Silver Coin Malaysia

Before you buy silver coin Malaysia, first you need to understand that coin is also known as legal tender. Coin is issued by the respective governments and has face value. Example of coins are American Silver Eagle (ASE), Canadian Maple Leaf (Maple), Philharmonic (Phil), Chinese Panda, etc. Coins usually have finer details on the silver. The design is usually much more attractive and beautiful compared to silver round. In Malaysia, the best selling silver items are silver coins. First is ASE and second is Maple. If you are starting out in silver investment, go for ASE and Maple. Between these 2, I highly encourage you to buy ASE. ASE has silver purity of 99.9% while Maple has silver purity of 99.99%. Milk spot is relatively easily grown on Maple compared to ASE. The condition could be as bad as even when you bought Maple from overseas, milk spot is already on the Maple coin. All the above coins are not originally minted in Malaysia. But they are common silver coin Malaysia.

silver coin malaysia

Silver Coin Malaysia

Cleaning milk spot could be a very tedious job if you have a large amount of silver to be cleaned. If you are paying the same amount of money for both ASE and Maple, why bother to pay for additional problem? Another thing to take note on buying coin is there is 15% tax (tariff code HS7118) if you are importing silver from overseas. This is the reason why you might find some sellers are selling silver coin Malaysia more expensive than silver bar and silver round. However, there are dealers who managed to smuggle silver coin Malaysia and bypass the Kastam and tax, therefore their price for silver coin Malaysia is cheaper. Do note that among coins, they carry different premium. Some premium are higher and some are lower. Higher premium means the coin is more expensive. Lower premium means the coin is cheaper. Some premium is worth paying for due to certain characteristic such as limited mintage. However not all premium is worth paying for. I advise for a start, do not invest in high premium silver coins.

You probably do not know whether certain premium for silver coin Malaysia is worth paying for yet. If we compare silver with real estate, consider low premium silver as a medium class apartment while high premium silver like exclusive bungalow. For most novice silver investors, it is safer to invest in medium class apartment. In other words it is much safer to to invest in low premium coin.

Pros:

  1. Beautiful and attractive design. Well accepted by silver investors.
  2. Easiest to liquidate silver coin Malaysia (compared to bars and rounds).

Cons:

  1. 15% tax if you are importing from overseas. If you are buying from local dealers, most dealers have already included the tax into the price.
  2. Some coins carry very high premium, if you are not familiar with premium game very likely you end up losing money.

“Silver Coin Malaysia” is a sample chapter from Practical Guide for: Investing Silver in Malaysia.

Silver Malaysia eBookSilver coin Malaysia is simple when you understand coin characteristic. 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, practical tips and tricks for investing in silver. Click here to find out more.

Densimeter Malaysia

Weight test is the most common method silver dealers and silver investors practice to quickly verify whether the silver is real or fake. Silver weight is usually slightly heavier than the specified weight to avoid quality control rejection.

Most people might think using high precision electronic weighting scale to test is sufficient. Unfortunately that is not true.

The specification for 1 oz Canadian Maple Leaf coin weight 31.1 gram. Below there are 2 Canadian Maple Leaf 1 oz coins – one real and one fake.

compare

The FAKE coin is weighted exactly 31.1 gram. If the person who is measuring it is not experienced enough, he would have thought this is a real Canadian Maple Leaf.

Densimeter is one of the most accurate device for measuring the purity of metal content. It can be used for measuring gold and silver purity. This is how a Densimeter looks like:

densimeter malaysia

The science behind Densimeter is dividing weight (gram) by volume (cm−3). Density for pure silver is 10.49 g/cm−3. Ideally, If we take a silver item (whether coin or bar), get reading of weight and volume. Then divide weight (gram) by volume (cm−3), it should be 10.49g/cm−3.

For most people, after knowing formula for silver density, would still have problem practicing it because they will usually get stuck at measuring the volume. Densimeter is the device designed specifically to solve the measuring problem.

