accordingly to many PM adviser, you should set aside 15 - 20% of your net worth in Precious Metal.
It's primarily focus such be asset diversification, insurance against sudden capital control, currency devaluation and hyper inflation and most importantly preservation of wealth.

Just like insurance, you buy them b4 accident, b4 sickness and death.

Secondarily, it may serve as investment for some but like anything if it's brought at low price, it means some profit, vice-versa. Most of them hold them tight until the price is high enough to sell.

Thirdly, for some it's a trading opportunity to buy and sell physical gold.

accordingly to many PM adviser, you should set aside 15 - 20% of your net worth in Precious Metal.
It's primarily focus such be asset diversification, insurance against sudden capital control, currency devaluation and hyper inflation and most importantly preservation of wealth.

Just like insurance, you buy them b4 accident, b4 sickness and death.

Secondarily, it may serve as investment for some but like anything if it's brought at low price, it means some profit, vice-versa. Most of them hold them tight until the price is high enough to sell.

Thirdly, for some it's a trading opportunity to buy and sell physical gold.

well, that is the conservative part. Depending on how you calculate lah?
Most people their asset is tied up with a house + car. House 400K, car = 50K.
Precious metal. even at 50K already very difficult for many because they still have car and house loan maybe around 100K - 300K of debt.

investment: What I put in should generally grow in value or price beating inflation rate. otherwise what point investing.

Insurance: I don't care paying something for it. Cause I may lose everything if I don't buy it (insurance.)

This are two different thing.
What kind of insurance am I referring to?
SUdden devaluation of currency, massive inflation, capital control. These kind of event normally the public will only knew it once it's announced in news.
These kind of thing can be insured with gold as it has maintained it value for the past few thousand year.
From all the news you heard today, make your own judgement whether these events will happen or not and how soon or how long before it will happen. (aka. how much time left?)..

If you think it's unlikely, then next question is to assess whether gold is a good investment or not at this point of time and price.

if you think it's likely to happen, then you should have at least some ounces tucked away somewhere.

many get carried away by current situation, when it goes up everybody chase after it, when it goes down everybody dump it. In the moment of silence when nobody talk about it, it's time to buy if you haven;t got enough.
In the moment of glory, it's time to sell.

hope i get it correct.

well, for those who had invested just don;t over invest.
B4 the price hike in gold, they will take down something with them 1st.
maybe it's related to CHina. or interest rate or property bubble in asia etc. Thus cash may be the king during transition. Just gut feeling only.

U R just speculating lah!. No differences than TOTO and Magnum. Just only the spread is smaller. Good Luck.

What I mean is those who already have a big saving in gold and silver? During the last gold bull ride, a lot of investor has over-geared and have more than 30 - 50% of their asset in PM. Some government staff even took personal loan to play PM, some saw people $making $$ and become a physical trader. Wow! too be a successful trader you must have big capital! where to get the capital? squeeze everywhere lah! Now price drop so much! what happen to these trader? If own $ oklah, if borrow money personal loan? every month makan roti.

Just my gut feeling only. I think over the next few months 6 month to 1 year, the interest rate will goes up. This may lead to liquidity crisis in banking system. They have try it b4 last year asking Uncle Ben to announce possible tapering , interest rate shot up. That was an experiment.

If interest rate goes up for few months, lot of derivatives , margin will die due to high interest.
liquidity crisis means most of the thing will drop. For PM maybe it maintains at current prices.

Once the liquidity crisis is over, probably people got $ but the gold price has gone up. That will be a more likely scenario. For now, keep some cash.

This post has been edited by GoldChan: Feb 6 2014, 04:11 PM

an experiment must be verifiable. Here are the task list
Task 1: Call UOB got stock or not. Got means = price too high or people are still doubting when to buy
Task 2: C goldsmith shop everybody queueing to buy? yes or not
task 3: call Maybank C got kijang emas or not.
Task 4: call Publicgold said U 1 immediate delivery pay cash.! got stock or not!
Task 5: select 3 main bullion dealer website :- see gold and silver price.! still available for sales???

If all YEs, then availability is not an issue now or maybe few months down the road, unless something big happen. E.g. Suddenly China revalue Yuan.

give it a try ok.

If that the case, then every week you just cost averaging buy a bit and a bit then U won;t susah hati buy too expensive.

well don;t get me wrong!
if you still low in gold and silver then buy now. but do cost averaging... maybe 1 oz per week etc..

