Dear all, noticed recently the Silver Investment Corner thread has gone missing.... I believe there are silver investors around here who would like to always share their findings & opinions on this interesting subject.... so let's get started!

Anyone has first hand buying experience from Nubex?

http://www.nubex.com.my/index.php

Thanks in advance for sharing

hahaha.. i was about to open a silver discussion thread too.

visited their website but haven't buy from them. the location is near to my place...

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This post has been edited by livina2011: Nov 14 2013, 11:53 AM

Read somewhere that we need 24% before can profit unlike gold

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This post has been edited by livina2011: Nov 14 2013, 11:52 AM

any reason why so high at 24% compare with gold?

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This post has been edited by livina2011: Nov 14 2013, 12:14 PM

The spread of paper silver is quite huge comparing to paper gold.... therefore on paper for short term to medium term, paper gold is more favorable to trade....

However, how if we comparing the spread of physical gold VS physical silver?

personally I started with silver, then converted all my silver maples to gold bullions and never look back.

that was when I am almost half way through my monster box (250oz).

No doubt the premiums for silver is HUGE, even in Singapore where I bought most of my metals from.
For silver maples alone, the premium is 14.37%... that means I need to sit and wait till my maples appreciate above 14% to breakeven.
In Malaysia silver premiums are even higher (over 20%) which makes it "worthless" to invest in physical silver.

In contrast, 1oz gold maple's premium is only 3.8%.


XtraLeoGecko, the reason why silver's premium is on the high side is because local market do not have much demand and not many dealers bringing them in at large quantities. If you look at APMEX their silver prices are much more reasonable and their 100oz silver bars have similar premiums as 1oz gold bullion. I will only re-consider holding physical silver if the premiums drop to the same level as gold.

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This post has been edited by livina2011: Nov 14 2013, 12:36 PM

Thanks for this important sharing, really appreciate... This allow us to view physical silver investment in local context and also review the way moving forward...

This post has been edited by XtraLeoGecko: Nov 4 2013, 08:46 PM

In Singapore pawnshops accepts gold at spot, so if I buy 1oz gold at 4% above spot I only need to wait for gold to appreciate above 4% and I will break-even if I sell at spot. None of the pawnshops in Singapore accepts silver.

If one wish to sell his silver, the only ways to do it in Singapore is to sell to dealers at spot + small premium for coins, or spot for bars. Some prefer to sell at local forums like GoldClubAsia as they can sell at higher price to other forumers. Some just post on eBay and let eBay take some profit.

Seriously if you want to invest in physical silver, source them from overseas like APMEX. They will ship to you for any orders above USD1,500 but not sure what is the tax structure for precious metals at Malaysia customs. A Royal Canadian Mint 100oz silver bar has around 4.6% which is on-par with 1oz gold.

Even so, are you seriously going to lug a 3.1kg silver bar to meet your buyer if you wish to cash it out? I can get the same profit with just an ounce of gold... and that is 31.1 grams!

You need to do your own calculation., and yes I agree 100% with livina2011... local metal dealers are way overpriced.

Did some calculation:
4th Nov 21:18

Kitco 21.8 USD/oz
Silver spot as on BSM 70.7 RM/oz
Currency rate as on BSM 3.243 RM/USD
Maybank currency 3.137 TT (RM/USD)

10oz
Scottsdale 242.25 USD
Converted to RM based on Maybank TT rate 759.82 RM
Does not consider courier fees

Selling price
BSM 812.53 RM
Difference = +52.71 RM (compare to ordering of 1x10oz from Scottsdale directly)

Note: does not consider the shipping fees

So.... if we are located at US or near to a place whereby silver mint are available... perhaps we do not need to pay such a big premium due to transportation + middle man costs.....

Conclusion: Perhaps looks for reputable LOCAL mint ?! Is there any

SUISSE Mint - is this local mint?

XtraLeoGecko, do take some time to think hard on this:

1. What is your exit strategy? Even if you have a large stack of silver bullion who will you sell them to? It is just like stacking palladium or platinum, yes you can easily find 1-ouncers but who will take them off your hands when you want to sell them? Don't forget transportation is a major problem if you have large quantities of silver.

2. Precious metals in physical form, will incur higher premiums when you buy in small denominations. Personally I think for silver 100oz should be the "right" balance on premiums vs price. 10oz silver bars definitely has very high premiums (12.3% in Singapore).

I personally know some metal dealers in Singapore... take Perth Mint as an example. Master dealers order their stuff from Perth Mint at spot + small premium... say 1 ton of silver. Smaller dealers get their stock from this Master dealer at a mark-up (the Master dealer still needs to eat right?). Small dealers then sell to other smaller dealers, or sell direct to consumers with even higher markups. Due to floating spot price the premiums tend to be quite high as the dealers need to hedge for any price fluctuations. In the end consumers like you and me end up paying 15-25% premium above spot.

If you look at large dealers like APMEX, they have the capacity and customer base to move their stock very quickly thus they can pass the savings to consumers. It is not about whether you stay next to the Mint or not... even if you stay next to US Mint you can't just walk in and get your silver eagles over the counter.

Ya, you nail the point -- it is always the exit strategy which worries me.... still not able to find a reasonable way for selling.....

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This post has been edited by livina2011: Nov 14 2013, 12:26 PM

Depends on local market demand I guess. In Singapore most silver stackers go for Perth Mint Lunars and Kookaburras, or Chinese Pandas. Personally I have sold some past-years bullion coins for a nice profit as well. Some silver bullion coins change their designs annually thus giving them some numismatic value. However similar to most numismatic stuff, one thing rarer than a rare coin is a buyer. Without buyer appreciating your coin you can't command much for your silver stash.

Especially in Malaysia, you buy numismatic/semi-numismatic coins at a HUGE premiums from local dealers... you need to find someone really low in IQ to grab them off your hands at a profit.
Take SilverStreet as an example... they are selling 2014 Perth Mint Lunar Horse Proof at RM688... then discounted to RM438. Perth Mint's issue price was only A$90 which is like RM230 only. One can still find the Lunar Horse proof at close to mint issue price on eBay. In fact for numismatics I tend to tell my friends... "buy them if you like the coins, don't buy them and expect quick profit".

To all potential silver stackers, please do your own research and be familiar with the terms premiums and spot price. Make sure you know what you are paying for.

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This post has been edited by livina2011: Nov 14 2013, 12:24 PM