Thursday, August 25, 2011


I am writing about people's strange behaviour towards investment.

What do you see above? Gold price falls. This is great isn't it? What does it mean? It means that you can buy some more to add to your investment. Buy low sell high. For gold business owners, they will start to stock up their gold stock.

Why is individuals not buying? There are many reasons among them:
  1. they does not know where to buy
  2. they does not know the return of gold investment
  3. they are afraid being cheated
  4. they are skeptical whether they can sell off the gold bar easily
  5. they are low risk takers, they prefer keeping their money at the banks
  6. they do not have money to buy
  7. they do not know where to keep their money
  8. they need guidance
  9. they cannot decide
  10. they are overloaded with information
Do you have these questions linger in your mind? Have you address them? Have you found the answer? It is actually worth to find the answer as the return of investment for gold is high compared to other avenues. Take Action, don't talk only.

This evening price is lower compared to this morning.

The price is updated ever 20 minutes. So, if you see a good price, good if you grab them now. In commodities like gold, there is no written rule eg price should go up due to this this & this, price should come down due to this this and this. We are just a small player in the playing field, just follow the flow. The price comes down, you buy. When it goes up you sell.

Do you know that Public Gold can offer you to sell online? That is indeed a very good solution to investors. 24-hours flexibilities is what we all need to take control of our money.

Enough talking... Now the action time!

Monday, August 22, 2011


The article is written by a friend of mine, Mr Shufaad, from

Original source written on early morning of 23/8/2011.

Good day traders!

Gold highest price now is $1911.86.

Nearest resistance is $1925, then $1950.

Technically, there’s going to be a correction as nearly all technical indicators are overbought.

Daily RSI has reached 84.4 level, the highest level I’ve seen. Extremely Overbought.

Daily Stochastic is at 96. Extremely overbought.

Daily ADX is at 77. Too much Extremely strong trend.

MACD is interesting. Its Hourly study shows a Divergence while its Daily study shows parabolic (see red line i price and MACD). This is an indication of a correction might happen.

Gold Divergence

Supports are found at $1877, $1857, $1836 and ultimately our psycho level at $1800.

Correction is what gold needed to move upwards and continue its long term bull.

In short and near term,I remain bias to the downside.


Since today's gold price has broke the all time high gold price, I am eager to write about the return of investment for physical gold bar / dinar.

Say that on last 2nd June, 2011, you have a savings of RM700. You buy 1Dinar PG at RM698. Your intention is to keep 1 Dinar a month as to plan for your Umrah visit. However, due to unstable US economy and the FEDEX action to increase the debt level (and many other reasons), the gold price shoots up.

Today, 22nd August, 2011, to buy 1 Dinar PG you need RM818. Will you be losing if you are religiously saving 1 Dinar per month? Well, do you have to pay more to save 1 Dinar?. Actually, your 1st 1 Dinar, cost RM698. However, due to the increase in gold price, it is now valued at RM818. You are actually RM120 richer than before.

So, if you pay RM818 for your 2nd purchase of 1Dinar, your wealth is equalised (Gain from keeping 1 Dinar - the extra amount of money you are paying for 2nd purchase of 1Dinar).

Can you calculate the return?

If you are selling your 1 Dinar, you sell at 'We buy' price. You actually received R769 for your 1 Dinar. How much is the excess? Correct!! RM71.

What is the rate of return on the investment?
The rate of return is RM71/RM698 = 10%. Not much, you said. Did you notice that your gain of 10% is in a period of 81 days ~ 3months. What is your rate of return per annum? You have to annualise the 81 days return to one year.

So, rate of return is RM71/RM698 *(12 months/3 months) = 40% per annum.
How does that sound? Better?
40% return is indeed a superb return.

Imagine that you bought 100g gold bar instead of 1 Dinar. Your profit is RM2,045 over a period of 81 days. How do I calculate it? Selling price on 22nd August, 2011 is RM18,784. You bought your 100g PG gold bar on 2nd June at RM16,739. Try minus the two figures. Did you get it?

