Buy Silver in Malaysia…Now!

Buy Silver in Malaysia…Now!

You can still buy silver in Malaysia with a very good price. Silver price is very likely to soar in the near future. Look, silver can be used in 10,000 different ways. It is the world’s best conductor of heat and electricity. Inventors found so much usage for silver that they have filed more patents on silver uses than any other precious metals in the world. Note that silver is used mostly in industrial and technological production; when it is used, it is gone forever because it costs too much to recycle the little bit of silver. It is simply not cost effective for any business to do so.

Please do not mistaken that the manufacturing industry is going to use up all the silver in the whole world. The probability is very little, but the little supply of silver would be a major issue soon. For the past few years, the world have been consuming silver very rapidly. It leaves very little left for investors to play with. The market is waiting for one ‘relevant’ financial crisis could easily send silver price to the sky. Silver in Malaysia will be no exception.

Here is a table that shows the percentage of usage of silver categorized by the usage and year, for the past 4 years:


As you could notice, only 12% of the silver pump into the market has been used to make bullion in 2010. That means there was only about 100 million ounces of silver became bullion…for the entire world! Do you know what is the world population? It’s not even enough for 1 person to own 1oz of silver now. I can safely bet that most of the people who are reading this owns more than 10oz of physical silver. Some even already owned more than 100oz of silver in Malaysia or in overseas. It is a very simple economy scenario, when there is more demand than supply, the price of the good (silver) goes up up up!

If the silver in the world is to be equally distributed, this is what you will see. Everyone person could only own 1/14 of oz of silver.

Now ask yourself, how many oz of silver have you already owned?

Nevertheless, silver is one of the most volatile assets for investment. Even my trading guru urged us not to touch (trade) silver until we are really good with the game. (Well, that is another story in paper silver and technical analysis). Over the history, silver has significant price swings including an 81% rally and two 30% drops. If you have invested in silver in Malaysia in 2011, you would feel the pain. Those price swings forced a lot of traders to liquidate their silver holding for whatever cash usage for their capital.

Anyway the long term movement for gold and silver are still in uptrend. Asian economies (especially China & India) are getting richer, they have very strong culural sentimental for loving precious metal. Similarly in Malaysia, there has been more people are buying gold and silver in Malaysia in the last 24 months. In addition, the Western countries have lived beyond their mean for a long long time. The liabilities and debts can only be paid back by their creative Quantity Easing (QE1, QE2, QE3…).

Hence, I urge everyone who is reading this, go ahead and buy some silver in Malaysia. Store it. One day you might be grateful that you have read this article.

I hope you have enjoy reading Buy Silver in Malaysia…Now!.

Silver The New Shine by Dr Kong Voon Sin

Silver The New Shine by Dr Kong Voon Sin

Title: Silver The New Shine
Sub-Title: Your Timeless Investment And Protection In An Uncertain World Of Paper Money

Description:
Through the book, you will find a new knowledge about how silver can make the world goes around. One of the amazing truths about silver is that the demand has surpassed the supply for 16 straight years since 1990. Thus, the book can help you to start investing in silver ─ in the right direction!

About The Author:
Dr Kong Voon Sin was as Chartered Accountant. He decided to retire and go full-time into living. He is a member of an Education Fund which supports poor students, an old Putera of RMC and an active member for Rotary for the last 30 years. He was Chairman for the Malaysian Hypertension Club, Chairman of the Malaysian Healing Chi Association and also committee member for Strategy Committee for Rotary and also a trainer for The Rotary Foundation. Apart from being a silver dealer and speaker, he sings with the Selangor Philharmonic Society, dances contemporary, an author and yoga practitioner. His mission today is to transform lives through safe investments and financial education while having the ZEST FOR LIFE!

Why Gold? Why Silver? Why Now? By Jonathan Quek

Why Gold? Why Silver? Why Now? - Jonathan Quek

Title: Why Gold? Why Silver? Why Now?
Sub-Title: How You Can Profit From Precious Metals

Description:
This book shares on the intuitions of silver investment and how it can turns your life around. Through the book, the author will take you on a journey of a lifelong fulfillment in new decade of silver investment.

About The Author:
Jonathan Quek is Asia’s Youngest Wealth Coach. As an authority in the field of Wealth Creation & Financial Management, Jonathan is currently a leading financial speaker, trainer, author and alternative investment practitioner. Being a regular guest speaker on the Asian conference circuit, Jonathan has been receiving invitations to a long list of financial giants, corporate organizations and education institutions all year round. Jonathan has been much sought after by the media on personal financial tips and was interviewed on TV2, New Straits Times, Gorgeous Magazine, Feminine, and The Malay Mail. Jonathan is the founder of SilverMalaysia.com and the co-founder of True North Asia, a trailblazing alternative investment firm in Malaysia.

