Getting the daily price of silver is very easy.
I just go to Kitco, and I can check the current silver price per ounce, and the historical silver price.
However, finding and buying cheap silver bars is a challenge.
At the point of writing, when the price of silver is $47.94 per Troy ounce, the selling price for a Kitco 1 oz Silver Bar is $49.30.
On top of the cost of silver bars, there are shipping and insurance cost.
Kitco charges a minimum of $135 for shipping cost, and $4 per $1000 value of silver for insurance. This rate is for international shipping.
Apmex, The American Precious Metals Exchange, has a great selection of silver bars. However, nobody associates Apmex with the word, cheap.
Apmex is known for its quality.
1 oz APMEX Silver Bar .999 Fine costs $51.98.
1 oz Sunshine Silver Bar .999 Fine costs $51.68.
1 oz Silvertowne Silver Bar .999 Fine costs $51.68.
Second hand silver bar costs $51.08. This is the price for generic brand.
Branded silver bars such as Engelhard, A Mark, and Johnson Matthey command higher price.
For international shipping, the shipping policy states that “Our shipping charges to Australia are $49.95 USD plus an additional $0.25 USD per troy ounce weight surcharge.”
This cost includes the insurance cost.
In a sense, buying from APMEX is better. Even though the cost of the bullion is higher, the insurance and shipping cost are much lower.
Another place I like to check for cheap silver bars is Gainesville Coins.
It is highly recommended by the forum members in my country.
Made In The USA 1 troy oz Bar. fine silver 999+. Generic silver bar costs $49.04.
However, the international shipping cost is high.
Shipping rate (for everywhere except Canada) is a $75 flat fee plus $0.25 per ounce.
The total cost of owning a silver bullion is comparable to APMEX, provided you have a larger order.
It is not worth to buy just one little ounce of this precious metal.
Most companies want a minimum order of $1000 worth of products for international clients.
Many people hunt for cheap silver bars from Ebay.
It is possible to get good, and cheap silver bars. If the seller wants cash on delivery, you can even save on shipping cost.
The only problem is the trustworthiness of the seller. If he wants cash on delivery, you can examine the product before parting with your money.
If he ships to your house, it requires an element of faith in your part.
Saturday, April 30, 2011
Friday, April 29, 2011
Are you selling silver bars?
When I remark to my friend that silver is trying to hit $50 mark this week, she asks me this question: when are you going to sell your silver bars?
Since I bought my silver bars when the price was $29, I definitely can cash in my profits now.
My friend feels that I have made enough profits, and now is the time for me to sell my silver bars.
My answer must have shocked her.
I tell her that I am not selling silver bars now.
On the contrary, I want to buy more silver bars.
She says that the price is so high now, it is a risk to buy more.
I do not agree with her assessment.
Looking at the macroeconomic factors, I cannot see how the price of silver will drop in the near future.
While silver price volatility is expected, even a one day drop of 5% is not shocking, the long term trend is still an upward trend.
There is simply no way the US economy can boom in the near future.
Many people are out of jobs, and they are not getting out of jobs willingly.
It is not as if they are rich enough to stop working forever.
The US debt will not just go away.
The US dollar will keep declining. The weaker the US dollar, the better for the economy in the long run.
Weaker US dollar means stronger export.
When demand for US goods pick up, the jobs will come.
The weaker US dollar may push the manufacturing plants to return to US. That is provided the government is smart enough to lower corporate tax rate and individual tax rate.
Due to all these factors, I do not plan to sell my silver bars unless I am really desperate for money.
It is hard to imagine that a block of ugly metal can cost so much money.
Well, that is life.
Even though we cannot eat silver, or need silver for survival, the value of it is more than the value of rice, and other stables.
Are you selling silver bars now? If yes, you may like to hold on for a while.
If and when silver hits $50, the price will go up even more.
If you have excess cash, and want to hedge against the declining currency, you can buy silver bars.
Since I bought my silver bars when the price was $29, I definitely can cash in my profits now.
My friend feels that I have made enough profits, and now is the time for me to sell my silver bars.
My answer must have shocked her.
I tell her that I am not selling silver bars now.
On the contrary, I want to buy more silver bars.
She says that the price is so high now, it is a risk to buy more.
I do not agree with her assessment.
Looking at the macroeconomic factors, I cannot see how the price of silver will drop in the near future.
While silver price volatility is expected, even a one day drop of 5% is not shocking, the long term trend is still an upward trend.
There is simply no way the US economy can boom in the near future.
Many people are out of jobs, and they are not getting out of jobs willingly.
It is not as if they are rich enough to stop working forever.
The US debt will not just go away.
The US dollar will keep declining. The weaker the US dollar, the better for the economy in the long run.
Weaker US dollar means stronger export.
When demand for US goods pick up, the jobs will come.
The weaker US dollar may push the manufacturing plants to return to US. That is provided the government is smart enough to lower corporate tax rate and individual tax rate.
Due to all these factors, I do not plan to sell my silver bars unless I am really desperate for money.
It is hard to imagine that a block of ugly metal can cost so much money.
Well, that is life.
Even though we cannot eat silver, or need silver for survival, the value of it is more than the value of rice, and other stables.
Are you selling silver bars now? If yes, you may like to hold on for a while.
If and when silver hits $50, the price will go up even more.
If you have excess cash, and want to hedge against the declining currency, you can buy silver bars.
Tuesday, April 26, 2011
Silver price crash and bull market correction
The bull is tired of charging all the way.
It seems that silver price crash is going to happen.
Before we talk about the effect of silver price crash, let us take a look at the 2011 silver price data.
Silver price at the start of 2011 was just $30.67.
It hit an all time low for the year 2011 on 28 January at the price of $26.68.
That was the date I would remember forever.
My instinct told me to buy more silver bars, but I hesitate, thinking that lower price would come later.
I have been kicking myself since then.
The recent bull run started after 28 January, when silver price increased at an average of a dollar every 3 or 4 trading day.
The bull run accumulated to an all time high of $49.31 on Monday, before posting the largest one day loss on Tuesday.
The highest ever record for silver was $49.48. That occurred way back in 1980 due to speculation effort on the part of a few investors.
The current silver price at the point of writing is $45.70.
Is the silver price crash healthy?
The current silver price crash is more of a bull market correction.
It does not mean the end of the bull run, and a return to bear market.
Bull market correction is usually a short term breather, before the bull run starts again.
That is why I am very positive about the silver price crash.
This means I have the chance to buy more silver before the next bull run brings the silver price above $50.
We have to bear in mind that $49.48 is a psychological barrier.
Once silver manages to overtake the highest ever point of $49.48, the price will take a very long time to come down again.
All the macroeconomic factors favor the continuous bull run.
The US dollar is not going to get stronger in the next few weeks, or the next few months. The US government needs to devalue the currency.
The Chinese are rushing to buy gold and silver to hedge against the high inflation rate.
The demand is there. The supply of silver is not going to increase overnight. There is no way the mines are tripling the production to increase the supply of silver.
Oil price is holding steady, and is not expected to come down.
That is why precious metals such as gold and silver are gaining momentum.
The question is: how bad will silver price crash be?
A normal bull market correction means 20% shed off the price of the peak. Since silver peaked recently at $49.31, it could drop to $39.45. It will be a stretch of imagination and will power to force silver to go below that.
