Silver price crashed, is it

time to buy silver?by Daniel Foo

Agenda

1. Silver price has crashed, is it time to buy silver?

2. Currency & Money

3. Why silver?

4. Compare gold and silver

5. Maybank Silver Investment Account

6. Silver coin: American Silver Eagle

7. Is silver still cheap to buy?

8. Q & A

Read more: http://kclau.com/webinar/time-to-buy-silver/

1/20

Weekly chart for silver price

● These two charts are identical, at the price of 19 USD, very likely at the turning point to

catch bull market

● Silver price is largely affected by global economy, esp. the US economy

Economy Fundamental

Read more: http://kclau.com/webinar/time-to-buy-silver/

2/20

Quantitative Easing…

A government monetary policy to increase the money supply by buying government

securities or other securities from the market. Quantitative Easing increases the money

supply by flooding financial institutions with capital to increase liquidity in financial market.

Government is printing money

American President

● Richard Nixon

● Before 1971- US Dollar Was Pegged to Gold

● France aggressively demand

● Took Dollar Off Gold Standard

US Can Now As Much As They Like

Money & Currency

● QE1- 1.2 Billion (Nov 2008)

● QE2- 600 Million (Aug 2010)

● QE3- 40 Billion each month (Sept 2012)

http://silverinmalaysia.com/qe3

Read more: http://kclau.com/webinar/time-to-buy-silver/

3/20

● QE4- 45 Billion each month (Dec 2012)

http://silverinmalaysia.com/qe4

Currencies Money

● medium of exchange ● all those qualities

● a unit of account ● plus store of value over time

● portable

● divisible

● durable

● fungible

Why Silver?

1. Both gold and silver are precious metal.

2. Gold is being hoarded, while silver is being consumed

1. According to silverinstitute.org, for year 2012, world silver:

Read more: http://kclau.com/webinar/time-to-buy-silver/

4/20

a. Supply from mines production: 787.0 million oz

b. Demand from industrial application: 465.9 million oz

60% of the silver is vanished!!

Source: https://www.silverinstitute.org/site/supply-demand/

Usage for silver:

There are 10,000 known applications, such as Antibacterial Bandages, Washing Machines, Food

Processing, Water Storage, Oxygen Machines, Cell Phones, Solar Panels, Windows Glass, Radio

Frequency Identification Frequency (RFID) Chips, Medical Applications, Batteries, Electronics,

Silver Bearings, Automotive, Clothing, Dentistry, Jewelry, Silverware, Photography, Investment

Coins

Year Quantity Year Quantity

1950 1 Billion oz 1950 10 Billion oz

2010 7 Billion oz 2010 0.7 Billion oz

600% Increased 93% Decreased

Read more: http://kclau.com/webinar/time-to-buy-silver/

5/20

Mike Maloney said if we take all the gold on world and equally distribute them to the human

population, each person is going to get 1/3 oz of gold. And if we take all the silver on earth and

equally distribute them to human population, each person is going to get 1/14 oz of silver. That

means if I own 1 oz of silver, there will be another 13 people do not have silver. This is how

little physical silver left on earth. If people know that and started buying physical silver,

physical silver price is going to shoot to the sky.

Gold vs Silver

1. Gold Silver Ratio: Gold price divided by silver price

2. Gold price: $1223.80

3. Silver price: $18.90

1:65

Gold Silver Ratio: 1223.80/18.90= 64.75

Read more: http://kclau.com/webinar/time-to-buy-silver/

6/20

Historical chart for gold silver ratio

The peak went up to more than 100, but the bottom went down below to 20.

Initial Capital (1 oz gold)

● Year 1994 (GSR 80): Convert 1 oz gold to 80 oz silver. You’re holding 80 silver.

● Year 1998 (GSR 40): Convert 80 oz silver to 2 oz gold. You’re now holding 2 oz

gold.

● You still hold 1 oz as your initial capital. Another oz is your profit.

