Sunday, April 28, 2013
Buying Silver Bullion in Singapore; [www.silverbullion.com.sg], Physical vs Paper.
I'm amazed to see that, Silver Bullion Singapore is currently Out of Stock of all their silver coin products and the Pre Orders is between 5-7 weeks. The demand for physical is remarkable! While the Silver Coin American Eagle 2013- 1 oz is not only out of stock but also no pre order is available, you can still acquire the Silver Coin Canadian Maple Leaf 2013 - 1 oz but seeing as it is currently out of stock, there is a 7 weeks wait after you make the pre order. To give some perspective regarding the price:
The silver spot price (last updated on their site: 28 April 2013 7:00) is USD23.96 (or SGD29.70). For a quantity of 1 or more (but not exceeding 500), the current price quoted is USD29.73 (or SGD36.85). That is a premium of USD5.77 (or SGD7.15) over spot (or 24% premium). Wow!!
The alternative is to trade or invest in silver through the UOB silver passbook account. This obviously has counter party risk but works well for someone who has confidence in UOB bank and would like to take advantage of cost saving and convenience (no need to worry about transportation, storage and theft of owning physical). Note that there is a minimum transaction limit of 10 ounces. To give you a perspective regarding pricing:
The current price quoted for 1 oz of silver at UOB purchased through silver passbook account (price last updated 27 April 2013) is SGD30.50. That is a relatively tiny spread of just SGD0.80! vs SGD7.15 for the physical!
Another way to look at it is, when you buy physical, the spot price needs to go up by a remarkable 24% before you break even. Really!?
Some may say, if you don't hold it (the physical), you don't own it and hence are adamant in accumulating the actual physical metal. Fair enough. If you are in this camp, how about acquiring the Silver Bullion Bars as oppose to the coins. The premium is approximately USD3.62 (or about 15%) over the spot price. Silver Bullion in Singapore seem to currently have available the Perth Mint Silver- 1 kg and the Johnson Matthey Silver Bar- 100 oz, both of which are Out of Stock but you can lock in the current prices and arrange for pre orders.
To visit Silver Bullion Singapore website; www.silverbullion.com.sg
See Bloomberg article [Silver Slump Lures Buyers as Waiting Time Rises in Singapore; by Chanyaporn Chanjaroen- Apr 29, 2013]
http://www.bloomberg.com/news/2013-04-29/silver-slump-seen-luring-buyers-as-wait-time-rises-in-singapore.html
To open a silversavings passbook www.uob.com.sg/personal/deposits/savings/precious_metal.html
The silver spot price (last updated on their site: 28 April 2013 7:00) is USD23.96 (or SGD29.70). For a quantity of 1 or more (but not exceeding 500), the current price quoted is USD29.73 (or SGD36.85). That is a premium of USD5.77 (or SGD7.15) over spot (or 24% premium). Wow!!
The alternative is to trade or invest in silver through the UOB silver passbook account. This obviously has counter party risk but works well for someone who has confidence in UOB bank and would like to take advantage of cost saving and convenience (no need to worry about transportation, storage and theft of owning physical). Note that there is a minimum transaction limit of 10 ounces. To give you a perspective regarding pricing:
The current price quoted for 1 oz of silver at UOB purchased through silver passbook account (price last updated 27 April 2013) is SGD30.50. That is a relatively tiny spread of just SGD0.80! vs SGD7.15 for the physical!
Another way to look at it is, when you buy physical, the spot price needs to go up by a remarkable 24% before you break even. Really!?
Some may say, if you don't hold it (the physical), you don't own it and hence are adamant in accumulating the actual physical metal. Fair enough. If you are in this camp, how about acquiring the Silver Bullion Bars as oppose to the coins. The premium is approximately USD3.62 (or about 15%) over the spot price. Silver Bullion in Singapore seem to currently have available the Perth Mint Silver- 1 kg and the Johnson Matthey Silver Bar- 100 oz, both of which are Out of Stock but you can lock in the current prices and arrange for pre orders.
To visit Silver Bullion Singapore website; www.silverbullion.com.sg
See Bloomberg article [Silver Slump Lures Buyers as Waiting Time Rises in Singapore; by Chanyaporn Chanjaroen- Apr 29, 2013]
http://www.bloomberg.com/news/2013-04-29/silver-slump-seen-luring-buyers-as-wait-time-rises-in-singapore.html
To open a silversavings passbook www.uob.com.sg/personal/deposits/savings/precious_metal.html
Wednesday, April 17, 2013
Economic principle
Lower commodity prices increase demand and curtail supply. This is because price decline does not cause companies (miners) to rush into increasing production and buying pressure increases to take advantage of bargain prices.