Personally I doubt silver will drop below $40. $40 for silver is a very strong psychological barrier.
That means for the near term, silver is unlikely to break the support level of $40 and sink to $39. It is also unlikely to break the all time peak of $49.48.
The silver price crash will likely bring silver to $40, before the next bull run brings it to $50 and beyond.
Do not miss out the golden opportunity to acquire more silver.
Buy some 10 oz silver bars if you can afford it. If you cannot, buy a couple of silver coins or 1 oz silver bars.
It seems that silver price crash is going to happen.
Before we talk about the effect of silver price crash, let us take a look at the 2011 silver price data.
Silver price at the start of 2011 was just $30.67.
It hit an all time low for the year 2011 on 28 January at the price of $26.68.
That was the date I would remember forever.
My instinct told me to buy more silver bars, but I hesitate, thinking that lower price would come later.
I have been kicking myself since then.
The recent bull run started after 28 January, when silver price increased at an average of a dollar every 3 or 4 trading day.
The bull run accumulated to an all time high of $49.31 on Monday, before posting the largest one day loss on Tuesday.
The highest ever record for silver was $49.48. That occurred way back in 1980 due to speculation effort on the part of a few investors.
The current silver price at the point of writing is $45.70.
Is the silver price crash healthy?
The current silver price crash is more of a bull market correction.
It does not mean the end of the bull run, and a return to bear market.
Bull market correction is usually a short term breather, before the bull run starts again.
That is why I am very positive about the silver price crash.
This means I have the chance to buy more silver before the next bull run brings the silver price above $50.
We have to bear in mind that $49.48 is a psychological barrier.
Once silver manages to overtake the highest ever point of $49.48, the price will take a very long time to come down again.
All the macroeconomic factors favor the continuous bull run.
The US dollar is not going to get stronger in the next few weeks, or the next few months. The US government needs to devalue the currency.
The Chinese are rushing to buy gold and silver to hedge against the high inflation rate.
The demand is there. The supply of silver is not going to increase overnight. There is no way the mines are tripling the production to increase the supply of silver.
Oil price is holding steady, and is not expected to come down.
That is why precious metals such as gold and silver are gaining momentum.
The question is: how bad will silver price crash be?
A normal bull market correction means 20% shed off the price of the peak. Since silver peaked recently at $49.31, it could drop to $39.45. It will be a stretch of imagination and will power to force silver to go below that.
Personally I doubt silver will drop below $40. $40 for silver is a very strong psychological barrier.
That means for the near term, silver is unlikely to break the support level of $40 and sink to $39. It is also unlikely to break the all time peak of $49.48.
The silver price crash will likely bring silver to $40, before the next bull run brings it to $50 and beyond.
Do not miss out the golden opportunity to acquire more silver.
Buy some 10 oz silver bars if you can afford it. If you cannot, buy a couple of silver coins or 1 oz silver bars.
Friday, April 22, 2011
My Banjar Red Arowana not eating
My Banjar Red Arowana stopped eating a few days ago.
At first I was not worried, since my Banjar Red Arowana did have mood when it came to the matter of eating.
Arowana is different from other fish, especially goldfish.
It eats only when it wants to eat.
If it is not hungry, no matter what you throw into the fish tank, it will not eat. I think the only exception is cockroach.
Apparently Arowana loves cockroaches. Both creatures have long history of love hate relationship. They exist since the times of dinosaurs.
When my Banjar Red Arowana continued its hunger strike into the second day, I started to worry.
There was nothing wrong with the water, since I changed 20% of the water every other day.
While most hobbyists change water only once a week, I change it 3 to 4 times a week.
My Banjar Red Arowana grows faster than its cousins.
Every water change brings forth an enormous appetite.
The strange thing about the second day of fasting was that my Banjar Red Arowana was hungry.
I knew that it was hungry.
It jumped at the food, and yet refused to eat. It threw out the food, and refused to open the mouth anymore.
By now, after a year of keeping the fish, I can judge its mood.
The way it greets me, and the way it wags the tail, tells me a lot about the fish.
When it darts across the water to greet me, and wags its tail like a happy dog, that is a sign of hunger.
My Banjar Red Arowana apparently welcomes the food more than it welcomes me.
On the third day, it still did not want to eat.
As far as I was concerned, there was nothing wrong with the food, the water or the fish. The Banjar Red Arowana was not ill.
The only change was that my mother went for a holiday.
Our usual feeding routine occurred in the evening, when my mother was watching TV, and me talking to her, while watching my Banjar Red Arowana eat its food.
When my mother was away on a holiday, the TV was not on.
I guess my dear pet fish miss my mother.
I told my dear pet fish that my mother was just away for a trip, and that she would come back.
I also told my Banjar Red Arowana that my mother wanted it to eat, and grow fatter.
Guess what happened?
My dear pet fish seemed to understand the message. It started to attack the food, and swept the tank free of fish sticks.
No wonder the Chinese has a saying that Arowana, the Dragon fish, has a spirituality aspect to it.
It seems to bond with us even though we do not realize it.
When I think back to the earlier days of keeping Arowana, I realize how true it is.
When my grandmother passed away, our Arowana fish jumped out of the tank and died standing up.
It must have missed my grandmother a lot.
My grandmother stayed home due to limited mobility, and watched the fish swimming the whole day.
When my father passed away, another Arowana fish died.
That fish loved my father more than any of us. My father was the one who pretended to ignore the fish while secretly loved the fish.
I hope my Banjar Red Arowana live a long, long time.
It is wonderful to keep such a pet.
At first I was not worried, since my Banjar Red Arowana did have mood when it came to the matter of eating.
Arowana is different from other fish, especially goldfish.
It eats only when it wants to eat.
If it is not hungry, no matter what you throw into the fish tank, it will not eat. I think the only exception is cockroach.
Apparently Arowana loves cockroaches. Both creatures have long history of love hate relationship. They exist since the times of dinosaurs.
When my Banjar Red Arowana continued its hunger strike into the second day, I started to worry.
There was nothing wrong with the water, since I changed 20% of the water every other day.
While most hobbyists change water only once a week, I change it 3 to 4 times a week.
My Banjar Red Arowana grows faster than its cousins.
Every water change brings forth an enormous appetite.
The strange thing about the second day of fasting was that my Banjar Red Arowana was hungry.
I knew that it was hungry.
It jumped at the food, and yet refused to eat. It threw out the food, and refused to open the mouth anymore.
By now, after a year of keeping the fish, I can judge its mood.
The way it greets me, and the way it wags the tail, tells me a lot about the fish.
When it darts across the water to greet me, and wags its tail like a happy dog, that is a sign of hunger.
My Banjar Red Arowana apparently welcomes the food more than it welcomes me.
On the third day, it still did not want to eat.
As far as I was concerned, there was nothing wrong with the food, the water or the fish. The Banjar Red Arowana was not ill.
The only change was that my mother went for a holiday.
Our usual feeding routine occurred in the evening, when my mother was watching TV, and me talking to her, while watching my Banjar Red Arowana eat its food.
When my mother was away on a holiday, the TV was not on.
I guess my dear pet fish miss my mother.
I told my dear pet fish that my mother was just away for a trip, and that she would come back.
I also told my Banjar Red Arowana that my mother wanted it to eat, and grow fatter.
Guess what happened?
My dear pet fish seemed to understand the message. It started to attack the food, and swept the tank free of fish sticks.
