Silver price hit $15 mark

Last Friday, Bank of Japan decided to increase its QE (quantitative easing) program for another 10 trillion Yen – from 70 to 80 trillion Yen. The amount is slightly under $100 billion dollars per year.

Traditionally QE program has the effect of boosting precious metal (such as gold and silver) price. However, silver price further dropped to $15 mark last Friday. This is in line with the descending triangle pattern we saw early October.

silver-price-friday

This is a clear sign that market movement is no longer driven by fundamental. It is driven by sentimental. The market is looking for any reason to sell silver. Regardless good news or bad news. A bad news is a bad news, a good news is also a bad news.

The fundamental of silver is showing there is a large deficit in physical silver supply.

The annual production of physical silver is approximately 25,500 tonnes. To put this into perspective:

silver-cube

Silver had a physical supply deficit of 103 million oz in 2013. In layman term if your salary is RM3,000/month and you spend RM4,000/month, you have deficit of RM1,000.

In physical silver case, here is how the deficit happens:

physical-silver-deficit-2013

At current silver price ($15 – $16), most of the primary silver producers are already selling silver at a loss. Simple due to it takes more to produce silver than it can be sold for. Imagine a product take RM100 to produce but can only be sold for RM80. How many manufacturer would want to continue producing?

The following are some of the primary silver producer and their cost for producing 1 oz of silver:

production-cost

The number shows it simply doesn’t make sense for miners to continue producing physical silver.

Silver is not like trees that can be replanted back, or fishes that can be grown back. When 1 oz of silver is used up, it is gone forever. The total physical silver demand has been pretty constant for the past 10 years.

30072845-14127913664152102-SomaBull_origin

The demand for physical silver are not reducing for the past 10 years. The Silver Institute forecasts that silver demand will continue to rise over the next few years:

forecast

With the strong demand from both investment demand and industry demand, can silver price continue to stay below production cost?

In the short term, anything can happen. That includes silver price doing lower than $15. Silver price dropped below $9 during the 2008-2009 financial crisis but spike up to almost $50 in 2011. Silver is a long-term investment that definitely requires your patience.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

New Low in Silver since 2010

Silver price hits new low since year 2010. The trend for silver price is bearish (potentially moving lower) as you can observe from this chart:

silver-short-term

According to Investopedia, this is known as descending triangle. The descending triangle is recognized primarily in downtrends and is often thought of as a bearish signal.

decending

If we zoom out and take a look at the longer term of silver price movement, the similar pattern can be observed as following:

silver-long-term

During this period, many investors took advantage of the low price to buy physical silver.

Take the one of the most famous silver coins – American Silver Eagle, the sales for 1oz coin in 2nd half of 2014:

  • July – 1.9 million oz
  • August – 2.0 million oz
  • Sept – 4.1 million oz (breakdown as following)
    • 1st to 25th Sept : 1,700,000 oz
    • 26th Sept : 700,000 oz
    • 29th Sept : 350,000
    • 30th Sept : 1,357,000 oz
  • Oct – 2.5 million oz (at the point of writing this), where
    • 1st and 2nd of Oct : 1,650,000 oz

If we put this into perspective, from 26th Sept to 2nd Oct (5 business days) there are total of 4.1 million oz of American Silver Eagle sold. That is just for 1 coin!

2014_American_Silver_Eagle_Dual

Silver investors are buying on physical silver as there is a clear disconnection between the physical demand and spot price.

These are some of the reason why physical silver investors believe in physical silver and took advantage over the low price.

  1. Global electronics demand.
  2. Global jewelry demand, especially in Asian.
  3. Global industrial demand (it is expected to grow 5% per year through 2016 and outpace global GDP growth).
  4. The number of new industrial applications.
  5. The number of new bio-medical uses.
  6. Photovoltaic (solar) demand.
  7. Volume on the Shanghai Futures Exchange, which already surpassed the COMEX in 2013.
  8. Perth Mint sales were 41.6% higher in August than July, and September sales were the 3rd highest of the year.
  9. Domestic demand in China, which is expected for the first time in history to exceed 250 million oz in 2014.
  10. Gold/silver ratio (getting close to five-year high).
  11. The difference between price and the cost of production.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Top 3 Reasons Silver Rise in 2014

For investors who have invested in silver, surely you are aware that 2013 is one of the worst years for silver market. 2014 could be the year for silver price to rebound and here is the top 3 reasons:

1. Mining Cost

During the 3rd quarter of 2013, silver mining costs averaged $21.39/oz. In the past 2 months, silver has been fluctuating below $20.40 which is below mining cost.silver_60_day_o_usd

If it costs more to mine silver than the market is willing to pay for, eventually the producers will stop producing silver. A logical question to ask is why would someone spend RM1.00 to produce a product that can only be sold for RM0.90?

