Silver Price Update 14 Oct 2012

A quick update for silver price. This is the weekly chart for silver. There are many period for technical analysis ranging from 1 minute, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 8 hours, daily, weekly, monthly. So, which one should you use?

Personally, I would ignore any chart between 1 minute to 8 hours because they consist of too many “noises“, changes too rapidly and confuses the trend. In fact, as long-term and value investors we do not have all day to monitor silver chart. We want to look at something fundamentally strong which is the weekly chart.

In this chart, silver price is meeting a strong resistance at $36 and strong support at $26. Although we have broken from the flag formation (click to learn more about flag formation), silver price is still trading within the range of $26 to $36.

So what does it mean? There are 2 possibilities outcome for this pattern.

First possibility (Direction A, refer chart above), silver price will be finally breaking out from the strong resistance. It will shot all the way up exceeding $40 by the end of the year.

Second possibility (Direction B, refer chart above) silver price movement is again blocked by the strong resistance at $36. Silver price will continue to trade within $26 – $36 range until the next attempt to break the resistance.

I discuss silver price forecast in my membership site in detail. If you are interested learning silver price movement, I recommend you to join my private silver investor membership site to receive frequent updates. In fact, this update is given to my members way earlier before it hit the public. See you inside!

Robert Kiyosaki: Conspiracy of the Rich

In the latest update (October 4, 2012) of Robert KIyosaki’s Conspiracy of the Rich, he mentioned:

Early in 2012, the ECB, European Central Bank, announced LTRO, which stands for Long Term Refinance Operations: a.k.a. printing money. This is a violation of the Euro’s founding principles.

Last month, US Fed Chairman Bernanke announced QE3: a.k.a. printing $40 billion a month until… until what, I wonder?

The Bank of Japan followed immediately with their own “quantitative easing,” imitating the US and further weaken the purchasing power of the Yen.

What does this mean? It means the central bankers of the world are choosing to “Live today” and “Die tomorrow.” They are “Out of bullets.” They can no longer lower interest rates so they chose to print, print, and print.

Robert then continued discussing about US debt, you can check out the full article here. What I want to bring to your attention is all the major financial power in the world are printing money. When the whole world is printing money, it is close to impossible for our country Malaysia NOT to follow printing money.

Why? The answer is simple. Malaysia produces goods and exports to other countries. When the other countries are printing money, they are devaluing their currencies. Their currencies is weaker than it was. Now, they will need more amount of their currencies to buy the same amount of goods in Malaysia. In other words, Malaysia become expensive.

When this happens, all the other countries will look for cheaper alternative and no longer want to buy from Malaysia, because we are expensive. Our country financial leaders are not going to allow that to happen because when that happens, our Rakyat will have no job, economy will slow down, crime rate will increase, a whole chain effect will happen.

Therefore, our central bank BNM will manipulate our currency (Ringgit) to lose the same amount of value like all the other countries in the world. So that the export activities can continue like nothing happened. Sorry if this is a rude awaken call for you, but the Ringgit you are holding (or inside your bank account) can purchase less and less stuff everyday. Your “money” is losing value due to these money printing activities.

Lastly, Robert ended the article with the following paragraph:

If you are just starting out investing, I suggest you begin by reading a few books and buying a few silver coins. Knowledge and real money, silver and gold, are better than Obama or Romney. — Robert Kiyosaki, October 4, 2012

Practical Guide For Investing Silver In Malaysia is the No.1 eBook available in Malaysia to show you how to invest in silver. Forget about the free articles over the internet, they give you 1001 reasons to invest in silver but never show you how. Click here to learn how.


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.

Bank Negara Malaysia: Alert List September 2012

Bank Negara Malaysia Alert

Bank Negara Malaysia has published the latest (September) list of entity / company that consumers need to be alert on their precious metal trading activities.

Click Here To Download

For those who are investing or buying silver from companies, ensure you check the company name is not listed here. The companies listed in the above document are known as:

companies and websites which are not authorised nor approved under the relevant laws and regulations administered by BNM.

If you want to know the safe approach to invest silver in Malaysia, please download the eBook Practical Guide For Investing Silver In Malaysia. There is a list of trusted dealers you can buy from. I will guide you step by step how to invest 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:

Maybank Silver Investment Account

After writing about Maybank Silver Investment Account (MSIA) Part 1 and Part 2, I opened an  account for myself to try out what is it like.

MSIA – an account that allows you to invest in 99.9% fine silver at a daily-changed price using Ringgit Malaysia (RM). The advantage is without the hassle of storing physical silver. The return on investment depending on the silver spot price fluctuations. Transactions (buying and selling) would be recorded in a passbook.