How to Buy Silver in Malaysia

How to buy silver in Malaysia

Many silver beginners have problem learning how to buy silver in Malaysia. Beginner often search through the internet and will randomly come across some sellers that provide silver to retail market but the buyers might not know what are the other options of how to buy silver in Malaysia.

 

How to Buy Silver in Malaysia - Facebook Individual Seller

Facebook Individual Seller – how to buy silver in Malaysia

Using Facebook group page is one the quickest and easiest methods to buy silver in Malaysia. There are more than 5000 members in a local Facebook silver community are actively trading silver in small to medium quantity. The number of member is still growing. The group is known as Silver Shop Lot. There are easily 50 – 100 posts each day that discuss on the active sales threads. A lot of members would closely monitor the thread in case there is any good deal that come up and they an quickly snap the deal. Apart from selling silver bars and coins (or round), the members also sell and buy silver related accessories such as air tite and weight scale. This is the most active online community for a beginner to have real life experience to learn how to buy silver in Malaysia.

How to Buy Silver in Malaysia - Lowyat Forum

Forum Individual Seller – how to buy silver in Malaysia

There are several forum threads that discuss how to buy silver in Malaysia. Some are even some discussion about precious metal in paid membership forum, but the most active forum that discusses about silver investment is in Forum Lowyat. There has already been 2 versions of the thread, the first thread is how to invest silver in malaysia, and the second (latest) version is Silver as investment V2. There is a lot of active discussion about almost everything related to silver. In the beginning of the thread, there were a lot of members offering their silver to be sold in the forum, however as more and more members were mixing the silver discussion and silver selling in the same thread, some of the members took the initiative to create another Facebook group specifically for the members from Lowyat Forum. More to be covered in the later part of the article. For now, there are still some forum members use a signature (at the bottom of a post) to notify the member on what they are selling.

eBay Individual Seller – how to buy silver in Malaysia

How to Buy Silver in Malaysia eBay

eBay is another source when you are considering how to buy silver in Malaysia. The sellers in eBay are relatively more ‘reliable’ compare to other individual seller as the seller has a reputation record that tie to their account. Buyer could leave a bad feedback to the particular seller therefore the sellers would be more responsible with their action. Of course if you are buying silver from eBay seller for the first time, do consider buying it from a seller who has a reasonable length of good history feedback from his customers / buyers. Another note, do consider buying from local eBay seller rather than international seller as importing silver coins from overseas might subject to tax. Click here to learn more about tax for silver in Malaysia. Feel free to check out a list of eBay sellers I have compiled in my website. Disclaimer: I have no direct or indirect business or personal relationship with them.

How to Buy Silver in Malaysia Website

How to Buy Silver in Malaysia Website

Website – how to buy silver in Malaysia

There are many websites floating in the internet that sells precious metal (gold and silver) as their business. Please refer to my Online Store Compilation List to check out some of the websites that are selling silver online. Be noted that such website is easily accessible and they offer higher credibility compare to individual seller. However you can forget about buying silver with a good price, big discount, or low premium. These websites typically make a good profit for setting up a good looking website for you to come in and buy silver from them. The main objective of these websites are to make money from you so that they can survive. Some might claim that they are providing a service to the public to buy silver but the bottom line is they need to earn a premium from you to ensure the continuity of their business. Nevertheless, if you are looking for a hassle free way of buying silver in Malaysia with good customer service, buying from website could be an option for you while you are considering how to buy silver in Malaysia.

Hope you have enjoyed reading How to Buy Silver in Malaysia!

Invest Silver in Malaysia

Ever since I have posted an article titled “Silver Price in Malaysia”, I’ve been receiving some emails from readers on how to invest silver in Malaysia. In this article, I’ll be sharing some of the factors to take note while investing silver in Malaysia.