No wonder the Chinese has a saying that Arowana, the Dragon fish, has a spirituality aspect to it.
It seems to bond with us even though we do not realize it.
When I think back to the earlier days of keeping Arowana, I realize how true it is.
When my grandmother passed away, our Arowana fish jumped out of the tank and died standing up.
It must have missed my grandmother a lot.
My grandmother stayed home due to limited mobility, and watched the fish swimming the whole day.
When my father passed away, another Arowana fish died.
That fish loved my father more than any of us. My father was the one who pretended to ignore the fish while secretly loved the fish.
I hope my Banjar Red Arowana live a long, long time.
It is wonderful to keep such a pet.
Thursday, April 21, 2011
Waiting for silver price crash
At the rate that silver price is increasing, it is hard to imagine how the price will ever come down again.
It seems impossible to think about a silver price crash at this moment.
Silver price is now above $46, far exceeding the best optimistic analysts’ prediction.
Many analysts had predicted that silver price would hit $50 by the end of the year.
At that point of time, silver price was just below $30.
It seems such a long time ago.
However, it was just three months ago that silver price was $26.
It is very natural to buy silver when we see the increases day after day.
Silver price per ounce increases by a dollar practically every other day.
Even non-investors are thinking of buying physical silver or silver exchanged traded funds.
They fear that if they do not buy now, they will regret for life.
I am waiting for the next silver price crash before making the next purchase.
For one thing, I do not have so much cash on hand now.
Since I stay in Singapore, it is best to spend a few thousand dollars so that the shipping cost is lower.
Another factor is the belief that what goes up must come down.
In order for silver to sustain the long term upward trend, there must be many small price corrections along the way.
If small price corrections do not occur now and then, the next correction will be the silver price crash.
Basing on my investment records, whenever I buy share, the price drops further.
Whenever I sell shares, the price shoots up.
Maybe I need to buy a little silver bar to set off the chain of silver price crash.
It seems impossible to think about a silver price crash at this moment.
Silver price is now above $46, far exceeding the best optimistic analysts’ prediction.
Many analysts had predicted that silver price would hit $50 by the end of the year.
At that point of time, silver price was just below $30.
It seems such a long time ago.
However, it was just three months ago that silver price was $26.
It is very natural to buy silver when we see the increases day after day.
Silver price per ounce increases by a dollar practically every other day.
Even non-investors are thinking of buying physical silver or silver exchanged traded funds.
They fear that if they do not buy now, they will regret for life.
I am waiting for the next silver price crash before making the next purchase.
For one thing, I do not have so much cash on hand now.
Since I stay in Singapore, it is best to spend a few thousand dollars so that the shipping cost is lower.
Another factor is the belief that what goes up must come down.
In order for silver to sustain the long term upward trend, there must be many small price corrections along the way.
If small price corrections do not occur now and then, the next correction will be the silver price crash.
Basing on my investment records, whenever I buy share, the price drops further.
Whenever I sell shares, the price shoots up.
Maybe I need to buy a little silver bar to set off the chain of silver price crash.
Wednesday, April 20, 2011
Current gold price per ounce
The current gold price per ounce is at $1501.
Gold has finally overcome the psychological barrier of $1500.
The recent spike in current gold price per ounce is due to fear.
The fear that US Dollar will lose the value, and the fear that United States will default on its bond.
The fact that Standard & Poor’s cuts rating is a very bad sign for the investors, even though everyone can see that United States is not doing well economically.
We do not really need the rating agency to show us how badly President Obama has done.
The fact is that many Americans are still not working.
The fact is that United States keeps on increasing debts due to unnecessary spending.
If only President Obama had the common sense to accept the recommendation of National Commission on Fiscal Responsibility and Reform to save $4 trillion in 10 years in December 2010.
If only he has the common sense to see the greatness of House Budget Committee Chairman Paul Ryan’s plan.
The beauty of Paul Ryan’s plan is to improve the economy by giving the free economy more power to recover.
Tax cut definitely puts more money into the hands of the businesses and people.
Companies which have migrated their production plants overseas will have the incentive to return.
As it is, President Obama proves his inability to understand the simple and beautiful concept of financial management for his country.
That is why the current gold price per ounce surges.
That is why people put faith in gold, and not in government.
The current gold price per ounce is definitely not at the highest.
Looking at the rate that the US Dollar declines, gold price has more room to grow. It is a given that gold price will continue to reach new height.
If you have gold jewelries at home, you may want to keep until the gold price per ounce hits $1800 or more before selling.
If you have excess cash in the bank, you can buy gold or silver.
Since the current gold price per ounce is more than $1500, and out of reach of most people, you can consider buying silver, at less than $45 per ounce at the moment.
Gold has finally overcome the psychological barrier of $1500.
The recent spike in current gold price per ounce is due to fear.
The fear that US Dollar will lose the value, and the fear that United States will default on its bond.
The fact that Standard & Poor’s cuts rating is a very bad sign for the investors, even though everyone can see that United States is not doing well economically.
We do not really need the rating agency to show us how badly President Obama has done.
The fact is that many Americans are still not working.
The fact is that United States keeps on increasing debts due to unnecessary spending.
If only President Obama had the common sense to accept the recommendation of National Commission on Fiscal Responsibility and Reform to save $4 trillion in 10 years in December 2010.
If only he has the common sense to see the greatness of House Budget Committee Chairman Paul Ryan’s plan.
The beauty of Paul Ryan’s plan is to improve the economy by giving the free economy more power to recover.
Tax cut definitely puts more money into the hands of the businesses and people.
Companies which have migrated their production plants overseas will have the incentive to return.
As it is, President Obama proves his inability to understand the simple and beautiful concept of financial management for his country.
That is why the current gold price per ounce surges.
That is why people put faith in gold, and not in government.
The current gold price per ounce is definitely not at the highest.
Looking at the rate that the US Dollar declines, gold price has more room to grow. It is a given that gold price will continue to reach new height.
If you have gold jewelries at home, you may want to keep until the gold price per ounce hits $1800 or more before selling.
If you have excess cash in the bank, you can buy gold or silver.
Since the current gold price per ounce is more than $1500, and out of reach of most people, you can consider buying silver, at less than $45 per ounce at the moment.
Tuesday, April 19, 2011
Gold price per ounce hitting $1500
Gold price per ounce is very near to $1500 now.
At the moment, the price is $1493.
While it does not seem such as a great deal between $1499 and $1500, the fact is that $1500 is a psychological price level.
That means many people who have gold at home will feel happier and more positive with gold price per ounce at $1500 than $1499.
Once the gold price manages to cross the psychological price level, it may stay above the price level for the foreseeable future.
The question is how high can gold price go?
It seems that the upward trend is unstoppable at the moment.
As long as the economy of US does not recover fully, and the value of USD remains at such a low rate, the price of gold will continue to go up.
The problem is not how high gold price will go. The issue is how to afford.
Gold, as in pure gold, is out of reach of many people.
Even many gold jewelries with just a few percentage of gold element is selling at crazy price.
Since the governments of the world hold most of the gold in reserve, the only way for gold price to suffer a drastic drop in price is when the governments start selling gold in the open market.
That is unlikely to happen anytime.
Even the US government, as the largest shareholder of gold in the world, is not so stupid as to dump gold in the open market.