Ironically, this is what exactly happening in silver market. These are the type of situation value investors dream of because it allows them to purchase silver at a great discounted price. Such environment (below production cost) cannot last for long time because it does not make sense to produce anything to sell it for lower than production cost. Eventually silver supply will be cut, then scarcity, and eventually silver price will jump.

2. Technically oversold

The bull market of silver started at the end of 2001. From $ 4.02 to recent all-time high of $48.42 (increase of 1,104%). Several significant corrections took place. The most severe one was in 2008 when the silver price dropped by 57% then to jump 441% to a new all-time high.

silver-long-term

As shown above, silver price is in an oversold position. The situation is worse than in 2008 or in 2001. Such positions have always been followed by strong upward movements. After 2008, silver rose 441%. Some precious metals (gold and silver) shares even jumped 2,800%!

However, do not get overly excited with shares profit. Gold and silver stocks are more volatile than the real gold and silver. During uptrend, the profits soared higher; during downtrend, the losses would also be more significant. If you are new to precious metal investment, it is best to buy the metal itself than to buy the companies that owns the metals. It is hard work to select the right companies and to monitor them. You need to know the company management and understand their long term plan. That potentially makes your silver investment more complicated than necessary.

3. Asia Demand

India and China continue to be the largest buyers of gold and silver in the world.

indian-silver-trader

In 2013, India government has made several attempts to slow down demand for gold. India government increased import taxes to 10% for gold bullion and 15% for gold jewelry. That has resulted Indians to move their attention to silver. Between Jan and Sep 2013, silver imports to India totaled more than 4,000 tonnes, already more than whole year of 2012. Silver imports jumped 40% from 241 tonnes (in Sept 2013) to 338 tonnes (in Oct 2013).

photovoltaics-chinese

When China government is urbanizing 250 million citizens, that will require a lot of copper and other commodities. The government continues to source for renewable energies, which means an enormous push for photovoltaics and physical silver. Enormous demand for physical silver will be required by photovoltaics that will come from China and Japan.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Top 3 Recaps Silver Investment 2013

2013 has came to the end. Silver price has not been particularly exciting this year. Here are the top 3 events worth noticing:

1. April Price Drop

On 12th April 2013, silver price broke support at $26. $26 has been a strong support in the past. When silver price broke a strong support, the support will then become a strong resistance in the future. During this drop, some investor got panic because a strong support is broken. Most investors took this opportunity to buy silver at a discounted price.

support

2. American Silver Eagle coin sales created new record high

American Silver Eagle (ASE) coin sales is a good indicator to gauge investment demand for physical silver. The coin has a beautiful design yet the premium is relatively low among the other coins. That made ASE became a highly demanded silver coin in the world.

In 2013,  American Silver Eagle coin sales has created all time high sales record. Despite bearish silver price movement in 2013, physical demand for American Silver Eagle coin remained strong.

coin

3. 2014 silver price outlook

Technically, silver market is not over by looking at the major uptrend lines. The fundamentals continue to build in a favorable way for silver. The facts remain that gold is moving to China and India at rapid rate, Germany only received a fraction of their gold back. It will take another six years before the New York Federal Reserve will finish their delivery.

2014 will be a rebuilding year for silver to regain strength but not significantly. This is due to the ongoing currency debasement and the coming economic crisis. It is usually wise to buy when the markets are quiet and when investors are pessimistic.

Silver price is expected to be traded between $19 to $26. It might take several attempts to to break $26 before hitting $30 mark. However, it is always possible that something could take place to shift market sentiment overnight.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Did Silver Price Drop

The Federal Reserve announced last Wednesday (18th December) it would start to taper the aggressive bond-buying program from $85 billion to $75 billion a month beginning in January 2014.

