Unlike real estate or equity, gold or silver investment does not yield any rents, interests or dividends. The only game plan is to buy low and sell high. It is always a capital gain play regardless you are a bullion investor or a coin collector.
After you have decided to invest partial of your portfolio into physical silver in Malaysia, you will generally ask your first question about silver – how to buy investment grade silver?
Your silver adventure then starts with you begin hunting for silver bullion sellers. You probably read lowyat.net forum back to back or dig all possible blogs you could find on buying your first American Eagles in Malaysia. You finally bought your first tube of Eagles and without letting your wife knows, you stashed it under the bed.
Then, the next question creeps in. What’s the EXIT PLAN?
Comparing to Gold – you cannot trade your silver with any banks or goldsmith shops in Malaysia. Pawn shops, perhaps – but you will be paid bananas for your precious metals.
The first thing you can do is by asking whether or not your supplier would buy back your silver. If yes, how much is the spread? There is no fix standard in how a supplier would buy back their stock. They could offer you a price by:
- the latest spot price and forex exchange
- pegging the price with reputable web site (Eg. Kitco.com)
- a fixed spread (Eg. 15% off their selling price)
- goodwill price based on their goodwill
It is not unusual to see suppliers only buying back silver that they sold to you. In the event of tight cash, they could even reject your request. Until we have a mature market, this need to be compromised. The market is on the seller side now.
Selling It Yourself
^ Silver trading activities at ebay.com.my
Alternatively, you can sell your holding via online store. Ebay.com.my, lelong.my and mudah.com.my are easy to setup. You can immediately see your WTS (want-to-sell) posting within an hour after setting up an account. Here, you are able to price your own price.
If you are into blogging, setting up a blog is a double sided blade. On one end, you can post your daily blogs and on another end, you can post your silver-for-sale posting.
Yes. FB. Facebook is your next best friend. We have a few active communities in facebook which actively trade silver on a daily basis. Some facebooker even managed to setup bidding auction simply by commenting bids in comment box!
It is true that Malaysia is an under developed market for physical silver. While it requires more work to liquidate your silver in Malaysia, do not let this reason stop you from investing in it. If the current liquidation channel does not suit you, develop your own!
To me, this is another reason why I am into silver – the untapped potential!