*When gold silver ratio is high, you hold or buy silver. When gold silver ratio is low,

you hold or buy gold. Right now, the gold silver is 65, which is relatively high, you

should be buying silver instead of gold.

1. Historically. GSR= 1:16

2. Mining production, GSR= 1:9

3. GSR is very high right now at 65

Read more: http://kclau.com/webinar/time-to-buy-silver/

7/20

In order for Gold Silver Ratio to go lower:

1. Gold price will remain stagnant, silver price continues going up.

2. Both gold and silver price appreciate. Silver price appreciates at much faster rate than

gold.

Maybank Silver Investment Account

● First Paper Silver in Malaysia.

● Launched in July 2012.

● Minimum Initial Purchase: 20 gram

● Current Price: RM2.09/g

● Subsequent Purchase: 10 gram

● Pros and Cons…

Read more: http://kclau.com/webinar/time-to-buy-silver/

8/20

Advantages

1. Quick and easy

2. Backed by a reputable bank (Maybank)

3. Low start up capital

4. Low minimum top up

5. No liquidity problem

Disadvantages:

1. Not insured by Perbadanan Insurans Deposit Malaysia (PIDM)

2. Potentially not backed by physical silver…

3. Spread is more than 9%

Read more: http://kclau.com/webinar/time-to-buy-silver/

9/20

4. Cannot buy/ sell silver using Maybank2U

American Silver Eagle Coin

One of the best choices for beginner to start investing in silver

Factor Rating Description

Size Good 1 oz is ideal as a start

Premium Average Coin (legal tender) has higher premium compared to

other types

Shape Good Round shape is often perceived as real money

Brand Good US mint is an internationally recognized and

reputable brand. ASE design is also well-recognized

design

Grade Good 999 investment grade

Source: Practical Guide for Investing Silver in Malaysia (3rd Edition), Daniel Foo, 2013

Read more: http://kclau.com/webinar/time-to-buy-silver/

10/20

Canadian Maple Leaf

Physical Silver vs Paper Silver

Factor Paper silver Physical silver

Storage Not required Required

Liquidity High Low

Spread High Low/ None

Hold No Yes

Risk Bank Yourself

Read more: http://kclau.com/webinar/time-to-buy-silver/

11/20

Is silver still cheap to buy?

What is Today Fair Silver Price?

Look back to history

Roman Denarius

(1/10 oz silver)

● Average Roman workers work 12 hours/day

● To earn 1 Roman Denarius

● Average American earn $8/hour

Read more: http://kclau.com/webinar/time-to-buy-silver/

12/20

Practical Guide For: Investing Silver In Malaysia

http://KCLau.com/silver

● Why you must invest silver in Malaysia

● How to invest silver in Malaysia & where to look for good deals

● Suggestion on which type of sellers you should buy from

● Simplest silver investment program

● Buy Back Policy

● Good silver 5 factors

● Case study on 7 silver items

● Buy silver below market price

● Exit Strategy

Read more: http://kclau.com/webinar/time-to-buy-silver/

13/20

Q&A Session

1. Is there any banks offer silver account in Malaysia or Singapore or Thailand besides

Maybank2U online transaction?

Currently there is only Maybank silver investment account in the local market.

2. How to sell the American Silver Eagle Coin to the market?

There are a lot of platforms:

● Bullion Exchange of Malaysia: http://bullionx.my/

● Forums

● Facebook pages, for example: Silver Lot Shop

https://www.facebook.com/groups/silverlot.shop/

3. US data will affect the silver price, how about Euro zone?

● It does affect but it’s not the primary, as much as in the US economy (secondary

effect)

● silver price is always traded in US dollar

● US dollar and precious metal always go to the opposite direction: US$ goes up

, gold/silver price goes down

4. Where could we buy physical silver coin in Malaysia?

● Quickest way: Silver Lot Shop

https://www.facebook.com/groups/silverlot.shop/

Example:

Read more: http://kclau.com/webinar/time-to-buy-silver/

14/20

● Bullion Exchange of Malaysia: http://bullionx.my/marketplace

Read more: http://kclau.com/webinar/time-to-buy-silver/

15/20

● In my E-book- many dealers: the analysis of each dealer

5. What determines the silver price goes up and down?

The global economy, for example, Federal Reserve makes an announcement that they

are going to continue quantitative easing, increase it from 85 billion a month to 185

billion, when people heard that, people will have no confidence in the market,

economy is not doing good, gold and silver will go up in price and vice versa.

6. Recently the silver spot price of USD 19 support has been broken, do you think silver

price will be going lower?

● Silver price is not going lower.

● Use the chart from NetDania:

http://netdania.com/Products/live-streaming-currency-exchange-rates/real-ti

me-forex-charts/FinanceChartPopUp.aspx?symbol=XAGUSD%7Cnetdania_fxa&

name=Silver,%20spot

● Current price at around 19 USD and 20 USD, the previous resistance always

Read more: http://kclau.com/webinar/time-to-buy-silver/

16/20

served at the current support

● Silver price has come all the way from 49 USD to 19 USD

● Depending on the market sentiment and people are negative about silver right

now

● When the sentiment is so negative and with the technical indicator, right now

it’s the bottom of silver. It should go up from now on

7. How can we predict silver to go up and down?

● No one can predict

● Technical indicator is correct about 60% at the time

● Fundamental is always correct, more than 80 or 90% (by looking at the

fundamental of silver)

8. Why does the gold going up and silver going down recently?

● Gold is like the big brother of silver

● When gold price goes up , silver price will go up

● They are going to identical direction but not exactly the same

● Factors affect gold: economy, financial news; for silver: industry demand

9. When QE3 is printing 45 billion every month, means economy is still bad, but why gold

and silver price still going down?

● It’s not simple as we think-community exchange

● Manipulation tries to drive down precious metal price

Read more: http://kclau.com/webinar/time-to-buy-silver/

17/20

● Do not care about short term fluctuation and focus on long term fluctuation

10. What sort of indicators need to be used?

● For beginners: Support & Resistance

● Fibonacci Retracement

● Use the chart from NetDania:

http://netdania.com/Products/live-streaming-currency-exchange-rates/real-ti

me-forex-charts/FinanceChartPopUp.aspx?symbol=XAGUSD%7Cnetdania_fxa&

name=Silver,%20spot

11. Does the silver price in the market related to USD against RM recently, which we saw

that RM is going down against major currency? Do you see this as a major threat?

● 2 things need to be worry: silver spot price and USD/RM fluctuation

● Silver price comes down and RM is also weaken, then make no difference

● Yes, it’s a threat. But if you’re buying small amount of silver, the difference is

just about RM1 or RM2

● Don’t worry too much about it

12. When you’re selling silver, 2 methods can be used to deliver silver:

● Postage: not officially legal- write as a gift, stationery etc

● COD- cash on delivery: meet up and exchange the silver with money

Things needed to be watch out during the trading:

● Buy the right type of silver

Read more: http://kclau.com/webinar/time-to-buy-silver/

18/20

● http://goldsilvertools.com/: Densimeter- to measure the density

● The density of silver= 10.49g/mL or 10.49g/cm3

● How does it work: http://goldsilvertools.com/densimeter/

● Digital caliper- to measure the diameter of coin

● Digital weight scale- to weigh silver

● Don’t buy big amount for the first time, 1 oz or 2 oz to try out first

Read more: http://kclau.com/webinar/time-to-buy-silver/

19/20

Notes prepared by Teo Jin Jing. Your feedback on the notes prepared is welcome. Please

email to feedback@kclau.com. Thanks in advance.

Read more: http://kclau.com/webinar/time-to-buy-silver/

20/20