Silver Investors Starter Kit

Brought to you by SilverMalaysia.com

Silver Investors Starter Kit By Jonathan Quek

© SilverMalaysia.com – All Rights Reserved 2

Table of Contents

About The Authors 3

About This Starter Kit

4

Top 5 Reasons to Invest In Silver

5

Silver: Paper VS Physical

14

How to Buy Silver Bars

16

How to Buy Silver Bars

18

How to Store Silver at Home

20

About Us

21



About the Authors

JONATHAN QUEK

Jonathan Quek is the author of the best-selling book ‘Why Gold?

Why Silver? Why Now?’ He had the privilege of interacting with

gold and silver experts such as Jim Rogers (Author of Hot

Commodities), James Turk (Founder of GoldMoney.com), Shaykh

Umar Vadillo (Founder of World Islamic Mint), Richard Duncan

(Author of The New Depression) and Peter Hug (Director of Kitco

Metals).

Jonathan is the founder of SilverMalaysia.com, an online gold and

silver education company that provides retails of physical silver at

competitive price. Jonathan has been featured and interviewed in numerous media

channels such as BFM89.9, TV1, TV2, TV3, Capital TV, China Press, New Straits Times, The

Malay Mail, just to mention a few.

An ambitious visionary with vast financial and investment knowledge, he holds a keen sense

to educate the public on investments, thus he has been invited as an esteemed guest

speaker to several events throughout his mission which includes Bank Negara & AKPK’s

POWER! Programme, CPA Australia, CIMA, University Malaya, Taylors’ University,

iCapital.biz Berhad Open Day 2011, MSI Summit 2011, Wealth Expo, and many more.



About This Starter Kit

When SilverMalaysia.com started in Year 2010, many questions were raised on why we

regarded silver as the new gold. We believe that the largest global financial crisis in history is

ahead of us as a direct result of the mass printing of the U.S. Government. At the same time,

we believe that the greatest investment opportunity in history is knocking on our door as

well. And like it or not, everyone needs at least few silver bullions in their hands.

A young student or fresh graduate can stop drinking a few cups of Starbucks or ChaTime. By

then they can save around RM100++, and thus they can start getting into the silver game.

All parents love their children and want the best for them then they should buy silver for

their child's future education. Because like it or not, silver is a better bet for a long term

child education plan.

A high paying executive or entrepreneur with a higher income will need to diversify his or

her investments. Hence, Silver is a must-have in every investment portfolio.

For an older couple, retirement is probably the main thing on their minds. If hyperinflation

were to take place, it would be disastrous if they do not have any gold and silver on hand.

From these examples, we can see that everyone needs some form of silver bullions. Many

hesitate because they do not understand the need and the process. Therefore, we have

come together to create the 'Silver Investors Starter Kit' to help those who are new to the

world of investing in silver.



Reason #1 Gold Silver Ratio

The formula that is often used in allocating precious metals investments between gold and

silver is the Gold Silver Ratio. This simply means how many ounces of silver it takes to buy

one ounce of gold. The ratio is determined by dividing the price of gold by the price of silver.

Example

If gold was $1,000 an ounce and silver was $20 an ounce, the ratio would be 50 to 1.

The gold price at 50 times the price of silver.

The Gold Silver Ratio varies by region and time period.

In China, during the Ming Dynasty, the Gold Silver Ratio was 4 to 1. This means that you can

exchange 4 ounces of silver to 1 ounce of gold.

In ancient Egypt, the Gold Silver Ratio was 1 to 1. This means that silver has the same value

as gold.

According to Islamic Law, Umar Ibn al-Khattab established the known standard relationship

between gold and silver based on their weights: "7 dinars must be equivalent to 10 dirhams"

which means 7 gold must be equivalent to 10 silver.

For the first 2,000 years, the average Gold Silver Ratio has been about 12 to 1.

Please take note that the Gold Silver Ratio cannot tell you whether the price of gold or silver

is going to go up or down, the ratio can be a useful indicator of whether one metal is

undervalued relatively to the other. In the year 1980, silver’s price increased to $50 while

gold moved to $850, the ratio moved briefly moved below 15 to 1 and at the top of the

market produced a Gold Silver Ratio of 17 to 1. Silver was clearly ahead of itself relative to

gold.