Your rate of return of 100g PG gold bar is 12% for 81 days = RM48% per annum.

Isn't that good or isn't that good?

Why hesitate to start investing now? Just bear in mind that it is better if you keep the gold bar medium to long term, at least for 1 year. That is should be your investment strategy.

However, if you are in gold business, you are playing a different game altogether. You sell high, you buy low. It depends on how fast you roll you capital into transactions.

I hope you benefit from this post and share the knowledge with others. Who knows, a busy person may want you to look after his/her investment. Then the knowledge should be useful for both of you.

Have fun browsing other articles.

Friday, August 19, 2011


Investor unease about the lack of solutions to the European debt crisis and continued sluggish growth in the developed world helped push gold prices above $1,800
Author: Amanda Cooper (Reuters)
Posted: Thursday , 18 Aug 2011


Gold rallied back toward record highs above $1,800 an ounce on Thursday, driven by unease over the lack of a solution to the European debt crisis and sluggish growth in the developed world which has shaken investor confidence in stocks, bonds and hard currencies.

Prices have climbed to within $5 of last week's record high of $1,813.79 an ounce.

Although it remains off the inflation-adjusted peak above $2,000 struck in 1980, it is one of the top performing assets this year, up by over 25 percent versus a 15-percent loss in U.S. blue-chip stocks .SPX or a 7.7-percent decline in the price of copper.

Growth in the United States, which last week lost its top-notch credit rating, has been patchy, while European leaders struggle to contain the spread of the debt crisis that has forced Greece, Portugal and Ireland to seek emergency funding and now threatens to swamp Italy and Spain.

Spot gold was up 1.1 percent on the day at $1,808.20 an ounce by 6:48 a.m. EDT, set for a 3.6 percent gain this week and a nearly 9 percent gain over the last two weeks, its best two-weekly performance since mid-February 2009.

"There is a genuine feeling that all of these issues are playing indirectly into gold, and the impact these factors have on the currencies mean people are getting out of those and into gold," said ANZ head of metal sales Peter Hillyard.

"I'm one of those people who think gold is going to $2,000 and it's getting there. The underlying reasons don't change, there is a lack of confidence in everything else," he said.

Plans from France and Germany to move toward fiscal union in 2012 got a chilly response from other euro-zone countries and failed to reassure investors worried about the region's debt crisis and weakened economies.

Austria, Finland and Ireland all questioned bold proposals from French President Nicolas Sarkozy and German Chancellor Angela Merkel to give up sovereignty over budgetary policies as a means to shore up their 17-nation currency union.

"Investors were still digesting comments from Merkel and Sarkozy late on Tuesday night where the leaders pledged to defend the euro at all costs," wrote VTB Capital analyst Andrey Kryuchenkov in a daily note. "However, what the markets really need is a concrete action plan."

Demand for gold has been fairly evident through increases in holdings of the metal in exchange-traded funds and rising open interest in U.S. gold futures, building on a decline in the second quarter of the year.

The World Gold Council said in a report on Thursday overall gold demand fell 17 percent in the second quarter to 919.8 tonnes, as growing interest in jewelry, coins and bars failed to offset a sharp decline in ETF buying.

Investment in ETFs fell by more than 80 percent on the same quarter last year, although inflows this year are up by a net 6 percent, with most of that investment materializing in the last month, according to ETF data monitored by Reuters.


"Although profit-taking, margin requirement hikes and seasonally soft physical demand could temper the rally intermittently, the external environment has turned increasingly fertile for gold," said Barclays Capital in a research note.

Gold's fortunes could be altered in the case of rising real interest rates, controlled inflation and a stable macro-environment, it added.

Later in the day investors will comb through weekly data on first-time unemployment benefit claims for a read on the health of the U.S. jobs market, as well as U.S. consumer prices.

Data on Wednesday showed the sharpest pick-up in producer prices excluding food and energy in six months in July, although weak consumer demand was expected to keep inflation at the farm and factory gate in check.