In layman terms, it means Federal Reserve is suggesting they are going to slow down money printing because the economy is recovering. They are going to print less of $10 billion each month starting January 2014.

Silver price has dropped as a reaction to the announcement:

silver-price

Some investors who have been waiting for the perfect time to buy silver have decided to make a move to purchase silver. However they are surprised that silver price did not significantly dropped in their final purchase price (in Ringgit).

The reason is because when Fed announced US economy is recovering (by tapering QE), that also means USD will be strengthen. Unless Ringgit was still peg to USD, a strengthen USD basically means a weaker Ringgit.

Exchange rate went up to as high as $1 = RM3.2970 last week

usd-myr

Ideally when silver price drops, investors would be able to buy silver with lower cost. However, during this drop (driven by strengthen US economy), USD value went up and have off set the final purchase cost in Ringgit.

Compared to other investment class (such as shares in KLSE or property in Klang Valley), silver has an additional variable which is currency exchange rate. When you approach your local silver dealers, some will factor USD/MYR exchange rate into final selling price while some would not. A lower silver spot price in the international market does not always guarantee a lower silver price in Malaysia.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Undying Chinese

People’s Bank of China has announced it is not the best interest to continue buying more US dollar. Currently China is already the world’s largest in US dollar purchaser. China will cap its purchases of US dollars in an effort to limit the depreciation of the Yuan. The value of any currency in the world depend on the demand from other countries. Although China has not specifically mention a time frame to pull the plug, this decision from China will practically put US dollar into a worse condition.

YiGang“It’s no longer in China’s favor to accumulate foreign-exchange reserves”, said the PBOC deputy governor Yi Gang (19th November 2013) bluntly during a speech at Tsinghua University for China Economists 50 Forum.

In less than a week before the statement, Zhou Xiaouchuan, the governor of China’s central bank has also announced that PCOB would slow down on the Yuan’s pegging to US dollar. Without pegging, Chinese Yuan is potentially to appreciate 2% in a day!

china-yuan-dollar-2010-04-12

In Q3 2013 alone, China bought $166 billion US dollar reserves. As a matter of fact, China currently holds $3.66 trillion in US dollar reserves in total, which is more than 3 times that of any other countries.

China is also the largest holder of US debt, currently holding nearly $1.3 trillion in U.S. Treasury bonds.

This is a very funny video to explain relationship between China and US.

In economic fundamental, weaker US dollar means higher silver price – but is that so?

silver_1d_o_USDContinuing a down trend started last week, silver has spent the entirety of last week under $21/oz. In fact on last Friday (22nd November 2013), silver price was traded below $20/oz almost the whole day. Silver price is likely to get even lower before price start picking up.

Silver hit $20.75, its highest price thus far last week on last Monday morning, and began to fall not long after that. By noon, the precious metal was sitting at $20.34. By the end of the day silver price had sunk as low as $20.22, which is the lowest price since 9th August 2013.

Last Tuesday was a quieter day for silver. Silver price was traded between $20.22 and $20.48. However on Wednesday had more declines. Although silver began the day not far off from its price range the previous day, it had sunk to $20.12 by mid-morning and reached $19.83 by mid-afternoon.

The reason for silver price declined is due to the release of minutes from the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting. Interestingly, FOMC showed that the Fed will continue quantitative easing “at full force”, but at the same time tapering is “in the cards relatively soon”.

These are 2 contradicting directions but the latter appeared to have a more significant effect on silver price.

Silver Malaysia eBookPractical Guide For Investing Silver In Malaysia is an eBook specifically written with a Malaysian’s context for silver investment. You will learn different strategies, practical tips and tricks for investing in silver. Click here to find out more.

Triple Top Formation

april

Many investors could recall that silver price broke major support at $26 in April 2013.

However for those who are familiar with technical analysis, it is no big surprise. This is simply to completion of Triple Top Formation. The definition for Triple Top Formation is:

When price that is trending upward tests a similar level of resistance 3 times without breaking through. Each time price tests the resistance level, it falls to a similar area of support. After the third fall to the support level, the pattern is complete. Price will falls through the support; the price is then expected to move in a downward trend.

tripletopnew

The movement of silver price fits perfectly into Triple Top Formation definition. First we saw silver price was trying to test resistance level at $36 for 3 times but failed to break through.

silver price - top

Then, price did fall to the similar support at $26

silver price - support

The final indication is to break through the similar support at $26 to complete Triple Top Formation. When I saw the 3rd top, I have advised some of my members to stop buying silver (in the short term) and wait for silver price to go below $26 before start buying again. The breaking of major support at $26 did not come as fast as expected but it did eventually come in earlier this year April 2013.

