Silver Investors Starter Kit

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Silver Investors Starter Kit
By Jonathan Quek
Table of Contents About The Authors About This Starter Kit Top 5 Reasons to Invest In Silver Silver: Paper VS Physical How to Buy Silver Bars How to Buy Silver Bars How to Store Silver at Home About Us 3 4 5 14 16 18 20 21
SilverMalaysia.com All Rights Reserved
By Jonathan Quek
About the Authors
JONATHAN QUEK
Jonathan Quek is the author of the best-selling book Why Gold? Why Silver? Why Now? He had the privilege of interacting with gold and silver experts such as Jim Rogers (Author of Hot Commodities), James Turk (Founder of GoldMoney.com), Shaykh Umar Vadillo (Founder of World Islamic Mint), Richard Duncan (Author of The New Depression) and Peter Hug (Director of Kitco Metals). Jonathan is the founder of SilverMalaysia.com, an online gold and silver education company that provides retails of physical silver at competitive price. Jonathan has been featured and interviewed in numerous media channels such as BFM89.9, TV1, TV2, TV3, Capital TV, China Press, New Straits Times, The Malay Mail, just to mention a few. An ambitious visionary with vast financial and investment knowledge, he holds a keen sense to educate the public on investments, thus he has been invited as an esteemed guest speaker to several events throughout his mission which includes Bank Negara & AKPKs POWER! Programme, CPA Australia, CIMA, University Malaya, Taylors University, iCapital.biz Berhad Open Day 2011, MSI Summit 2011, Wealth Expo, and many more.
By Jonathan Quek
About This Starter Kit

When SilverMalaysia.com started in Year 2010, many questions were raised on why we regarded silver as the new gold. We believe that the largest global financial crisis in history is ahead of us as a direct result of the mass printing of the U.S. Government. At the same time, we believe that the greatest investment opportunity in history is knocking on our door as well. And like it or not, everyone needs at least few silver bullions in their hands. A young student or fresh graduate can stop drinking a few cups of Starbucks or ChaTime. By then they can save around RM100++, and thus they can start getting into the silver game. All parents love their children and want the best for them then they should buy silver for their child's future education. Because like it or not, silver is a better bet for a long term child education plan. A high paying executive or entrepreneur with a higher income will need to diversify his or her investments. Hence, Silver is a must-have in every investment portfolio. For an older couple, retirement is probably the main thing on their minds. If hyperinflation were to take place, it would be disastrous if they do not have any gold and silver on hand. From these examples, we can see that everyone needs some form of silver bullions. Many hesitate because they do not understand the need and the process. Therefore, we have come together to create the 'Silver Investors Starter Kit' to help those who are new to the world of investing in silver.
By Jonathan Quek
Reason #1
Gold Silver Ratio
The formula that is often used in allocating precious metals investments between gold and silver is the Gold Silver Ratio. This simply means how many ounces of silver it takes to buy one ounce of gold. The ratio is determined by dividing the price of gold by the price of silver. Example If gold was $1,000 an ounce and silver was $20 an ounce, the ratio would be 50 to 1. The gold price at 50 times the price of silver. The Gold Silver Ratio varies by region and time period. In China, during the Ming Dynasty, the Gold Silver Ratio was 4 to 1. This means that you can exchange 4 ounces of silver to 1 ounce of gold. In ancient Egypt, the Gold Silver Ratio was 1 to 1. This means that silver has the same value as gold. According to Islamic Law, Umar Ibn al-Khattab established the known standard relationship between gold and silver based on their weights: "7 dinars must be equivalent to 10 dirhams" which means 7 gold must be equivalent to 10 silver. For the first 2,000 years, the average Gold Silver Ratio has been about 12 to 1. Please take note that the Gold Silver Ratio cannot tell you whether the price of gold or silver is going to go up or down, the ratio can be a useful indicator of whether one metal is undervalued relatively to the other. In the year 1980, silvers price increased to $50 while gold moved to $850, the ratio moved briefly moved below 15 to 1 and at the top of the market produced a Gold Silver Ratio of 17 to 1. Silver was clearly ahead of itself relative to gold.