Densimeter In Action

fake-with-water

real-with-water

The metal plate is an aluminum plate. Aluminum is a softer metal compares to silver. The reason for using aluminum is so that when silver contact with aluminum, silver would not be scratched. If there is any harsh contact between aluminum with silver, the aluminum will be scratched instead of the silver. In other word, the silver is protected from scratches.

water-cover

Densimeter works by hanging the aluminum plate from top – without touching any part of the container. The weight of the aluminum plate is fully supported by the 4-leg hanger. Put the silver that you want to measure into the water. The amount of additional water volume would add extra weight to the electronic weight.

Since plain water has density of 1g/cm−3, each additional 1 gram would represents 1cm−3. The volume is represented by the weight. In other words 1g = 1cm−3

The Manual Calculation

In this experiment, the FAKE Canadian Maple Leaf has weight of 31.1 gram and volume of 3.66 cm−3. The density for the FAKE Canadian Maple Leaf is 31.1/3.66 = 8.49g/cm−3 which is far away from the expected value of 10.49g/cm−3.

While for the REAL Canadian Maple Leaf has weight of 31.2 gram and volume of 2.95 cm−3, the density for the REAL Canadian Maple Leaf is 31.2/2.95 = 10.57g/cm−3 which is very close the expected value of 10.49g/cm−3. Difference is merely 0.09. For silver, the density variance of  +/- 0.3 is acceptable.

Using Density Calculator (FREE with Densimeter package)

This is a simple software known as Density Calculator. It works by using the concept of metal density. With this, the user will know the metal type base on weight and volume – without worrying the different type of complicated density as shown above.

This example shows the FAKE Canadian Maple Leaf reading. The reading for weight was 31.10 gram and volume is 3.66 gram. Only inserting two readings into the calculator, it will display a result that this is an Unknown type of metal. Hence, the software tells this is a FAKE Canadian Maple Leaf coin.

This example shows the REAL Canadian Maple Leaf reading. The reading for weight was 31.20 gram and volume is 2.95 gram. Again, by only inserting these two readings into the calculator, the software will display a result that this is .999 purity silver.

In order to demonstrate how accurate / sensitive the calculator is, the following test is done:

The test was done by adjusting the volume to 2.85 cm−3 (which is 0.1cm−3 lower than the REAL silver measurement). Upon performing the calculation, it would detect the metal as Unknown. The calculator has a range of +/- 0.3 acceptance in density. The increase or decrease of 0.1cm−3 in volume would lead to 0.37 change in density, therefore it would not be recognized as .999 silver. This test shows the density calculator has high accuracy and high sensitivity.

With this easy to use Densimeter and Density Calculator, every precious metal investor can measure the purity of silver (and gold) easily at home!

Click here to watch a video tutorial how to use Densimeter to test gold and silver purity.

goldsilvertools

For more information, please visit Gold Silver Tools and enjoy *FREE* Delivery (for limited time only) throughout Malaysia.

How To Find Good Silver Deal

For silver market in Malaysia, a typical transaction would be a dealer bought his stock (silver coins, bars, rounds) from overseas supplier in bulk. Then, he sell the stocks to you in smaller quantity. You are buying his silver at a retail price. The dealer makes a margin as profit.

Sometimes, if you are buying a reasonably large number of silver, let’s say 100 oz or more at one go – you might want to purchase directly from overseas. The advantage is, you cut down the middle man (dealer) cost. The disadvantage is, the transaction a little more troublesome and delivery takes longer than a local dealer. (I have written a detailed step-by-step guide on how to purchase silver from overseas here).

What I want to show you today is, how to buy silver locally with overseas price, cheaper than overseas price!

This is a screen capture I took from APMEX website:

apmex

Assuming that I want to buy 10 oz of silver, each oz will cost $23.19. If I convert that into Ringgit…

usd

$23.19 is equivalent to RM73.27. If I’m buying 10 x 1 oz of silver, that would be RM732.70.

