Silver Price Broke $26 Support

Last Friday (12th April 2013), silver price broke $26 support level for the first time. Silver price is now at the lowest for the past 2 years.

silver

Why did this happen?

  1. Federal Reserve is considering ending QE by year-end.
  2. Goldman Sachs (American multinational investment banking firm) put a sell recommendation for gold.
  3. Cyprus selling gold worth of 400 million Euros (equivalent to £341m).

I believe the question that matter to you most is, is now a good time to buy?

smallfallingknifeFirst of all, it is never a good idea to catch a falling knife. Catch a falling knife means when silver price is dropping, you buy when you think the price is low enough. If your assumption is correct, great! You manage to buy some cheap silver. You managed to buy at the bottom. Once the market bounce back up few days later, you already made paper gain without selling your silver. However, if unfortunately your assumption is incorrect, you suffer paper lost immediately because price keep falling. When price falls, it usually drops at much greater speed.

A better recommendation to deal with this price fall will be determining the support level and then only start buying when the price bounce back up. This will ensure silver price will not continue falling after you made your purchase. You might not buy at the rock bottom price but you surely will not get caught in a situation where the price continue go lower after your purchase.

bounce-support

The bad news is, this sophisticated technique requires you to have technical analysis skill to determine where the support line is at. A common method to find the support level is using Fibonacci Retracement. This method is not for everyone. Not only it requires the skills but also time and commitment to monitor the price movement. However, if you are interested to find out more, you can consider using this simple Fibonacci Retracement Calculator created by one of the members in Malaysia Silver Investor Membership to the help the rest of the members to calculate Fibonacci Retracement easily and quickly.  It was only intended to be used within the membership site. Now, with this member’s permission, I share this simple Excel calculator with you. You can download it here.

Dollar Cost Average is a more practical alternative to take advantage of the current price dip. This strategy is simple to understand and to follow. It does not require you to have specialized knowledge nor extensive time to stay closely to the market. For most people, it is a great strategy to practice. Even the experts Mike Maloney, David Morgan, etc highly recommend and using the technique themselves:

How Dollar Cost Average strategy works is simply allocating a fixed amount of money to invest regardless the price of the asset. In silver investment context, you can consider purchasing / investing fixed amount of silver every month regardless of the price fluctuation. For a start you might want to begin accumulating 1 oz every month. Later when you are more confident with silver investment, you might want to increase it to 2 oz, 5 oz, 10 oz or even 50 oz a month. It all depends on your financial appetite but the keyword here is consistently every month, for at least 12 months.

Here is a quick trick about Dollar Cost Average. If current silver price is significantly lower than your average price, you can consider ad-hoc purchase more silver (again, the quantity is depending on your financial appetite). For example, if your cost-average price is RM110/oz for the last 10 oz. During the recent price dip, price has gone down to RM100/oz. If you ad-hoc purchase another 5 oz of silver, your cost-average price will be also go down to RM106.67/oz. The calculation is as following:

 RM106.67/oz = (RM110 x 10 + RM100 x 5) / 15

In Malaysia, there is a monthly accumulation program that is suitable for Malaysians who have no time to follow price fluctuation closely. When you join the program, the company will invoice you every month to buy investment grade physical silver for you and deliver to you (or you can collect it yourself). You can find out more details here:

My Silver Accumulator – A silver monthly accumulation program.

My Gold Accumulator – A gold monthly accumulation program.

Remember, every investment moves in cycle. If there are down trend, there will be uptrend. Price will NOT stay low forever. The fundamental of silver investment is to buy low, sell high. But in order to sell high, you first need to buy low.

Silver Malaysia eBookTo find out more about silver investment, take a look at eBook: Practical Guide For Investing Silver In Malaysia. You will learn the finest tricks for investing silver in Malaysia.

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:


RM65 Per Oz Silver

In Malaysia silver market, actual transacted price sometimes is usually slightly below display price. For example, if an item is displayed for sales for RM105, you can probably get it for RM104 or RM103 (if you are willing to negotiate with the seller). Some sellers are willing to reduce the price and some wouldn’t. You can considered yourself being lucky if the seller is giving you a few ringgit discount.

When the market price for 1 oz silver is RM 110, at what price do you consider yourself got a good deal? Most people will say RM100 is a very good price. Anything below RM100 such as RM98 would be totally crazy!

Well in my case, it is 40% below market price. I bought my silver at RM 65. Here is the transaction statement. The company quoted me RM65.

And RM 65 is exactly how much I paid for. Nothing more nothing less.

