COMEX is increasing their margin requirements, which makes silver contracts unattractive at this moment because of the increased cost for holding and leveraging silvers.

At the same time, large institutions are liquidating their silver to lock in their gains (soros anyone?)... and this caused panic sellings from average investors.

how long would it fall before bargain hunters come flying in? no one knows. there are rumors it could go down to $27.

who knows, we could see a straight down line again like what happened on last monday, or you can lock in your purchase before today ends and hope for a upward line next monday.

whoever went into silver last week would be having a heart attack based on what happened this week. from $49 down to $34. 30% drop in 5 days.

in my opinion, the fair "market price" for silver bars at the current spot ($34.51) would be RM 125-128 / oz and silver coins RM 132-135.

anyone willing to sell at this price?

btw, i am planning to buy silver bars from an oversea supplier. anyone here want to consolidate purchase and share the shipping cost? pm me so we can discuss.

Happy Stacking!

in my opinion, if you want to make money in silver short terms, don't go physical. yeah i know, everyone will be telling you to go physical and no paper silver.

but the problem with physical silver in the short term is, you can't liquidate it fast enuf. with paper silver, you can convert it back to money much faster. buy it low today, and if it shoots up in the next few days, liquidate ur paper silver and lock in the gains. but problem is, there isn't any paper silver in malaysia and for paper gold, the spread is too wide.

benedict1213 ... i understand how you feel. when the price of silver was rising a few months back, all the seller will be changing their price upwards by the minutes, saying cost is high, price is high, silver is in bull ... but when silver is tumbling down now, they give you another reasons.

anyway, i am not looking for sellers, they have their ways of getting their stocks. i just plan to get some silver from company oversea and see if there's any buyer or investor who are willing to pool in and share the shipping cost. on average, it is still cheaper than most sellers is selling in malaysia, including tax.

first thing you need to ask yourself, why would you want to invest in silver?

1. how liquid is silver depends on how fast you can find a buyer. paper silver is liquid because you can always sell it back to bank at anytime. unless if the bank go kaput. physical silver is the safest since you hold it, but, if you have alot, where do you store it safely? so, pros and cons.

2. there are a number of sellers in malaysia, public gold, ebay, forumers, etc. but generally silver in malaysia are sold at a pretty high premium. but some sellers might sell it to you at a reasonable premium, just shop around. or just hope the correction continues for longer.

3. silver are just like gold. some comes with certs, some dont. those that comes with certs are even more expensive. usually only collectors go for silver with certs. investors just focus on buying silver with the lowest premium possible.

how do you know the silver is fake or not? you don't. unless you are willing to cut up each of you silver bar and get it to be assayed. which makes no sense. you can try all those fake test techniques but in the end, you never know for sure. the best you can do, find a trusted seller.

which is why, in my opinion, i try to buy from company that has at least some credibility. usually overseas or buy straight from the mint itself. it's not that i don't trust individual sellers like ebay-ers, forumers (i did buy some from them), but the problem is, i do not know where they get their silvers. they might not even know if it's fake to begin with. it's the same like buying cigarettes from a kedai runcit, the chances of it being fake is higher than compared to if you buy it from 7-11. there might still be fakes ciggies in 7-11 but less likely. so in the end, buy from someone you trust.

there are risks also when buying from overseas company, you might still get fake but the risk is lower since they are already in business for decades and people worldwide are buying from them and they usually disclose their sources (usually they distribute for mints). there is also the paying up-front part and the waiting period for the shipment. usually weeks.

compared to buying locally from individual, you get it within days, or immediately if you cod.

so in the end, it's all up to what you prefer. buy oversea, pay up-front and wait a few weeks BUT less risk on fakes and cheaper. OR buy locally and get your silver immediately but with a higher premium and you have to trust your seller.

those ngc slabbed coins are really nice to hold and looked it. with the certificate and whatnot, but if you are thinking to resell it, you may want to avoid it.

this is a story i read somewhere, it is about a collector who is trying to sell his slabbed coins. he brought it to a reputable buyer and this is what the buyer said regarding the slabbed coins. "i am going to take a small pen knife and make a hole on the side and get the coin out, and then i'll throw it on the scale and pay you for its weight".

so, if you are planning to invest in silver, avoid slabbed coins. if you like the design and all and is planning to just buy 1 or 2, then go ahead.

for me, investing in silver or gold for that matter is basically for the long run. no exit strategy (except for paper gold/silver. you have to lock in ur gains).

buy physical silver, store it somewhere safe and then go on with ur life. make your money the way you are making it now. if you got extra money, buy some more silver. 5-10 years down the road, then you can slowly think about ur exit strategy. if you are planning to make money in silver in a year or a few months, i would suggest you go into stocks (tricubes anyone?). silver is not about making money, it is about preserving money.

in the end, the best way to preserve money is to make money faster than inflation. how? well, it's easy.
1. make more money today than you did yesterday.
2. the next day, repeat 1.

i second what benedict1213 said. i think silver is still in correction. the bounce we see in the last few days could just be dead rabbit bouncing.

at this current rate, it is advisable to take some position in silver and keep a close eye on what happens on friday.