This is where it gets interesting… A local dealer (Silver Street) is selling a pack of 10 x 1 oz of silver at RM730. This price is even cheaper than the overseas website price!

silver-street

By the way, overseas delivery is usually much higher than local delivery. In this case, APMEX charges fixed $49.95 per shipment plus weight surcharge ~$0.30 for every oz in the shipment. While Silver Street only charges flat rate RM8.

By now, some people might thought this is a scam where someone offer irresistible low price for an item and would disappear after the payment is made. However, this is not the case because I’ve been buying from Silver Street for a long time. This company has a track record of offering silver products at very competitive price.

silver_1d_o_USDSilver price has increase quiet significantly on last Friday (28th June 2013), website like APMEX uses live spot price. When silver spot price change, APMEX price follows changing almost immediate. However Silver Street did not adjust the price to reflect the change in spot price. Is this a good thing? Well, good for investors but bad for the company pocket.

The good news is, if you are reading this on Monday morning (1st July 2013), you can still make it to buy some silver at such low price. The price will most likely only be revised by Monday noon. Such deal might not come every day, but when it comes do make sure you grab it.

Silver Malaysia eBookTo find out more about silver investment in Malaysia, take a look at the eBook: Practical Guide For Investing Silver In Malaysia. You will find out my tips  for investing silver in Malaysia.

Silver Street

Silver items price might be varied at the point of publishing this article and the point of visitor visiting Silver Street website.

Silver items price might be varied at the point of publishing this article and the point of visitor visiting Silver Street website.

Silver Street by AA Stackers Enterprise is one of the fastest growing silver dealers in Malaysia that provides affordable silver investment items to the general public. I have personally met up with the founder, Afham Aziz several times for multiple purchases. I found he is reliable, professional and provide valuable service for silver investors. He is someone I would pleasantly deal with again.  Below is an interview I recently have with Afham on 6th May 2013.

==== Begin of Interview ====

daniel-fooDaniel (SilverInMalaysia.com): Hi Afham, I have seen you started your silver store since day-1, where your web-store only started with 4-5 products until you now have a professional and comprehensive e-commerce website, http://www.silverstreet.my/ Yourselves being the founder of Silver Street, what made you so determined and passionate on  providing silver investment items to Malaysians?

Afham AzizAfham (Silver Street): Actually, business is my passion. I always aim to become a successful businessman. To achieve my target, I never give up looking for a good opportunity. In year 2011, a friend of mine has shared his interest in gold investing. His convincing perspective and information, has become an eye opener. The feeling to involve in silver investment business becomes stronger when I found that within 1 year (2011 -2012), there was a 30% gain in gold price. So, I did a lot of research and study about precious metal price movement. My research has provided me with the understanding that silver has better prospect than gold.

Daniel: I have personally bought from you a couple of times. You have proven that you do provide great service to your customers; I have no doubt on what you have just said. So, do you think silver has good potential?

Afham: Customer satisfaction is always my priority in my business approach and I am glad that you are happy dealing with me. To be honest, I never think any other business that has potential as good as silver. Comparing to gold, silver has larger market segment as well as affordable to all levels.

Daniel: Why?

Afham: Most of us know that silver is widely used in our daily life. Computer, hand phone, photography equipment and any other electronic devices need silver as the best conductor and the demand for these products are increasing over the time. When we were in younger age, computer and hand phone were luxury items but today, they are a need in our life. This demand will increase in future where the silver supply is decreasing. Hence, bullish momentum in silver will continue.

Daniel: Let’s get back to your web store, do you think it is safe to buy silver online these days?

Afham: Yes, definitely. Even we do not provide insurance as Malaysian courier does not cover for precious metal, but we never face any missing or undelivered parcel. Also, we guarantee you that our silver bar and coin are genuine. We did random test on stocks from time to time and all of them passed the test. If customer wants to ensure that silver they bought are genuine, they can get an Densimeter scale from our online store.