Silver price is also rising at a spectacular rate.
In fact, as a percentage increase, the price of silver exceeds the price of gold.
Since silver is selling at $43 per Troy ounce, a dollar increase translates to a larger percentage increase.
If you cannot afford buying gold, especially now that the gold price per ounce is hitting $1500, you can consider buying silver as an alternative investment.
At the moment, the price is $1493.
While it does not seem such as a great deal between $1499 and $1500, the fact is that $1500 is a psychological price level.
That means many people who have gold at home will feel happier and more positive with gold price per ounce at $1500 than $1499.
Once the gold price manages to cross the psychological price level, it may stay above the price level for the foreseeable future.
The question is how high can gold price go?
It seems that the upward trend is unstoppable at the moment.
As long as the economy of US does not recover fully, and the value of USD remains at such a low rate, the price of gold will continue to go up.
The problem is not how high gold price will go. The issue is how to afford.
Gold, as in pure gold, is out of reach of many people.
Even many gold jewelries with just a few percentage of gold element is selling at crazy price.
Since the governments of the world hold most of the gold in reserve, the only way for gold price to suffer a drastic drop in price is when the governments start selling gold in the open market.
That is unlikely to happen anytime.
Even the US government, as the largest shareholder of gold in the world, is not so stupid as to dump gold in the open market.
Silver price is also rising at a spectacular rate.
In fact, as a percentage increase, the price of silver exceeds the price of gold.
Since silver is selling at $43 per Troy ounce, a dollar increase translates to a larger percentage increase.
If you cannot afford buying gold, especially now that the gold price per ounce is hitting $1500, you can consider buying silver as an alternative investment.
Saturday, April 16, 2011
SGD USD
SGD stands for Singapore Dollar.
USD is the US Dollar.
When I check the chart for the exchange rate of SGD to USD, it is practically a straight line curve heading up.
SGD is getting stronger and stronger due to the intervention of Singapore government.
Most Asian countries do not allow the currencies to get so strong.
They do not want to lose out in term of exporting manufactured goods to the United States.
That is why they keep the currencies low.
When USD depreciates, their currencies go down as well.
The Singapore government takes a different approach.
They strengthen SGD to combat the inflation rate. The government also gives money to Singaporeans to help them cope with the rising cost of living due to escalating oil price.
It is good news for Singaporeans living in the country, and good news for Singaporeans who want to study or travel to US.
It is also good news for US companies with sales office in Singapore, and US citizens working in Singapore.
However, the strong SGD is bad news for companies which export products to US.
I just hope that the government draws a line somewhere, it is not good to keep appreciating SGD for the sake of keeping inflation low.
If ever the exchange rate of SGD to USD is 1:1, it will kill off the manufacturing companies in Singapore.
Many production workers will lose their jobs.
Even though the companies can relocate to other parts of the world, the lowly paid and low skilled workers cannot.
No country is willing to take in unskilled and highly paid (due to strong Sing Dollars) workers from overseas.
Many highly skilled Professionals are affected by the SGD USD exchange rate too. Most of them work in projects all over the world. Their contracts can last anything from 6 months to 2 years.
When they signed the contract earlier, the USD was stronger. They could maintain the mortgage and other expenses of the family in Singapore.
Now what they earn is lost in currency exchange. Many of them return home, and do not want to take up overseas assignments anymore.
USD is the US Dollar.
When I check the chart for the exchange rate of SGD to USD, it is practically a straight line curve heading up.
SGD is getting stronger and stronger due to the intervention of Singapore government.
Most Asian countries do not allow the currencies to get so strong.
They do not want to lose out in term of exporting manufactured goods to the United States.
That is why they keep the currencies low.
When USD depreciates, their currencies go down as well.
The Singapore government takes a different approach.
They strengthen SGD to combat the inflation rate. The government also gives money to Singaporeans to help them cope with the rising cost of living due to escalating oil price.
It is good news for Singaporeans living in the country, and good news for Singaporeans who want to study or travel to US.
It is also good news for US companies with sales office in Singapore, and US citizens working in Singapore.
However, the strong SGD is bad news for companies which export products to US.
I just hope that the government draws a line somewhere, it is not good to keep appreciating SGD for the sake of keeping inflation low.
If ever the exchange rate of SGD to USD is 1:1, it will kill off the manufacturing companies in Singapore.
Many production workers will lose their jobs.
Even though the companies can relocate to other parts of the world, the lowly paid and low skilled workers cannot.
No country is willing to take in unskilled and highly paid (due to strong Sing Dollars) workers from overseas.
Many highly skilled Professionals are affected by the SGD USD exchange rate too. Most of them work in projects all over the world. Their contracts can last anything from 6 months to 2 years.
When they signed the contract earlier, the USD was stronger. They could maintain the mortgage and other expenses of the family in Singapore.
Now what they earn is lost in currency exchange. Many of them return home, and do not want to take up overseas assignments anymore.
Since my blog is monetized by Google Adsense, and Google Adsense quotes in USD. I am not very happy about the strong SGD too.
If the exchange rate of USD to SGD is 1.5 to 1, I would be happier than the current 1.24 to 1.
Friday, April 15, 2011
Subscribe to mailing lists
There was a period of time when I subscribed to mailing lists of practically every website I stumbled upon.
In the end, I received a few hundred offers, articles and newsletter on a weekly basis.
After I changed my email account, I stopped the habit.
I only subscribe to mailing lists of professional bodies related to my job.
Now that the Singapore currency is stronger than many major currencies in the world, I start to subscribe to mailing lists of airlines, travel agencies, hotels and resorts.
This is the only way to get the best offer without having to check the websites continuously.
I think every company catering to consumers must display the Subscribe button prominently. It is a pain to keep the website on a bookmark, and visit it every day or every week.
The best thing about the newsletters is that we can forward to our friends or colleagues who are searching for similar information.
Most of us never unsubscribe from mailing lists even if we are not keen on the products or services anymore.
We are always afraid of missing out on the best deals or offers.
That happens a lot.
For example, now that I have subscribe to the mailing lists of many airlines, it is hard to unsubscribe.
I never know when I need to find cheap airfares or great deals on a holiday.
What if I unsubscribe and the airline starts to offer unbelievable offer?
I think most of us have too many junk mails and spam due to this bad habit. Having said that, we are willing to live with the inconvenience of deleting hundred and hundred of emails a week.
Most of us tend to scan the newsletters received, rather than reading word by word.
For those airlines offers, I just pay attention to the destination, and the price of return trip. If it is good enough, I will read more.
Some companies make things so much easier for us to subscribe to the mailing lists. We just need to type in our preferred name and email address, click the Submit button. Then wait for the confirmation email.
The next thing is to click on the link in the confirmation email, and click Confirm button.
After that the newsletters will arrive on a weekly or daily basis.
I hate those companies that ask for all the unnecessary details, or want you to sign up as a Premium member or whatever nonsense.
It is a pain to fill in so many details when we are not going to buy anything.
In the end, I received a few hundred offers, articles and newsletter on a weekly basis.
After I changed my email account, I stopped the habit.
I only subscribe to mailing lists of professional bodies related to my job.
Now that the Singapore currency is stronger than many major currencies in the world, I start to subscribe to mailing lists of airlines, travel agencies, hotels and resorts.
This is the only way to get the best offer without having to check the websites continuously.