By Jonathan Quek
Reflecting the current industrial orientation of the silver market, silver prices fell sharply as the recession and credit crisis developed in 2008. The ratio was 85 to 1 and silver was obviously cheap relative to the gold price, and that was the year when Robert Kiyosaki, the author of Rich Dad Poor Dad and Conspiracy of the Rich was announcing in his Youtube videos that everyone out there should be buying silver. If gold soars to at least $2,500as industry experts like UBS, Peter Schiff and James Dines all believesilver could rise to $156!
By Jonathan Quek
Reason #2
Industrial Demand
With the growing wealth in Asian regions like China, India, Vietnam, and Indonesia, the demand for electronic devices like Blackberry, iPhone, HTC, Samsung Galaxy, iPad, is being driven through the roof. That obviously sounds great for the portable devices-hungry people of the world but the question for us now is, What does this have to do with silver? The answer is EVERYTHING! The industrial demand due to China and Indias rapid growth will only add to the pressures that industry already exerts on dwindling silver supplies. Why Silver? 1) Silver remains the best electrical conductor known to man. 2) Silver is an excellent thermal conductor. 3) Silver has the highest light reflectivity and sensitivity. 4) Silver is highly chemically reactive and is among the most malleable and ductile of the metals. 5) Silver is highly resistant to corrosion. Unlike silver, gold only has two basic uses, and both are hoarding type uses where the metal doesnt get used up: money and jewellery. Less than 10% of gold production is used in industrial applications. 90% of all the gold ever mined throughout history is still available for purchase somewhere. Silver, on the other, has hundred or industrial uses and applications. The use of silver in the electrical grid, the demand for TVs, computers, cell phones, batteries and other electronic devices will continue to grow in both China and India. Silver is used in: Solar energy Textiles and Fabric Applications (polyester fiber clothing) Food Preparation and Storage Areas RFID tags Bottled Water Purification Home Health Products (toothbrushes, makeup applications, combs) Food Processing (milk) Silver-based Paper Products for Food Packaging Rechargeable Solar Batteries Silver Coated Window Insulation
By Jonathan Quek
Medical Uses (hospitals, wound dressing, antibacterial applications) Nanotechnology Replacing Platinum Catalysts with less expensive Silver Catalysts
Because of its heavy use as an industrial metal, it is estimated that 90% of all the silver mined in the past 5,000 years has been used up, thrown away and is unrecoverable.
Recall 10 years ago, a family will share a telephone. Only rich or businessmen will own a cellphone. A family will share a computer. In this era, one might have more than one phone, more than one computer and also tablet!
Thats not all; the industrial demand for silver continues to increase as silvers use in solar, water purification, and food processing/ preservation. This will continue to increase dramatically over the next decade. It is interesting to note that the more technology driven by culture the more silver is used per person. As China continues to modernize more and more silver will be demanded. At the present time, the Chinese use approximately 1/70th the amount of silver per capita that is used in North America. This obviously leaves a huge potential demand increase from China and India as the wealth of that nation increases. As China and India builds its infrastructure, more and more silver will be needed. As silver is used in many devices, we are glad that there are no acceptable substitutes so far. This is mainly because silver usually accounts for only a small part of the total cost involved and this is why manufacturers wont cease to use silver in these applications if the price rises nor will the Armed Forces or Ministry of Defences stop acquiring cruise missiles and torpedoes because of a substantial jump in the cost of the silver components.
By Jonathan Quek
Reason #3
Precious Metal Bullion Stocks
Number three commences with you doing a little chart reading! The chart below illustrates the total known world stockpiles of gold and silver, in year 1990, and 2007 respectively.
If you are scratching your head in gasps and questioning if there is a misprint in your bookSTOP IT. This is because Silvers stockpiles are; in all honesty; depleting or you can say shrunken dramatically. Inversely, Golds stockpiles are growing and hence in todays world; according to purchasable quantities for the first time in recorded history; Silver is more rare than the much worshipped Gold! Gold is held by many governments silver is held by virtually none. - David Morgan, Silver Expert Now the statement above revalidates itself. In 1979, when investors became net buyers of silver, driving silver to over $52 in 1980, there were more than 2.5 billion ounces of silver available for them to buy. Today, just as investors have once again become net buyers, silver inventories have almost vanished. Well, you know what happens when demand increases and supply decreases. If youre a fan of more chartings, the following Silver Bullion Inventories Chart will be of your immediate interest:
By Jonathan Quek
One thing that Ive learnt from the chart above is that once the inventories is at low level, it is an obvious buy signal. In fact, it is so absurdly low that its unbelievable the public hasnt already realised how massively undervalued Silver is, and its absolutely astounding that investor havent already flowed towards Silver. But I guess; for the informed public; common sense is really the most uncommon of senses. That is why I often and still say, If you think Gold is good, wait till you see Silver!
