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:

MySmartGold – Prime Silver Bar 500 gram

MySmartGold has recently added a new product which is a 500 gram silver bar known as Prime. This silver bar does NOT come with certificate like PAMP SUISSE (1 kilo) silver bar and Oneasia Gold Mint (500 gram) silver bar.

500 gram silver bar is suitable for silver investor who wish to stack large amount of silver using lesser space. 500 gram of silver is equivalent to 16 troy oz of silver. In other words, some investors might choose to buy 16 individual 1oz bar for liquidity purpose while some investor who wishes to save space would choose such 500 gram silver bar.

This group of investor should be fairly confident with their cash flow that they do not need to sell off their 500 gram silver bar urgently in the near future. 500 gram silver generally has lower liquidity compare to smaller size investment grade silver bar (or round) such as 1oz. If a silver investor wishes to sell of the 500 gram bar, it might take a little longer compare to a 1oz silver bar.

Of course, one can argue that there is always a buy back policy. In the previous post, I posted this image:

What investor needs to be aware in buy back is the spread. There is always a spread being involved in buy back. Regardless how big or how small the spread is, spread is always equal to a cut in profit. Before executing your option for asking the vendor to buy back your silver, you might want to consider selling it yourself to minimize the lost in spread.

As always, the concern with selling silver yourself is the hassle and waiting period. So, you will need to analyze your financial situation and storage before deciding what size of bar to invest in.

Numismatic Silver Explained By Malaysian

I have seen a very good explanation about numismatic silver explained by Malaysian. Credit goes to jayjay (forum Lowyat). Here is it:

The opposite of numismatic silver is low premium silver bar. Silver experts such as David Morgan highly encourage silver investors to buy low premium silver bar. The reason is because for the same amount of Ringgit, you will get a lot more silver. In other words, you are paying for the silver (precious metal) content rather than the premium. There is a very good program in Malaysia known as My Silver Accumulator for silver investors to invest silver (utilizing dollar cost average strategy). Feel free to learn more about it here. Alternatively, check out Menu > My Silver Accumulator.

Bentuk Apa Nak Beli – Ikram Adi

Ikram Adi merupakan silver expert tempatan kita di Malaysia. Dalam video ini, beliau membincangkan coin, bar and numis dalam pasaran silver Malaysia.

Dalam eBook ini, beliau membincangkan pelbagai jenis silver. Kebaikan, keburukan dan pemandangan beliau tentang jenis silver. Sebelum seseorang melabur dalam silver, seseorang mesti melabur dalam ilmu pengetahuan supaya dapat memaksimumkan keuntungan dan tidak melakukan kesilapan yang boleh dielakkan. Muat turun eBook ini untuk mempelajari pelaburan silver daripada silver expert tempatan kita.

eBook Silver Malaysia

Practical Guide for: Investing Silver in Malaysia

The first silver investment in Malaysia eBook has been published titled Practical Guide for: Investing Silver in Malaysia !

Please click on the Download button below. It will lead you to a very simple registration page. I will need your name and email address so that I can send it to you. If there is a newer edition of the book, I will notify you through the email you have provided.

Sorry, this eBook is taken down for information update. Please subscribe to my mailing list . I’ll inform you immediately when the book is open for download again.

Sorry, this eBook is taken down for information update. Please subscribe to my mailing list . I’ll inform you immediately when the book is open for download again.

“Read this ebook. You will learn how to purchase your first silver coin in Malaysia within the first few pages. Daniel had done a great job producing this practical guide!”,

– KCLau, author of Top Money Tips for Malaysians and Top 93 Personal Finance FAQs in Malaysia


American Silver Eagle 2012 in Malaysia

American Silver Eagle (ASE) is one of the most popular silver coins in Malaysia. Year 2012  has arrived and unfortunately at the point of writing this, there is still no sign for ASE appearing in Malaysia silver the market yet. Apmex has started selling it, I’m sure some of the local silver distributors have bought them and perhaps waiting for the arrival to Malaysia.  I’m one of the people who has been expecting and waiting to own at least a piece of it to appreciate the beauty of the coin.

A lot of collectors and investors bought  American Silver Eagle not only for the beautiful design but also for the liquidity (how easy to sell it off if a person need to convert the silver in cash). Mike Maloney once said his favorite silver coin is ASE too! Continue reading

Type of Silver in Malaysia (Part 1)

Basic Type of Silver in Malaysia

Silver market is relatively small compare to gold market in Malaysia. However there are several type of silver in Malaysia that are available for both consumers and investors. Whether you are a collector or investor, the author wrote this page to provide a basic understanding on different type of silver in Malaysia. Do bear in mind that most of the type of silver in Malaysia are not originally from Malaysia. They are mostly imported from overseas in a end product form.

The most basic type of Silver in Malaysia can be broken into 2:

  • Silver coin
  • Silver bar

Type of Silver in Malaysia 1: Silver Coin

This type of silver in Malaysia is considered the most common among collectors. Reasons are because they are more beautiful and relatively cheaper compare to bigger size silver bars. The most commonly traded silver coin in Malaysia are American Silver Eagle and Canadian Silver Maple Leaf – which your assumption is right, they are imported and not being manufactured in Malaysia. However do bear in mind that the premium for silver coin is higher than silver bar, which means the collector would have to pay more RM to buy 1oz of silver coin compare to silver bar. This type of silver in Malaysia is mostly owned by collect or investor who has smaller capital.

Type of Silver in Malaysia 2: Silver Bar

This type of silver in Malaysia is considered the most common among investors. Reasons are because they are value for money. The premium for such type of silver in Malaysia is lower compare to silver coin. In Malaysia, the most commonly traded silver bars are PAMP SUISSE (1 kg bar), Public Gold (1 kg bar, 500gram bar, 250gram bar), Oneasia Gold Mint (500gram bar). There are many smaller sizes bar are being traded in Malaysia such as  Silvertowne (1oz), PAMP SUISSE LADY FORTUNA (1oz) and Morgan bar (1oz). There are too much such smaller bar available in Malaysia. Most of the smaller size bar sellers order the stock online from overseas and distribute to local retail buyer. Although smaller sizes bar are available, genuine investors usually buy bar with larger size as they are easier for storage.

This article is a basic introductory article for those who are started to learn about Silver in Malaysia, please feel free to explore further in this website to learn more about Silver in Malaysia.

Next article is: How to buy Silver in Malaysia.