Research on the type of silver in Malaysia, know your options.

invest-silver-in-malaysia

Invest Silver in Malaysia

This is the most important step before starting to invest silver in Malaysia. Silver appears in many forms in Malaysia. Although almost all silvers are imported from overseas, there are legal tender coins, rounds, variety sizes and brands of bars are being traded freely in the local market. Conduct brief research on local online forums, Facebook group pages and local websites where the silvers are being traded. You have to understand what options you have before you invest silver in Malaysia in any form of silver. If you do not know your options, very likely you will be ‘slaughtered’ by the market rather than making money from it. For example, one of the local retail sellers who provide a Guarantee Buy Back scheme and another do not. However the sellers who provide a Guarantee Buy Back scheme do charge a higher premium for the silver while another seller is selling at a cheaper price. You will have to decide for yourself whether you the option of buying silver at a lower price or the option of buy a premium silver that tied to a Guarantee Buy Back scheme. Analyzing all the options to invest silver in Malaysia could be a little over-whelming in the beginning, but once the first round of analysis is completed, the coming investment journey is very much smoother.

Investment goal is a must and keep to your budget.

invest-silver-in-malaysia

Invest Silver in Malaysia

Just like any other form of investment, you must have a clear investment goal while you invest silver in Malaysia. An investment goal merely means what is your plan to enter silver investment such as what form of silver to buy. Then you would have to determine how would you manage your silver investment such as whether to practise dollar cost average by using certain amount of Ringgit to buy silver every month. Lastly is to find determine an exist strategy. Many experts believe silver is destined to shine in the near future; therefore having 3 – 5 years holding period (or even longer) before cashing out your silver might be a good idea. However, one of the very important notes is NEVER borrow money to buy silver. You should only invest silver in Malaysia with excessive cash that you do not need because silver spot price is a highly volatile. You must keep to your budget while investing silver as you do not wish to trap into a situation where you borrowed RM 10, 000 from financial institution which charge you 10% interest and your silver investment has been falling in value (as silver price could drop anytime without prior warning). Since silver has a lower liquidity in Malaysia market (compare to gold), which means when you need to cash out your silver, it might not be easily turn physical silver into cash very quickly. Therefore you must have an investment goal that you are comfortable with and only invest silver in Malaysia according to your budget.

Deal with silver with honour.

invest-silver-in-malaysia

Invest Silver in Malaysia

You will with a dealer to invest silver in Malaysia. There are many silver dealers in Malaysia. The dealers consist of individual dealers, dealers who work in a network and retail dealer who rent a commercial unit to sell silver. In the precious metal business, bear in mind that honour is a very important element. Traditionally in Malaysia, precious metal is a business where the industry player might not be highly literate but the industry players do honour their words in their transaction. A lot of silver dealers in Malaysia do allow their customers to ‘lock in’ the spot price through a phone call as a value added service to invest silver in Malaysia. Many buyers would take advantage of this service to ‘lock in’ the best price. However the buyers do not have a crystal ball to predict the lowest price. If the price started to fall 5% (which is very likely to happen) from the price the buyer has just ‘locked in’, the less honourable buyer would cancel the previous order to avoid the paper loss of 5%. This is not an honourable act. Currently there is no official law that prevent such behaviour; however there has been a local case in Malaysia where the dealers threaten the buyer for a lawsuit if the buyer does not honour the deal. Bear in mind that invest silver in Malaysia could get yourself into trouble if you do not honour your verbal deal.

There is not a lot of available resource available that discuss about how to invest silver in Malaysia, I hope this article would serve as a starting point for you to invest silver in Malaysia.

Silver Round

Investing in Silver – Are Silver Bullion Rounds a Good Way to Invest in Silver?

By Christina Goldman

Sample of silver round - Silver in Malaysia

silver-in-malaysia-elvis

Sample of silver round - Silver in Malaysia

 

 

 

 

 

 

 

 

Silver bullion rounds are simply another name for silver coins. The term round came about because the silver was shaped into coins and thus was able to be stacked into rolls. This made it convenient for the coins to be handled and shipped. You’ll often see them referred to as silver art rounds because they can be purchased inscribed with a variety of designs ranging from commemorative, religious, military, cars, holidays, weapons, animals, presidents, and even Elvis!

Specifications:

  1. You can buy silver rounds in sizes ranging from one ounce to over one hundred ounces. The one ounce variety is the most popular.
  2. Each silver round coin contains one full ounce of pure silver.
  3. It has a purity of .999 fine silver.
  4. It is not government-backed and has no legal tender status.

Varieties:

Silver bullion rounds are available in both name-brand and generic.

Name-brand silver rounds include the one-ounce private mint produced A-Mark Precious Metals, Wall Street Mint and Sunshine Minting. These silver rounds will display the name or hallmark of the mint that manufactured them.

Generic silver rounds are produced by a variety of small, little-known firms as well as those produced over the years by companies that may or may not still be in business. They typically have a smaller markup than the name-brand silver rounds.