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By Jonathan Quek
Reason #4
Economic Silver on the Ground
When I started to realise that the world is running out of silver, I started asking myself, Why dont they just increase the mining production for more silver? My research and findings proved to be good news for silver investors Most silver supplies dont come from silver mining operations. Most silver production is dependent on the mining of other metals. Almost two thirds of the worlds mined silver is a by-product of the mining of base metals copper, lead, and zinc. Because of the economics involved, producers are not encouraged to increase their output of silver by an increase in silver prices alone. Silver presents too small a share of their revenue. Currently, silver mine production stands at a little over 500 million ounces per year. Primary silver producers only produce 25 percent of that, or 125 million ounces per year. If you could freeze demand where it is today, and the primary silver producers were able to double production, it would take more than fifteen years to get silver inventories back to the level they were in 1990. Another good news for silver investors is that the world isnt just running out of silver aboveground either, it is also running out of silver in the ground. Minable deposits of silver are becoming harder to find. An amazing fact found in United States Geological Survey (USGS) annual mineral reports, at the current rates of production, there is less minable silver left in the earths crust than any other metal. According to the USGS, at current rates of production, the two metals we will run out of first are gold and silver. At these rates gold reserves will be exhausted in thirty years, and silver in just twenty-five.
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By Jonathan Quek
Reason #5
Massive Printing of Money
My foray into the history of precious metals especially for both Gold & Silver is an interesting one indeed. When I browse through the pages of the past expecting to meet extensive mentions of the virtue of Gold, Im surprised. Im surprised because of the near impossibility of discussing Gold as money without its partner in metals, Silver. At times countries have been on a Gold standard or a Silver standard or a dual standard; taking us far back to the days of Greek and Rome Civilizations. So fixated is their high perceived value that the first reference I could find to money was in the Bible: Behold, the money, which we found in our sacks mouths, we brought again unto thee out of the land of Canaan: how then should we steal out of thy lords house silver or gold? - Genesis 44:8 The first monetary transaction recorded in the Bible is also in Genesis. Abraham weighs 400 shekels of Silver to pay for his wifes burial. This is the same Abraham all three major religions of the world; Judaism, Christianity and Islam; express as a link to the God of their faith. This reference to Silver in Genesis applies universally, across cultures, and throughout the ages. My study confirmed there are three metals of monetary usage Gold, Silver and Copper. Types of Metal Economic Functions Copper Used mainly as a medium for very small exchanges. Copper was debased out of the currency system in periods of extreme inflation. Silver The most useful because gold is simply too rare for common daily transactions. Gold Reserved primarily for final payment in large bank-to-bank or nation-tonation dealings. To further compound my findings, Silvers monetary role has been so universally recognized throughout history that the very word for silver is synonym with money in many languages. In Italian, Spanish and French the words for Money and Silver can be interchanged. In Hebrew, the word Kesepph means both Silver and Money.
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By Jonathan Quek
Many Europeans refer to both Silver and Money as Argent, while Spanish-speaking people the world over use Plata to mean Silver, Money or both. Argentinas name derived from the Latin word for silver, Argentum. In fact, Argentina actually means Land of Silver. Let me bring you back to Malaysia, the land of three major races: Malay, Chinese & Indian. In Malaysia, one of the states is known as Perak. Peraks name is derived from the word silver or money. In the Chinese language, we call a bank Ying Hang. If I were to translate every word by word, it also means a place to store silver! Whenever I ask my Indian friends, how do you say Ten Ringgit in their Tamil language, they answer me Pakke Veli. Another meaning for Pakke Veli means ten pieces of silver. Silver is likened to one of those love at last sight metaphors as Silver is often undervalued by the masses in comparison to its famed cousin, Gold without realizing the great fortune that it could offer. Often the common man goes for hottest picks that are recommended by Personal Money without doing their due diligence to look at poor mans Gold in hand!
