If there is one worst thing could happen to your silver investment, it would this.
The below victim is conned by a man name Fam Kim Siong (Maybank account: 154017536054) of RM1,500 for buying silver online. Victim’s personal details is being blurred on purpose to protect victim’s privacy. This information is uploaded here with the victim’s permission to alert everyone else who are buying or planning to buy silver online.
The same con man has cheated another person worth of RM3,500 with the promise of delivering gold. In both cases, once he received the money through bank transfer, he can no longer be contacted.
Buying silver online could be one of the cheapest method to buy silver, however there are always 2 sides of every story. Some people would rather paying a slightly higher premium (more expensive) to only buy from reputable dealers; while some would take the risk to buy lower premium (less expensive) from less reputable dealers. As much as the choice is yours, I would like to give you a few quick tips:
- If this is the first time you buy from a dealer, always consider Cash On Delivery (COD). COD is a method you collect silver and pay cash when you meet up with the dealer. If the amount is small (less than RM1,000), you should consider meeting at coffee shops or shopping center; if the amount is relatively larger (more than RM1,000), consider meeting up in a bank so that money can be deposited into bank account immediately.
- If this is the first time you buy from a dealer, always test his silver by buying a small amount first. Yes, it is OK to buy just 1 oz for testing purpose (of course, you don’t have to tell him that you are testing him). Investment grade silver is always 99.9 fine silver. Spend a little money to ensure the dealer is selling genuine silver. If you are planning to buy larger amount from the same dealer later, you might even want to send his silver to assayer service (this is the professional level of testing). Your silver will be cut into pieces to verify the inside content. However, you might not be able to sell this piece of silver in the future later. If you want to take a less destructive method of verifying the silver content, consider using a Densimeter. It measures the density of the silver item by dividing the reading of weight by volume. Your silver would not be affected.
- As Warren Buffet said, “don’t put all your eggs into one basket“. If you are buying a large amount of silver online, you should discuss with your dealer to separate the delivery into few shipments. For example, if you are buying 120 oz of American Silver Eagle (equivalent to 6 tubes, each tube has 20 oz), you can request these 6 tubes to be sent in 2 batches (3 tubes each batch on 2 different days).
There are many, many other tips you should know when investing in silver. Obviously, I could not cover them all in this short article, I do hope you would consider looking into my eBook Practical Guide For Investing Silver In Malaysia to find out more about the tips. The above victim’s case is a perfect example of those “costly mistake” anyone could make. If he have read the eBook before investing in silver, I’m fairly confident he would have avoided such “mistake”.
In the eBook, I’d also provide you a list of trusted and reputable dealers in Malaysia that you can safely buy your silver from. In fact, I personally buy from these companies / individuals. To find out more about silver investment, take a look at eBook: Practical Guide For Investing Silver In Malaysia.