Tuesday, April 16, 2013
CME Margin updates
CME Group Margin Changes Effective CLOSE of Business on 4/16/13
Previous Initial
|
Previous Maintenance
|
New Initial
|
New Maintenance
| |
10 Troy oz Gold (MGC) – spec months 1-13+
|
$594
|
$540
|
$704
|
$640
|
10 Troy oz Gold (MGC) –hedge months 1-13+
|
$540
|
$540
|
$640
|
$640
|
COMEX Gold (GC) – spec months 1-13+
|
$5940
|
$5400
|
$7040
|
$6400
|
COMEX Gold (GC) – hedge months 1-13+
|
$5400
|
$5400
|
$6400
|
$6400
|
COMEX miNY Gold (QO) – spec months 1-13+
|
$2970
|
$2700
|
$3520
|
$3200
|
COMEX miNY Gold (QO) – hedge months 1-13+
|
$2700
|
$2700
|
$3200
|
$3200
|
COMEX 5000 Silver (SI) – spec months 1-13+
|
$10,450
|
$9500
|
$12,375
|
$11,250
|
COMEX 5000 Silver (SI) – hedge months 1-13+
|
$9500
|
$9500
|
$11,250
|
$11,250
|
COMEX miNY Silver (QI) – spec months 1-13+
|
$5225
|
$4750
|
$6188
|
$5625
|
COMEX miNY Silver (QI) – hdge months 1-13+
|
$4750
|
$4750
|
$5625
|
$5625
|
eMini Silver (6Q) – spec months 1-13+
|
$2090
|
$1900
|
$2475
|
$2250
|
eMini Silver (6Q) – hedge months 1-13+
|
$1900
|
$1900
|
$2250
|
$2250
|
Re-evaluation of accumulation zone for silver
Given gold sliced through the 1350-1370 zone effortlessly, perhaps due to the margin related selling as the CME is raising gold and silver margins, we may have to expect silver to plummet more from the current level. Accumulation zone may arrive if silver goes down further between the 15 to 19.4 levels (this is not a prediction). Being a silver bull, I don't like giving an ugly picture but have to be realistic. As you witnessed yourself, silver can drop more than 3 dollars a day (-12%+) in a single trading day so from the current level of 22.63 (3:09:48 GMT), it doesn't seem hard to drop down further to the 19 dollar level. Based on the weekly chart of silver, I see a lot of support at the 15 dollar level so I'm crossing my fingers that this level will hold.
Having said that, after speaking with a multimillionaire investor who has invested multi millions in both physical and gold & silver savings account (paper), he told me that his thoughts were the following:
If you are a long term investor (without margin), and given you have done your homework and have the conviction that your investment vehicle (ie gold & silver) is ultimately going to much higher levels; than what happens in between for him is like as if it never happened. He bought gold because of world's central banks printing money and devaluing their currency, which will eventually lead to inflationary environment and gold (and silver) is a great store of value. For him nothing has changed.
Having said that, after speaking with a multimillionaire investor who has invested multi millions in both physical and gold & silver savings account (paper), he told me that his thoughts were the following:
If you are a long term investor (without margin), and given you have done your homework and have the conviction that your investment vehicle (ie gold & silver) is ultimately going to much higher levels; than what happens in between for him is like as if it never happened. He bought gold because of world's central banks printing money and devaluing their currency, which will eventually lead to inflationary environment and gold (and silver) is a great store of value. For him nothing has changed.
Sunday, April 14, 2013
Healthy correction in the precious metals
According to, Monty Guild (www.guildinvestment.com), "The Chinese and other wise buyers will add aggressively at 1350-1370, which would be approximately one third correction from 2002 bottom to 1900 top." FULL ARTICLE
If you are looking for a good entry point for silver to go long position; perhaps a good time to do that is when gold indeed targets 1350-1370 zone. Seeing as the current trend is Up for the gold:silver ratio, let's assume a ratio of 63 (from the current level of 57) when gold is 1350. This would mean a price of 21.40 silver.
Although I don't particularly like seeing silver being smacked down from the 49.00 (and some change) high, the more experienced and wise investors like Mr Jim Rogers may view this as a healthy bull market correction or pull back. To give an example, in 2008, silver fell an impressive 55% from peak to trough.