I think every company catering to consumers must display the Subscribe button prominently. It is a pain to keep the website on a bookmark, and visit it every day or every week.
The best thing about the newsletters is that we can forward to our friends or colleagues who are searching for similar information.
Most of us never unsubscribe from mailing lists even if we are not keen on the products or services anymore.
We are always afraid of missing out on the best deals or offers.
That happens a lot.
For example, now that I have subscribe to the mailing lists of many airlines, it is hard to unsubscribe.
I never know when I need to find cheap airfares or great deals on a holiday.
What if I unsubscribe and the airline starts to offer unbelievable offer?
I think most of us have too many junk mails and spam due to this bad habit. Having said that, we are willing to live with the inconvenience of deleting hundred and hundred of emails a week.
Most of us tend to scan the newsletters received, rather than reading word by word.
For those airlines offers, I just pay attention to the destination, and the price of return trip. If it is good enough, I will read more.
Some companies make things so much easier for us to subscribe to the mailing lists. We just need to type in our preferred name and email address, click the Submit button. Then wait for the confirmation email.
The next thing is to click on the link in the confirmation email, and click Confirm button.
After that the newsletters will arrive on a weekly or daily basis.
I hate those companies that ask for all the unnecessary details, or want you to sign up as a Premium member or whatever nonsense.
It is a pain to fill in so many details when we are not going to buy anything.
Wednesday, April 13, 2011
Price of gold and silver takes a breather
Since gold and silver hit record high a couple of days ago, the price of gold and silver seems to take a breather.
The price of gold seems to hover around the narrow band of $1,450 to $1,469 for a few days.
The price of silver reached $41.37 on 11 April, and dropped nearly a dollar the next day.
It is still below $41 at this moment.
If you take a look at the 30 days chart or 60 days chart for gold price, you will notice a continual upward trend.
While the graph does not show a straight arrow up, it shows a trend.
The weekly or daily price for gold is volatile, with a few days of rushing up, and then coming down for a couple of days.
It is as if the speeding car hits the roadblock after a few miles.
The chart showing the accelerating silver price is even more spectacular.
It shows nearly an unstoppable rush of silver price.
Now the price of silver seems to stop moving. Apparently it cannot decide to go up or down.
What will happen to the price of gold and silver?
Nearly all experts agree that the long term trend is an upward trend.
They warn about short term volatility. However, nobody dares to predict a bear market for both precious metals.
What does it mean to investors?
Those who trade online, especially those day traders, will enjoy the volatility.
They can buy one day, sell the next day, buy again, and sell again.
This is one way of benefiting from the short term volatility.
For those who hold physical silver and gold, if they can afford the waiting, they can keep the physical silver and gold for long term.
After all, in some cultures, people pass down silver and gold for generations.
The price of gold seems to hover around the narrow band of $1,450 to $1,469 for a few days.
The price of silver reached $41.37 on 11 April, and dropped nearly a dollar the next day.
It is still below $41 at this moment.
If you take a look at the 30 days chart or 60 days chart for gold price, you will notice a continual upward trend.
While the graph does not show a straight arrow up, it shows a trend.
The weekly or daily price for gold is volatile, with a few days of rushing up, and then coming down for a couple of days.
It is as if the speeding car hits the roadblock after a few miles.
The chart showing the accelerating silver price is even more spectacular.
It shows nearly an unstoppable rush of silver price.
Now the price of silver seems to stop moving. Apparently it cannot decide to go up or down.
What will happen to the price of gold and silver?
Nearly all experts agree that the long term trend is an upward trend.
They warn about short term volatility. However, nobody dares to predict a bear market for both precious metals.
What does it mean to investors?
Those who trade online, especially those day traders, will enjoy the volatility.
They can buy one day, sell the next day, buy again, and sell again.
This is one way of benefiting from the short term volatility.
For those who hold physical silver and gold, if they can afford the waiting, they can keep the physical silver and gold for long term.
After all, in some cultures, people pass down silver and gold for generations.
Monday, April 11, 2011
1 oz silver bars, 10 oz silver bars or 100 oz silver bars
When it comes to silver investing, especially physical silver investing, an investor has to make many choices.
You can invest in silver coins, or silver bars.
Let us talk about silver bars.
Nearly all investment grades silver bars are in great demand. You cannot just order and expect the delivery to occur the next day.
If you are lucky, you wait for three weeks for the mints to make the silver bars, then another week or two for shipping.
If you are unlucky, you get to see the silver bars two months after you paid for these.
Investment grade bullions means 99.9% pure.
You can buy second hand for those branded bullions, such as Engelhard brand. You cannot find a newly minted Engelhard silver bars now, since the company has stopped making.
You can buy the newly minted silver bars from many major sellers.
I got mine from Scottsdale Silver.
Instead of choosing the nice shiny Scottsdale brand, I chose the hand poured Academy bars.
The silver bars are not shiny, and not at all nice looking. However, silver is silver. As long as it is 99.9% pure, it is worth its weight.
If you are a newbie to silver investing, you may wonder whether to buy 1 oz silver bars, 10 oz silver bars or 100 oz silver bars.
That depends on where you stay.
Some companies offer free shipping for purchasing 1 oz silver bars to certain regions.
That means you can order the 1 oz silver bar as and when you have the money to do so.
You can view it as a long term investment plan.
1 oz silver bar will not cost more than $50. As long as you get to enjoy free shipping, you can build up a sizeable collection in a couple of months.
If you need to pay for international shipping, and custom tax imposed by your country, there is no point to buy just 1 oz silver bar.
There is no point in buying 1 oz silver bars at all, unless you want to give as gifts to your family and friends.
The best is to buy 10 oz silver bars.
10 oz silver bars are best for collection. You can sell your collection easily. Since you pay at a premium over spot rate, you can sell at a premium over spot rate as well.
Over here, in Singapore, the market rate is 20% premium over spot rate for 10 oz silver bars.
The reasons for such a high premium include international shipping cost and 7% goods and services tax. The goods and services tax imposed is on top of the usual premium over spot rate imposed by manufacturers.
As for 100 oz silver bars, it is not as good as 10 oz silver bars.
Many investors find it hard to liquidate such a big silver bullion. 100 oz silver bars are heavy, bulky and do not look elegant and nice.
Many buyers do not have the cash to buy 100 oz silver bars too.
Imagine forking out more than $4,200 for a single bar.
Most investors end up selling the 100 oz silver bars at spot rate for the purpose of melting them.
1000 oz silver bar is even worse. The price is beyond the reach of most people.
You can invest in silver coins, or silver bars.
Let us talk about silver bars.
Nearly all investment grades silver bars are in great demand. You cannot just order and expect the delivery to occur the next day.
If you are lucky, you wait for three weeks for the mints to make the silver bars, then another week or two for shipping.
If you are unlucky, you get to see the silver bars two months after you paid for these.
Investment grade bullions means 99.9% pure.
You can buy second hand for those branded bullions, such as Engelhard brand. You cannot find a newly minted Engelhard silver bars now, since the company has stopped making.
You can buy the newly minted silver bars from many major sellers.
I got mine from Scottsdale Silver.
Instead of choosing the nice shiny Scottsdale brand, I chose the hand poured Academy bars.
The silver bars are not shiny, and not at all nice looking. However, silver is silver. As long as it is 99.9% pure, it is worth its weight.