How is this possible? The silver is bought from My Silver Accumulator. The program member is able to buy silver at such big discount because the program is rewarding members who are willing to share silver investment opportunity with others.

Silver investment is an investment opportunity of lifetime! It would be very self fish if we do not encourage others to invest in silver. My Silver Accumulator is a silver investment program very suitable for beginner and intermediate silver investor in Malaysia. By introducing them to this investment platform, the member would receive 2% discount for each oz that they purchase.

In other words, by encouraging other Malaysians to start investing in silver, we could get 2 major benefits.

  1. Helping our friends and family members get ready in for the coming financial crisis by getting started in silver investment
  2. You would receive 2% as discount (commission) whenever the member you signed up purchase 1 oz of silver.

I recommend you to find out more about this program before drawing a conclusion. You can go to Google and type in “My Silver Accumulator” and see what others are saying about the program. Alternatively, you can learn more from this website.

Listen, if you have been always looking for an simple and easy way to invest silver in Malaysia, you need to give yourself an opportunity in this program!

Click Here To Find Out More

Maybank Silver Saving Account Part 1

I saw the so-called Maybank Silver Saving Account passport for the first time about a month back. I tried many methods to look for more information from the internet but seem like I don’t have much luck.

After a month of asking around and looking for information online. There is totally no news about the Maybank Silver Saving Account.

Maybank Silver Saving Account

Today, I went to Maybank branch in Taman Midah, Cheras to ask about it. A Malay lady told me, “It’s is like the gold saving account, but this is silver. But the officer in charge has not reach the office”. She also told me that there is one officer in each branch, it is just so happened that the officer is not in office yet.

Well, I went back to the office 2-3 hours later. I was greeted by another Malay lady. I asked her about it and she said she knows nothing about it. She redirected me to (I guess) the most senior officer in the branch – a well dressed middle age gentleman. I told him that I would like to find out more about Maybank Silver Saving Account, but he gave me a what-are-you-talking-about face. So it seems like he didn’t know much about it too. He again and again asked if I saw it from Maybank website. The answer is No as I have checked several times in their official website that there is no news about the silver saving account.

I couldn’t get back to the first Malay lady who told there is an officer in charge for this. She is no longer in her desk (and obviously I don’t have all day to sit there to wait for her to come back). So, I left the branch disappointed without finding out much about the potential first silver saving account passport in Malaysia.

I will check out the other branches and call up their call center to see if I can find out more information about it – But as of now, the Maybank Silver Saving Account still remains as an uncertainty.

The closest silver saving program that I have seen so far in Malaysia is the My Silver Accumulator program from PM Accumulator Sdn Bhd. It provides a convenient channel for  Malaysians to start saving and investing in silver. Click here to find out more about My Silver Accumulator program from PM Accumulator Sdn Bhd.

Stay tuned for the next update for Maybank Silver Saving Account. Happy investing in silver!

Download Practical Guide For Investing Silver in Malaysia

My Silver Accumulator

PM Accumulator Sdn Bhd has launched My Silver Accumulator for Malaysians to start saving and investing silver. This program is very suitable for average Malaysians who does not know much about silver investment to start investing. The program offers a safe, secured and convenient platform for the members to manage their silver investment portfolio.

In short, the My Silver Accumulator program can be summarized as a silver investment program where members consistently buy silver every month to achieve cost average. The purpose of implementing cost average is to protect investors from major price fluctuation and the investors would always get the average price within a period of time.

When a Member A (old member) gets another Member B (new member) to join the program, Member A will be receiving 1 oz of free silver as an incentive. Have a look at the following screen:

Referring new members to join the program is not difficult. When you go through the details of the program, you will realize the tons of benefits signing up as a member.  From the above screen, you can see that I have referred 3 members within a month. Not to show off but to prove the point that getting new members to earn your 1 free oz bonus is not as hard as it seems. You can simply share the silver investment opportunity with your friends and family. Due to the fact My Silver Accumulator is such a beneficial program for average Malaysians to invest silver in Malaysia, it take very little effort for you to promote it. All you need to do is share with them the existence of this program. If they are interested, they will find out more about it and they will realize how beneficial the program is.

Once a person sign up as a member, he will be given a login to the website platform to manage his silver investment portfolio as following:

My Silver Accumulator

Here are some very detailed explanation from the CEO of PM Accumulator Sdn Bhd himself, have a look at the description and video. You can decide for yourself if this program is suitable for your investment appetite. Click here: My Silver Accumulator 

Alternatively, you can consider checking out their website clicking the following banner:

Hope you have enjoy an overview of My Silver Accumulator program. Until next time, good luck for your silver investment journey!