Silver Year End Sales

It is end of the year now and it seems like there is a Silver Year End Sales in silver market. In early December 2011, 1 oz of silver price has been dropping from USD 32 – USD 33 to USD 26 – USD 27 in late December 2011. Hey! Silver in Malaysia has a Silver Year End Sales too!

I have been buying silver from USD 38 / oz down to USD 31 / oz. Although I have not been long enough to invest silver in Malaysia, I did witness silver price felt to USD 26 in late September 2011 but unfortunately that was the first time I saw silver price dropped to such low level therefore I didn’t know how to act upon the low price at that time. I didn’t even know there was such a thing known as resistant level which USD 26 was a strong one. Few days back, I saw the similar pattern was happening again. Silver price has been falling and soon it would reach USD 26 again. Continue reading

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 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!