See the brilliant chart below by Investment Score Inc. ,by:Michael Kilback
If you are looking for a good entry point for silver to go long position; perhaps a good time to do that is when gold indeed targets 1350-1370 zone. Seeing as the current trend is Up for the gold:silver ratio, let's assume a ratio of 63 (from the current level of 57) when gold is 1350. This would mean a price of 21.40 silver.
Although I don't particularly like seeing silver being smacked down from the 49.00 (and some change) high, the more experienced and wise investors like Mr Jim Rogers may view this as a healthy bull market correction or pull back. To give an example, in 2008, silver fell an impressive 55% from peak to trough.
See the brilliant chart below by Investment Score Inc. ,by:Michael Kilback
Sunday, April 7, 2013
Silver will do well in an inflationary environment.
When the Continuous Commodity Index (CCI) is tracking lower (ie. deflationary) silver can not shoot sharply higher. This is because as trader Dan Norcini explains, "SILVER thrives in an inflationary environment. It will not perform in a deflationary environment."
Tuesday, March 26, 2013
Silver price manipulation on the COMEX
"Every day, silver (and gold) investors are subject to whatever daily pricing the big COMEX paper hangers decide to dictate, irrespective of what the real supply/demand fundamentals would suggest." Theodore (Ted) Butler from the article, The Good, Bad and Ugly
Ted Butler provides the perspective that, "As debilitating and painful as the ongoing silver price manipulation has been, if the manipulation didn't exist, neither would the prime reason for buying silver."
He continues, "Therefore, I can't rule out further silver price stabs to the downside before a dramatic and final resolution to the upside because both stem from the same cause- the manipulation."
Ted Butler provides the perspective that, "As debilitating and painful as the ongoing silver price manipulation has been, if the manipulation didn't exist, neither would the prime reason for buying silver."
He continues, "Therefore, I can't rule out further silver price stabs to the downside before a dramatic and final resolution to the upside because both stem from the same cause- the manipulation."
Wednesday, March 20, 2013
Does supply and demand dynamics of gold exist?
We have seen a steady increase in demand for physical gold, yet we have seen lower prices in the past few months.
Where is the demand coming from?
- India and China are strong buyers
- Central banks are currently net buyers from being sellers
- ETPs around the world, institutions and private investors continue to add to their gold hoards
Supply?
-Annual supply of gold has stayed flat at approximately 4,000 tonnes and comes from new mine production, scrap gold recycling and investor disposition of bullion.
In a recent article by Eric Sprott, the evidence pointing towards the suppression of the gold price is provided. Please see SPROTT ASSET MANAGEMENT
Where is the demand coming from?
- India and China are strong buyers
- Central banks are currently net buyers from being sellers
- ETPs around the world, institutions and private investors continue to add to their gold hoards
Supply?
-Annual supply of gold has stayed flat at approximately 4,000 tonnes and comes from new mine production, scrap gold recycling and investor disposition of bullion.
In a recent article by Eric Sprott, the evidence pointing towards the suppression of the gold price is provided. Please see SPROTT ASSET MANAGEMENT
Wednesday, February 20, 2013
Silver update 20.Feb.2013
Silver has just broke out of the channel (bottom rising trend line) to the downside. Currently 29.08. It needs to quickly recover from here and get above 29.50. If that fails, then 28.00 should provide strong support and I'd be buying some more to add to my core holdings.
Is the bottom in for silver!? 20.02.2013
This is just my personal opinion and not trading advice. Please do your own analysis and research before making the decision to buy silver and trade at your own risk. Thank you!
Friday, February 15, 2013
Wednesday, February 6, 2013
Silver - The Element of Change 4FEB2013 [SilverInstituteTV]
One of the most informative videos about silver that I've come across to date. Highly recommended video by, SilverInstituteTV.
Silver is a popular store of value for centuries!! Got silver?
Silver is a popular store of value for centuries!! Got silver?
Monday, January 28, 2013
Tuesday, January 22, 2013
Tom Fitzpatrick's (Citi analyst) latest commentary on silver on kingworldnews.com
"Good resistance is met at $34.40-35.40 (on silver) and then most importantly at $37.48. A weekly close above that latter level would signal gains back to the April 2011 highs near $50 (a 56% surge from current levels)." Tom Fitzpatrick
Please see FULL ARTICLE
Wednesday, January 16, 2013
Tuesday, January 15, 2013
Thursday, January 10, 2013
Billionaire Eric Sprott, from Sprott Asset Management
Eric Sprott - "Silver Remains The Best Investment Of The Decade"
Wednesday, January 2, 2013
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