Most Valuable:

Engelhard Silver Prospectors is the one ounce silver round that is most sought after by collectors. It was minted by Engelhard but has not been produced since 1988. This silver round is difficult to obtain and occasionally can be purchased on the secondary market.

Reasons to Buy:

  1. Silver rounds are readily available.
  2. They typically sell for a lower premium than government-backed silver bullion coins.
  3. The value of the rounds is directly correlated to the current price of silver.
  4. Their small size makes them perfect coins for bartering.

Conclusion:

Silver bullion rounds are affordable, easy to store, count, buy and sell. They are an excellent way for the small investor or collector to invest directly in pure silver bullion.
Source

Why Silver Price Is Not Rising

Silver In Malaysia – Why Silver Price is Not Rising?

Looking at the facts and numbers, Silver is destined to shine. There are so many articles and youtube video floating around the internet to prove that Silver is the greatest investment of the century. During Silver price boom in 1980, there were only the west was buying and caused the price to went up to almost USD50. Thanks to the hidden tax: inflation, can you roughly estimate how much is it worth USD50 in 20 years ago? For example, can you recall how much of goods RM50 can buy you in 20 years ago? and how much of RM does it take today to buy the same amount of goods today? Silver price will be MINIMUM USD 50 of 20 years ago value. The price of silver in Malaysia should proportionally adjusted according to international market.

Fast forward to today, not only the west, but also the east – and basically the whole are buying Silver, thanks the power of internet and TV news to spread knowledge very quickly and freely, the word is well informed about the facts, the numbers, the demand & supply for Silver. Logically speaking, the coming round of Silver price boom will definitely be higher than the last 1980 boom. How is it possible that a precious metal (and commodity) that has limited supply on earth being chased by an (almost) unlimited supply fiat currency will not spike up? Silver in Malaysia might not play a significant role in global market, but every oz of silver in Malaysia that being bought, it will reduce the global supply, even a little.

There is a lot lesser available Silver in proportion to demand – either above or below ground – than available gold.

Due to the industry consumption of Silver and low supply from mining, the situation will only get worse. The supply of Silver and gold gap will only get bigger. More gold, even lesser Silver. However the current gold to Silver price ratio suggests that we have almost 50 time more Silver than gold. It could be true in long time ago, but due to industry demand in the past decades, Silver consumption rate is far higher than the production. Economy basic, if supply is low, demand is high, price will go UP UP UP! There will be no exception for Malaysia, silver in Malaysia will naturally UP UP UP!

silver in malaysia

Silver Price in Malaysia using GoldPrice.org (USD) - which also indirectly represent price of silver in Malaysia

 

Unfortunately, the reality has slightly disappointed us Silver believer in recent May 2011 (30% drop) and Sept 2011 (35% drop). If Silver has been steadily increase like Gold did, I’m sure Silver price will be much higher. Today the general public has not yet gain confidence in Silver. You who are reading this is not considered general public. You know a lot more about silver in Malaysia comparing to the public. The public are the people whom have problem believing or even seeing Silver as a form of investment or at least a medium to keep the wealth. The best experience I have encountered is when I talk about silver in Malaysia, they would ask me why not gold instead. But whether like it or not, the big movement of anything will have to depend of the middle working class. The real spike of silver price will come when the public are rushing into the silver market.
Another factor (the main factor) that stop silver price from soaring is the artificial manipulation of silver price by the big boys. Not only the banks are interfering it, but the industry players are also coming in the suppress the silver price. Let’s not discuss about banks as I’m sure you can find a lot more better explanation about why it is banks disadvantage to allow precious metal price soar. I will talk about industry player manipulating the price instead.

Not long ago, I attended a Forex trading course. During the course we didn’t discuss much specifically about silver in Malaysia but we did talk about something more interesting. I learned that big industry players do manipulate their country currency for the benefit of their manufacturing / importing / exporting business advantage. Take Japan for example, for a giant manufacturer like Honda (and many other giant manufacturers), a slight change in Japanese currency would significant affect the cost of manufacturing and the profit gain from export. Similarly, for silver (as a form of commodity), industry player would also manipulate the price for their advantage. Take China as example, they make use of silver as raw material for solar panel, and they do use it in a very large scale. It would not cost little to suppress silver price – but imagine if it cost USD 1 million to suppress the silver price which will lead the manufacturer to buy the same amount of silver with USD 5 million; although it is unethical, it’s a no brainer for the business to spend USD 1 million rather than USD 5 million for the same amount of silver. In fact, just like any business, these big boys are not working solo and manipulating the price individually, they are working as team to strengthen each other. It would take a very big force to bring them down. Silver in Malaysia did not go through such manipulation but the price of silver in Malaysia is directly affected by the global market.

