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.

17 thoughts on “Maybank Silver Investment Account

  1. hi daniel…i thank you for your time to provide us such useful information about silver..i gain much from ur i still got some question and hope that i can seek answer from you…my question is what is the different between paper silver and physical silver? What is the advantages and disavantage of paper silver?

    • Hi Aaron, I’m glad that you found the information I shared useful.

      The main difference between paper silver and physical silver is whether you hold your silver or otherwise. You see, when you buy paper silver, you are paying for a promise to Maybank to buy back the paper silver from you in the future. According to the agreement, you cannot withdraw as physical silver. How does it impact you? During the recent price dip, there is a noticeable supply shortage for physical silver in both local silver market and even overseas. That means, even if you have money, you couldn’t buy physical silver, or it might take a long time for delivery from overseas (up to 4-6 weeks). While for paper silver, you can still trade (buy & sell) as usual. Personally, that means the physical silver is the real thing that investors who understand the fundamentals are going after, hence caused the shortage. Remember, if you don’t hod it, you don’t own it.

      The spread for Maybank paper silver is relatively high, at almost 9%. For example, if you buy silver at RM100 today, on tomorrow although silver price remains unchanged, if you want to sell your silver, Maybank will only pay RM91 to buy it back from you. It is an immediate lost of 9%.

      There are couple of other differences, but I believe the above have shown you a basic idea on the differences.

      However (and undeniable), Maybank Silver Investment Account is a quick and convenient channel to start investing in silver.

    • Hi Aaron, in the agreement, it mentioned buyer has no right to request for physical delivery, but it never mention whether it is backed by physical silver or otherwise.

  2. Hi Daniel Foo, I always wonder what paper silver is. Is paper silver in Maybank referring to account passbook? Is not about physical silver being sliced into paper form right? Do we really need PIDM protection towards our investment no matter in silver or ASB? It is the same case when you bought physical silver and when you lose it no one is responsible for it right except yourself?

    • Hi Terrence, paper silver a type of silver that is not in physical form. When you pay for your paper silver, you are paying for a form of promise that the institute will buy back the silver from you at certain price. Yes, it is referring to the account passbook. It is always better to have PIDM protection although the risk of Maybank closing down is relatively small. When you have your physical silver, no one else can take it away from you if you keep it properly. However in paper silver, you have no control over your silver except determining when to sell. The institute that you bought from could anytime introduce new policy or our country could introduce new tax to take a portion or all off the silver away from you. The best example you can refer to is the financial crisis happened in Cyprus:

  3. Good evening Daniel Foo, I thank you so much for every reply that you have answered me in my questions. You have increased my financial knowledge alot. Regarding about the Cypus bank, it is wholly own by government and no wonder they can steal money anytime they want from those people. But for Maybank, it is not wholly own by the government. So should we be worried about the government take all our silver for no reasons? By the way, Maybank gold investment so far doing well and the government didn’t take any advantage on that bank. Correct me if I am wrong.

    • Hi Terrence, as a Malay saying goes “malang tidak berbau”. We won’t know what the government is going to do when crisis really hits. Everything is fine now when there is no crisis. Just like no one would have expected what would have happened to Cyprus before the crisis hits. If and when the crisis does hits, I would rather be safe than be sorry. In other words, I would rather hold 1 oz of gold or silver in my own hand, than hoping that the bank or the government be merciful to me. Remember a simple rule in precious metal investing, if you don’t hold it, you don’t own it.

    • Hi Alvin, I’m familiar with the physical shops in Sabah but I do have friends who stayed in Sabah and he bought silver through couple of online sellers, namely the sellers in Facebook group pages.

  4. Pingback: Paper Silver | Silver In MalaysiaSilver In Malaysia

  5. “You must perform the transactions over the counter”. Troublesome isn’t it? Anyway, thanks for the priceless informations on your website.

  6. Dear Daniel,
    I just opened an gold investment account with Public Bank, is it really that unsecure to investment gold or silver through bank? I am planning in opening a silver investment account with Maybank….but still in pre-planning. Should I or Should I not to opening a silver investment account with Maybank? Is there another bank that have silver investment account other than Maybank?

    • At the point of we speak, there is no other bank in Malaysia that offer silver saving account except Maybank. I won’t say it is totally unsecured to keep your silver in saving mode with a bank. The bigger concern bank silver saving account is on the huge spread during the transaction. A huge spread also means a deep cut into your profit margin or perhaps even potential lost.

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