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!

Silver Breakout – To Buy Or To Wait?

On 21 August, I wrote a post titled: Silver Price Explode 2012. Market started to get exciting and silver price closed at $30.82 last Friday. Without a doubt silver price has its breakout. It is being trapped into the flag since May 2011 and finally has it breakout now.

There was a reader got a little too excited with the price moving straight up for 3 days and bought 20oz of physical silver. Right after he bought them, silver price started to fluctuate around $30.50 and did not go up much. He started to get worried and asked me what happened. Well, silver price does not move up continuously for many days without any pull back. We need to set our expectation right. I repeat, silver price will not going up straight consecutively for 30 days without any pull back.

Anyway, the questions I have been getting for the past few days are:

  • Should I buy silver now?
  • Should I wait?
  • How high will silver price goes?
  • Will silver price come down?
  • When is the best entry point now?

I will answer all the questions above with the following diagram and give you a “suggestion” what you should do later on.

Referring to the graph, there was quiet a resistance at price $30.50 (end of 2011) that stops silver price from going up. Although silver price broke out, silver price is now hitting the similar resistance like what happened in end of 2011.

I won’t bore you with a bunch of technical analysis, let’s get straight to the point of what does it mean and what we should do.

  1. Silver price breakout, that’s for sure and it is a good sign that silver price was moving up in the long term. We are targeting silver price to go up to $35-$40 by end of 2012 and $50-$65 by end of 2013.
  2. If you did not follow my “suggestion” to buy when price was $26-$27, what should you do now? Should you wait any longer or buy now? Obviously, the short answer is “Don’t wait, buy now. Silver price is going to move up much higher, this is just the beginning.” Right now the price is about $30, imaging when price went up to $60 by end of next year, you will be beating yourself for not taking action now. (Just like how you didn’t buy property in KL / Penang during year 2008 / 2009?)
  3. For short term, silver price is facing a possible pull back at $30.50. If you want to be cautious, you might want to wait for silver price to break $32 before entering. Personally, I do not like betting the price to go up or come down. If I have RM200, I will spend RM100 to buy silver now. If silver price does pull back, good, I will spend the remaining RM100 to buy cheap silver; if silver price continues to go higher, great! I will spend the remaining RM100 to buy again the catch the bull trend. There is no right or wrong method but that’s how I will do it myself and how I have been advising my eBook readers and lifetime membership members.

To learn more about practical steps and guide to invest silver in Malaysia, download Practical Guide For Investing Silver In Malaysia. I will guide you step by step how you can quickly start your silver investment and how to buy silver below market price.

Silver Price Explode 2012

I have talked about the flag pattern earlier in March 2012. The forecast was, when silver price approaching the end of the flag, silver price is set to explode! If you have not read it, feel free to check it out here: Cheap Silver Ends In 2012This is how the flag looks like:

Right now, we are at the end of the flag pattern. Silver price is set to explode anytime now. Yesterday (20/8/2012), silver price has up +.51 in a single day. Chris Duane (the founder of Silver Shield Report) mentioned:

We need to get above $30.61 to get the party started and bring out the silver rockets.  The reason I say $30.61 because that is the 200 DMA and the point that breaks out of the 16 month cup and handle formation.  I feel we have until next month until the real fireworks start.  And unfortunately you are probably not going to like the kind of fireworks you are going to see…

On July 24th, Mike Maloney suggested that silver investors only had a month at the most before beginning a breakout with the price of silver.

Take a look at this chart:

You see, silver price is MIGHT NOT explode tomorrow but we are nearing the end of bear market. I mean very very near. When the price explode to $42-$48 in the next 6 to 12 months, you will be grateful that you have bought your silver now at $28+. Why $42-$48? I have a detailed explanation on my eBook – Practical Guide For Investing Silver In Malaysia. In fact, that is a very potential price you should target to exit your silver for the short term.

Personally, I have buying silver like crazy for the past 1 month to prepare for this moment. I have been buying a lot of silver rounds and some silver bars. I prefers silver rounds over silver bars because silver rounds is always being perceived as money (even though it is not). The bottom line is, I do not want to beat myself up and regret that I didn’t take any action when silver price is cheap. If you can remember during year 2008-2010 (3 years), property price in Malaysia was dirt cheap. Right now when we look back, we might call ourselves silly for not taking action to invest in property back then in 2008-2010.

The fact is, when we are not equipped with the  knowledge to take action, we often miss the opportunity. That’s why I have written the  eBook – Practical Guide For Investing Silver In Malaysia to teach Malaysians to take advantage on the silver price explosion. We all understand silver market changes from time to time, that’s why I have included a *Lifetime FREE Updates* for you if you download the eBook today.

Happy investing! I will see you in the membership site.

New Ringgit Old Silver

Bank Negara Malaysia has issued the third series of currency notes carry a theme named “Distinctively Malaysia” and are inspired from motifs of flora and fauna drawn from various cultures in Malaysia to “reflect the diversity and richness of Malaysia’s national identity”.