If you already have achieve your gold oz and silver oz target then you may 1 2 hold as you never know how long the pricing like this going to last. At the mean time you may lose out on some other opportunities that come along.

E.g in mid 2011 should have sold all PM for a piece of land or property. now price is land + property high, price of PM goes down.
or at least if I sold a bit portion of PM in exchange for some numis stuff I still win.... like coin card , any old bank notes etc..



the loan stuff is for investor turn trader.

got one friend he said he already brought 200K of gold back in 2011.
another 100K of silver i think.
so do U think he should buy somemore.
he oso have stock property etc. + loan.
for him if net worth around 1 million, i think it's enough already.

he already finished his bullet.. Just don;t underestimate the 2011 bull ride, lot of investors already lost their bullet.... some even future bullet. some susah2 hold until today, they have missed out on real estates, some stocks and numismatic. or some $cash for travelling. 2 years ago travel should be cheaper than now.

so, how to ask them to buy somemore.? their face oledi red black oledi.
that why I said if U already reach your gold/silver target then keep some cash! that what I meant. hope I clarify everybody.


now, cash out on spare property then buy gold/silver may be a good strategy.
however i 'm not a real estate expert do your own due dilligent.

buy more....?

martingalehttp://blog.silvermalaysia.net/?p=394


What if someone follow your advise, and gold price remain like this for 1 year. and they missed out on something else. Are you going to be responsible for this?


In numis, you must know what to buy and sell and not blindly follow. Back in 2011, RM1 AA UNC is just $3 a piece, it went up to $9-$10 a piece now. Every coin issue in Bank negara, the queue is very long.

I think some numis may peak in a year or now. Other numis may peak few years down the road.

It's seems that for U numis is to buy high price coin with no prospect in future. However, there are 5 new coin shops in times Square opened since 2013. Perhaps. the reason is since PM prices goes down, property prices peak or peaking and stocks is pretty unstable, the $ goes to numis item.


generally, there can be some disagreement here and there, however if it's prelong it can be personal and ugly. I stop herelah. Anyway, thanks.

This post has been edited by GoldChan: Feb 11 2014, 02:59 PM

accordingly to Kitco is approximately 15% of your net-worth.

Though it's easy to answer. then when I go through the numbers! it a bit tough.

My comment.
For those in 40s- 50s, approximate net worth is about RM500K. Most of it goes to "1-2" houses their own.
Around 100K for gold and silver will do lah for average minimum.

if you have a flexi loan, then during low gold prices, you may 1 2 change the cash and pay bank interest in exchange for physical gold. Housing loan interest is quite low if you compare to the capital gain in gold if you brought it at the right time.

in case U need cash, just sell of some of your gold back to UOB.

Case 1: If you think property is of little value when peak oil comes, then you should keep 2 properties (shared own oso can if human or relative relationship is bearable.). One in rural area and one near to your work place. Land may be too expensive to be owned for many. As there are not many 1/2 acre or 1 acre land for sales. Most of them very big 10 acres and land division is long and not transparent.
Then you can afford to spend a bit more $ in gold and silver.


Case 2: U think property is very valuable in the future. Then you cannot afford to spend lot of $ in gold.

From 2008 - 2011, case 1 won.
From 2011 - 2013. case 2 won.

For 2014-2016? U decide.

I seen lot of smart people in this trade, unfortunately many of them also made mistake in picking up the right timing. The whole market is rigged. whether it's stock, commodity etc... Often there will be some traders who boasted how well their trades went but all the failed trades are not disclosed.

When you are still learning, don;t be greedy, just trade/buy a bit at one time.

matrix "This is your last chance. After this, there is no turning back. You take the blue pill – the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill – you stay in Wonderland, and I show you how deep the rabbit hole goes. Remember, all I'm offering is the truth – nothing more."

What if U miss the big time opportunities? Well opportunity comes and goes. There will be some other chances.

What if U screw up big time? Will U be able to recovered?
"This one open for discussion".





This post has been edited by GoldChan: Feb 11 2014, 03:38 PM

there is no tax for gold.

