Crocodile Silver Investment

CrocodileCrocodiles are by far the most successful animals that has ever lived. They have been around for about 200 million years and have out-lived the Dinosaurs. Crocodiles patiently learn the behavior of their victims and wait for long periods of time (sometimes to the point of starving). Then when the time is right, they snatch their victim with confidence and precision!

Crocodile is big, fat, long and needs A LOT of protein in his diet to survive, to swim and to hunt. Is his energy best spent going around all day eating little fish which are easy to catch? Imagine how much energy he would need trying to catch a high quantity of low-quality victim like that all day. The strategy for crocodile is to strike less but each strike take a big gain.

When comes to physical silver investment, we have to invest like a crocodile. Crocodile does not waste time on the small fish; as a silver investors, we do not waste time in the small price fluctuation. Silver price fluctuate between 2% to 3% in a day is very common, do not be overly concern about it and do not waste time chasing the price.

If a person goes in and out during small silver price fluctuation, he might end up like this guy. First, he tries to analyze when is a good time to buy silver. Second, once he is in the game, he monitor silver price closely. He buys when silver price shooting up, sells when silver price coming down (well, sound familiar?). Thirdly, he found out he has been losing money and soon, he is out of money and out of luck. Game over!

guy

If you buy and sell silver within a short period of time, you tend to end up like the guy above. For physical silver investment, do not waste your time chasing the price every day. In fact, looking at the silver price chart multiple times a day is a bad choice for physical silver investment.

Take a look at this chart that many silver investors refer to:

What does this chart tells you? Frankly, it tells very little except the current silver spot price. It is a light weighted line chart that can tell what is the current spot price but nothing more. The chart does not tell any trend and pattern, the chart does not show support and resistance. It is a quick and simple method to know current silver spot price, but sometimes what seems to be simple could complicate your life. On the other hand, if you are willing to spend a little time to learn silver investment, what seems to be complicated could simplify your life.

Personally, I only look at 8 hours chart, daily chart and weekly chart. Why? The longer the time frame, the clearer the trend is. On the other hand, the shorter the time frame, the more “noise” in the chart. The following is silver weekly chart since Oct 2011 till January 2013, there is a very clear wave and obvious range the price is traded for.

silver range

A crocodile investor patiently learns the silver price pattern and waits for the opportunity. When the time is right, he buys silver at bottom and sell silver at top with confidence and precision! A crocodile investor would have benefited from his silver investment in the following manner:

silver wave

In Trade 1, the crocodile investor had 14 days to buy his silver at price $29 then 21 days to sell his silver for $35.

In Trade 2, the crocodile investor had 28 days to buy his silver at price $28 then 14 days to sell his silver for $35.50.

In Trade 3, the crocodile investor had 98 days to buy his silver at price $27.50 then 28 days to sell his silver for $34.50.

If the crocodile investor had put in RM10,000 initially, after 1 year, his investment capital would have been rolled into RM19,208.75. You see, crocodile investor  only made 3 trades in a year to profit almost 100% return. He does not chase the small price changes every day or worry about the price fluctuation everyday. It is a total waste of energy. He looks at the big picture, learns the game and have a plan before investing in silver. Investing in silver without a plan is hunting in the jungle at night and hopefully kill a tiger. Common sense would tell us that is a joke. Come on, he would be lucky if he didn’t killed by the tiger instead.

Crocodile investment strategy is suitable for aggressive investors who have time and energy (although very little). There are other strategy such as dollar cost average that is for passive investors and other types of strategy where I discussed in eBook Practical Guide For Investing Silver In Malaysia.

There is no one size that fits all investor in silver investment. In the eBook, you would learn different options for investing silver in Malaysia. You need to understand different options so that you can choose one suitable for yourself. Click here to find out more.

Media Attention Phase

About a year ago, I wrote an article on titled Silver Investment Cycle. In that article, I shared the following diagram:

Last month December 2012, The Star newspaper interviewed me to discuss on silver investment. The article titled More M’sians turning to silver, rather than gold, for investment. The following is the article in case you have not view it. (Click on image to view full size)

The Star Silver Investment

Then, China Press – another Chinese mainstream newspaper covers the same story titled 取代昂貴黃金 白銀漸成投資新寵 as following (click on image to view full size):

China Press Silver InvestmentHere is another one in Malay news on TV9:

When you refer back to the Silver Investment Cycle chart earlier, we are at the Media Attention phase. If you observe the chart closely, Media Attention is also the early stage or very beginning of the up trend. In investment, we must target to Buy Low, Sell High. With silver spot price around $30 (1 oz of low premium physical silver around RM115), right now is exactly the time value investor would get into the market and start buying physical silver.

