The people in the internet hate silver manipulation so much that they make a video to tease the manipulators.

Well, knowing the importance of physical silver is one thing. Whether a person can invest in physical silver successfully is another thing. I just want to remind you that if you want to invest in silver, invest in PHYSICAL silver, NOT paper silver.

Until next time, all the best and I hope you do enjoy the video 😛

Download Practical Guide For Investing Silver in Malaysia