>> read the article . http://fgjam.org.my/aboutus.asp
the above tax rate is applicable in 1974 - 1975,


A brief history of Federation of Goldsmith and Jewellers Association of Malaysia

The Association started life as Goldsmith Merchants Association of Malaysia established on 25 April 1978 made up of twelve founder associations viz: the Goldsmith Association of Selangor, Negeri Sembilan and Pahang, the Perak Chinese Goldsmith Association, the Penang Gold and Silver Merchants Association, Province Wellesley Gold and Silver Ornament Merchants Association, the Gold and Silver Merchants Association Kedah, the North Perak Goldsmith Association, the Lower Perak Goldsmith Association, Melacca Goldsmith Merchants Association, the Muar Goldsmith Merchants Association, the Batu Pahat Gold and Silver Merchants Association, the South Johore Golden Ornaments Trade Association, Kelantan Chinese Gold Merchants Association and the following were elected to the First Council of the Association: President: Leong Yee Ban, Vice President: Thong Chew Wah, Treasurer: Wong Sik Kay, General Secretary: Yee Siew Kun, Liason Officers: Loong Kooi, Chooi Sui Kee. Members of the Council: Ko Hon Kwong, Lo Chup Pho, Dato Wong Chor Wah, Loong Hue Toong, Mak Guan Pin, Thoo Chee Kee, Looi Chun Sing, Lan Keng Yeew, Koh Choong, Ho How Kwong, Choong Wei Sing. Three Members were also entrusted with the task of drawing up a constitution. They were Leong Yee Ban, Yee Siew Kun and Wong Sik Kay.

Establishing the Association in those early days had not been easy. The founding fathers from the various states had to overcome a whole range of obstacles and difficulties. However, Spurred on by the desire for unity, for the better development of the trade and the need to protect of the legitimate rights of fellow members they preserved and finally succeeded.
In 1985 the constitution was amended under the leadership of then president Datuk Ng Teck Fong under which the Association became the Federation of Goldsmith and Jewellers Association of Malaysia.

The new constitution was duly approved by the Registrar of Societies on 25 July 1985. By the time the number of constituent associations has increased from 12 to 19.

Besides better understanding and relationships between members it also standardizes retail charges of gold and other jewelry ornaments. It also exercises responsibilities in the arbitration of industrial disputes between the employers and the employed.

In 1972 the government implemented sales tax. To protect the interest of members.

The Association set up a sub-committee to study the problem and negotiated with the Government. They were able to persuade the government to understand the special circumstances under which the members operated and to improve its measures in taxation.

In 1974 and 1975 the government once again increased its taxes on the gold and jewelry trade according to the following scheme:
Import Duty Surtax Sales Tax Total
Gold Bars 7% 5% 10% 22%
Gold Ornaments 15% 5% 10% 30%
Loose Jade & Diamond 15% 5% 10% 30%

The above measures placed great restrictions on the jewelry trade in the country. Large number of goldsmiths started to leave for neighboring countries in search of a livelihood.

The Association thereby presented the government with a fresh memorandum urging the a reduction of Import Tax on Jewellery Raw Material from 30% to 15% and taxes on gold bars from 22% to 5%.

Following joint meetings and consultations the requests we accepted.

In 1982 the Association presented the government with another memorandum asking for a free and open policy whereby gold bar imports would be exempted from taxtation, Gold Control liberalized and import license (A.P) for import of gold abolished.

On 21 October 1983 the government announced the exemption of gold (Import Tax on Non-monetary Gold Bullion) from import duties. Further Government listed gold and ornamental jewelry pioneer products and those engaged in the gold and jewelry trade enjoyed pioneer status with five years tax free exemption.

On 1 January 1987 the Government relaxed its regulations on gold control and gold regained free trade status.

On 1 April 1987 important license for gold (A.P) was abolished.

The above measures successfully removed the obstacles and hindrances facing the gold and jewelry industry. As a result business began to flourish and prosper.

Our present concern is the government’s plan to introduce compulsory Hallmarking system. We have already submitted a memorandum to the Ministry of Domestic Trade and Consumer Affairs requesting the government not to risk adopting a system which can have grave consequences for the jewelry trade in particular and the national economy in general.

We are currently engaged in discussion with the authorities on this important issue and hope that the government will be sympathetic to the people’s view point and do away with any compulsory Hallmarking. Finally, we hope that all those engaged in the gold and jewelry trade will continue the good work and fulfill the aspiration of those who have gone before us, Only through unity can we have the Strength to protect our legitimate interests as well as to face successfully the challenges that lie ahead. And ensure our trade will continue to grow and prosper.