However, like a Chinese proverb says, “paper can never wrap fire”. I’m confident that silver price will one day revert to an honest price. You, will want to buy silver in Malaysia now rather than buying it when the price has reverted back to honest price.

Note: This post has little direct relevance to silver in Malaysia. It is a general discussion about silver in global market. Stay tune for more posts related to Silver in Malaysia.

Silver During Bad Time

A friend who has been in silver business has posted an interesting question on “what is going to happen to your silver during bad time?” Here is my response….

My opinion, during economy collapse, “3 cans of sardines and 5 loaf od bread for 1 oz of silver” will not happen. At that time, more likely people will be using barter system like, “hey, how about 3 cans of sardines for 5 loaf of bread”. Right now, people are too comfortable with currency (dollar, ringgit, etc) and totally forgot about the value of real money (gold and silver). If you try to Youtube about how ignorant people are about the value of gold and silver, you might find some videos really amusing. The point is, although central banks have been buying gold for inventory, the amount of gold and silver flowing in the end user market is too little to be used as “money”. Some people do keep a little precious metal but it won’t last long, the fact is, most people don’t. Right now, people are too comfortable with the idea of “currency”, almost all of us grow up and live in the “currency” mentality. gold and silver being used as real money again (like 2000 years ago) is very unlikely to happen. So, my friend is right, during bad time, it will be very hard to sell off your silver or even find anything useful to do with it.

People might ask, so why are we still buying silver? Let’s run a fact check list to ensure everyone really understand the potential of silver.

  1. Amount of Silver on earth, in 1950, there were 10 billion oz; in 1980 there were 3.5 billion; in 2010 oz there were approximately 500 – 700 million oz
  2. In 1980, Global Population was 2.5 Billion, Global GDP was USD10 Trillion. silver price peaked at ~USD50.
  3. In 2010, Global Population was 7 Billion, Global GDP was USD60 trillion. you work out how much silver price should be.
  4. Since 1980, Population has increased +176%, Global GDP has increased +500%, Above Ground Available Gold increased +600%, Above Ground Available Silver DECREASED -91%.
  5. Silver price right now is still below 1980 peek.
  6. In 1990 – 2000. 2 billion oz of silver is consumed. If you refer back to item no.1, for 2001 till 2010, it literary means there is no more silver! Of course, mining was and is still going on, but the production can never cope with the consumption.
  7. Everything will revert back to the mean, the more something overshoot, the more it will bounce from the mean in the opposite direction. The mean ratio for gold : silver is 1 : 15. At the point of writing this, it is 1 : 52. Conservatively, people believe it will overshoot back to 1 : 12. Some extreme thinker believes, silver will be more rare (and more expensive) than gold.

First I say silver will be useless during bad time, second I say silver is such a potential metal. So what am I trying to say?
There will be 2 period of time silver will shine.

First is during the period of PRIOR to world economy collapse. Let’s face it, historically every ~40 years there will be a new monetary system. The last monetary system changed was in 1971 (end of Bretton Woods system), and it came the new dollar system (that we have today). Let’s add 40 years to 1971….oh! It’s 2011! With the Eurozone crisis, US QE1, QE2, (who knows QE3…..QE999), China bubble, global inflation. Aren’t they the hints of a new monetary system is about to arrive? The fact that a new monetary system is almost for sure. It’s a matter of when.

How this new monetary system would affect the price of silver – is right before the new monetary system is introduced, where the current dollar system would have to go somehow out of control. During this period of time, (most likely is a global hyperinflation), where people have to buy a RM0.60 bread for RM6000 and a bottle of RM1.20 water for RM12000. At this point of time, your 1oz of silver will probably worth RM12,000,000. Don’t think it is impossible, Zimbabwe dollar is a perfect example. Your silver still buy the same amount of goods even during hyperinflation. You ringgit literary means nothing. People might rather use barter than carrying a bag of cash. This is the first period you really sees your silver shine.