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By Jonathan Quek
A lot of people are worrying about safekeeping physical gold and silver, and thats why they prefer paper investment, whereby they dont have to worry about metal storage. Well, it makes a lot of sense. However, if paper gold and silver is good, why would the government of China buy physical gold and silver if they can actually buy paper and need not worry about storing them in the vault? And, if paper is good enough, why would China encourage the citizens to invest in physical gold and silver? Think about this: Governments and central banks around the world are keeping physical gold and silver, doesnt it make a sense for you to invest in physical gold and silver? Paper gold investment is quite popular among Malaysians and there are many banks that offer paper gold investment or gold passbook account. Recently, Maybank also came out with silver saving account, which is also a kind of paper silver investment.
Maybank Silver Passbook Account Here I would like to point out some important things before you consider investing in paper gold and silver. The first and the most important thing is, you do not own real gold and silver when youre investing in paper gold and silver. It doesnt represent your ownership of the physical metals.
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By Jonathan Quek
You do not own the real metals. It is merely paper claim without any physical metal backed by it. So, if the banks were shut down, your investment would be wiped out!
Think again. If you purchase physical metals from banks or any dealers, your investment will not be wiped out when the banks are closed down or the dealers go bankrupt! You own the real metals whereby you can still sell them anywhere during anytime! Same goes to ETFs, you have to understand whom and where you are putting your money into. You do not own the physical gold and silver when youre investing in ETFs. Your investment isnt backed by any real physical metals. Another thing that you need to know about paper gold and silver investment is the spread. The buying and selling price are fixed by the banks or financial institutions. You can never enjoy any discount when you plan to make bulk purchase, and you can also never sell with a higher premium.
At SilverMalaysia.com & SilverSingapore.com.sg, you can get discount for bulk purchase when purchasing the physical silver bullions. Furthermore, you can liquidate your physical silver to the secondary market with the premium that the market is trading at.
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By Jonathan Quek
Silver bars can be a very favourable option for physical bullion investors because of its low premium. Generally, silver bars have the lowest premium among all kinds of physical silver bullion. In silver bullion investment, it is always easy to buy but very hard to sell, especially silver bars. The price can be very favourable, but when it comes to liquidation, it might be a problem. So before putting your cash into silver bars, there are some basic factors that you need to understand regarding silver bars. The Rule of Thumb: International Hallmark When we want to invest in silver bars, there is always a rule of thumb.
When it comes to silver bars, always look for international hallmark. Hallmark is the brand (usually the name of the mint) of the silver. Silver bars with international hallmarks can be easily recognized around the world and hence they can be liquidated easier. If today you own some internationally hallmarked silver bars, you need not have to worry about the liquidation. Even if the dealers or companies you bought from are going bankrupt or close down in the future whereby you cannot sell back to them, or you are going overseas, you can always sell your silver bars around the world with no issues. Weight does matter Silver bars come in different weights (and of course sizes). They are measured in troy ounces, for instance, 1oz, 5oz, 10oz, 100oz or in kilogram, such as 1kg. Some mints produce in smaller fractions such as oz, 5gram and so on. There are no right and wrong way to invest in silver bars. However, there are some
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By Jonathan Quek
fundamentals that you need to understand. In general, smaller bars will have higher premium due to fabrication costs. Bigger bars will carry lower premium per ounce above spot because it is more cost-effective to produce. However, there is a trade-off of paying lower premium. When it comes to selling, bigger bars are more difficult to be liquidated. Hence, if you are buying big silver bars such as 1kg bars and 100oz bars, do make sure that the companies do provide buy back guarantee and have a strong financial background, so that they can afford to buy back from you when you wish to liquidate. My Personal Preference When it comes to silver bars, I personally prefer investing in 10oz silver bars. The reasons why 10oz is ideal for me are: Lower premium (As compare with 1oz bars which most investors buy for its liquidity) Handy Affordable Easier to sell compare to kilo bars and 100oz bars
Scottsdale 10oz Silver Bars (known as The Stacker)
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By Jonathan Quek
Silver coins are very popular among bullion investors. The price is usually slightly more expensive than silver bars due to the tax and tariff during importing. Silver coins have better liquidity as compare to silver bars, because they are usually guaranteed by governments. The Rule of Thumb: Legal Tender
Silver coins are also known as legal tender. Before putting money in it, make sure that the companies or dealers are selling you a legal tender, not a silver round. Silver round is silver bullion which is round in shape; while legal tenders are coins that issued and guaranteed by government. When a coin is guaranteed by government, it is given a face value. Due to this guarantee, silver coins are easier to be liquidated because they are recognized around the world. When hyperinflation comes and fiat currencies are not being demanded, people will start trading using gold and silver coins, which are legal tenders. Hence, we buy silver coins mainly as a form of insurance and prepare ourselves for the upcoming hyperinflation. Investment comes second. Silver Coins with Lowest Premium Out of all the silver coins, there are three kinds of silver coins that carry the lowest premium. These silver coins are very popular all around the world and hence having fantastic liquidity. 1oz American Silver Eagle
American Silver Eagle (ASE) is the legal tender of US, minted by U.S. Mint. It is made of 99.9% (.999) fine silver and carries a face value of USD1. It is one of the most popular physical silver coins among silver investors because of its liquidity.
