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I’ve been in precious metal investment for quite a while, and I am retailing physical silver bullion to investors. Often there are investors who previously invested or are investing in a Gold Guaranteed Investment Scheme, come to me and ask who silver investment works. After they know how we invest in silver, they insist that silver isn’t profitable as it gives no cashflow. They still think that investing in the Gold Guaranteed Investment Scheme is safe and it’s the best move ever. I will often reply, “Go Ahead”.

I feel bad for my friends who have been brainwashed and joined the scheme and they simply cannot understand how the real precious metal investment works. There is no free lunch in this world. The scheme, paying 2% to 3% per month just makes no sense at all. Imagine investors are making 36% per year and agents get 1.5%per month, which is 18% per year. The company has to produce a 54% of annual return just to satisfy the promise to its investors and agents. What about other costs and expenses?

If 54% is legit, Warren Buffet should sell all his stocks and migrate to Malaysia and Singapore and get an ROI of 54% per year. That’s ridiculous.

Weeks ago, the company was being sued in Singapore, and the news were all over the country.

Another newspaper article from The Straits Times, Singapore.

That time I was thinking, when it will happen in Malaysia. And it happens YESTERDAY. Check out this news: Authorities in Malaysia, Singapore raid gold trader Genneva’s offices

After blacklisting for few years, our authorities finally took some action.

Special Thanks Daniel Foo of Silver In Malaysia for the photos

Hopefully this can serve as a lesson for those who are being attracted by the cashflow offered. There is no free lunch in this world. Often, greed drives us to losses, because it affects our decision making process. When we want to put money into any investment, we have to make sure we understand how the investment works, as well as other issues such as legitimacy, reliability, risk, possible taxes and so on.

This is just an wake up call for those who jump into investment schemes without prior knowledge and understanding about the investment itself. To understand how gold & silver investment works, you can always visit Silver4u Malaysia’s Official Website to find out more information.

Lately, the spot price of silver has gone up to $31 from $28, and people around have been buying like crazy! Several analysts say that the price of silver will continue growing up to $50 per oz!

Some of my friends are asking how to buy silver in Malaysia, what to choose, how to choose and so on. In this post, I will only talk about what kind of physical silver you can consider to invest.

1. American Silver Eagle

American Silver Eagle is the legal tender of US, with a face value of USD1. It is one of the most popular physical silver coins among silver investors. Since its launch in 1986, ASE has become leading bullion coin investment products. Featuring a rendition of sculptor Adolph A. Weinman’s magnificent Walking Liberty design, it is known for its beauty and fine quality production.

Lately a lot of customers of mine are buying this. One of the reasons why American Silver Eagle has been the most favourable legal tender is because of its liquidity.

2. Canadian Maple Leaf

Canadian Maple Leaf is minted by the Royal Canadian Mint since 1988 and it’s the legal tender of Canada with CAD5, which is the highest face value among international silver coins. Besides, the purity of the coin is 99.99% (or .9999), which is also the highest among other physical silver bullion.

Canadian Maple Leaf is also one of the most popular physical silver among silver investors in Malaysia.  would personally prefer Canadian Maple Leaf because generally, its premium is lower than American Silver Eagle, which means, it’s cheaper than American Silver Eagle and hence you can buy more!

For those who wish to invest in these silver coins when the price is still low, check out Silver4u Malaysia Online Retail Store for the latest quote!

Recently, the spot price of Gold and Silver have been rising and Silver reached as high as $30.80 yesterday! Many people, including me, have been buying a lot of silver bullion bars and coins when silver price was at the rock bottom. And now, it hikes!

Yesterday I was with a customer of Silver4u Malaysia. What we’re thinking is actually the same. Top be honest, we do not hope silver price to increase that fast, because people can buy and invest more when the price is dirt cheap! However, it seems like many people are regretting for not buying while it’s low.

Many people have been analyzing the silver’s resistance level. Some have been saying it would be $29, some say $30. Those investors have been putting words around in the internet that silver would again experience a price hike because it has broken its resistance level.

I am not a person who likes analyzing but I do trust technical analysis a lot. And yes, from my personal view and research (on what people are saying), Silver will experience a great price increment again. So now it is still not too late for you all to invest.

If you’ve extra money that you do not know which asset classes to put, invest in silver now!

I’ve been investing a lot during the past few weeks, and yeah, those who have been investing during that period, Congratulation! Those who haven’t, take actions before it’s too late!