If you are a newbie to silver investing, you may wonder whether to buy 1 oz silver bars, 10 oz silver bars or 100 oz silver bars.
That depends on where you stay.
Some companies offer free shipping for purchasing 1 oz silver bars to certain regions.
That means you can order the 1 oz silver bar as and when you have the money to do so.
You can view it as a long term investment plan.
1 oz silver bar will not cost more than $50. As long as you get to enjoy free shipping, you can build up a sizeable collection in a couple of months.
If you need to pay for international shipping, and custom tax imposed by your country, there is no point to buy just 1 oz silver bar.
There is no point in buying 1 oz silver bars at all, unless you want to give as gifts to your family and friends.
The best is to buy 10 oz silver bars.
10 oz silver bars are best for collection. You can sell your collection easily. Since you pay at a premium over spot rate, you can sell at a premium over spot rate as well.
Over here, in Singapore, the market rate is 20% premium over spot rate for 10 oz silver bars.
The reasons for such a high premium include international shipping cost and 7% goods and services tax. The goods and services tax imposed is on top of the usual premium over spot rate imposed by manufacturers.
As for 100 oz silver bars, it is not as good as 10 oz silver bars.
Many investors find it hard to liquidate such a big silver bullion. 100 oz silver bars are heavy, bulky and do not look elegant and nice.
Many buyers do not have the cash to buy 100 oz silver bars too.
Imagine forking out more than $4,200 for a single bar.
Most investors end up selling the 100 oz silver bars at spot rate for the purpose of melting them.
1000 oz silver bar is even worse. The price is beyond the reach of most people.
Saturday, April 9, 2011
Will Gold Crash in 2011?
Will gold crash in 2011?
Gold price is hitting new high practically every week.
The current gold price is $1,475.
Imagine paying USD1,475 just for one Troy ounce of gold! One Troy ounce is about 31 grams of gold.
As a metal, gold has no industrial application.
Most people hoard gold for the sake of investment or as a form of jewelry.
The current gold price of $1,475 makes gold out of reach of many people.
It is unthinkable to pay more than $14,750 for a 10 oz of gold bar. The premium over spot price, plus the shipping and applicable tax, often make a gold bar more than 20% more than the spot price.
That is why many people are selling off their gold coins, gold jewelries and gold bars. They want to cash in on their profits.
That does not cause a dent in the gold price, since the governments around the world hold more than 90% of the gold in the world.
Many investors are turning to silver as a form of investment.
As a result, the silver price is hitting new high every day too.
If you compare the lowest point in silver price in 2011 till now, it has increased more than 50%.
The lowest price occurs near end January, when silver was slightly more than $26 per Troy ounce. Now silver is reaching $41.
Even at this price, silver is still affordable to most people.
If you compare the price difference of $1,475 per Troy ounce for gold, and $41 per Troy ounce for silver, you can see why buying silver is such a good choice.
If the governments in the world start to sell their gold reserve, that will definitely cause gold to crash in 2011.
The selling of gold by individuals is not enough to cause gold crash, since most people hardly have a single Troy ounce of gold.
However, governments hoard tons and tons of gold bars.
If governments are neither selling or buying, and individuals sell more than they buy, the price of gold will stabilize in the future.
It is not enough to cause gold crash yet.
Silver, on the other hand, is a different story.
It seems that the rise in silver is unstoppable in the near future. After all, once you have sold off 1 oz of gold bar, you have enough money to buy 31 Troy ounce of silver.
It makes sense to sell gold and buy silver.
Gold price is hitting new high practically every week.
The current gold price is $1,475.
Imagine paying USD1,475 just for one Troy ounce of gold! One Troy ounce is about 31 grams of gold.
As a metal, gold has no industrial application.
Most people hoard gold for the sake of investment or as a form of jewelry.
The current gold price of $1,475 makes gold out of reach of many people.
It is unthinkable to pay more than $14,750 for a 10 oz of gold bar. The premium over spot price, plus the shipping and applicable tax, often make a gold bar more than 20% more than the spot price.
That is why many people are selling off their gold coins, gold jewelries and gold bars. They want to cash in on their profits.
That does not cause a dent in the gold price, since the governments around the world hold more than 90% of the gold in the world.
Many investors are turning to silver as a form of investment.
As a result, the silver price is hitting new high every day too.
If you compare the lowest point in silver price in 2011 till now, it has increased more than 50%.
The lowest price occurs near end January, when silver was slightly more than $26 per Troy ounce. Now silver is reaching $41.
Even at this price, silver is still affordable to most people.
If you compare the price difference of $1,475 per Troy ounce for gold, and $41 per Troy ounce for silver, you can see why buying silver is such a good choice.
If the governments in the world start to sell their gold reserve, that will definitely cause gold to crash in 2011.
The selling of gold by individuals is not enough to cause gold crash, since most people hardly have a single Troy ounce of gold.
However, governments hoard tons and tons of gold bars.
If governments are neither selling or buying, and individuals sell more than they buy, the price of gold will stabilize in the future.
It is not enough to cause gold crash yet.
Silver, on the other hand, is a different story.
It seems that the rise in silver is unstoppable in the near future. After all, once you have sold off 1 oz of gold bar, you have enough money to buy 31 Troy ounce of silver.
It makes sense to sell gold and buy silver.
Friday, April 8, 2011
The price of silver hits $40
The price of silver hits $40 today.
When I check Kitco a moment ago, the actual price is $40.25.
However, there is nothing to feel happy about.
The actual increase is not that much, since the reason for the price of silver to reach new height is the decline in US dollar.
Since I stay in Singapore, and have to face the risk of currency conversion, it is a zero sum game.
If I were to stay in US, and earn US dollar, it makes sense to keep on buying silver and gold to hedge against the weakening dollar.
The problem is that many currencies in the world appreciate against US dollar.
The low US dollar makes it cheaper for us to buy silver. The only problem is that the applicable tax for purchasing silver bars from oversea is not quoted in US dollar.
I have to pay the goods and services tax after importing silver bars to my country.
When it comes to selling, there is no real increase, especially when my home currency is so strong.
The price of silver is quoted in US dollar. When we sell the physical silver bullions in other countries, we need to price in US dollar, and then convert to local currencies.
The best is when we buy silver at a low price, when USD is at the weakest point, and our local currency is strong.
The best time to sell is when the price of silver is high, the USD is high, and the local currency is low.
That is the time when we make capital gain on the price of silver, plus the exchange rate.
Will the price of silver reach new high? It will.
Will the USD strengthen? Hopefully in the near future.
When I check Kitco a moment ago, the actual price is $40.25.
However, there is nothing to feel happy about.
The actual increase is not that much, since the reason for the price of silver to reach new height is the decline in US dollar.
Since I stay in Singapore, and have to face the risk of currency conversion, it is a zero sum game.
If I were to stay in US, and earn US dollar, it makes sense to keep on buying silver and gold to hedge against the weakening dollar.
The problem is that many currencies in the world appreciate against US dollar.
The low US dollar makes it cheaper for us to buy silver. The only problem is that the applicable tax for purchasing silver bars from oversea is not quoted in US dollar.
I have to pay the goods and services tax after importing silver bars to my country.
When it comes to selling, there is no real increase, especially when my home currency is so strong.
The price of silver is quoted in US dollar. When we sell the physical silver bullions in other countries, we need to price in US dollar, and then convert to local currencies.