In other fundamental news, Venezuelan President Hugo Chavez said the country will nationalize its gold industry and is moving its international reserves out of Western countries.

In other precious metals, silver rose 0.5 percent to trade at $40.38 an ounce.

Platinum was flat at $1,835.74, while palladium was down 0.1 percent at $769.47 an ounce.

(Editing by Alison Birrane)

Original Source




If my amateur theory is correct, the price is reaching a Resistance Level. It might stay at that level for a while, and if it is not strong enough, the price will bounce back (ie downwards).

For those who is inclined to buy, this might be a good chance for you to grab. Don't be too late (or
decide for tooo loong) as you might missed the drop. They said the price will go up to USD2500/oz by end of the year.

Resistance level USD1869.26/oz.

Check the hourly chart to see the flat movement.

More articles :

Thursday, August 18, 2011

AUGUST 17, 2011

Risk aversion is one of the greatest drivers in human action and with the recent downgrade of US bonds from AAA to AA+ coupled with global stock market plunges, financial markets have been, per usual, flocking to gold as a safe haven.

Humans are programmed to seek gold in times of uncertainty. Gold is uniquely thought of as the monetary metal of kings, and although silver has more history of being used as money by human beings, silver is still seen today as a risk trade and an industrial metal (although we believe this will be changing shortly).

How many times have we seen in movies or documentaries, where people find treasure and shout "We are rich! We have struck silver!". This does not happen. It is always gold.

People today still do not fully understand the monetary value of silver, and at critical moments they relate to it as a risky industrial product dependent upon demand and economic growth potential. Over time, this "programming", of gold being the only true safe haven money, will dissipate but it will take time for the world to relearn why silver, like gold, is also safe haven money.

As the fiat currency monetary system breakdown continues, silver will reassert itself as the monetary metal of intelligent safe haven investors. The key is to understand the long-term trend, acquire physical gold and silver bullion, and sit patiently as your wealth not only is sustained but increases as dollars, euros, pounds, yen, pesos, etc. fail in preserving investor's purchasing power.

Three factors that will cause the value of silver to skyrocket in the years ahead:

- Silver is a smaller market than gold and there is currently less investment grade silver bullion available for investors than investment grade gold bullion.

- Silver is still seen as a factor in industry and not as the safe haven, tangible, and affordable money that it truly is. Like gold, silver answers to no one for it is inherently without counter-party risk and cannot go broke.

- Silver tends to exponentially rise when there is true evidence of price inflation. With current central bank fiat currency debasing around the world, it is but a matter of time until we witness steeply rising prices for real goods (food, precious monetary metals, energy, etc.).

Due to overbearing demand, 100 oz silver bars are no longer struck with serial numbers

Mike Maloney has allocated 90% of his wealth into silver American Eagle coins and 10% into gold American Eagle coins. GoldSilver Insiders are currently converting 70% of their capital into silver bullion versus 30% into gold bullion.

We are confident that in the long term, silver will outperform gold as the gold/silver ratio tightens back to it's historical average of 12 or lower.

Although the ride in silver will be more wild, we believe it is the patient investor who understands the long-term trend, they will greatly benefit by having exposure to physical silver bullion.

In Summation

If we invest in gold because of fear, all right.

If we invest in silver because we believe it to be a better investment long-term, fine, but we must be composed and settle in for the inherent volatility of the smaller silver market.

If we invest in both silver and gold, stability will be found in our portfolio's "golden anchor" while increased performance will surely come in time as the world relearns that silver is mankind's most undervalued monetary metal.

Original source

Tuesday, August 16, 2011


Written by Tho Li Ming of
Monday, 08 August 2011 21:15

KUALA LUMPUR: While the greenback continues to falter, prices of precious metals have predictably risen as more investors seek a temporary haven.