Reflecting the current industrial orientation of the silver market, silver prices fell sharply as

the recession and credit crisis developed in 2008. The ratio was 85 to 1 and silver was

obviously cheap relative to the gold price, and that was the year when Robert Kiyosaki, the

author of Rich Dad Poor Dad and Conspiracy of the Rich was announcing in his Youtube

videos that everyone out there should be buying silver.

If gold soars to at least $2,500—as industry experts like UBS, Peter Schiff and James Dines all

believe—silver could rise to $156!



Reason #2 Industrial Demand

With the growing wealth in Asian regions like China, India, Vietnam, and Indonesia, the

demand for electronic devices like Blackberry, iPhone, HTC, Samsung Galaxy, iPad, is being

driven through the roof. That obviously sounds great for the portable devices-hungry people

of the world but the question for us now is, “What does this have to do with silver?”

The answer is EVERYTHING!

The industrial demand due to China and India’s rapid growth will only add to the pressures

that industry already exerts on dwindling silver supplies.

Why Silver?

1) Silver remains the best electrical conductor known to man.

2) Silver is an excellent thermal conductor.

3) Silver has the highest light reflectivity and sensitivity.

4) Silver is highly chemically reactive and is among the most malleable and ductile of

the metals.

5) Silver is highly resistant to corrosion.

Unlike silver, gold only has two basic uses, and both are hoarding type uses where the metal

doesn’t get used up: money and jewellery. Less than 10% of gold production is used in

industrial applications. 90% of all the gold ever mined throughout history is still available for

purchase somewhere.

Silver, on the other, has hundred or industrial uses and applications. The use of silver in the

electrical grid, the demand for TVs, computers, cell phones, batteries and other electronic

devices will continue to grow in both China and India.

Silver is used in:

• Solar energy

• Textiles and Fabric Applications (polyester fiber clothing)

• Food Preparation and Storage Areas

• RFID tags

• Bottled Water Purification

• Home Health Products (toothbrushes, makeup applications, combs)

• Food Processing (milk)

• Silver-based Paper Products for Food Packaging

• Rechargeable Solar Batteries

• Silver Coated Window Insulation



• Medical Uses (hospitals, wound dressing, antibacterial applications)

• Nanotechnology

• Replacing Platinum Catalysts with less expensive Silver Catalysts

Because of its heavy use as an industrial metal, it is estimated that 90% of all the silver

mined in the past 5,000 years has been used up, thrown away and is unrecoverable.

Recall 10 years ago, a family will share a telephone. Only rich or businessmen will own a cellphone. A

family will share a computer. In this era, one might have more than one phone, more than one

computer and also tablet!

That’s not all; the industrial demand for silver continues to increase as silver’s use in solar,

water purification, and food processing/ preservation. This will continue to increase

dramatically over the next decade. It is interesting to note that the more technology driven

by culture the more silver is used per person. As China continues to modernize more and

more silver will be demanded. At the present time, the Chinese use approximately 1/70th

the amount of silver per capita that is used in North America. This obviously leaves a huge

potential demand increase from China and India as the wealth of that nation increases. As

China and India builds its infrastructure, more and more silver will be needed.

As silver is used in many devices, we are glad that there are no acceptable substitutes so far.

This is mainly because silver usually accounts for only a small part of the total cost involved

and this is why manufacturers won’t cease to use silver in these applications if the price

rises nor will the Armed Forces or Ministry of Defences stop acquiring cruise missiles and

torpedoes because of a substantial jump in the cost of the silver components.



Reason #3 Precious Metal Bullion Stocks

Number three commences with you doing a little chart reading! The chart below illustrates

the total known world stockpiles of gold and silver, in year 1990, and 2007 respectively.

If you are scratching your head in gasps and questioning if there is a misprint in your

book…STOP IT. This is because Silver’s stockpiles are; in all honesty; depleting or you can say

shrunken dramatically.

Inversely, Gold’s stockpiles are growing and hence in today’s world; according to

purchasable quantities for the first time in recorded history; Silver is more rare than the

much worshipped Gold!

“Gold is held by many governments… silver is held by virtually none.”

- David Morgan, Silver Expert

Now the statement above revalidates itself. In 1979, when investors became net buyers of

silver, driving silver to over $52 in 1980, there were more than 2.5 billion ounces of silver

available for them to buy. Today, just as investors have once again become net buyers, silver

inventories have almost vanished.

Well, you know what happens when demand increases and supply decreases.

If you’re a fan of more chartings, the following ‘Silver Bullion Inventories Chart’ will be of

your immediate interest:



One thing that I’ve learnt from the chart above is that once the inventories is at low level, it

is an obvious buy signal.