The interesting part is, the color choice of the new paper currencies is very similar to the “hell money” used by Chinese. As part of Chinese’s tradition, these “hell money” is burned to their late ancestors.

A person can spend few Ringgit to buy Millions, Billions and even Trillions worth of the “hell money” notes. The reason why few Ringgit can buy few Billions worth of “hell money” is because the “hell money” can be printed at a very low cost. So, this started to ring a question… What is the difference between the “hell money” and the paper currencies issued by Bank Negara Malaysia?

Fundamentally, both of these money are printed by machines. Both of of these money do not have real monetary value in it – it is merely a “belief”. When it comes to paper currencies, Mike Maloney accurately pointed out “we are all dreaming the same dream“, dreaming that the paper is money.

 

This new RM20 note is intentionally damaged by someone. If more parts of the paper currency is being damaged as such, I wonder if this piece of paper would still carry the value of RM20. Realistically, if the new paper currency of RM20 is being used for the next 10 years, that is exactly what is going to happen to the paper note.

When that happens, do you think the paper currency note is so rare that Bank Negara will need to refurbish the paper currency and re-use it? No! Bank Negara will simply print more paper currency – they have the “authority” to do it very quickly and very cheaply. Print! Print! Print! By the way, who gave Bank Negara such “authority” to create money and de-valuate all the other paper currencies in Malaysia? Some people call it creating inflation? Hmm….

Now let’s look at physical silver:

Physical silver CANNOT be “printed” by Bank Negara. In order to produce 1 oz of silver, it take a lot time, a lot of effort and it costs a lot of money. This is the form of honest money that represents a storage of value because Bank Negara cannot print physical silver and de-valuate the value.

When a paper note is damaged, Bank Negara will response with “Never mind, we will print some new ones…”; when physical silver is found after a long lost, it goes into international news. It is being dug up even when it is at the bottom of the ocean:

Example 1 – 200 Tons of Silver Found on WWII Ship

Example 2 – 17 Tonnes of Silver Found Hidden at Puri Math

Example 3 – 48 Tons of Silver Found 3 Miles Below Surface of North Atlantic

 

Paper currencies can be manipulated anytime. Silver is a form of precious metal that has limited supply and it has been used as form of monetary metal for thousands of years. I’m not sure about you, for me physical silver seems to be much more valuable than paper currencies.

The fact is, the Ringgit is “paper currency” while silver is “real money”. For the past 41 years, since 1971, US Dollar is totally off the gold standard, the whole world (yes, including you and me) has been brain washed to believe that paper currency is money. No! Paper currency is NOT money!

Currency has the following characteristic:

  • medium of exchange
  • a unit of account
  • portable
  • divisible
  • durable
  • fungible

Money is:

  • all the characteristic of currency
  • storage of value

If you want to convert your Ringgit (paper currency) into silver (real money), download this eBook. I would show you exact step by step how you can start investing your 1st oz of silver all the way up to buying your 1000 oz of silver. A thousand miles journey starts with a single step, I hope you will take your first step to invest in education before jumping into the field of silver investment which is full of traps.

Happy investing!

 

January – June 2011 Silver Price 50% Increase

Here is a shocking news. Although it happens more than a year ago, it still worth sharing.

GATA – The Gold Anti-Trust Action Committee was organized in the fall of 1998 to expose, oppose, and litigate against collusion to control the price and supply of gold (silver) and related financial instruments. GATA sued Federal Reserve and won twice. I believe I don’t have to further convince you on the credibility of GATA.

The chairman of GATA, Bill Murphy has made a public announcement that during January to June 2011, JP Morgan was compelled (being forced) to stop manipulating the silver market. That means during January to June 2011, JP Morgan could not manipulate silver price and silver price was traded in free market.

And see what happen when silver price is traded in free market during January to June…

Silver price has gone up from $26 to $50 dollar! Almost 50% increase!

Bill Murphy said:

Silver practically went straight up to $49 an ounce. THEN, it collapsed for no apparent reason. That reason, from my most well informed source, was that JPM came back into the market in June.

We are expecting “some movement” from August 2012 onward. Most people would see the price goes up and price goes down, and they do not have the skills to take advantage of the price movement. I hope you are not one of these people. If you want to equip yourself with the right skills and knowledge to take advantage of silver price movement, take a look at the most complete guide for investing silver in Malaysia:

Are You Losing Money In Silver?

When come to investing silver, are you making money from silver or are you losing money in silver? Many people wish to make money from silver market but unfortunately most people are losing money. Sad, but it’s true.

Take a look at this chart:

This chart shows silver price is on downtrend since 28th April 2011 at $48.70 down to $26. If a silver investor has enter the market anytime in within this period, we could safely tell he is either not making money or losing money.

