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