Silver Investment Media Attention

Soon in the near future, the general public would push both the price and demand into Mania Phase. That is the time when you hear your neighbours talking about silver in supermarket, friends gathering, in mamak stall, etc. By then, you know silver price has gone up so high that the cycle is about to end. That is the time you will want to sell. Well, leave that for the future. We are nothing close to there, yet!

Apart from teaching you how to invest in silver and what silver to invest, in the eBook Practical Guide For Investing Silver In Malaysia, I also share with you when will I exit my silver investment.

If you are new to silver investment in Malaysia, the eBook comes with Quick Start Guide show you step by step how to buy your 1st oz of silver at competitive price. In fact, in the eBook you will learn how to buy silver below market price! Click here to find out more.

China Silver Market

We have heard enough about US on QE3 (mid September), QE4 (early December) and the recent ASE coins sold out in US Mint (last week), let’s move on to look at the world 2nd largest economyChina.

China Second Largest Economy

SilverInstitute has published a report titled The Chinese Silver Market  and it is available for download here. It is a 26 pages report fulled with small text and jargon, so I will explain it in a simple to understand manner.

China’s retail investment demand for silver has great potential to grow robustly over the short to medium term, as a wider population base gains access to silver bars and coins. The demand for silver in industrial application and jewelry are main drivers for the consumption. Silver investment demand has exponentially growing since 2008 – 2011. With a rapid development in the Chinese silver market, both silver demand and supply are expected to achieve even further growth in coming years. (Click on image to view full size).

China Silver Demand Supply

Silver fabrication (industrial use) is set to rise across most sectors in the coming years, the strength of industrial demand will remain the key driver behind this growth. In the olden days, silver is a monetary metal first, then being used for other jewelries and utensils. However in the modern days with technological advances, silver is an industrial metal first, then only is a monetary metal.

The following chart will show you the difference between Fabrication Demand and Silver Supply. But what is “fabrication”? In layman terms, silver fabrication means making use of silver to produce goods. The silver is being used up and the silver is usually gone and cannot be recovered.

Supply over Fabrication

So, where did the fabrication demand use the silver for? The following diagram will answer the question. Silver is being used up in Industrial Applications, Jewelry, Silverware, Coins & Medals and lastly Photography.

Silver Fabrication

If you remember what I mentioned earlier, in modern days, silver is an industrial metal first, then only is a monetary metal. We seen the industrial usage, now let’s take a look from the investment / monetary view.

In July 2009, restrictions to own silver were lifted by the government of China. The government now allow the people to invest in silver bars. China introduced its first ever investment opportunities for silver bullion bars in 2009. The people in China are buying silver for many reasons:

  1. China’s high household savings rate. That means domestic investors (rich local investors in China) have a large amount of cash that urgently needs to be parked.
  2. Investment options are still rather limited. Immature financial markets in China. Hence they invest into something proven to have value for the past thousands of year – gold & silver.
  3. The property market has been volatile and controls have been implemented to control speculation. At the same time, the stock market has seen heavy losses. Hence, focus shifted to silver.
  4. Interest rates for savers have remained low and, in fact, are close to zero in real terms. China government encourage the people to take out money to invest rather than saving the cash in bank.

Notice investment demand for silver has increased drastically since 2008 till 2012. (Year 2012 is not ended by the time this chart is drawn, so the final number is expected to be even higher.)

China Silver Investment Demand

Investment demand for silver has posted a spectacular increase in China in recent years. From a small player just a few years ago, China has already become the world’s leading market for physical silver investment. One of the most famous physical silver coins from China is Silver Panda Coins that you can start investing as low as RM130/oz.

Jim RogersThe legendary investor, Jim Roger said:

If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia.”

If we put it into a Malaysians’ investment context, it would be equivalent to:

If you were smart in 2006 you parked your money to Bursa Malaysia, if you were smart in 2008, you park you money to property, if you are smart in 2013 you park your money to silver.

Practical Guide For Investing Silver In Malaysia is an eBook specifically for Malaysian. You will learn different strategies in silver investment that anyone can apply. You will even learn how to invest silver below market price in Malaysia! Click here to find out more.