Maybank Silver Investment Account Passbook

The procedure is fairly simple. You step in to any Maybank branch and tell the staff sitting on front table that you want to open the Maybank Silver Investment Account, you do not need to take a number and queue, you will be redirected to one of the officers.

Once the officer attend to you, you will be given a form to fill up:

Maybank Silver Investment Account Agreement

It is a long document. Most people do not bother to read it. 16 pages printed front and back. If you do want to take a look at this document, you can view it here. Here is something I found totally shocking:

11.1 The Bank shall not be under any duty and/or liability in any circumstances to appropriate set aside and/or allot any silver for the time being from time to time held by the Bank to me/us and/or any of my/our MSIA and I/we shall have no right and at no time be entitled to demand and/or request such appropriation setting aside and/or allotment
In Malay language, it is stated as following:
11.1 Pihak Bank tidak mempunyai apa-apa kewajipan dan/atau liabiliti dalam apa-apa keadaan untuk mengasingkan, memperuntukkan dan/atau memperuntukkan mana-mana perak yang pihak Bank pegang pada masa itu, dari semasa ke semasa, untuk saya/kami dan/atau mana-mana MSIA saya/kami dan saya/kami tidak berhak dan tidak layak pada bila-bila masa untuk menuntut dan/atau meminta pengasingan, peruntukan dan/atau peruntukan seumpamanya
If you do not understand what that means and want to have an explanation in layman terms, I suggest you join my Malaysia Silver Investor Membership. I explained what exactly an investor is getting into by opening the Maybank Silver Investment Account. Once you fully understand the context, it is will be your decision whether you would like to proceed.
Here are some of the basic details you might want to take note before opening a Maybank Silver Investment Account are as following:
  1. For first time opening account, you need to purchase minimum quantity of 20 gram.
  2. For first time opening account, you need to pay RM10 of Stamp Duty Fee.
  3. You need to maintain 5 gram as minimum amount in the account at all time.
  4. Minimum purchase for each transaction is 10 gram.
  5. Silver price is changed daily.
  6. You cannot buy or sell silver using Maybank2U. You must perform you transaction over the counter. All transaction is done through the passbook.
  7. The buying and selling price can be seen here. (silver price at the bottom)
  8. There is no annual fee and no transaction fee to be charged on you.
  9. You receive no interest on the silver you have purchased.
  10. Replacement of lost / spoilt passbook will cost you RM15.
Here is what I’ve shared with the members in Malaysia Silver Investor Membership
Malaysia Silver Investor Membership Updates

However, Maybank Silver Account is a very convenient method for Malaysians to start investing in silver. If you are looking for a simple and easy channel to kick start your silver investment, the account offered by Maybank this is something you should consider.

In the eBook Practical Guide For Investing Silver In Malaysia, you will DISCOVER many other options for silver investment. You will learn a complete understanding about the silver market in Malaysia and how you can make maximize your profit.

QE3 Is Now Official

Federal Reserve on Thursday (13/9/2012) decided to launch a new program of open-ended bond purchases. This is also known as Quantitative Easing 3 (QE3). QE3 will buy $40 billion of agency mortgage-backed securities each month, starting Friday. It’s also keeping in place Operation Twist (another stimulation package). The bottom line is the central bank will be adding $85 billion of long-term securities each month through the end of the year.

Right after the news, silver price shoot up to $34.70 (almost $2 rise):

US Dollar and silver will always work on the opposite direction. What does it means? When the value of US Dollar drops, silver price rises; when the value of US Dollar rises, silver price drops. When QE3 is launched, it is an action to devaluate US Dollar (lowering the value of the paper currencies), which means the value of US Dollar drops, so consequently silver price reacted with it and went up almost $2 within minutes.

Also take note of the open-ended bond purchases mentioned above. In layman terms, that means Fed will continue devaluating or lowering the value of US Dollar as long as they want. There is no end to it. In other words, the potential for silver price to go up is also no end. Silver price will continue to rise and rise and rise and rise…

I have said it many times and I will say it again, “this is just the beginning“. Silver price has a long way to go. This is a wonderful opportunity in our time. Most people do not know this, but you are reading this blog right now, you must take advantage of the rising silver price. Honestly, it is not too late to start now. However, before you go in to silver investment, I suggest you equip yourself with the correct knowledge to avoid getting burn.

Check out the eBook Practical Guide For Investing Silver In Malaysia. It is the most complete guide for Malaysians to kick start the silver investment. It will guide you exactly step by step how to be a successful silver investor:

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.