On June 14, gold prices broke the record once again to touch US$1590.50 an ounce, with an average price of US$1,451.60 so far this year. The outlook for this precious metal has been bright as well, with experts such as Steve Brice, Standard Chartered Bank’s chief investment strategist, predicting a 13% annualised return over the next three years, with a peak of US$2,100 an ounce in 2014.

However, the historical movement of gold has shown that price hikes and dips occur because of speculation. David Crichton-Watt, managing director of gold funds manager, AIMS Asset Management KL, says speculators tend to push prices of precious metals higher than what “real” investors are willing to pay. This eventually causes prices to fall to a level that is acceptable to “genuine buyers”.

The hype on the perceived safety of gold, and to some extent, silver, has created a surge in the price of precious metals. Many channels have made their appearance to cater to the hoards of investors who are looking to jump on this bandwagon.

Those who do not want the hassle of storing precious metals might prefer to invest in stocks of mining companies, exchange-traded funds, gold passbook accounts and commodity unit trusts.

Investors who want to see and touch their physical asset can purchase wafers, bullions and bars from dealers such as banks (Maybank and Public Bank) and jewellers (Poh Kong, Tomei and DeGem Bullion).

To cater to the demand for physical gold and silver, local manufacturers buy large amounts of metal and melt them into smaller quantities before selling them to the banks and jewellers. A relatively new channel has emerged in the form of private dealer companies, who may sell well-known brands from these manufacturers, or have the manufacturers mint their own brand.

The private dealers then sell the products to the customers online, in physical shops or via agents. Agents offer the advantage of narrower buy-sell spreads and prices can be reduced further if the metal is purchased in large quantities.

A clear disadvantage is that these agents tend to operate on the quiet. Due to security concerns such as theft and robbery, they transact only with buyers whom they know personally or through recommendations from existing clients. Thus, the credibility of these agents can sometimes be hard to verify. Moreover, as agents tend to buy back only their gold or silver, this can make it harder for investors to convert their precious metal into cash.

Since the selling prices of gold or silver to retailers may vary according to the type of channel, it is important to check the bid/ask spread before purchasing. “It’s not just the selling [ask] price that investors should take note of, but more importantly, the buying back [bid] prices. Some channels stipulate a higher spread,” says Tony Khong, a gold investor. He adds that if you’re buying from an online channel, check for delivery charges and insurance costs.

UOB Bank sells its 1g Pamp Gold bars for RM298 each and buys them back at RM165 each. On local, 1g Emirates Gold bars go for RM207.96 (sell) and RM152.96 (buy), resulting in a difference of RM55 (as at July 15). Wider spreads could be due to the brand and fabrication involved.

There are two types of gold bars, cast gold [molten gold poured into an ingot mould], which tends to be rough in nature, and minted gold [cut out from a flat piece of gold] which is more refined and looks better asthetically. “Cast gold tends to be cheaper than mint gold.

Likewise, gold products with fancier motifs are more expensive than those with simpler designs,” adds Khong.

Also, ask about the brand of the precious metal. Clearly, a better-known brand is preferred. “Well-known brands commonly available from dealers are the Swiss Pamp gold bar, the Australian Gold Nugget and the Canadian Gold Maple Leaf. If the dealer offers another less-known brand or an in-house brand, ask for a certificate of authenticity, which should state the purity of the gold,” says Khong. “You can also have the bar verified at an assayer’s office for a fee.”

Limit your investment in precious metals to a small portion of your investment portfolio. While everyone should have at least a small percentage in gold, Crichton-Watt cautions against buying the metal to try to make a profit. “It is simply a store of value as it will not grow and does not pay dividends, and so on. Although it will never go bust, it will just sit there and you will incur costs in keeping it from thieves.”

For those who want to trade precious metals, there are sites such as that provide an easy platform to buy and sell gold and silver in “paper value”. Crichton-Watt’s advice is to watch for dips. “Speculators are a different breed, as they are buying on margin, trying to outsmart other speculators.

The trend for gold is upwards, so buy after a period of correction, not when [prices] have been going up for weeks without correcting. Do not even think of short selling [if you find a dealer that lets you] and attempt to time the corrections.”