When this happens, most silver investors start to lose confidence in silver, some even give up on silver. They lose hope and probably thinking silver is not such a good deal after all. This is clearly observed in the market. When silver price is on the uptrend, more people are participating in forums, Facebook group pages, seminars, bullion dealers transaction etc. When silver price is on the downtrend, most the activities related to silver would slow down.

What these people didn’t realize is, when silver price is going towards a downtrend, it is a good time to buy more instead of running away!

Malaysia Silver Investor LIFETIME Membership

Someone asked me a question whether now is a good time to enter market. I don’t have a crystal ball and I cannot accurately forecast the future price, but I will give my personal opinion anyway. This is something I previously shared with the members in my VIP Lifetime Membership page:

There are several very strong resistance, and support level for silver for the past 2 years. The numbers that we are looking at right now are $26 and $34. Since the price is around $27 these few weeks, I will tell you more about $26 support level.

$26 has been tested for several times this year. Once it hit $26, it is a dangerous sign because once it is broken, it will potentially go down to $18-$17. Again, $26 is a strong support. I see $26 as a bottom price. For now it is quiet unlikely to go down to lower than $26. Silver will be traded within the range of $26 – $34 in the short to medium term.

Today price is about $27, it is very near to the support level (the bottom $26), so to answer your question, yes, it is a good time to enter the market now.

One of the reasons why I’m being positive about this is because of the trend we are at. We are clearly at the end of consolidation since the peak in April 2011.

If silver price break support at $26, it will be supported at $17-$18. We would need another 6-12 months for silver price to climb back up. The good news is, if silver price doesn’t break $26, silver price will potentially go up to $50 or even $60 by end of 2012.

If you want to receive a solid education for investing in silver, I suggest you take a look at my book (Practical Guide For Investing Silver in Malaysia) which I have spent months and months to prepare it and months and months to update it to ensure you will receive the most updated information.

Maybank Silver Saving Account Part 2

Maybank has officially launched “Maybank Silver Investment Account” with the tagline: Invest with Maybank Silver Investment Account. The first ever offered. Discover the potential of silver and diversify your investment portfolio.

Source: http://www.maybank2u.com.my

The “Maybank Silver Investment Account” has the following terms and condition:

Source: http://www.maybank2u.com.my 

Source: http://www.maybank2u.com.my

Here is a quick analysis of “Maybank Silver Investment Account”

Pros:

  1. Quick and easy way of start investing silver in Malaysia
  2. The saving passbook is backed by a reputable brand (Maybank)
  3. Low start up capital (using today’s price, RM58.60 + RM10).
  4. Low minimum top up (using today’s price, RM29.30)
  5. No liquidity problem, can sell anytime.

Cons:

I have listed 5 cons in the my Lifetime Membership Site exclusively for members. If you would like to find out more about the disadvantages of “Maybank Silver Investment Account”, please join the Lifetime Membership Site

Gold Silver Ratio Exceed 50, So…

Gold Silver Ratio is one of the main indicators to determine the value of gold and silver. Gold Silver Ratio basically means how many oz of silver it takes to exchange for on oz of gold. The calculation can be done by dividing gold price with silver price. For example, if gold price is $30 and silver price is $3, the calculation will be 30 / 3 = 10. The Gold Silver ratio will be 10.

Right now, gold price is $1598.40 and silver price is $27.44. That would make Gold Silver Ratio as 58.25.

Gold Silver Ratio mainly fluctuate between 50 to 55 for the past 6 months. Recently Gold Silver Ratio hit 59 and is obviously approaching 60. It is time to give a more serious thought into Gold Silver Ratio when we invest in silver. This is how Gold Silver Ratio looks for the past 6 months.

Looking at the 6 months chart, Gold Silver Ratio is on the uptrend.

In fact, if we look at the following 1 year Gold Silver Ratio chart, it has broken the 2 major resistances at 54 and 58 respectively. Which further proves the point that Gold Silver Ratio is on uptrend.

Okay, it’s on uptrend, but so what? What does it mean to investors?

If you plan to exchange your gold for silver right now, think again. Reason is simply because Gold Silver Ratio is on uptrend. 1 oz of gold might change you 58 oz of silver now. If you are willing to hold on a little longer, 1 oz of gold might change you 68 oz of silver in the next 6 months.

Gold Silver Ratio can only go up base on the following 2 variables:

  1. Gold price goes up faster than silver
  2. Silver price drops faster than gold

$26 is a very strong support for silver price. Recently, the market has been testing it several times and luckily it has not been broken. Once it is broken, the next support we are looking at is $18. In the Malaysia Silver Investor Membership Site I did talk about how we should invest accordingly base on the price changes:

 In the eBook Practical Guide For Investing Silver In Malaysia, it discusses the exit strategy using Gold Silver Ratio. In the membership site, I do give frequent updates and I would personally answer ALL questions being asked. This is the best education for silver investment in Malaysia. When comes to investment, the best advice I have personally received is “If you think education is expensive, try ignorance“.

Until next time, good luck with your silver investment and I will update you more in the membership site.

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

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