In fact, it is so absurdly low that it’s unbelievable the public hasn’t already realised how

massively undervalued Silver is, and it’s absolutely astounding that investor haven’t already

flowed towards Silver. But I guess; for the ‘informed’ public; common sense is really the

most uncommon of senses.

That is why I often and still say, “If you think Gold is good, wait till you see Silver!”



Reason #4 Economic Silver on the Ground

When I started to realise that the world is running out of silver, I started asking myself,

“Why don’t they just increase the mining production for more silver?”

My research and findings proved to be good news for silver investors…

Most silver supplies don’t come from silver mining operations. Most silver production is

dependent on the mining of other metals. Almost two thirds of the world’s mined silver is a

by-product of the mining of base metals copper, lead, and zinc. Because of the economics

involved, producers are not encouraged to increase their output of silver by an increase in

silver prices alone. Silver presents too small a share of their revenue.

Currently, silver mine production stands at a little over 500 million ounces per year. Primary

silver producers only produce 25 percent of that, or 125 million ounces per year. If you

could freeze demand where it is today, and the primary silver producers were able to

double production, it would take more than fifteen years to get silver inventories back to

the level they were in 1990.

Another good news for silver investors is that the world isn’t just running out of silver

aboveground either, it is also running out of silver in the ground. Minable deposits of silver

are becoming harder to find.

An amazing fact found in United States Geological Survey (USGS) annual mineral reports, at

the current rates of production, there is less minable silver left in the earth’s crust than any

other metal. According to the USGS, at current rates of production, the two metals we will

run out of first are gold and silver. At these rates gold reserves will be exhausted in thirty

years, and silver in just twenty-five.



Reason #5 Massive Printing of Money

My foray into the history of precious metals especially for both Gold & Silver is an

interesting one indeed. When I browse through the pages of the past expecting to meet

extensive mentions of the virtue of Gold, I’m surprised. I’m surprised because of the near

impossibility of discussing Gold as money without its partner in metals, Silver.

At times countries have been on a Gold standard or a Silver standard or a dual standard;

taking us far back to the days of Greek and Rome Civilizations.

So fixated is their high perceived value that the first reference I could find to money was in

the Bible:

“Behold, the money, which we found in our sacks’ mouths, we brought again unto thee out

of the land of Canaan: how then should we steal out of thy lord’s house silver or gold?”

- Genesis 44:8

The first monetary transaction recorded in the Bible is also in Genesis. Abraham weighs 400

shekels of Silver to pay for his wife’s burial. This is the same Abraham all three major

religions of the world; Judaism, Christianity and Islam; express as a link to the God of their

faith. This reference to Silver in Genesis applies universally, across cultures, and throughout

the ages.

My study confirmed there are three metals of monetary usage – Gold, Silver and Copper.

Types of Metal Economic Functions

Copper Used mainly as a medium for very small exchanges. Copper was debased

out of the currency system in periods of extreme inflation.

Silver The most useful because gold is simply too rare for common daily

transactions.

Gold Reserved primarily for final payment in large bank-to-bank or nation-to-

nation dealings.

To further compound my findings, Silver’s monetary role has been so universally recognized

throughout history that the very word for silver is synonym with money in many languages.

In Italian, Spanish and French the words for “Money” and “Silver” can be interchanged.

In Hebrew, the word “Kesepph” means both Silver and Money.



Many Europeans refer to both Silver and Money as “Argent,” while Spanish-speaking people

the world over use “Plata” to mean Silver, Money or both. Argentina’s name derived from

the Latin word for silver, Argentum. In fact, Argentina actually means “Land of Silver”.

Let me bring you back to Malaysia, the land of three major races: Malay, Chinese & Indian.

In Malaysia, one of the states is known as Perak. Perak’s name is derived from the word

silver or money.

In the Chinese language, we call a bank ‘Ying Hang’. If I were to translate every word by

word, it also means a place to store silver!

Whenever I ask my Indian friends, how do you say “Ten Ringgit” in their Tamil language,

they answer me “Pakke Veli”. Another meaning for “Pakke Veli” means ten pieces of silver.

Silver is likened to one of those ‘love at last sight’ metaphors as Silver is often undervalued

by the masses in comparison to its famed cousin, Gold without realizing the great fortune

that it could offer. Often the common man goes for ‘hottest picks’ that are ‘recommended

by Personal Money’ without doing their due diligence to look at ‘poor man’s Gold’ in hand!



