Calculate Silver Price by Oz & by Gram in Ringgit

Calculate Silver Price By Oz & By Gram In Ringgit

In Malaysia silver market, silver items are measured in 2 different measurement units, by ounce and by gram (or kilo gram). Many novice silver investors might find it confusing. This chapter is to show how to convert from one unit to another so that investors could see the price of silver strictly by measuring the weight of the silver item.

First of all, note that when we talk about 1 ounce in precious metal it is actually 1 troy ounce. It is different from the standard ounce that people used for measuring weight of other “stuff”. For the very beginning, look at this conversion:

In the following example, for easy calculation sake, we will use 1 troy ounce = 31.1 grams. We will also call it ounce (oz) instead of troy ounce.

Conversion from Oz to Gram

To convert N number of oz to gram, you multiply N with 31.1. For example:
Convert 1 oz to grams = 1 x 31.1 = 31.1 grams.
Convert 3 oz to grams = 3 x 31.1 = 93.3 grams.
Convert 5 oz to grams = 5 x 31.1 = 155.5 grams.

This calculation is useful if the silver item is measured in oz but you are quoted a price in gram. By converting the weight of silver from oz to gram, it shows if an silver item is priced fairly.

For example, you are planning to buy a 2 oz coin and the respective website has published Malaysia silver spot price is priced as RM 3.34/gram. The website is selling the coin for RM 310. So can you tell if the silver coin is priced fairly? Is this a low premium coin or a high premium coin? If high, how high? If low, how low? Let’s perform the following calculation:

Convert 2 oz to grams = 2 x 31.1 = 62.2 grams.
Calculate price for 62.2 grams silver in Ringgit = 62.2 grams x RM 3.34 = RM 207.75
Now, we can tell that the silver content in the coin worth RM 207.75.
The premium of the 2oz coin is RM 310.00 – RM 207.75 = RM 102.25
The premium in percentage is (RM 102.25 / RM 207.75) x 100 = 49.22%

You should be able to identify if the premium is too high depending on the brand and mintage quantity. If you are a value-for-money silver investor and this 2oz coin is an less recognized brand in international market, you will want to skip this because you could buy other silver coins with lower premium and the silver coin that is recognized world widely. You should only buy this 2oz coin if you are willing to pay for the numismatic value# of the coin.

Conversion from Gram to Oz

To convert N number of gram to oz, you divide N with 31.1. For example:
Convert 1 kilo gram to oz = 1000 / 31.1 = 32.15 oz.
Convert 500 grams to oz = 500 / 31.1 = 16.08 oz.
Convert 250 grams to oz = 250 / 31.1 = 8.04 oz.

This calculation is useful if the silver is measured in grams but you can only check silver price in oz. By converting the weight of silver from gram to oz, you can tell if an silver item is priced fairly.

For example, you are planning to buy a 100 gram silver bar and the international spot price is USD 33.67/oz. US Dollar to MY Ringgit conversion is 3.02. The website is selling the bar for RM 375.00. So can you tell if the silver bar is priced fairly? Is this a low premium bar or a high premium bar? If high, how high? If low, how low? Let’s perform the following calculation:

Convert 100 grams to oz = 100 / 31.1 = 3.21 oz.
Calculate price for 3.21 oz silver in Ringgit = 3.21 oz x USD 33.67 x 3.02 = RM 326.40
Now, we can tell that the silver content in the coin worth RM 326.40.
The premium of the 100 gram bar is RM 375.00 – RM 326.40 = RM 48.60
The premium in percentage is (RM 48.60 / RM 326.00) x 100 = 14.91%

If you are a value-for-money silver investor, this is a reasonable deal. Premium for silver below 15% from spot price could be considered as low premium.

This is a sample chapter from eBook titled Practical Guide for: Investing Silver in Malaysia. Download the full version


8 thoughts on “Calculate Silver Price by Oz & by Gram in Ringgit

  1. This is cool. Never invest in sliver before.Great information, Dollars cost average is great. I want to do it a little faster with $100,000 to spend. How to proceed from here.? There seem to be a lot of expenses,storage fee, commission to be paid? membership fee etc.How to exit? I knew what you say, a gurantee jackpot but do not know when?What is your prediction and how high wil be up?

    • Hi Chris, the best way to get started is to take a look in my eBook: Practical Guide For Investing Silver In Malaysia. A lot of questions that you asked are being answered in the eBook already. In the eBook, I gave my forecast price on short term exit point, medium term exit point. Lastly, the eBook also teaches you how to calculate a long term exit point base on certain factors. Personally I don’t recommend you to start straight away with RM100k. That is rather risky. If RM100k is your capital, I suggest you to break it into 12 portions and invest this capital consistently through cost average to protect yourself from price fluctuation. In your case (base on what you asked), I would also recommend you to join My Silver Accumulator program to kick start your silver investment journey. In my eBook it also gives a 4 pages analysis on the pros and cons of the program. You can get the eBook from here.

  2. Hi Daniel,

    I had invested silver in one of the bank on the 180912 at the rate of RM3.50/g for 800grammes. Well, that was before I read your ebook which I downloaded after puchasing. May I know is that expensive or reasonable since I am planning to buy some more soon. Please advise. Thank you

  3. Hi Daniel.

    I have a question on the calculations. Please correct me if I am wrong. Take for today(Jun 14), if I buy 10oz Scottsdale Stacker from a website that sells me RM811 per bar. Spot price today is USD22.20/oz; USD to MYR=3.12.

    10 oz x USD 22.20 x 3.12 = RM 692.64

    So, the premium of the 10 z silver bar = RM 811 – RM 692.64 = RM 125.68

    The premium in percentage is (RM 125.68 / RM 692.64) x 100 = 18.14%

    This is considered High premium right? I see the buyback price is RM 693. I know it sounds convenient. Does this means that I can normally just take the buying price minus the store’s buyback price, I would then know the premium rate?

    Thanks

    Jerry

    • Hi Jerry,

      You made a little mistake in your calculation:
      RM 811 – RM 692.64 = RM118.36, not RM 125.68

      The calculation for premium is
      (RM 811 – RM 692.64) / RM 692.64

      Hence the premium is 17%. This premium is considered ok. Not the lowest, but definitely not too high.

      The moment you compare sell price and buy back price, you are looking at the Spread. Spread is NOT Premium. You calculate Spread by minus your buy price with sell price, divide it by your buy price. In this case,
      Your Buy Price: RM 811
      Your Sell Price: RM 693
      Spread = (RM 811 – RM 693) / RM 811 = 14.5%

      At the point of writing this, 14.5% spread is considered reasonable in the market. However, you do not have to treat selling back to the seller as the only option. When silver price is high and more people are chasing physical silver, you can offload your physical silver fairly easily in the market.

      Hope these explained!

      Daniel

      • Daniel, Thanks for pointing out my calculation error.

        Great explanation. Your article mentioned premium below 15 is goo. Do we have a cap on which is considered high? Will these higher premium so called “decrease” the profit to be realized in the future? Also, I am very curious about offloading silver. Can you provide some advice?

        Thanks again
        Jerry

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