Now, the Triple Top Formation is over. What I want to show you NEXT is, how can we take advantage of current situation. The previous resistance is the current support. We need to identify the strong resistance in silver price history to determine current support. Determining such support would give us indication when is a good time to buy silver at a potential bottom.

We could notice silver price was acting as resistance level at $19 in late 2009 to early 2010. Few weeks back, silver price hit $18.18 and was supported (did not move further lower). We have potentially hit the bottom of Triple Top Formation.

silver price - resistance

I can’t promise this is the ultimate bottom for silver price but I did personally started buying silver again in early July 2013 (once silver price was around $18 – $19). Let’s hold tight to our PHYSICAL silver, wait and welcome the next bull run.

If you have been waiting for the perfect timing to enter into silver investment, this might be the time you have been waiting for.

Silver Malaysia eBookIn the eBook: Practical Guide For Investing Silver In Malaysia you will find out a list of trusted dealers whom I personally buy from. You can buy from them confidently without worrying buying from the wrong type of dealers. The eBook will guide you step by step to complete your silver purchase order. 

Capitulation Phase

This is the big diagram of Bubble Phase.

bubble-phases

 This is the long term silver chart from 2002 – 2013.

silver

If we overlap the 2 charts, it is obvious that we are now in Capitulation Phase. Capitulation Phase is defined as the action of surrendering or ceasing to resist an opponent or demand. Investors give up any previous gains in price by selling in an effort to get out of the market and into less risky investments.

In layman term, it is the phase where many silver investors give up on hoping silver price would go up as much as they expected earlier. I personally know many people who started investing silver when price was $30+. Now, they are not particularly excited when hear about silver. But, they are also not desperate to sell off their silver at a loss.

The ironic part about investment phases is, we never know what phase we are at until we passed the phase. There are 2 directions we can go now:

  1. Whine and complain how silver was a bad investment because you might have enter in a bad timing. Then curse and swear that you will never buy a single oz of silver again in your life, OR
  2. Realize that silver price has came down significantly since April 2011. We now have the timing advantage to buy cheap silver, much cheaper compare to those who bought in 2011.

The fundamental for silver investment remains strong as before. Silver is still an extremely important industrial metal which has no replacement. The underlying global economy crisis is never solved. The can was merely kicked further down to the road. The biggest financial disaster in human history is still waiting for us.

However we need to be aware that further QE (Quantitative Easing) has no more stimulating effect on precious metal price. QE exit in the future would potentially bring precious metal price down. Which is a short-term market reaction.

The potential for silver has not fully shined. I would hold my physical silver for long term and has no plan selling any in the short term. If for whatever reason you need to liquidate your silver in the medium to long term, below are some of the indicators you can look for:

  1. The Federal Reserve (U.S.) and the Bank of Japan end their QE.
  2. Silver has another parabolic rise like it did in April 2011.
  3. Another better investment opportunity comes up that I feel would offer better returns than silver.

One fact is, it is never easy to buy something at the bottom and sell at the top. It is always better to buy and sell an investment at a good price, rather than a best price that might never come. Every investment has its cycle. What went up will come down, and what came down will go up. When one cycle has completed, another cycle will begin. Are you ready to catch the next “New Paradigm!!!“?

Silver Malaysia eBookTo find out more about silver investment in Malaysia, take a look at the eBook: Practical Guide For Investing Silver In Malaysia

The Truth

Have you watch the video? Please watch. “The Truth” is a highly awakening video everyone should watch. Really.

If you are now in certain form of debt (including credit card debt, personal loan, car loan, Ah Long debt, or any other creative debts), this did not happen by chance. The global monetary system is designed to get you into debt. The more debt you have, the more powerful “they” have over your life such as indirectly forcing you to cling to your job. When it comes to money, nothing happened by chance. The truth is, EVERYTHING is there for a reason and the reason is usually NOT benefiting you. Monetary system could simple if you understand how it works; but if you don’t, I recommend you take your time to look at these FREE educational videos I have compiled over long period of time.