Currently, our current monetary system (dollar) is backed by nothing. That’s why US can print as much as they want in QE1, QE2…. When the above out-of-control scenario happens, a new monetary system need to come into place to end all the misery. A new monetary will not be easy to adapt, for most people, it will be a very painful experience. Imagine a middle class worker who has worked hard all his life and saved RM1,500,000 and now he can only buy a bottle of water with it? The transition to a new monetary system will not be easy, everyone will have to go through certain amount of pain. However, the new monetary system would ideally backed by something. Throughout 5000 years of history, gold and silver have always been used to back a monetary system, it’s very likely that gold and silver will be again be used as the back-bone of the new monetary system. When all the central banks adopt to this new currency (which is backed by gold and silver), and you take out your silver, your silver will be the most precious thing a banker will see. For discussion sake, if the new monetary system is known as “Goreso” (I’m just making this up), people with pre-crisis cash would bring RM10,000 to to central banks to exchange for 1 Goreso; while you might be bringing 1 oz of silver to exchange with 120 Goreso where 1 Goreso can buy 1 bottle of clean water.

To summarize this, silver will shine under 2 circumstances:

  1. Prior to global economy collapse,
  2. A new monetary system is introduced.

For most people, the above scenario is really hard to imagine. We have live all our life with something we are so comfortable with which is the paper note currency.

I hope this post will serve as a first sign of warning you to get prepared for global financial crisis with precious metal.

This Will Be The Decade Of Silver

This Will Be The Decade Of Silver – Interview With Eric Sprott

seekingalpha.com 
NOVEMBER 14, 2011

Patrick MontesDeOca: Mr. Sprott, can you please give us the current situation in terms of price in the silver market? What you might see in the short term as it unfolds in the next six to twelve months, what is your forecast?

Eric Sprott: Sure, I take a longer term view than six to twelve months. I’ve been involved in silver for about probably almost ten years now and of course the price of silver has done wonderful things in that time period even though recently it has come under a lot of pressure. My thesis being that even though the last decade has been the decade of gold, this decade will be the decade of silver. I can only imagine that it will go back to its historical relationship to gold of 16 to one in term of price. And as an example of 16 to one, with gold at $1600 it would suggest that the silver price should be $100. And most of the data that I look at certainly as it pertains to day to day markets, and I don’t mean the Comex, we’re not talking about that, we’re talking about the physical market for silver, and we have data points that suggest that buying for silver by the public is almost on a ratio of dollars of silver being bought to dollars of gold being bought. We can see that the U.S. Mint’s data that comes out every month, and pretty much every day, so for example, the amount of silver coins being bought through the mint’s service – they sold 50 times the number of silver to gold coins. This month it’s actually running around 70 to one. This really means people are putting as many dollars into silver as they are into gold. But there is nowhere near the amount of silver to invest in as there is gold.

P: So do you attribute this correction we saw recently to the correction we saw in the beginning of April?

E: Sure, well, I think both corrections were orchestrated by people who are massively short silver. When the price went from 20 to 50 roughly, I mean, those shorts had lost about 20 billion dollars. If silver had broken through $50, things would have gone absolutely crazy. Like when gold went to 850, it doubled shortly thereafter, which would have created great stress on those people who were short. And unfortunately in the Comex market, which is mostly a paper market, those who have huge amounts of money can force the price down, and as you may have recalled Patrick, there was a Sunday night around 9:30 when the price went down $6.

P: And it’s usually over the weekend that this happens.

E: Exactly, when nobody was trading. And that particular day the Chinese market was closed and the UK market was going to be closed that day. And of course, everyone comes into work at the New York time and the price of silver is down $6, they already have the margin call. Then the CME raised margins 4 times in the next week which put the long holders of silver contracts under tremendous duress, so they had to sell them. So a lot of the short position has been covered here, I’m not saying there won’t be further raids. There was a raid recently where they recently knocked it down to $27, and that is what happens in the paper markets. Paper markets can trade up to a billion ounces a day, while we only produce 900 million ounces a year. And looking at the physical markets, which I spend most of my time looking at, I can identify something like a 380 million ounce change in supply and demand just in the past five years in a 900 million ounce market. I believe that sooner or later we are going to run into a shortage in physical silver and the physical silver price will then determine the Comex price.

P: I think a lot of people would like to know, potentially, how soon would you see this change taking place?

E: Well that is a very tough question to answer because there are forces at work every day, right, and you have to exhaust those forces or they have to have some reason to change their view on what’s their best interest in the paper markets. I’ve always imagined there, or hoped that some industrial user of silver will say “Oh, I can’t get the silver” and the word gets out that there is a physical shortage. Or the people just continue to buy at the rate they are buying, because you just can’t keep buying silver on a one to one ratio to gold and have the price be 50 to 1. That is mathematically impossible.