Original Source

My views on the spread :

1. UOB Bank sells its 1g Pamp Gold bars for RM298 each and buys them back at RM165 each.
2. On local, 1g Emirates Gold bars go for RM207.96 (sell) and RM152.96 (buy)

Spread is the difference between the selling price and the buying price. In the cases of UOB, the spread is 80.6% (RM298/RM165). That is huge!!! As for nubex, the spread is almost 36%.

This is one of the criteria you must check when you want to purchase gold bars / dinars / jewelleries. The spread mus not be too high in order for you to cash out faster if you require the money.

Let's see Public Gold (PG)'s spread below.

For 20g - 1250g Gold Bar, PG's spread is only 5% - 6.3%. Only for 10g, spread is slightly higher of 8.7%.

Don't you think this is the better place to purchase your physical gold?

Another advantage is the transparency of the pricing.


Wrtten by Reuters. Wednesday, 10th August, 2011

NEW YORK: Is it too late to buy gold?

It soared to a record $1,700 an ounce Monday, Aug 8 after the United States suffered its first-ever debt downgrade at the hands of Standard & Poor's.

With gold rising 30 percent this year and nearly 400 percent over the past decade, it's reasonable to ask when the fever might break.

In recent days it's gone completely viral as the debt crisis plunged financial markets to the biggest losses in two years.

"People who weren't talking about it even six months ago are heavily interested in gold today," says Frank Trotter, president of EverBank Direct in Jacksonville, Florida, which holds nearly $500 million worth of precious metals in the form of hard assets for clients.

Gold purchases leaped to more than 18 million ounces over the past month -- from 8.4 million for the entire year up to July, according to data from the Commodity Futures Trading Commission.

People are betting gold will come through the present debt crisis shining. In the depths of the 2008 financial crisis, gold dropped by 20 percent -- but the metal was hurt as the U.S. dollar became the safe haven of choice. In the debt showdown this year, the dollar has suffered and gold leaped.


Financial adviser Jeffrey Sica of Sica Wealth Management in Morristown, New Jersey, says it's not too late to profit from gold fever -- he sees 20 to 25 percent upside in the glittery stuff.

"What we are seeing is the tip of the iceberg in terms of the downgrade," says Sica, a self-described stock market bear who forecast Standard & Poor's downgrade in a blog post to clients back in March. He said gold's value has grown due to central banks' inability to contain the debt crisis.

"The fundamentals to invest in gold have not changed," argues William Rhind, managing director of ETF Securities, which manages $4.2 billion in exchange-traded fund assets. "The only thing that has changed is that investment case is stronger - the world's best credit, the U.S. government - has been downgraded. It's no longer as safe as it was."

Nor is gold overvalued at these levels, Rhind said, since it hit $873 in 1980. Adjusted for inflation, the equivalent would be just over $2,391 today. That's about the level JP Morgan Chase told clients the spot gold prices could hit this year. It said in a note $2,500 per ounce is possible.


Among doubters, though, are people like Pat Dorsey, Morningstar's former director of equity research and now vice chairman of Sanibel Captiva Trust Company, which has $500 million under management.

"I've never been a fan of gold. I am in the camp of that thinks it generates no income and has no utility (like copper), so the valuation is based on the opinions of other people," Dorsey says.

Others cite its volatility as a negative factor, since the gold price is affected by fast-money traders lured by the leverage ofcommodities contracts. The price can tumble just as quickly as it rises.

Still, even some conservative managers recommend a small allocation in gold as part of a balanced portfolio. EverBank's Trotter puts his own account at 5 percent to 10 percent.


Here are three ways to invest in gold:

1.Buy Funds.

If you are looking for a way to invest in gold, one of the easiest ways to do it is to buy an exchange-traded fund, such as SPDR Gold Trust ETF, iShares Gold Trust or Market Vectors ETF Trust, which tracks gold miners. And there are ETFs that are tangentially linked to gold, such as ETFS Physical Platinum Shares along with ETF baskets of precious metals, such as Etfs Physical Precious Metals Basket Shares - which holds gold, silver, platinum and palladium.