Last week, I shared Rio Tinto’s Kennecott which contributes to US 16% annual silver production has landslided. This mine will likely shut down production. 5 million oz of annual silver supply (and 500,000 oz of annual gold supply) is vanished.

This week, I will share with you more precious metal mines are closing down due to the recent crash of silver (and gold) price. For the miners, it is simply not worth the cost to bring out new metal when the production cost is higher than the gold & silver price they can sell for.

1. Drumlummon Mine, United States

Miners drill holes on a grid pattern in the Drumlummon mine in 2010

Miners drill holes on a grid pattern in the Drumlummon mine in 2010

U.S. Silver & Gold is shutting down its historic Drumlummon mine because it costs more to produce an ounce of gold than it’s worth, the company announced on April 24, 2013.

During the first three months of 2013, the mine near Marysville produced just over 2,100 ounces of gold at a cost of nearly $2,300 per ounce. At the point of  the announcement, gold price was only $1,431. To put this into simple  layman terms, no businessman would want to continue an operation that requires RM2.30 to produce a product that can only be sold at RM1.40. Fair?

2. Pascua Lama, Chille

Pascua Lama

Pascua Lama is supposed to bring 700,000-800,000 oz of gold and 35 million oz of silver annually. Barrick (the company) is considering permanently suspending the Pascua Lama project. Barrick CEO, Jamie Sokalsky said “we are working to address the environmental and other regulatory requirements on the Chilean side of the project“. Do note that the shut down of Pascua Lama is due to environmental issue rather than silver & gold price crash. However, this would impact the global supply of physical gold and silver severely.

Knowing that for every 100 oz of paper silver being traded, there is only 1 oz of physical silver back them. For every 1 oz of physical silver that you buy at current suppressed price, you are making the silver manipulators to walk on a thinner layer of ice and helping to bring silver back to their true value.

Silver short term price movement might not be too exciting. Last week, I shared that silver price is “potentially” going to $20 within the next few weeks. Of course, do not know for sure if that would happen. But I will share with you what I observe:

Descending Triangle is one of the patterns in Technical Analysis. We draw one trend line that connects a series of support and a series of high. Once the breakdown occurs, the price is potentially going lower.

Descending TriangleHere is how silver price chart looks like:

Click on image for full resolution

Click on image for full resolution

How low would it go? I do not have the answer. However, during such suppressed price, I see it as an great opportunity to buy silver at undervalue price.

The MOST interesting part about our current situation is, regardless how low silver price, you might NOT be able to buy physical silver. Click here to see some proofs of physical silver shortage happening in both our Malaysia local silver stores and other silver stores in overseas.

Assuming that there is silver, premium (which contribute to the final purchase price) is much higher than it used to be. The premium for silver bullion is being updated 2 to 3 times in a week. The disconnection of silver spot price and physical silver is obvious and getting wider. Right now in US (a matured silver marketplace), it has been reported that some dealers are charging premium of more than 25%.

Looking at the silver chart earlier for the potential downtrend. This could be just the beginning. So, EVEN if silver price drop to $11, PHYSICAL silver might be selling at $30, $60, or even $100. In fact, I would be worried for you if you could still find silver at that time.

Silver Malaysia eBookTo find out more about silver investment, take a look at eBook: Practical Guide For Investing Silver In Malaysia. You will find out where I personally buy my silver from and my review on the dealers.

Physical Silver Shortage

Last Monday, silver price continued sliding down to as low as $22.50. Many speculated this is due to China released their GDP growth was 7.7% instead of the expected 8%. Silver is an important element for economic growth (manufacturing industrial demand), but missing 0.3% simply does NOT justify such big drop in silver price. Instead seeing this as a panic sell, this is an under-covered “price manipulation”.

This is a video that explains better the reason why gold & silver price crashed:

The video explained on gold price. Gold price is tightly coupled with silver price. When gold price goes up, silver price goes up, and vice versa. Further reading on: What Just Happened to Silver Prices

While the paper traders are selling paper silver, investors who truly understand fundamentals of silver investment are buying up more physical silver MASSIVELY during the price dip. They saw such time frame as a good buying opportunity to buy even more real physical asset with great discounted price.

