My Silver Accumulator : Frequently Asked Questions
Question 1: What are the objectives of Bullion Accumulator Program from the investor’s perspective?
- The monthly ounce cost averaging strategy in this program will help investor to overcome the price volatility issues of bullion prices and minimize the incidents of frustration with regard to wrongly time the market.
- The referral incentive will encourage you to share with your friends and relatives on this investment strategy and increase the pool of investors that have the discipline to maintain in the market with precarious price volatility.
- The referral incentive allow the investors to further lower down the average holding cost on the bullion purchase.
- To facilitate the selling of the bullion with the highest possible prices through the three optional channels of selling.
Question 2: Why do I have to wait 3 months to receive my shipment?
Answer: Members are welcome to pick up their bullion at our offices once payments have cleared. Those who wish to use postage are asked to wait for quarterly shipments in order to lower the impact of postage costs. The program is about lowering the average holding cost of PM, and with the current spot price in April 2012, RM6 postage is about 5% cost of 1oz silver. If we ship quarterly 3oz of silver, RM6 postage is about 1.67% of the cost of silver, which make more sense in this saving accumulation program.
Question 3: Why do I have to pay a One Time joining fee?
Answer: This is a membership program with a long list of benefits to member, and with all membership programs having a joining fee is a norm. SMAP membership fee of RM300 is actually on the lower scale compares with most other silver programs starting with RM1,000 and above. Your One Time joining fee goes towards the cost of the 1 ounce of bullion you receive along with the 1 ounce of bullion your introducer receives. Balance funds are utilized to cover the membership smartcard and administrative costs.
Question 4: What if I miss a monthly purchase?
Answer: Members who miss a monthly payment will forgo their accrued bonus bullion. The member may choose to resume his investments at any time with no fees applicable. The bonus bullion counter will reset to month 1 on resumption. However, we give a grace period of 11 days after the payment due date before the commencement of termination process, giving member enough time to liquidate 1oz of their silver in hand to pay for the 1oz cost minus rebate due for payment. In most cases, member have no reason to fail in making payment if they have the will to do so, as the program is design to be such with only 1oz of silver as minimum monthly commitment, making it affordable to general masses.
Question 5: Do I have to commit to a minimum monthly purchase?
Answer: Yes, the minimum monthly commitment is 1 ounce of Silver. This makes the program affordable to the general market.
Question 6: Is the purchase date fixed?
Answer: Yes, we place our orders to our supplier on the 1st working day of every calendar month. This is to allow regular fixed interval monthly to purchase the bullion and making it truly monthly ounce cost averaging and help to reduce the overall holding cost.
Question 7: When do you invoice your customers?
Answer: Customers are invoiced on the 2nd working day of every calendar month.
Question 8: How do you calculate your selling price?
Answer: ((Kitco London Fix + Mint Premium) * Exchange Rate) * 1.1812
Question 9: Is there a renewal fee at the end of one year?
Answer: No, membership fee is only one off when you join.
Question 10: Do you have a buy back policy?
Answer: Yes, we have a buy back policy, as the last resort for you sell your bullion. Your 1st choice is to sell in the online Marketplace within Bullionxmy.com with no charges. The 2nd.choice is you post your bullion in the Brokerage site where all members act as agents to help sell your bullion, and in this site a service fee of 5% is levied. Lastly we have a buyback policy, best effort basis, following the Bank Negara guideline that company cannot issue Guaranteed Buy Back without unlimited fund to back up the guaranteed to buy back all the good sold by the respective company. The buy back price is Spot price minus 1% service fee, about 13.7% below the net buying price in PMA.
Question 11: Am I investing in paper or physical bullion?
Answer: We only deal in physical bullion.
Question 12: What form of Bullion am I getting?
Answer: 1 ounce 999 bullion bars from internationally reputed private mints. Examples: ASE, Morgan, A-Mark, Suisse Gold and etc.
Question 13: How does the referral system work?
Answer: For each member introduced by you we will give you 1 ounce of silver. For all purchases made by this member you will receive a 2% commission credited to your account on a monthly basis perpetually as long as that member continues to be in the program.
Question 14: Is this a multi-level marketing program?
Answer: No, we do not require our members to buy stock from us to resell and at the same time the commission tier is only one level down. This program is about encouraging silver investor to accumulate silver monthly with commitment, and the member volunteering to recommend this investment channel to their friends and relatives, and they are rewarded with referral fee as a token of appreciation for the kind deed.
Question 15: Do I have to recruit a member?
Answer: No, it is not mandatory. But introducing someone to the program is what helps enhance the market liquidity as well as lower your average cost.
Question 16: How is the bonus bullion calculated?
Answer: The bonus bullion is calculated on the ratio of 1:12. So for every 12 ounces of bullion you buy during a 12 month period you will receive 1 ounce free. This bonus plan is to enhance customer commitment in the monthly ounce cost averaging program, that actually incurred higher operational cost to the program owner.
Question 17: How does the company generate its revenues?
Answer: The company operates on a gross margin of lower single digit, and must be run with low overhead aided by highly automated process. The bullion trade is volume driven and in time we hope we can generate large volume.
Question 18: Is this program for me?
Answer: If you believe in the fundamentals of investing in bullion & the monthly cost averaging strategy then this program is ideal for you. If you believe in telling this investment strategy to your friends and relatives to benefits them, then this program be immensely beneficial to you, your friends and relative.
Question 19: How much money should I commit to the program?
Answer: Investing in bullion is a medium to long term investment and as such should not be entered into with short term risk capital. A good rule of thumb would be to only commit half of one’s monthly investment capital to this program. This would give you the ability to sustain your investment even if there is a 100% rise in the price of bullion. Furthermore this would also leave you with spare cash that you can invest when you feel the time is right.
Question 20: Is the bullion market liquid?
Answer: Every new member that joins brings with them liquidity. This program along with the support infrastructure of a Marketplace, Brokerage and Buy Back service are all intended to bring in more liquidity.