The advantage that ETFs have over mutual funds is that they are easier to trade and ETF costs are usually lower. But the downside of investing in a gold-related ETF is that the gains are not always direct and can sometimes lag the rise in gold prices. The risk is that prices can rise and fall quickly.

Conventional mutual funds may be more appealing to buy-and-hold investors. The $100 million Midas Fund, which is highly concentrated in mining stocks, saw significant inflows last week, although manager Tom Winmill wasn't specific. "Gold is not a way to maintain capital appreciation, but it's a good way to preserve wealth," he says.

2. Buy Stocks

Another way to play gold is to go straight to the source - gold mines. While prices for physical gold are soaring, gold mining stocks have slumped. Winmill of the Midas Fund likes Freeport Mcmoran Copper and Gold, which is one of the world's largest mining companies. Year-to-date, the stock is up only about 5 percent, "even though revenues and earnings are exploding on the upside," Winmill says.

"A lot of people are thinking the world is going in reverse, but global Gross Domestic Product growth - if you include emerging markets - is 7 percent. And a lot of that emerging markets growth has to do with infrastructure build out which demands copper," he argues.

Winmill also likes Goldcorp and Newmont Mining Corp, which are some of the largest holdings in the Midas Fund. He sees a "Slinky Effect" for mining stocks in the coming months - "They'll bounce back and make up for lost ground as well," he says.

3. Buy Hard Assets

The upside of buying actual gold bars and ingots is that when the price of gold rises, the value of a gold block tracks the gains on an almost one-for-one basis, unlike other assets which only track the value.

"People want to put their money into hard assets, which retain a value when currencies lose value," says Tod Mcelhaney, president of LaSalle Futures Group in Chicago.

But while physical gold has the most direct value, the downside is that it is also more difficult to offload should investors want to let go of the asset.

One way to buy physical gold is Everbank's Pooled Gold and Silver Accounts, which lets you to pool your investment with other investors. The advantage is that you don't have to cough up huge sums - the minimum investment is $5,000 - nor do you have to pay storage, delivery or annual fees to stash your gold. The ideal investor? "Someone who doesn't have an apocalyptic view that they need to have it in back yard," Trotter says.


Monday, August 15, 2011


The havoc caused by the US credit rating downgrade last week amidst the debt crisis in Europe pushed all commodities sharply lower. Fears that the US and Europe will not be able to handle their mounting debt issues resulted in rampant selling of all risky assets, pushing the price of gold nearly 6% higher. Crude oil fell to an eight-month low. Industrial metals declined on fears of slowing demand from the US and China. Copper was the biggest loser.

Gold With the debt crisis in Europe and rising fears of a recession in the US, many believe that a repeat of 2008 is inevitable for the financial markets. Owing to the complete lack of assurance of returns from risky assets, investors amassed gold sending the precious metal to a record $1781. Gold prices have even surpassed the traditionally more expensive platinum. With uncertainty in markets, analysts expect gold to touch $2500 before the end of 2011. Technically, however, analysts believe a small correction is on the cards. Despite the sharp rise, any correction would be a good opportunity to buy given the ongoing turmoil.

Tuesday, August 9, 2011


  • Robert Kiyosaki : Silver is the biggest opportunity he has ever seen
  • Mike Maloney : Money are PIECES OF PAPER
  • True wealth is calculate during hard times
  • Currency : Medium of Exchange, unit of account, portable, divisible, durable, fungible and must have store of value
  • All fiat currency eventually fall to their intrinsic value
  • There is no refrain on the creation of fiat currency
  • We are being robbed!!

More articles :


Posted by Brittany Stepniak - Tuesday, August 9th, 2011

J.P. Morgan Chase & Co. (JPM) said they see gold prices steadily climbing over $2,000 this year, reaching $2,500 by the year's end.