The demand for physical silver is so great that many local silver stores run out of stock!

This is one of the largest silver stores in Malaysia, the physical silver supply has run out and only accepting pre-order. (Pre-order means the company accepts your order, takes your money, they will orders the stocks, and only delivers to you after the newly ordered stock has arrived. Usually at a much later date because there is simply no more stock left in the inventory at the point of taking your order.)

buysilvermalaysia

Another local silver store running on pre-order basis:

silvermalaysia

Some of the individual sellers temporary “close shop”: 

SLS

The physical silver shortage is NOT only limited to Malaysia silver stores, but a world-wide shortage. Some of the major silver dealers in overseas are ALSO having physical silver shortage:

gainesvillecoins

Another silver store from United States:

apmex

Daniel Ameduri from FutureMoneyTrends.com said:

I recently had a purchase order canceled hours after placing it (this has never happened to me before), the dealer called and told me sorry that they just couldn’t get the 1oz rounds I ordered.

To make the matter worse, US is the 10th largest silver producer, Rio Tinto’s Kennecott mine in Utah which contributes to 16% of US annual silver production just landslided. This mine will likely shut down production. 5 million oz of annual silver supply (and 500,000 oz of annual gold supply) have just been vanished. The loss of 5 million oz silver supply will have a DIRECT AFFECT on the Sunshine mint’s ability to source silver for blanks, which are used in the production of American Silver Eagle and other Sunshine brand  silver products.

landslide3 landslide landslide2

landslide6 lanslide4 landslide5

In economics 101, when a commodity is low is supply, price will shoot up. Interestingly, while current physical silver supply is low and even with the news of landslided mine, silver price did not shoot up too much. Does it mean many people are missing out such great buying opportunity? Silver price has came down to lowest point in the past 2 years, is it a good time to buy silver now?

Last week I shared about Fibonacci Retracement. Some readers wrote to me saying they didn’t really get it. So I will explain it further here. I have draw the lines on a long term silver price chart – going back as far as 2009:

fibo-resized

Click on image for full resolution (Right click, open with New Tab)

The lines consistently served as the support level and resistance level throughout the long term chart. When it comes to Technical Analysis, the longer the time frame, the clearer the trend, the more accurate decision we can call. In this chart, the data goes as far as year 2009 – 2013.

For the past 18 months, silver price has been consolidating between $26 to $36. The line at $36 served as a stubborn resistance level while the line at $26 served as a strong support level. Last week, silver price broke $26. The NEXT strong support can only be found at around $20. At the point of writing this, silver price is $23. Does it mean silver price will continue to go down to $20? I do not have the answer but the chart shows a “POTENTIALLY yes” that might happen within the next few weeks.

Someone asked:

“Where will you buy silver if price goes 20/oz or even lower?”

My response was:

When price was $30+, it’s a question of which dealer provides the most competitive price; when price is $20 (or lower), it’s a question of which dealer is still selling silver.

I have shown you proofs that physical silver shortage happens when price went down to $23 – $24. Smart investors would take advantage of the low price rather than running away from it. Many of the established dealers who were selling their silver at such price were losing money as they bought the silver price at higher price. If silver price does dropped to $20 (or lower), it is a matter of who else is still selling silver. During the recent silver price dip:

  1. The premium of silver products has increased. Premium is the difference between silver spot price and the actual selling price. Dealers usually increase premium to discourage buyers from buying because the dealers only have limited amount of stock.
  2. The delivery time for physical silver has been increasing from 1 week, to 2 weeks, to 4 weeks, and the latest reported is up to 6 weeks. No business prefers delay delivery. The delivery time will increase ONLY if the dealers genuinely do NOT have enough stock to ship.
  3. Spot price is now below mining cost. The mining cost for silver in Q4 2012 is average $25.74 but current spot price is below that, at $23. We witness for the 1st time, physical silver shortage in both local market and overseas market. Silver price can go down to as low as $11 or $12, but the question is, can you buy physical silver at that price?

Silver Malaysia eBookThe eBook: Practical Guide For Investing Silver In Malaysia will show you where to buy silver, how to buy silver and ensuring you maximize your return for investing silver in Malaysia. Click here to find out more.