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By Jonathan Quek
Since its launch in 1986, ASE has become leading bullion coin investment products. Featuring a rendition of sculptor Adolph A. Weinmans magnificent Walking Liberty design, it is known for its beauty and fine quality production. 1oz Canadian Maple Leaf Silver Coin
The Canadian Maple Leaf silver coin is the official silver coin of Canada, minted by Royal Canada Mint since 1988. This is also one of the most popular coins among bullion investors and in general, it has a lower premium compare to American Silver Eagle. This is the purest silver coin which is made of 99.99% (.000) fine silver. As a legal tender of Canada, it carries a face value of CAD5, which is also the highest among all silver coins. 1oz Austrian Philharmonic Silver Coin
The Austrian Philharmonic silver coin is struck in 99.9% (.999) fine silver. The Silver Philharmonic is backed by the government of Austria and minted by the Austrian Mint in Vienna. The Austrian Mint is internationally famous for their production of exceptional coins for over 800 years. The Austrian Silver Philharmonic Coin is the number one silver coin in Europe and a legal tender coin of Austria, carrying a face value of 1.50 Euro. It is coveted not only in Europe but also throughout the world making them highly liquid.
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By Jonathan Quek
When it comes to storage, a lot of people are worrying about it. Consider about two factors: The amount of physical silver Your comfort level The amount of physical silver One of the considerations when it comes to storing physical silver at home is the space occupied. If you are not a heavy investor, you can always keep your silver in your lockable drawer or cupboard, in your room and anywhere you think it is secure. If youre a heavy investor and plan to invest a monster box or more, you should consider buying a safety box and store your silver inside. Alternatively, you can consider renting a safe deposit box with a little cost.
A monster box of American Silver Eagle, filled with 500oz of coins
Your comfort level When it comes to storing silver at home, it highly depends on your own comfort level. We have encountered investors who worry to store even a single piece of silver at home; and we have also met investors who just put their monster boxes at a corner of the living room. It will always be better to make your storing decision private, so that less people will know where you are storing your physical silver. Once you have established you confidence with your decision, you will slowly understand the benefits of storing silver at home.
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By Jonathan Quek
About Us
SilverMalaysia.com is owned and operated by T rue North Asia Sdn. Bhd. (Company No. 902968-P), a private limited company incorporated in Malaysia under the Companies Act 1965. SilverMalaysia.com was established with a vision to be the No.1 gold & silver education and physical silver bullion provider in Malaysia. SilverMalaysia.com was founded in Year 2010 by renowned gold & silver expert, Jonathan Quek. Together with his strategic team of specialist, SilverMalaysia.com is dedicated to prepare Malaysians for hyperinflation and helping Malaysians not only survive, but also prosper in the upcoming global hyperinflationary crisis. SilverMalaysia.com believes that the largest global financial crisis in history is ahead of us as a direct result of the mass printing of the U.S. Government. At the same time, we believe that the greatest investment opportunity in history is knocking on our door as well. The choice to open it, or not.. is yours.
Vision
To be the No.1 gold & silver education and physical bullion provider in Asia.
Mission
1. 2. To EDUCATE Asians on the Importance of Gold & Silver in the current Debt-Ridden World. To put honest money - PHYSICAL GOLD & SILVER, in the hands of Main Street Asia, one Asian at a time.
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