Lately, because precious metal investment has been very popular among Malaysians, some companies are coming out with some investment schemes that provide guaranteed return.

Wait a minute.

If you understand the fundamentals of gold and silver investment, you will know that investing in physical precious metal is just so-called “buy low sell high”. There will be no cash flow in between. However, there are companies that do so.

It doesn’t make sense when I keep an ounce of gold at my home, and it springs out cash flow every month! It simply violates the rule of investing in gold and silver. We invest in precious metal and get capital gain or loss, and no dividend yield or cash flow in between.

If a company is offering gold and silver investment with cash flow earnings plus “Guaranteed Return”, beware of it! It might me the greatest scam that people are being trapped!

The worst thing is, those companies are saying that they’re scheduled institutions with Bank Negara Malaysia to solicit investments from the public. Recently, Bank Negara has received enquiries from members of the public in relation to these companies.

Check out this news to find out more: Misuse of Acknowledgment Letters Issued by Bank Negara Malaysia to Scheduled Institutions

A lot of companies are misusing of the acknowledgement letter by our Bank Negara. All they want to do is fishing investors to this trap!!!

Gold and silver investment is easy as buying groceries in the supermarket. Imagine that a company sell you some gold or silver and they’re able to provide you cash flow income. It simply means that there are some problems in between. Is the company charging a high premium from you? Or, the company just simply wants to gather capital and do some risky trading at the other end so that they can provide you the cash flow?

No matter what’s in between, but all the risks at the end will be associated with investors who do not understand the whole scheme well. I would say, such a scheme which looks too good to be true are actually a lot riskier than investing physical gold and silver without those schemes.

Last but not least, here is a list of companies which are not authorised nor approved under the relevant laws and regulations administered by Bank Negara Malaysia:

http://www.bnm.gov.my/documents/2012/Financial_Consumer_Alert_listEN.pdf

Beware of these companies. Do not be the next victim!

Recently, a lot of people mentioned about depreciation of Malaysian Ringgit, and many people shared photos about this matter. This drives me to do some simple researches.

To find out whether a currency is depreciating, we can only determine my comparing against other currencies. In general, all paper currencies are fiat currencies and by nature, they’re always falling in value because of federal reserves printing. The only thing we can do is comparing the exchange rate and determine how much other currencies you can buy with your country’s currency.

First of all, let us look at USD.

Starting from March 2012, our currency is depreciating against USD. Despite what are happening in US such as the massive currencies printing, MYR seems depreciating more than USD does.

The next one would be GBP.

Since March 2012 too, MYR was depreciating against GBP but recently because of the crisis happening in Eurozone, the GBP currency is affected and depreciated more as compared with MYR. However, right now, in average, we still buy less of their currencies compare with years before.

EUR is one of the currency that depreciated against MYR, due to the debt crisis in Eurozone.

MYR is appreciating against EUR and it’s believed that the Euro Dollar is going to continue falling. Several news have mentioned that Greece is likely yo quit Eurozone. The economic downturn of the whole Eurozone will affect countries which export goods and services to them.

Have a look at AUD.

MYR is appreciating against AUD during February to May but depreciating against AUD since May 2012.

What about MYR to SGD?

It’s pretty obvious. Malaysian Ringgit is depreciating against most of the currencies. However, what is the main reason that caused MYR to depreciate? Is it because our currency is devaluing more than other currencies do? In certain extents, I believe this is one of the major reasons. Another factor would be the economic growth of Malaysia is slower than countries such as Singapore.

There are also news publication mentioning that Malaysian Ringgit’s depreciation has hit the 14 years lowest.

In my opinion, the next global economic crisis is definitely a currency crisis, whereby people will no longer demand paper fiat currencies because its value is coming all the way down. This will cause deflation because the paper currencies circulating in the market fall tremendously, and we can see the federal reserves will start printing paper currencies and push the market (this is happening is Japan right now!), causing hyperinflation!

Robert Kiyosaki spoke in National Achiever Congress and predicting that there will be a currency collapse in 2016. Right now he’s investing a lot in silver and oil. I always believe that commodities such as gold, silver and oil are good asset class to invest because every time when the value of currencies go down causing inflation, the price of commodities will go up.

I’ve founded Silver4u Malaysia that provide financial education and retailing of physical silver. Investors can now buy and invest silver in Malaysia with us and get prepared for the upcoming currency crisis and hyperinflation!