The best is when we buy silver at a low price, when USD is at the weakest point, and our local currency is strong.
The best time to sell is when the price of silver is high, the USD is high, and the local currency is low.
That is the time when we make capital gain on the price of silver, plus the exchange rate.
Will the price of silver reach new high? It will.
Will the USD strengthen? Hopefully in the near future.
Wednesday, April 6, 2011
Price of silver per Troy ounce reaching $40
The more I watch the surge in silver price, the more I kick myself.
I should have, could have, bought more silver when the price of silver per Troy ounce reached a low of $26 in 2011.
That was just two months ago.
If I had bought more silver bars when the price was $26, I would have made 50% profit by now.
Nobody asked me not to buy. I had the cash to buy a few 1 oz silver bars.
Even with the premium over spot, and the shipping cost, 1 oz of silver bar could not cost more than $28 when the spot was just $26.
We can hardly find any other investment with such good rate of return.
Now that the price of silver per Troy ounce is reaching $40, my heart really aches.
If only!!
I cannot blame anyone now. I knew that the price of silver would definitely increased. While I did not agree that silver price per Troy ounce would reach $50 by the end of the year, I had guessed correctly that $40 was not going to be a problem.
My personal estimate was $45 by end year. That was before the Middle East crisis escalated, and before the earthquake in Japan.
I had the knowledge. I had done my homework. I had the money for just a few bars.
Yet I did not buy.
Now I have myself to blame.
That is one of my biggest investment mistake, which is the mistake of not making the right decision when every instinct, every analyst report, points to the right decision.
The mistake of not investing when it is the best time for investment.
That is almost as bad as making the wrong decision, and making capital loss.
Anyway that is in the past. I can only look forward.
Will the price of silver per Troy ounce reach $50 by year end? It is very likely.
If another world crisis happens, silver could have reached $50 within a few months.
I guess I have to make a decision to acquire more bullions.
I do not want to kick myself again when it hits $50, $60 or even a hundred.
I should have, could have, bought more silver when the price of silver per Troy ounce reached a low of $26 in 2011.
That was just two months ago.
If I had bought more silver bars when the price was $26, I would have made 50% profit by now.
Nobody asked me not to buy. I had the cash to buy a few 1 oz silver bars.
Even with the premium over spot, and the shipping cost, 1 oz of silver bar could not cost more than $28 when the spot was just $26.
We can hardly find any other investment with such good rate of return.
Now that the price of silver per Troy ounce is reaching $40, my heart really aches.
If only!!
I cannot blame anyone now. I knew that the price of silver would definitely increased. While I did not agree that silver price per Troy ounce would reach $50 by the end of the year, I had guessed correctly that $40 was not going to be a problem.
My personal estimate was $45 by end year. That was before the Middle East crisis escalated, and before the earthquake in Japan.
I had the knowledge. I had done my homework. I had the money for just a few bars.
Yet I did not buy.
Now I have myself to blame.
That is one of my biggest investment mistake, which is the mistake of not making the right decision when every instinct, every analyst report, points to the right decision.
The mistake of not investing when it is the best time for investment.
That is almost as bad as making the wrong decision, and making capital loss.
Anyway that is in the past. I can only look forward.
Will the price of silver per Troy ounce reach $50 by year end? It is very likely.
If another world crisis happens, silver could have reached $50 within a few months.
I guess I have to make a decision to acquire more bullions.
I do not want to kick myself again when it hits $50, $60 or even a hundred.
Tuesday, April 5, 2011
Buying silver for investment
The newspaper today is full of articles about gold and silver investment.
The silver price per Troy ounce has reached and stayed above $38. It is a peak unachieved for the past 30 years.
The highest price for silver per Troy ounce was $49.45. That was way back in 1980.
The increase in silver price now is very different from the past.
When we look at the average yearly price chart in Kitco, we can see the difference.
The yearly average for the year 1980 was $16.39. That means for most part of the year, the price of silver per Troy ounce stayed below $16.
It was a sharp increase, followed by a spectacular fall later.
The reason was that a few big players speculate on this precious metal.
However, the average price in year 2010 was $20.19. The average price for 2011 is above $30.
Silver and gold enjoy worldwide attention.
The rise of both precious metal commodities is more stable.
That is why buying silver for investment is a wise choice today.
Silver and gold apparently have not reached the peak yet.
The question is whether buying silver or selling silver is wise now.
The current situation is very different from 1980. There are many educated and rich investors today compared to 1980.
The declining USD forces many people to buy silver and gold.
The inflation rate in Chins is forcing many Chinese to soak up gold and silver too.
A dollar now is definitely worth less than a dollar in 1980. A dollar now is probably worth only 40 cents in 1980.
According to Measuringworth.com, a dollar in 2010 equals to:
$0.38 using the Consumer Price Index
$0.43 using the GDP deflator
$0.40 using the unskilled wage
$0.34 using the Production Worker Compensation
$0.26 using the nominal GDP per capita
$0.19 using the relative share of GDP
For those who bought silver at the high price of $49.45 in 1980, they would have to wait till the price of silver reaches $120 or more before they can get their value back.
That is why the price of silver is still low compared to historical high.
If you do not have any silver coins yet, you can start your collection of silver bars and silver coins.
Buying silver for investment does not mean forking out a large sum of money.
A one-Troy ounce silver bar costs less than $50, even if you include the shipping cost, the premium over spot rate, and the applicable government tax in your country.
If you can afford to buy just one little silver bar per month, you are buying silver for investment. When the price is high enough, you can sell away your humble collection to lock in profits.
The silver price per Troy ounce has reached and stayed above $38. It is a peak unachieved for the past 30 years.
| Silver Eagle coins contain one troy ounce of .999 fine silver. American Eagle Gold Coins contain 22 karat gold at various weights |
The highest price for silver per Troy ounce was $49.45. That was way back in 1980.
The increase in silver price now is very different from the past.
When we look at the average yearly price chart in Kitco, we can see the difference.
The yearly average for the year 1980 was $16.39. That means for most part of the year, the price of silver per Troy ounce stayed below $16.
It was a sharp increase, followed by a spectacular fall later.
The reason was that a few big players speculate on this precious metal.
However, the average price in year 2010 was $20.19. The average price for 2011 is above $30.
Silver and gold enjoy worldwide attention.
The rise of both precious metal commodities is more stable.
That is why buying silver for investment is a wise choice today.
Silver and gold apparently have not reached the peak yet.
The question is whether buying silver or selling silver is wise now.
The current situation is very different from 1980. There are many educated and rich investors today compared to 1980.
The declining USD forces many people to buy silver and gold.
The inflation rate in Chins is forcing many Chinese to soak up gold and silver too.
A dollar now is definitely worth less than a dollar in 1980. A dollar now is probably worth only 40 cents in 1980.
According to Measuringworth.com, a dollar in 2010 equals to:
$0.38 using the Consumer Price Index
$0.43 using the GDP deflator
$0.40 using the unskilled wage
$0.34 using the Production Worker Compensation
$0.26 using the nominal GDP per capita
$0.19 using the relative share of GDP
For those who bought silver at the high price of $49.45 in 1980, they would have to wait till the price of silver reaches $120 or more before they can get their value back.
That is why the price of silver is still low compared to historical high.
