How does it Begin.

Week 1.How does it Begin.?

Let me tell you the history on how things begin with silvermalaysia. How come all the sudden you end up doing something totally different from your profession.  Well, back in mid 2006, when I was doing a training I get to know one of the colleagues who told me about investing in gold bullion. I started to google around and found both UOB and Maybank is selling gold bullion. Later I begin to ask more questions and he told me that if the price goes up more than RM60/oz then you make some profit. When I looked at the prices, it was RM2200 to RM2300 per oz in 2006.


As many investors do, I will some calculation that if I buy bullion I need additional cost on safe deposit box, travelling time etc. I might as well save all my saving in my loan account which charges me 7+% per annum. No worries, no additional cost and do nothing but save about 7+%/per year. This is a decision which I regretted 1-2 years later. I was later told by my friend in late 2006 that he calculated the return on gold is 12.5% per annum.

Not only that during that time I also learned about other related topics such as peak oil, Petro Dollar, fiat currency etc. I was extremely depressed to learn all that, nevertheless life goes on. I begin to talk to most of the people but they don’t listen. After some time I come up with a motto.

 If you believe it something then get it done. Don’t wait.!!! Take your Shot!

After procrastinating for about 1.5 to 2 years, I finally made the decision to buy some bullion at UOB by withdrawing some cash from my loan account. However during that time March 2008, the price is at the peak. I asked the clerk, I was told that only Maples are available, the rest was sold out. So I took the maples. I was a bit greedy during that time, I followed my friend move when he make a purchase I also make one. It was a dumb choice. Make your own decision next time. Over the next 6 months, I was making paper lost. I brought quite a bit at RM3200++, the next day it went up to RM34++/oz, I was greed lah! I think it can go higher. I was wrong. Then the prices went down all the way to RM3000++ to RM2700++ in August 2008 but I already ran out most of my cash for the bargain purchase. I ‘ve learnt my lesson.

Lesson 1. If you believe it something then get it done. Don’t wait.!!! Take your Shot

Lesson 2.  Do cost averaging, buy few oz each time and spread it to over a period of time. This helps in averaging out your losses.  Don’t do bulk purchase unless you are technically sound.

Lesson 3.  You can listen to others but do your own judgments and make your own decision.

Till then CU next time.

Note: Identities will not be disclosed due to privacy reason.