We haven't seen a gold-trend like this since the 1970s, peaking around 1980, but the current global economy could re-create a similar "parabolic" pattern for gold within the next few months.

Late yesterday, both J.P Morgan and Goldman Sachs Group (GS) raised their gold prices. Goldman suspects prices for an ounce of gold to be closer to $1,900 in the next year.

Gold in USD terms is 2.4% higher and is higher against all currencies and trading at USD 1,760.40 , EUR 1,234.10 , GBP 1,075.70, CHF 1,306.80 per ounce and 132,719.00 JPY.

Gold’s London AM fix was USD 1,770.00, EUR 1241.75, GBP 1080.98. Gold reached new record nominal highs at $1,780.10/oz and new nominal highs in euros and sterling also this morning.


In the short term there is the risk of a correction as gold’s rise is now becoming front page (on front page of FT today) and headline news.

The fact that silver has fallen in recent days and remains below $40/oz and the fact that gold mining equities have also not risen may also be a warning signal.

Gold has risen from below $1,500/oz to nearly $1,800/oz in 5 weeks (since the start of July) and is up nearly 18% in dollar terms.

Therefore, in conventional terms gold is most certainly overbought.

Iniating QE3 will have further bullish affects for the precious metal commodities too.

What does this mean for investors? Simple: follow the trend, buy on dips (like we've been telling you...). Don't sell in haste, but if you do decide you want to sell for profit "do so after two days of lower prices or a weekly lower close."

Moral of the story? Hold onto gold if you can. The bull market trend looks pretty solid for the foreseeable future. We'll let you know when that changes.

*Idented, italicized excerpts from Millrock Resources Inc.

Original article

Saturday, August 6, 2011


Let the numbers do the talking…

The numbers just do not add up. Left to supply and demand forces in a free market, silver should be many multiples over its current price, and possible worth even more than gold.

Over an above all these, silver is being consumed as an indispensable industrial metal withrapidly increasing demand while almost every ounce of gold ever mined in history is still in a vault somewhere.

Reason for this heavily suppressed price is because silver has been, and still is a monetary metal, and hence the Political Metal concept comes into play – just like gold, only more extreme. If the price of silver were “allowed” to rise according to market forces, it will pull up the price of gold because they’re both monetary metals. Silver has the largest concentrated short position all “commodities” traded on the Comex. Investigate the silver manipulation story here and here.

Shortly after the March 2010 CFTC public hearing on silver position limits, the whistle blower Andrew Maguire news going viral on the web, and a slew of high profile class action suits filed against JPMorgan and HSBC for their alleged silver price suppression schemes, silver investors have been getting out of paper silver and going physical. This is accelerating the silver shortage in the physical market and the bankers have been fighting a loosing battle, resulting in a steep price increase from July 2010 as reflected in the charts above.

We’re waiting for them to loose the war, which many expect it to be soon. In the meantime, expect extreme volatility in the silver market. You have to understand the dynamics of the volatility and learn to manage them.

Original Article

Friday, August 5, 2011


Promotion period : 1st August 2011 until 31st October 2011 (3 months promotion)
Description :

1. This promotion is a reward for customers or dealers who purchases Public Silver bars ONLY.
2. A RM100 cash voucher will be rewarded for every purchase of 1kg silver bars (may be a mixture from 250gm, 500gm, or 1kg) in a single invoice
3. Reward is for first 500kg sold during the 3 months promotion period; while stock lasts basis.

Promotion Terms & conditions:
1. This promotion is open for all customers, dealers and master dealers.
2. This promotion is only valid for orders made during the above mentioned promotion period
3. This promotion is NOT valid for purchases made through Easy Payment Purchases (EPP).
4. RM100 cash voucher(s) will only be given during stock collection after the payment is made clear.
5. Customers are eligible to purchase RM20, 000 of silver to join as Dealers (1%) or RM100, 000 to join as Priority Dealers (1.5%) through this promotion and enjoy the reward of RM100 cash voucher(s).
6. Promotion may end early as this promotion is for the first 500kg of silver sold; while stock last basis.