Daniel: How do you ensure your customers really received what they have paid for? Well ok, let me put this plainly, how can the customers make sure that after they paid you money, they would not be cheated?

Afham: We have 100% satisfaction guarantee policy. If any customers are not happy with their purchased products, we will offer 100% refund of the product’s price. Just let us know within 7 days. By the way, our market is not only limit to Malaysian. We have our customers in other nations like Brunei and we even sold and shipped to customer in Europe. They trust us, why don’t you?

Daniel: That’s impressive. I just visited your web-store 15 minutes ago, I saw your web-store have so many silver items, which item should investors start looking at? 

Afham: Silver buyers are divided into 2 categories – one is collector and another is investor. We have covered both categories. For collectors, they may look at our Lunar Series range as the mintage of 1oz coins is just 300,000 pcs worldwide and all of them were sold out at mint. Even its premium is little high, but it offers stability and uniqueness. Stability in price is very important especially when silver price is so volatile these days. Another group of buyer is investors and they often look for lowest premium possible. We have silver bars and famous low premium coins – Canadian Maple Leaf and American Silver Eagle (ASE) to win this group. We believe, our price are among the lowest in the market.

Daniel: That’s a good piece of advice. When I first started investing in silver, no one ever gives this sort of advice and I was kinda lost by trying out things one by one – which was a really painful lesson! To certain extend, I even lost money for buying wrong type of silver. You know, that’s why now I’m dedicated to provide silver investment education in my blog and my eBook.

Afham: Doing something that we are not really good at is a risk. I myself experienced all those ups and downs but the most import is we learn from it – be it good or bad experience. To keep risk as low as possible, I read a lot about precious metal investment and your blog was one of them. I would say, your articles played big part in my decision to involve in this business. I think, I have to thank you for such a good and informative articles.

Daniel: You are welcome. Alright, let’s wrap this up, if I want you to provide 1 most important silver investment advice, what would that be?

Afham: Before anyone start, educate yourselves about silver investment. Knowledge is the king. Once you think you are ready, buy silver consistently every week or month to get the best out of it. It is always better to prepare for the worst than merely praying for the best.

Daniel: That is another great advice. So, if people want to find out more about the silver items you are selling, how can they reach you?

Afham: Your readers may take a look at our online store, http://www.silverstreet.my They also can reach me at +60 13 926 6600 or email sales@silverstreet.my if they have any inquiries.

Daniel: Ok, thank you very much for your time!

Afham: You’re welcome.

==== End of Interview ====

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

Polis Diraja Malaysia Report

If there is one worst thing could happen to your silver investment, it would this.

The below victim is conned by a man name Fam Kim Siong (Maybank account: 154017536054) of RM1,500 for buying silver online. Victim’s personal details is being blurred on purpose to protect victim’s privacyThis information is uploaded here with the victim’s permission to alert everyone else who are buying or planning to buy silver online.

Polis-Diraja-Malaysia-Report

The same con man has cheated another person worth of RM3,500 with the promise of delivering gold. In both cases, once he received the money through bank transfer, he can no longer be contacted.

Buying silver online could be one of the cheapest method to buy silver, however there are always 2 sides of every story. Some people would rather paying a slightly higher premium (more expensive) to only buy from reputable dealers; while some would take the risk to buy lower premium (less expensive) from less reputable dealers. As much as the choice is yours, I would like to give you a few quick tips:

  • If this is the first time you buy from a dealer, always consider Cash On Delivery (COD). COD is a method you collect silver and pay cash when you meet up with the dealer. If the amount is small (less than RM1,000), you should consider meeting at coffee shops or shopping center; if the amount is relatively larger (more than RM1,000), consider meeting up in a bank so that money can be deposited into bank account immediately.
  • If this is the first time you buy from a dealer, always test his silver by buying a small amount first. Yes, it is OK to buy just 1 oz for testing purpose (of course, you don’t have to tell him that you are testing him). Investment grade silver is always 99.9 fine silver. Spend a little money to ensure the dealer is selling genuine silver. If you are planning to buy larger amount from the same dealer later, you might even want to send his silver to assayer service (this is the professional level of testing). Your silver will be cut into pieces to verify the inside content. However, you might not be able to sell this piece of silver in the future later. If you want to take a less destructive method of verifying the silver content, consider using a Densimeter. It measures the density of the silver item by dividing the reading of weight by volume. Your silver would not be affected.
  • As Warren Buffet said, “don’t put all your eggs into one basket“. If you are buying a large amount of silver online, you should discuss with your dealer to separate the delivery into few shipments. For example, if you are buying 120 oz of American Silver Eagle (equivalent to 6 tubes, each tube has 20 oz),  you can request these 6 tubes to be sent in 2 batches (3 tubes each batch on 2 different days).

There are many, many other tips you should know when investing in silver. Obviously, I could not cover them all in this short article, I do hope you would consider looking into my eBook Practical Guide For Investing Silver In Malaysia to find out more about the tips. The above victim’s case is a perfect example of those “costly mistake” anyone could make. If he have read the eBook before investing in silver, I’m fairly confident he would have avoided such “mistake”.

Silver Malaysia eBookIn the eBook, I’d also provide you a list of trusted and reputable dealers in Malaysia that you can safely buy your silver from. In fact, I personally buy from these companies / individuals. To find out more about silver investment, take a look at eBook: Practical Guide For Investing Silver In Malaysia.

When Is The Best Time To Plant A Tree

When is the best time to plant a tree?

The 1st best answer is 10 years ago. The 2nd best answer would be NOW! If you have invested in silver 10 years ago, you would have bought silver below $5 and you could sell your silver now for about $30. That is almost 600% increase in value in 10 years! If you did not buy any silver 10 years ago, now probably is the 2nd best time to buy some silver.

Interesting, there are so little people know about the value of silver. Last week, I showed a video to test how much people know about gold price, this week, the video is to show how little people know about silver price. Although silver price is traded for around USD30, most people would NOT even buy it for 1 dollar. When come to investing, many people don’t make money simply because they don’t truly understand buy low, sell high. They might have heard of the terms, but they never truly understand and practice “buy low, sell high”. Well, the reality is, when they don’t even know the true value of something, how could they buy low and sell high?

This video is the best example:

2 precious metal gurus – David Morgan and Mike Maloney are discussing silver in their car. They discussed the role of gold and silver. If gold suddenly disappeared from the world, nothing is going to change. Everything will still be the same because gold has very little industrial application. However, if our modern life do not have silver, no modern technology would ever exist and we will be living in stone age!

For the first time, if we take all the gold and silver available in the world, there are 5 times more gold than silver for investment. Investment grade gold & silver are those that have at least 99.9% purity. There are about 3-5 billion oz of gold available for investment but there are only 1 billion oz of silver available for investment.

Below are one of the conversations we have in Malaysia Silver Investor Membership. One of the member asked me some questions which I think it could benefit more people if I post it in this blog. For privacy concern, I have blurred the name of the members.

Member

In the membership platform, we have members coming from different level of investment experience. Not only myself ready to answer any question raise by members, many other experienced members are also generously sharing information, advice, and news updates to the rest of the members.

I have written Practical Guide For Investing Silver In Malaysiaan eBook specifically written for Malaysian in silver investment. You will learn different silver investment strategies and I will show you how to invest silver below market price! Click here to find out more.

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.

 

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.

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.

Sell Back Silver In Malaysia

This following infographic are provided by my friend Jay Tiew Jin Jie. He is also the founder of Melaka Silver Group.

Alternatively, you can also consider downloading this eBook written by my another friend Ikram Adi who is also an expert in local silver market. In this eBook, he has included a case study on how he analyzes the silver price movement and how can anyone take advantage of the price movement. Click here to download…