American Eagle Silver – Sold Out!

American Silver Eagle 2012

American Silver Eagle (ASE) is one of my favourite silver bullion coins. Apart from the beautiful design, ASE also has relatively low premium and high liquidity (easy to be sold off), which makes it an excellent option for silver investment in Malaysia.

Last week (17th December 2012), US Mint informed authorized purchasers that ASE 2012 had sold out and no additional ASE 2012 would be struck. The new ASE 2013 will only be available for order in 7th January 2013.

Well, this does NOT necessary means silver shortage has begun. It merely means US Mint has finished selling their ready inventory. Today in Malaysia, you can still buy ASE from many different dealers for a price from RM110 to RM136 depending which dealers and the quantity you are buying from. The good news is, ASE is still very affordable for many people to buy as silver investment.

Two advice for you when you invest in ASE:

  1. Do not rush to buy the “newest” ASE 2013 when it is available in Malaysia silver market. Regardless which coins, the 1st or the early batch of the coins are more expensive than when it is few weeks or months later. Few years down the road, your “1st batch coin” or the few months later batch make no difference. So, why pay more? The additional premium you paid for getting the early batch means nothing except that you get to hold a new ASE 2013 coin earlier than everyone else. That’s it.
  2. ASE premium does not appreciate itself like other collectible silver items. ASE truly walks the talk of “1 oz of silver is 1 oz of silver”. Regardless how old your ASE coin is, your ASE coins always worth the same with ASE coins of other years. Some investors see this as a form of disadvantage for ASE coins. If you are looking for coins that appreciate in value regardless of spot price, you should consider numismatic coins or semi-numismatic such as Panda coin.

In my eBook Practical Guide For Investing Silver In Malaysia, I have given the following rating for American Silver Eagle coins:

American Silver Eagle Malaysia Rating

In the eBook, you will learn many other silver coins, silver round and silver bar. I also discuss in detailed what are the factors that you should consider before investing in any particular silver. In fact, there are some silver items you should totally avoid!

Practical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, tips and tricks you never thought of in silver market. Please click here to find out more.

Abu & En. Jamal – QE Four-ever

Fed Chair Ben Bernanke Holds News Conference

QE4 (Quantitative Easing 4) is officially announced by Ben Bernanke, The Chairman of Federal Reserve on 12th December 2012, which is only 3 months after QE3 is announced in September 2012. This “money printing” will be adding 1 trillion dollar (USD 1,000,000,000,000) into financial market in 2013.

Silver price fluctuate in an (almost) exact mirror the day before and after the announcement of QE4. It is obvious that the traders are systematically trading silver on paper using previous day as an opposite reference.

silver-mirror

Creating inflation is the main objective of quantitative easing. Throughout history, government that “print money” will eventually collapse their own economy. Germany (in the 1920s), Zimbabwe (in the 2000s) and Japan (2001-2006) have all done quantitative easing and the efforts are all FAILURE.

Why do they have to print money? Why create inflation? What is the real problem here?

The problem here is really simple: The economy is not growing. The people are not spending enough money to stimulate the economy. Hence, the government “print” more money for the people to spend. Federal Reserve will “print” as much money as possible until the economy recovers, which is IMPOSSIBLE.

jackie-chan-impossible

I will show you a simple explanation why this is impossible.

Abu is born in a rich family. His father En. Jamal is a decent businessman. When Abu at age 21, he got a job with salary RM2,000 a month and he applied a credit card from Maybank with credit limit of RM20,000. Being young and fantasized by the materialistic world, Abu started spending money using the credit card. He soon has reached his credit limit and he could not afford to pay back the debt. En. Jamal (being a loving father), used his personal saving to help Abu to pay off the credit card debt. Abu is happy now and very soon, he started spending on the credit card, again. But this time, he called up Maybank to ask for a larger credit limit of RM50,000 because the smaller and cheaper “toys” could no longer satisfy him. Once he hits his credit limit, the father En. Jamal has to use his personal saving to pay off his son’s debt – only this time a larger debt at RM50,000. Abu knowing his father will always pay off the debt for him, Abu this time ask for RM100,000 credit limit from Maybank. Then… well you know what happen… The credit card debt cycle will grow larger and larger until one day En. Jamal can no longer help his son.

debt

So how does the story relate to Quantitative Easing?