Cash Voucher Terms & conditions:
1. RM100 cash voucher(s) rewarded through this promotion period is not valid to be use for the same order; voucher(s) are only valid for next purchase use or topping up for other EPP payments.
2. More than 1 RM100 cash vouchers can be used for 1 single order.

Ramadhan + Merdeka celebration Bonus!!! Double Counting Points for Perth and Cape Town!!!

Every ringgit spent during August 2011 on purchasing Public Silver bars (ONLY) will be given a double (PGLS) points to challenge for 2010 Sales Incentive Program (SIP) Leadership Seminar to Perth, Australia & also the 2011 Sales Incentive Program to Cape Town, South Africa.

Example: 1kg Public Silver Bar = RM6000, total points given would be RM12, 000 to challenge for both 2010 & 2011 SIP.

Public Gold’s management holds the right to make the final decision if in case any dispute or disagreement occurs.

how to buy silver bar


The prediction from Wealth Daily is $1950/oz. Is it still worth to buy?

What is the price now?

At the point of typing this article, this is the price. (Most updated prices is shown on the right hand side of this blog.)

Can New Investor still gain?

Should the prediction is right and you will be buying gold at around USD1657.60/oz (if you buy now, that is), you will gain USD292.40/oz. How much gain is that?

The gain is 17.6% within 5 months.

How much is the gain per annum? Can you annualised it?

The gain / return is 17.6% / 5 months * 12 months = 42% per annum. That will be very very good indeed. Don't you agree?

An except from Wealth Daily article :

Appetite for Diversification

It's really no surprise banks are buying gold like it's going out of style.

After South Korea bought 25 tons of the metal for the first time in 13 years, just to diversify from the dollar, it's likely other central banks in that region will follow.

Buying gold not only helps countries protect their wealth; it's the best way for them to prepare for a gold mania that could make the 1970s look like “child's play,” says Franco-Nevada Chairman Pierre Lassonde.

In 1980, the only players, or the dominant players, were the Americans. Today the dominant players are China and India; 58% of all the gold sold this year will be sold in these two countries. When we reach that mania phase… it will truly make your head spin.”

Wednesday, August 3, 2011


I was at Jaya Jusco Tmn Setiawangsa last weekend and I came across Poh Kong outlet. As the gold prices continue to rise, I was curious to enquire about the gold bar they sell, the Bunga Raya. I asked about the gold bar prices. Obviously they use the Federation of Goldsmiths and Jewellers Association of Malaysia (FGJAM) prices.

The price of 20g is RM3660. (Roughly 20g * RM183/g = RM3660) Please note the smaller the gold bar, the higher the price per gram as the goldsmith will include the processing fee. Eg additional RM10 for 10g gold bar.

I asked the salesperson, how much do I get if I sell back. He mentioned that I have two options:-
  1. to exchange with a different gold bar/ jewelleries - the spread will be 3%
  2. to get my money back - the spread will be 12%
Wow! That is a lot of money! I have to wait until the price goes up to at least 12% to break even. That will not be good for my investment strategy. Why? Because, if my target is to achieve 12% per annum, I have to wait until the price to move up 24%.

I asked the salesperson again. If I open the case, will you be accepting the Bunga Raya Gold Bar? Yes, he said. At a higher discount, depending on whether the gold bar is damaged or not. Chances are that they will buy back the Bunga Raya at 25% discount. Double WOW!

This is Public Gold prices :-

Can you see the spread? The spread is the difference between the selling price and buying price. Except for PG 10g gold bar, the spread is just 4% -6%.

Which Investment is better? PG gold bar, of course, due to
1. smaller in spread
2. transparent price update
3. updated gold prices reflecting the movement of the live gold price
4. easy to get the products
5. high liquidity (can sell at any point of time)

Poh Kong promotion for your info.