P: I know that you like silver very much, but let’s talk about gold for a minute and please tell me your opinion about Venezuela, Chavez repatriating the gold that they had on deposit with English banks. Is this possibly or potentially the beginning of a new trend of realizing the inventory of real gold by these countries or institutions.

E: Sure, well, I think it is one step in the process. One other thing that has happened is we’ve now seen that central banks are buying gold; while they used to be sellers of physical gold, now they are buyers of physical gold. The GFMS this year suggested that central banks may buy as many at 500 tons of gold, whereas they were sellers last year. And this is in a 4000 ton a year market. And I think Venezuela’s statement is “We want to have our physical gold in our physical possession.” Is it going to make a difference? I can’t tell you the answer yet because of course Venezuela doesn’t have their gold yet. And I’m surprised it’s taken, theoretically, until the middle of November for them to get their gold because it was on deposit you wouldn’t think the logistics of transferring that amount of gold, I think its 93 tons or 110 tons, that’s not a lot of gold is it in terms of physical size; because it is so dense.

P: You experienced the same kind of reaction I believe when you recently wanted to purchase some silver. Where it took a little longer than what one would think to be normal.

E: Well, when we started the Silver Chest, we had to go into the market and buy 15 million ounces. This was about exactly a year ago. And 15 million ounces at the time, [an ounce] was probably $20, was like 300 million worth of silver, which is not a lot of silver. And you would think people advertise it as a billion ounces of silver and you want to buy 15, you’d get pretty speedy delivery. It took us 3 months for us to get the silver and some of that silver that was delivered to us was manufactured after we had made the purchase agreement. Which really means, in my mind, there wasn’t a tremendous amount of silver lying around waiting to be delivered.

P: So there could be the possibility that we may have a lot less inventory than what appears to be told on these government reports.

E: Sure, nobody really knows how much inventory there is. We know how much is in Comex, we know how much the PSLV owns, but theoretically that shouldn’t be available, beyond that, I just don’t believe there’s huge amounts of silver and we are buyers of silver every day. We’re very often delayed on our shipments. You know we could go in and buy 2 or 300 thousand ounces and we sort of get the common “Well, you know that shipment is going to take 2 or 3 weeks”, which really means, I don’t think there is really any ready silver inventory that’s just waiting for someone to say “Ok fine, I’m going to buy” [then] “We’ll deliver it to you” because it’s not really that difficult to deliver silver.

P: Let’s talk a little bit about the European crisis, Eurozone crisis, the banking crisis. How do you see that effecting the silver price short term, intermediate, or even long term?

E: Well, I think, Patrick, it depends on how it gets resolved. I mean if it gets resolved simply by printing money, I would think it would be incredibly positive for gold and silver. Because people would realize that felt currencies are being debased through those actions. I think the fact that gold and silver are where they are is very much a result of people more and more realizing that the powers that be seem to care less about how much they print and therefore if that is the solution; that we just print I think it would be very optimistic. But there is one other choice. The choice is: they don’t solve the problem, which as you know has become a banking problem and if there was a banking problem that erupted, it could be even more positive to silver because people will realize “If I can’t have my money in a bank, what are my choices”, and as we all know, very limited. And most of us that are believers in silver and gold, believe we don’t want a counter party and we’d much rather own the physical, so we aren’t relying on someone else to fulfill the promise.

P: According to Arabian Money they commented that the Arabian banks have isolated themselves from what they believe to be an economic crash of the western world. How do they fit into this equation in terms of the demand for precious metals?

E: I don’t have a lot of data on Arabian banks. I truly don’t. I mean, we watch the gold sales in Dubai and places like that and we’re very aware that the Arabs, the whole Arabian community is a believer in gold and they like trading physical things for physical things, but I must confess, I am not enough of a student of what’s actually happening in that area to tell you one way or another what the flows are. We did see a data point about a years ago where Saudi Arabia said “Oh, our reserves were supposed to be this but they are really 60% higher” and it came out of nowhere. I mean, I would certainly imagine if I was there, and I were selling goods to the world I might very well want to have my cash invested in silver and/or gold.

P: I’m going to ask you to stick your neck out here and try to do some kind of a forecast for our audience. What do you see, I would say; let’s say within 2012, in terms of the mint picture, the crisis in Europe and essentially trying to resolve this issue and finding some kind of resolution? If these economic world leaders are able to come and put together an intelligent plan, what do you feel the price of silver could do?