En. Jamal is the government and Abu is the economy. Every time Abu is in financial trouble, En. Jamal has to take out money for Abu to keep Abu going. Each time the amount will be larger and the problem happens more frequent. The money being used to “save” the situation did not really save the situation but encourage the problem to be bigger the next round. QE3 is printing $40 billion every month and QE4 is printing another $45 billion every month. Then, guess what’s next?

If you have problem understanding the story of Abu and En. Jamal. Another example would be a drug addict and his drug. When the drug addict is addicted to a drug, he will need it from time to time, with a heavier dose and more frequently. He will continue need it until he finally collapses. In this case, US economy is the drug addict and QE1, QE2, QE3, QE4 are the drugs.

The interesting part is, QE1 and QE2 have definite period of time and definite amount of money to be “printed”. When it’s over, it’s over. While for QE3 and QE4, they are open-ended. In other words, there is no end to them. Federal Reserve will print as much as they want, that’s why QE3 and QE4 are QE Four-ever.

QE4-ever

The solution is the problem. En. Jamal should have NEVER helped Abu when the 1st time he get into financial trouble. En. Jamal should have let Abu felt on the ground and learn to pay off the debt himself (learn to recover from the financial trouble himself). Similarly, Federal Reserve should have NEVER introduced QE1, QE2 and QE3 at the first place. US should have let the economy crashed in 2008 and recover on it’s own (not by artificially stimulating the economy using QE1). The financial problem will now grow bigger and bigger to a level that beyond recovery. Since US Dollar is the world reserve currency, this financial crisis will grow so big until the whole financial system collapse.

I have no power to change what Federal Reserve has done, but I have the ability to prepare myself for the coming financial crisis. J.P. Morgan (1912) said, gold and silver are money, everything else is credit. I’m preparing myself and keeping my wealth in precious metal (real money) especially silver.

Silver has huge industrial demand (while gold has little, close to none), in fact it is the second most traded commodity in the world (after oil). Silver to gold production ratio is 10 to 1, while current price ratio is 51 to 1. In other words, silver is still way undervalued. Silver price has to increase significantly to match the actual production ratio. Robert Kiyosaki said “Silver is no.1 investment today, silver is biggest thing against inflation, great investment!“.

When comes to money, talk is cheap, action is everything. I have written the eBook Practical Guide For Investing Silver In Malaysia to show Malaysians how to invest in silver. If you are serious about protect yourself against inflation, click here to find out more.

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 Technical Analysis by FutureMoneyTrends.com

The following article is provided by Joshua Enomoto, FutureMoneyTrends.com:

What a difference a day makes! After three weeks of significant downturn in the silver market, it appeared that the bears lost downside momentum, and that the bulls would regain control above critical support lines in order to launch a concerted assault on the revered $50 price point. Instead, Friday of November 2nd happened, taking whatever pretense of predictability the COMEX may have had, and shoved it way down the nearest drainage ditch. 38,400 contracts, or 191 million ounces of silver being sold off within the space of 10 minutes can have strange effects on people: Elation for those who received a “word of encouragement” and thus initiated massive short positions, but despair for most not privy to such advanced warning. After such devastating losses, is it wise to be in this market? Prominent commodities experts like David Morgan think so. In fact, there are many compelling technical arguments to suggest that the recent downswing has been overdone, both in the physical bullion itself, as well as the companies that mine it from the earth.

First, let’s start with a technical overview of spot-silver:

Friday’s sell-off puts silver bullion right on the 1st support line, which coincides with the current 200 day moving average. The single day drop was accompanied by immense bearish volume, which is rather peculiar (read suspicious) due to the fact that the overall volume trend was decidedly downwards and negative, as momentum traders, or the weak hands, began to exit the market after silver failed to rally beyond $35 since the announcement of QE3.

Is the technical implication as bad as it appears? There are two schools of thought here. Market participants may want to brace themselves for an attempted mauling of the $30 key psychological support barrier. If the bears can succeed in driving prices that low, it would violate the 38.2% Fibonacci retracement level of the August rally, and would suggest further downside towards $28, the last line of support before a nerve-wracking drop to 26. On the positive side, we can see that from October 5th until the 23rd of that month, the bears succeeded in taking the price down from the high-34’s to $31.50, which represents a 50% retracement. From $31.50, the bulls put on the brakes and mounted a slow climb right underneath the main trend line, or roughly where the 200 DMA is located. The fact that we saw a rising consolidation pattern develop off the 50% retracement level tells me that most of the weak hands did indeed exit the market.