If you do not have any silver coins yet, you can start your collection of silver bars and silver coins.
Buying silver for investment does not mean forking out a large sum of money.
A one-Troy ounce silver bar costs less than $50, even if you include the shipping cost, the premium over spot rate, and the applicable government tax in your country.
If you can afford to buy just one little silver bar per month, you are buying silver for investment. When the price is high enough, you can sell away your humble collection to lock in profits.
Monday, April 4, 2011
Buying gold bullion coins
If you want to diversify into gold investing, you can consider buying gold bullion coins.
Many people prefer to buy gold bullion coins rather than gold bars, simply because gold bullion coins look much nicer.
A gold bar is just a rectangular block of gold. Some words are inscribed in the gold bars, such as 0.999 purity. Hardly any gold bar comes with nice design.
However, gold bullion coins are much nicer to look at.
For example, the famous China Panda gold bullion coin has the feature of two pandas on the reverse side of the coin.
The Kijang Emas Gold Bullion Coins of Malaysia has the beautiful hibiscus flower design on the reverse side.
It is one of the most beautiful gold bullion coins in the world.
Let us look at some of the characteristics:
1. Face value
Some countries issue the coins with face value of certain amount.
For example, the Australian Kangaroo gold bullion coins may have the face value of A$100.
That means you can use the coin to pay for the grocery in the supermarket.
Hardly anyone will do that. It is certainly very stupid to use the coin at its face value, since you can sell it at the prevailing gold price.
When a country issues the gold bullion coins with a face value, the coin is a legal tender in the country of origin.
2. No face value
Most gold bullion coins do not have any face value.
The market value of the coin follows the international gold price. The market value also depends on the gold content of the coin.
Most countries issue the coins in 1 Troy ounce size, half Troy ounce size or quarter Troy ounce size.
3. No fixed selling price
There is no fixed selling price for the national issue of gold bullion coins.
The selling price differs everyday according to the international gold price.
For example, you can walk into the Maybank branches that sell the Kijang Emas Gold Bullion Coins. You have to check the gold spot rate for the day, since the price changes everyday.
4. Produced in bulk
The gold bullion coin of Austria, Vienna Philharmonic, are selling in many countries.
The reason is that the coins have been around since 1970. There are about 250 million coins in the world.
A country does not just produce one or two coins. It is likely to keep on producing the gold bullion coins for a long time. Some of the famous coins are Canadian Maple Leaf, China Panda coins, American Buffalo and American Eagle coins.
You can even set a goal of buying the gold bullion coins of different countries, and in different sizes.
Many people prefer to buy gold bullion coins rather than gold bars, simply because gold bullion coins look much nicer.
A gold bar is just a rectangular block of gold. Some words are inscribed in the gold bars, such as 0.999 purity. Hardly any gold bar comes with nice design.
However, gold bullion coins are much nicer to look at.
For example, the famous China Panda gold bullion coin has the feature of two pandas on the reverse side of the coin.
The Kijang Emas Gold Bullion Coins of Malaysia has the beautiful hibiscus flower design on the reverse side.
It is one of the most beautiful gold bullion coins in the world.
Let us look at some of the characteristics:
1. Face value
Some countries issue the coins with face value of certain amount.
For example, the Australian Kangaroo gold bullion coins may have the face value of A$100.
That means you can use the coin to pay for the grocery in the supermarket.
Hardly anyone will do that. It is certainly very stupid to use the coin at its face value, since you can sell it at the prevailing gold price.
When a country issues the gold bullion coins with a face value, the coin is a legal tender in the country of origin.
2. No face value
Most gold bullion coins do not have any face value.
The market value of the coin follows the international gold price. The market value also depends on the gold content of the coin.
Most countries issue the coins in 1 Troy ounce size, half Troy ounce size or quarter Troy ounce size.
3. No fixed selling price
There is no fixed selling price for the national issue of gold bullion coins.
The selling price differs everyday according to the international gold price.
For example, you can walk into the Maybank branches that sell the Kijang Emas Gold Bullion Coins. You have to check the gold spot rate for the day, since the price changes everyday.
4. Produced in bulk
The gold bullion coin of Austria, Vienna Philharmonic, are selling in many countries.
The reason is that the coins have been around since 1970. There are about 250 million coins in the world.
A country does not just produce one or two coins. It is likely to keep on producing the gold bullion coins for a long time. Some of the famous coins are Canadian Maple Leaf, China Panda coins, American Buffalo and American Eagle coins.
You can even set a goal of buying the gold bullion coins of different countries, and in different sizes.
Friday, April 1, 2011
Tons and tons of gold
When reading an article from Kitco, I come across some interesting statistics. The source of the statistic is World Gold Council.
You can sign up for the free newsletters, and download the statistics.
USA tops the list of countries with gold holdings. It has more than 8,133 tons of gold.
It is hard to imagine having tons and tons of gold. Most people feel rich with just 10 Troy ounce of gold bar or gold account.
I am glad to see that even my country, Singapore, has tons of gold too. Singapore has 127 tons of gold. That is in the 25th position of the list.
China and Switzerland have just over 1,000 tons of gold.
Saudi Arabia has about 323 tons of gold. For such a rich country, Saudi Arabia seems to park the money elsewhere. It could easily increase its gold holding.
The list is not comprehensive, since many countries with gold reserve do not report to the World Gold Council.
The statistics show a total of 30,534 tons of gold worldwide, and governments hold more than 27,000 tons of gold.
That means only 10% of the gold holding is in the hands of private investors.
Most consumers, people like you and me, prefer to have gold in the form of gold jewelries.
India is currently the largest market for gold jewelry. The consumers in China are demanding for more gold too.
It seems that the fascination of gold never dies. Everyone hopes to collect gold in one form or another.
If ever I have the money for it, I prefer to have just one little Troy ounce of gold bar.
Having tons and tons of gold is not possible for commoners. Let the governments keep their tons of gold.
Hopefully USA does not start to offload 8,000 tons of gold in the market soon.
The current gold price of $1,428 will drop like a stone!
You can sign up for the free newsletters, and download the statistics.
USA tops the list of countries with gold holdings. It has more than 8,133 tons of gold.
It is hard to imagine having tons and tons of gold. Most people feel rich with just 10 Troy ounce of gold bar or gold account.
I am glad to see that even my country, Singapore, has tons of gold too. Singapore has 127 tons of gold. That is in the 25th position of the list.
China and Switzerland have just over 1,000 tons of gold.
Saudi Arabia has about 323 tons of gold. For such a rich country, Saudi Arabia seems to park the money elsewhere. It could easily increase its gold holding.
The list is not comprehensive, since many countries with gold reserve do not report to the World Gold Council.
The statistics show a total of 30,534 tons of gold worldwide, and governments hold more than 27,000 tons of gold.
That means only 10% of the gold holding is in the hands of private investors.
Most consumers, people like you and me, prefer to have gold in the form of gold jewelries.
India is currently the largest market for gold jewelry. The consumers in China are demanding for more gold too.
It seems that the fascination of gold never dies. Everyone hopes to collect gold in one form or another.
If ever I have the money for it, I prefer to have just one little Troy ounce of gold bar.
Having tons and tons of gold is not possible for commoners. Let the governments keep their tons of gold.
Hopefully USA does not start to offload 8,000 tons of gold in the market soon.
The current gold price of $1,428 will drop like a stone!
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