A lot of people are worrying about safekeeping physical gold and silver, and that’s why they

prefer paper investment, whereby they don’t have to worry about metal storage. Well, it

makes a lot of sense.

However, if paper gold and silver is good, why would the government of China buy physical

gold and silver if they can actually buy paper and need not worry about storing them in the

vault? And, if paper is good enough, why would China encourage the citizens to invest in

physical gold and silver?

Think about this: Governments and central banks around the world are keeping physical

gold and silver, doesn’t it make a sense for you to invest in physical gold and silver?

Paper gold investment is quite popular among Malaysians and there are many banks that

offer paper gold investment or gold passbook account. Recently, Maybank also came out

with silver saving account, which is also a kind of paper silver investment.

Maybank Silver Passbook Account

Here I would like to point out some important things before you consider investing in paper

gold and silver.

The first and the most important thing is, you do not own real gold and silver when you’re

investing in paper gold and silver. It doesn’t represent your ownership of the physical metals.



You do not own the real metals. It is merely paper claim without any physical metal backed

by it.

So, if the banks were shut down, your investment would be wiped out!

Think again. If you purchase physical metals from banks or any dealers, your investment will

not be wiped out when the banks are closed down or the dealers go bankrupt! You own the

real metals whereby you can still sell them anywhere during anytime!

Same goes to ETFs, you have to understand whom and where you are putting your money

into. You do not own the physical gold and silver when you’re investing in ETFs. Your

investment isn’t backed by any real physical metals.

Another thing that you need to know about paper gold and silver investment is the spread.

The buying and selling price are fixed by the banks or financial institutions. You can never

enjoy any discount when you plan to make bulk purchase, and you can also never sell with a

higher premium.

At SilverMalaysia.com & SilverSingapore.com.sg, you can get discount for bulk purchase

when purchasing the physical silver bullions. Furthermore, you can liquidate your physical

silver to the secondary market with the premium that the market is trading at.



Silver bars can be a very favourable option for physical bullion investors because of its low

premium. Generally, silver bars have the lowest premium among all kinds of physical silver

bullion.

In silver bullion investment, it is always easy to buy but very hard to sell, especially silver

bars. The price can be very favourable, but when it comes to liquidation, it might be a

problem.

So before putting your cash into silver bars, there are some basic factors that you need to

understand regarding silver bars.

The Rule of Thumb: International Hallmark

When we want to invest in silver bars, there is always a rule of thumb.

When it comes to silver bars, always look for international hallmark. Hallmark is the brand

(usually the name of the mint) of the silver. Silver bars with international hallmarks can be

easily recognized around the world and hence they can be liquidated easier.

If today you own some internationally hallmarked silver bars, you need not have to worry

about the liquidation. Even if the dealers or companies you bought from are going bankrupt

or close down in the future whereby you cannot sell back to them, or you are going overseas,

you can always sell your silver bars around the world with no issues.

Weight does matter

Silver bars come in different weights (and of course sizes). They are measured in troy ounces,

for instance, 1oz, 5oz, 10oz, 100oz or in kilogram, such as 1kg. Some mints produce in

smaller fractions such as ½oz, 5gram and so on.

There are no right and wrong way to invest in silver bars. However, there are some



fundamentals that you need to understand. In general, smaller bars will have higher

premium due to fabrication costs. Bigger bars will carry lower premium per ounce above

spot because it is more cost-effective to produce.

However, there is a trade-off of paying lower premium. When it comes to selling, bigger

bars are more difficult to be liquidated. Hence, if you are buying big silver bars such as 1kg

bars and 100oz bars, do make sure that the companies do provide buy back guarantee and

have a strong financial background, so that they can afford to buy back from you when you

wish to liquidate.

My Personal Preference

When it comes to silver bars, I personally prefer investing in 10oz silver bars. The reasons

why 10oz is ideal for me are:

Lower premium (As compare with 1oz bars which most investors buy for its liquidity)

Handy

Affordable

Easier to sell compare to kilo bars and 100oz bars

Scottsdale 10oz Silver Bars (known as “The Stacker”)



Silver coins are very popular among bullion investors. The price is usually slightly more

expensive than silver bars due to the tax and tariff during importing. Silver coins have better

liquidity as compare to silver bars, because they are usually guaranteed by governments.