E: Well, I have to beg to differ with the word ‘intelligent plan’, because I don’t think there is an intelligent plan. In fact I think we all now know that most plans have not worked and created a very difficult situation for the average person in the world and has exacerbated the problem in the banking world. So, they’re going to come up with a plan, it won’t be an intelligent plan. I don’t think solving a debt problem is solved by more debt and leveraging, which is what’s being discussed in Europe today. But either way, as I said before, I don’t think the impetus will be for precious metal prices to rise, if I had to predict, I certainly would believe that silver would be above $50 next year and that gold certainly would be above $2000 and it could be substantially higher than that. It’s a question of how irresponsible governments are and maybe we will find out there is a Eurpoean plan, and then 3 or 4 months later, there is an American plan where we get QE3. It’s hard to know where it’s going to go because we don’t know how irresponsible the governments are going to be, but they are tending to be irresponsible, therefore you would think there would be lots of impetus for higher prices.

P: Eric, I would like to thank you once again for taking this time to spend with us and answer some of these questions for our audience. Thank you so very much.

E: Patrick, My pleasure.

Silver Price in Malaysia

A Malaysian guide for Silver Price in Malaysia

There isn’t any fixed silver price in Malaysia. Repeat, the silver price in Malaysia is not fixed by individual or any organization. However, silver collectors and investors do have several favorite sources to benchmark silver price in Malaysia before they make any purchase. Base on the price (in USD), collectors and investors would convert the price back to Malaysia currency (RM) to get the silver price in Malaysia. The author would start off with how silver price in international market relate to silver price in Malaysia and then silver prices published by local silver seller and share an interesting story about silver price in Malaysia at the end.

1. Using Kitco to benchmark silver price in Malaysia

Kitco is one of the favorite source for Malaysian to check silver price. The image below is particular famous as it provide 3 days history of silver price.

Silver Price in Malaysia using Kitco
Silver Price in Malaysia using Kitco (USD)

 

2. Using SilverPrice.org to benchmark silver price in Malaysia

SilverPrice.org is another favorite source to check silver price in Malaysia. Reason being is because when a person type “silver price” in Google, the first 3 results are coming from SilverPrice.org (at the point of writing this page). The silver price would be shown in the following graph:

Silver Price in Malaysia
Silver Price in Malaysia using SilverPrice.org (USD) – Daily Chart
Silver Price in Malaysia
Silver Price in Malaysia using SilverPrice.org (USD) – History Chart

3. Using 1StopGold to benchmark silver price in Malaysia

1StopGold is one of the biggest silver sellers that offer silver at competitive price (in Ringgit). The price 1StopGold offers has one of the lowest spread among all silver sellers. However do note that there are several negative remarks regarding their service in the silver seller and silver investor community. The price 1StopGold published on their website is not updated live, 1StopGold only update the website price once a day. Buyer will still have to call in to get the current price. You may check 1StopGold silver price here.

 

4. Using MySmartGold (live rate) to benchmark silver price in Malaysia

MySmartGold is another one of the biggest silver seller in Malaysia at competitive price (in Ringgit). Their silver price is transparent and easily accessible. The silver price is updated every second during their trading hours. Although the spread is slightly higher compare to 1StopGold, but the remarks from silver buyer is the whole transaction is way better. You may check MySmartGold silver price from here.

5. Using Facebook to benchmark silver price in Malaysia

At the point of writing this page, there are 2 very active Facebook groups that actively buying and selling all type of silver to the members. You may have to join the group before you can start posting. If you are a buying silver (coins or bars) in a smaller scale, this might be the place you want to check out the silver price in Malaysia. The Facebook group pages are:

6. Using other sources to benchmark silver price in Malaysia

There are a lot of smaller independent silver sellers who are not attached to any organization. They published their prices on their websites, eBay, forum, etc. You may check out more from here.

Real Life story for Silver Price in Malaysia

When the price of silver is hanging around USD 33+ (base on Kitco), I made a purchase of 1 tube of American Silver Eagle (x 20) coins from one of the sellers that offer competitive price. He has quoted me RM142 / oz which I found it reasonable after comparing to some of the other silver sellers. The next day, I was talking to my friend who happens to also bought 1 tube of American Silver Eagle (x 20) coins. My friend has paid for RM130 / oz. The seller does not sell silver for a living and was desperate to cash out fast. Therefore my lucky friend got to buy it with such a low price.

The point of sharing this experience is to tell that there is no fixed price for silver in Malaysia. The silver price in Malaysia is totally about willing buyer willing seller.

Good luck for getting the lowest silver price in Malaysia!