So what about the Friday sell-off? It’s either conspiracy or lunacy…an act of collusion or a moment of panic. Which brings us to profitability, the art of cashing in on black swan events. Aside from investing in the physical bullion or ETF’s that track spot price performance, another avenue is through the mining industry. While investing in mining companies does have its fair share of critics due to the fact that there are several variables exclusive to the industry that often results in a lack of correlation between the company and the underlying asset, many top silver producers are technically poised for a breakout move.

Thanks Joshua from FutureMoneyTrends.com provided such an insightful technical analysis. Some investors might consider the above analysis is a little too complicated. I have discovered a simple yet practical and powerful formula for you to use to determine when is a good time to buy silver and when is a good time to sell silver to maximize your profit. The formula is available in Malaysia Silver Investor Membership.

This is a Lifetime Membership. You only pay once and you can stay inside for as long as you wish – to learn all about silver investment in Malaysia. Click here to find out more. Inside, you will receive latest silver market news, see myself and the other silver investors discussing about tips, tricks and strategy how to maximize our profit in silver investment.

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:

Sure Way To Lose Money In Silver

In silver investment, all physical and investment grade silver can be categorized into 3 types which are low premium, medium premium and high premium.

Example of low premium are such as Sunshine bar, APMEX bar, ASE bar, Morgan bar, Johnson Matthey bar, Buffalo round, Scottsdale Omnia round etc. This kind of bars or rounds have very little premium, which means the price is not too much above silver spot price. This type of silver is value-for-money and you basically get the most silver out of your money.

Example of medium premium are such as American Silver Eagle coin, Canadian Maple Leaf coin, PAMP SUISSE silver bars, Kookaburra coin, Chinese Panda coins, Canadian Cougar coin, Fiji Taku coin, etc. The price for this type of silver has a higher price compared to the low premium silver (1oz to 1oz comparison). However the detail of such silver is usually finer and looks much more attractive compared to low premium silver.

Examples of high premium are such as Perth Mint Proof coin series, Mongolia Long-eared Hedgehog, etc. This type of silver usually comes with an exclusive packaging, sometimes certificate and even serial number. The premium is extremely high where the price could be 3 to 10 times of silver spot price. High premium silver is suitable for personal collection and not investment purpose, at least for most people. It requires very specialized skill to make money from high premium silver. Else, most of the time you will see people losing money in high premium silver investment.

When comes to silver investment, many investors don’t make money because they don’t know what they don’t know.

If you are new to silver investment in Malaysia, you might not realize there was a Dragon Fever in late year 2011. The Dragon Fever was referring to the Perth Mint’s Australian Lunar Silver Coin Series II celebrates the Year of the Dragon (dragon bullion coin). Well, usually people just call it as Dragon. Dragon is just a medium premium bullion coin but the price was speculated so high until it seems like a high premium silver coin.

When Dragon was first launched in late 2011, the price in Malaysia market went up to as high as RM420 for 1 oz of Dragon coin. Most people bought the Dragon coin for RM3xx in early 2012. Then, Dragon price further dropped down to RM2xx for some lucky buyers. Today, the coin was being transacted at RM172 only. If someone bought the coin for RM420 in late 2011, he is literally suffering 60% lost for the coin.

Let me repeat this…

When comes to silver investment, many investors don’t make money because they don’t know what they don’t know.

For most silver investors (especially the beginners), I would suggest you to start by buying low premium silver and only allocate a small portion (20% – 30%) of your budget into medium premium silver. Save the high premium game to a later date when you are more familiar with the market.

Consider it this way. Premium is equivalent to risk. Replace the word “premium” with “risk” and you will appreciate why I suggest new investors to start with low premium silver. The lower the premium is, the lower the risk is and the safer the investment is. I won’t deny there are people who can make good profit from high premium silver. Those are the people who have specialized knowledge and their own particular network to liquidate the high premium silver. For the majority of us, it is a better idea to stick to low premium and medium premium silver.

I wrote an eBook titled Practical Guide For Investing Silver in Malaysia. This eBook specialized in showing you how to invest in low premium and medium premium silver. In fact, I would also show you other common mistakes you could potentially made like in the Dragon coin. Take a look at it here: