Hi, what does that mean? I'll contact you in advance before meeting up o.k?

Anyway, touched my target price but I didn't catch it at USD 30.59, was busy trading my coins and bars. small amount lah, but meeting very experience people who are in this since 2007 and before.

Anyone got into gold? or anyone want to swap their gold with my silver? I just want a small piece of action in gold, is all, my heart is still with silver though..

chef

How long hv u dedicated to silver? Never try gold before?

oh i have some gold, swapped for silver, now i want to get some back, this is the right time, but i'm so loaded with silver... so want to swap some back.

chef

Bro, before you do that, please check the silver/gold ratio.

Ratio >45, silver is cheap relative to gold, swap your gold for silver
Ratio < 45, silver is higher price relative to gold, swap your silver for gold.

45 is arbitrary ratio for now given the current situation, and it may change when there are changes in fundamental for the 2 precious metals.

Now the ratio is >53, meaning silver is cheap relative to gold, you should swap your gold for more silver.

Chef,
Not advisable to execute your thought.

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Added on November 22, 2011, 11:56 pmHowever, if you keep all your silver, and you have spare cash, then buying gold is no harm, at least the metal is lighter when you are on the run.

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Added on November 23, 2011, 9:12 amGold silver ratio is now 51.7, still high, meaning silver still cheap relative to gold.

This post has been edited by taurusbull: Nov 23 2011, 09:12 AM

hi taurusbull, this is a good method to determine whether silver is overpriced in a quick and simple manner. thanks for sharing!

just wondering whats your benchmark the determine whether the ratio is high or low at particular point of time?

@ taurusbull, thanks a lot for the sharing of the gold n silver ratio to determine the worth of buying silver in this current situation. I will getting more silver instead of gold..only the liquidy of silver in the silver shall be kind of issue. May i have ur opinion? thanks..

silver spot price 32.7 now.. aiya too late to buy some stock when 30.xx

just added 100gram when the price in usd30 range

Remember my advice, buy in Low Yat, and sell in SLS. You need to learn to be at least a one time seller in SLS, and get the confident and when the time to let go your silver, you can sell in SLS. If you have patient, sell at market price, and if you want to sell it fast, sell at 5%-10% discount from market price, and I am sure the liquidity is real good when selling in SLS at a discount. Forget about getting the promise of buy back from seller with 15% discount from market price and worry about the seller not honouring their commitment.

Good luck.

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Added on November 23, 2011, 12:07 pmOnly my intuition and no specific rule to follow. The current plateau of gold silver ratio hovering around 52 +/- 2, but the prevous plateau hovering around 45 +/- 2. Meaning there are changes in the fundamental of supply and demand, mostly paper based between both metals, such as changes in the margin requirements as imposed by the metal exchanges such as Comex and CME. I am using the previous plateau as a guide of relative price between the two metals.

This post has been edited by taurusbull: Nov 23 2011, 12:07 PM

Thanks for your advise,

I've thought about it too, but I would like to spread my portfolio instead of having everything in silver. silver gold ration used to be 1 to 12 (years ago), it may go haywire to reach 1 to 100 before leveling back. Like you said, nobody knows, calculated risk is all we can do.

AND the most important thing is, I'm giving such a good offer to lowyat people here, to swap silver for gold, yet no takers. really must find alternative market, ha ha...

Actually the main reason is, from my perspective, I have over invested in silver, so now I'm moving to gold. either using spare cash, or liquidating my silver at this great price and move some funds to gold.

By the way, I've got a tube of ASE 2009 and 2010, any taker? PM me price, thanks.

chef

Give me two more weeks, when my cannon is in place, I will buy gold to swap your silver anytime.

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Added on November 23, 2011, 3:17 pmChef,
Just to show that I walk my talk, I am willing to exchange 1 oz gold (ASE, Maple & Phil) with 51 oz silver (ASE, Maple & Phil). I will acquire the gold for this purpose. Now the gold silver ratio is 51.66 (rounding down to your advantage), and we can use this ratio or the ratio on the day of actual exchange.

Now there is someone in LowYat forum willing to exchange gold with your silver. We are not playing mintage year, just pure bullion. Ball on your court now.

This post has been edited by taurusbull: Nov 23 2011, 03:17 PM

Taurus,

Just for your info, currently 1oz of gold can be bought ~ RM5660. On the other hand, 51oz of ASE will cost ~ RM140 * 51 = RM7,140. The difference is ~ 26%. I would think there will be people interested to exchange their gold for silver in this case.

This post has been edited by chrischin: Nov 23 2011, 05:07 PM

Chris,
That is basically my point. Don't do it.

because of the sales and import tax of coin.. premium is quite high

if want to exchange, 1oz gold coin exchange with 51oz silver bar ~

This post has been edited by basSist: Nov 23 2011, 05:41 PM

Thanks basSist

I am trying to illustrate what I preached of gold to silver ratio. Beside the tax issue, there is also the supply and demand issue that allow the Mint to charge a higher percentage of mintage for silver than gold coin. There is also the finance interest cost for time lagged, from ordered date to actual delivery date to door step. Higher delivery and insurance charges as percentage cost of metal for silver than gold.

The actual cost of your physical silver in hand is worth the following.

Spot Price of Silver
+ Mintage fee
+ Finance fee
+ Insurance
+ Delivery
+ Physical silver shortage premium (now is low, may jump in 2013/2015)
+ Dealer profit

That explained the physical silver in your hand cost much more than what is quoted in Kitco daily spot price. Unlike in the states, the % premium in Malaysia for silver definitely much higher than for gold.

Another food for thought. For gold (silver as well) investment, try to buy foreign gold coins instead of local mint gold, we may one day (hopefully never) need to carry them as refugee like Vietnamese in the 70s. I am sure 1 oz gold of ASE, Maple and Phil worth more than any minted Malaysian gold, and more readily accepted in foreign countries.

Try investing with your head instead of your heart.

Good luck in your investment, either silver or gold.

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Added on November 23, 2011, 6:05 pmSorry, for silver it should be silver round and bar, as the 15.5% tax paid for silver coin is dead money when comes time to sell pure silver.

This post has been edited by taurusbull: Nov 23 2011, 06:05 PM

Gold market already established long time back since 80s and 90s, in hong kong and Singapore
Bullion market mainly backed by banks like UOB, Hang Seng.
Thus, nobody can compete with them. Thus forever low pricing.

Silver not so much competition yet. Get from Vendor from USA is still one of the best option.
last time i always interested in the costing side. Now not so much as I don;t have the control over it.
How much they charge I have to take it or leave it lor.
So, in the end when spot low I will just buy lah. Hope it will go high enuf 4 me 2 sell and make some profit for some
nasi lemak, tea tarik etc.

if anyone gives a good deal they can alway get the exchange donelah.

Hey goldchan!!

Aren't you on holiday? hey, go rest lah, don't monitor the market, have a good holiday, don't bring your notebook to the beach, I always think that is not the way to holiday. Unless you are back already, which means you had shortened your holiday?

Taurus,

Oh, I thought you wanted to buy my ASE, so you were just checking my selling price for illustration. Anyway, I've already swapped over 100oz of coins for bars already, so I walk the talk too, and talk the walk.

As for your proposal, well, I'm really not that crazy to do such extreme swap, you are really looking from the wrong perspective, I think most silverian knows that if I swap, we will be using the dollar equivalent for the swap, which i think is what chrischin and basist are thinking too. Meaning, 1oz of gold at RM 5,800 will be swapped for same or maybe a little more like RM 6,000 worth of coins or bars from me. (meaning say 2 tubes of ASE plus 2 or 3 sunshine bar etc etc....)

chef

PS I understand your point about coin being overpriced due to tax and such, but still there are demands for it during good times. There a re a few school of thoughts here, I'm one who balances both, coins and bars. While others are pure bars, and some pure coins or rounds.

Chef,
I am interested with ASE, any year, if I can get at same price as last time I bought from you. I didn't take your price for pure illustration.

You are right, coin have numismatic value and collector premium, and there are large audiences seeking the certain coin. I always make it clear from the perspective of "pure silver" consideration, to qualify my comments.

guys, dont know whether you guys facing this kind of problems. As we see the gold price raise up to 1900+ and suddenly drop to 1500+, its 1700 now but your parents especially father will say something beside your ears. Normally they will say the gold price is unstable now, it is keep dropping and dont buy it now until it stable. For me i think its really nonsense because how could someone without any knowledge in gold/silver
is asking you not to buy it now. The above case also happen for those who trade in stock market or forex.

Oh, ha ha, o.k. sorry about that.

I constant switch between bars and coins, at times thinking from different perspective. so I'm not the right one to comment which is better, my only thoughts is a simple, when times are good, coins sells, when times are really bad, bars will bring you around.

chef