Maybank has launched Maybank Silver Investment Account in July 2012. The bank is targeting to attract 32 million Ringgit investment in the 1st year. Since 2008, silver investment has been receiving tremendous attention globally. While platinum is a great investment with soaring industrial demand and gold is a great investment with soaring monetary demand. Silver is the only metal that has the best of both world, where silver is an industrial metal, used for jewelry, and also a monetary safe haven just like gold.
Being precious metal, silver has been playing the monetary role for thousands of year. Precious metal is the hedge against instability of global economy. United States introduced Quantitative Easing (QE3 and QE4) in the last 6 months to “print money” indefinitely. In Eurozone, the countries are getting into trouble one after another. They seemed to have a “solution” for the crisis but fundamentally their problems are never fixed, they were merely kicking the can down the road. Last week, Japan has announced they will follow US approach to “print money” indefinitely starting 2014. This is the 11th round of Quantitative Easing from Japan. When the whole world is flooded with paper currencies, the safest option is to allocate your wealth into precious metal.
Apart from monetary role, silver has more than 10,000 known industry applications. The usages include antibacterial bandages, washing machines, food processing, water storage, oxygen machines, smart phones, solar panels, windows glass, radio frequency identification technology (RFID) chips, medical uses, batteries, electronics, silver bearings, automotive, clothing, dentistry and many other industrial and commercial applications. There will always be a demand for silver because of its variety of industrial uses. In January 2013, an Apple contractor claimed that Apple could not provide sufficient of the new 27″ inch iMac to their distributors due to not having sufficient physical silver to produce the new Iris screen which requires more silver to make the screen much brighter.
While gold and silver are both precious metal, silver is a better investment simply because gold is being hoarded while silver is being consumed. Central banks purchase gold and keep the gold somewhere safe while silver is consumed by the industry. The consumption for silver is so aggressive that American Silver Eagle coin (the highest production silver coin in the world) is sold out! Not once, but twice in the past 2 months. The first suspension was on 17th December 2012. Later on 7th January 2013, 3.9 million oz of silver coins were sold in one single day, the demand continue to be aggressive causing the silver coins sold out again in 17th January 2013. If you have the ability, keeping a couple of silver coins is never a bad idea.
Today, 1 oz gold coin costs around RM5,400 while a 1 oz silver coin can be bought below RM130 from the local dealers. Most middle class can afford to buy 1 oz of silver each month to start investing or as saving but not too many working class can afford to buy 1 oz of gold. When you are buying silver as investment, ensure the silver you purchase has at least 99.9% purity. Some of the recommended, well-recognized and easily available silver items in Malaysia are: American Silver Eagle coins, Canadian Maple Leaf coins, Perth Mint Lunar Series coins, Chinese Panda coins, Scottsdale bar and APMEX round.
Due to industry consumption and investment demand for silver, silver price is set to explode in the near future. While silver remains affordable today, silver is one of the most undervalue assets everyone should own!
This article is contributed by Daniel Foo, a silver investor and the author of eBook titled: Practical Guide For Investing Silver In Malaysia. Daniel has been actively involved in guiding Malaysians to invest in silver. You can find out more about Daniel’s work at SilverInMalaysia.com