The Rule of Thumb: Legal Tender

Silver coins are also known as legal tender. Before putting money in it, make sure that the

companies or dealers are selling you a legal tender, not a silver round. Silver round is silver

bullion which is round in shape; while legal tenders are coins that issued and guaranteed by

government. When a coin is guaranteed by government, it is given a face value.

Due to this guarantee, silver coins are easier to be liquidated because they are recognized

around the world. When hyperinflation comes and fiat currencies are not being demanded,

people will start trading using gold and silver coins, which are legal tenders. Hence, we buy

silver coins mainly as a form of insurance and prepare ourselves for the upcoming

hyperinflation. Investment comes second.

Silver Coins with Lowest Premium

Out of all the silver coins, there are three kinds of silver coins that carry the lowest premium.

These silver coins are very popular all around the world and hence having fantastic liquidity.

1oz American Silver Eagle

American Silver Eagle (ASE) is the legal tender of US, minted by U.S. Mint. It is made of 99.9%

(.999) fine silver and carries a face value of USD1. It is one of the most popular physical

silver coins among silver investors because of its liquidity.



Since its launch in 1986, ASE has become leading bullion coin investment products.

Featuring a rendition of sculptor Adolph A. Weinman’s magnificent Walking Liberty design, it

is known for its beauty and fine quality production.

1oz Canadian Maple Leaf Silver Coin

The Canadian Maple Leaf silver coin is the official silver coin of Canada, minted by Royal

Canada Mint since 1988. This is also one of the most popular coins among bullion investors

and in general, it has a lower premium compare to American Silver Eagle.

This is the purest silver coin which is made of 99.99% (.000) fine silver. As a legal tender of

Canada, it carries a face value of CAD5, which is also the highest among all silver coins.

1oz Austrian Philharmonic Silver Coin

The Austrian Philharmonic silver coin is struck in 99.9% (.999) fine silver. The Silver

Philharmonic is backed by the government of Austria and minted by the Austrian Mint in

Vienna. The Austrian Mint is internationally famous for their production of exceptional coins

for over 800 years.

The Austrian Silver Philharmonic Coin is the number one silver coin in Europe and a legal

tender coin of Austria, carrying a face value of 1.50 Euro. It is coveted not only in Europe but

also throughout the world making them highly liquid.



When it comes to storage, a lot of people are worrying about it. Consider about two factors:

• The amount of physical silver

• Your comfort level

The amount of physical silver

One of the considerations when it comes to storing physical silver at home is the space

occupied. If you are not a heavy investor, you can always keep your silver in your lockable

drawer or cupboard, in your room and anywhere you think it is secure.

If you’re a heavy investor and plan to invest a monster box or more, you should consider

buying a safety box and store your silver inside.

Alternatively, you can consider renting a safe deposit box with a little cost.

A monster box of American Silver Eagle, filled with 500oz of coins

Your comfort level

When it comes to storing silver at home, it highly depends on your own comfort level. We

have encountered investors who worry to store even a single piece of silver at home; and

we have also met investors who just put their monster boxes at a corner of the living room.

It will always be better to make your storing decision private, so that less people will know

where you are storing your physical silver. Once you have established you confidence with

your decision, you will slowly understand the benefits of storing silver at home.



rue North Asia Sdn.

About Us

SilverMalaysia.com is owned and operated by T Bhd. (Company No.

902968-P), a private limited company incorporated in Malaysia under the Companies Act

1965. SilverMalaysia.com was established with a vision to be the No.1 gold & silver

education and physical silver bullion provider in Malaysia.

SilverMalaysia.com was founded in Year 2010 by renowned gold & silver expert, Jonathan

Quek. Together with his strategic team of specialist, SilverMalaysia.com is dedicated to

prepare Malaysians for hyperinflation and helping Malaysians not only survive, but also

prosper in the upcoming global hyperinflationary crisis.

SilverMalaysia.com believes that the largest global financial crisis in history is ahead of us as

a direct result of the mass printing of the U.S. Government. At the same time, we believe

that the greatest investment opportunity in history is knocking on our door as well. The

choice to open it, or not.. is yours.

Vision

To be the No.1 gold & silver education and physical bullion provider in Asia.

Mission

1. To EDUCATE Asians on the Importance of Gold & Silver in the current Debt-Ridden

World.

2. To put honest money - PHYSICAL GOLD & SILVER, in the hands of Main Street Asia, one

Asian at a time.

Documents

Silver Investors Starter Kit