Week 32.1 Recent Communications
Silvermalaysia : Why you order only 10oz and kilo bar ? Most customers preferred wanted 1 oz bar.
Customer : My customer is cash rich. 1 oz too cumbersome to them.
Silvermalaysia: Wow! Why you come all the way to KL from outstation to collect your goods?
Customer: I got a few shipment lost via courier service City Link and other pos.
Silvermalaysia: Can you explain how does the lost happen?
Customer: Well, first the delivery was a bit late. Instead of in the morning, it came late in the evening. When the package comes it was 10kg, so the box was weighted before it was opened. It still weight 10kg. When I opened the box, some silver bar is missing. It was replaced with stone. This happen a few times already, so I decided to come and collect it myself.
Silvermalaysia: It must be very disappointing
Customer: Well, you know you are in this business. When people know you are in this business, they will nail you down. Furthermore, the margin is very low. If you kena 1 time, you end up working 20-30x for free.
Silvermalaysia: What happen if I have taken your money and suddenly I passed away?
Customer: Death is certain. Mesh is for the next of kin to settle.
Silvermalaysia Note: I will resolve this issue with him soon.
Silvermalaysia: You have a retail lot why don’t you start selling 1 oz silver bar there.
Customer: For a gold smith shop, a simple glass window (not bullet proof) with grill will be around RM30,000. A bullet proof one will be RM50,000. Then you need CCTV etc. Lot of security cost. Then, when you show it to some customer, some may get stolen and some may take it and run away. So, it is better to do close door business where the customer is known.
Silvermalaysia Note: Some customers do sell silver coin/bar in the retail lot, this customer fears probably due to his shop lot location and the general economic background of the people in his area.
Silvermalaysia: How about those people in silverware? Ring etc.
Customer: Now the cost is double, it’s very difficult for everybody. 1 ring used to cost RM20/each now cost RM40 each. I don’t see much prospect in it.
Silvermalaysia: How about those silver coin? Lot of people are asking for it
Customer: I still have quite a bit of them. It hard to sell at current prices. Furthermore, the wealthy people tend to look for price per oz.
Silvermalaysia: What is the price like during your time?
Customer: I used to buy kilo bar last time. The price was about RM700/kg but that time nobody wants to buy silver. I myself cannot keep that much stock mah. Now when the price now is RM4500 to RM5000/kg everybody started to search for it. We (seller) buy during low prices, customer buy when the prices are high. Greed is the human nature.
Silvermalaysia: Thank You very much for your time. You may need to go now. CU around until we meet again. Hope you can sell off your stuff quickly for the next reorder.
Customer: OK CU Around.
Most sellers still dun get it. They keep thinking ppl buying silver at current price r not smart. They think it is temporary. When something shifts it takes a generation to adjust again. Time of paper is ending and crashing. Gold silver will no longer crashes against paper currency. But it will come a time it will crash against food. Food will b ultimate safe haven. Not gold, not silver. Dun use stats to invest, it only works short term, use facts n history to invest.
ReplyDeleteDid u c major correction in gold answer is no. Stats dun always work rats y traders nv make money remisiers made lah.
ReplyDeleteGold will correct. Correction will be painful from USD1900 or USD2000 to USD1700. That what I think, after the correction, price will rocket again.timeframe by Nov 2011.
ReplyDeletemost seller are wiser than customer. Thus, only some seller sell short themselves and make a temporary fiat profit. Some just earn a margin, where when they sell 1 oz they will buy back 1 oz and earn the spread, thus no loss for them.
ReplyDeleteIt actual profit.
GOLD at USD 1700, that was 2 weeks ago is not meaningful correction at all, to be honest, that is no pain at all. Why because how much GOLD can you buy today ? 5000 1oz, so you buy 1oz, drop the most also lost 300-500 temporarily.
ReplyDeleteThere are so many people waiting at the wing to buy GOLD when it corrects because they have tons of paper, so it wont correct for long.
Most sellers so no one wants to buy GOLD these days, because they are selling jewellery mah, investors are not interested in jewelleries ... they are interested in the real GOLD BAR.
So I dont think it will correct meaningfully from here onwards , UNLESS , BEN BERNANKE decided to raise INTEREST RATE ... well he just promised to keep it low until mid 2013.
Thank you to uncle BEN, until then, chart is not telling the true picture, chart only works in small market without government in it like SILVER.
Just how much can RM 50 buy today, not to mention our government will implement GST later, paper money will continue to lose value regardless because they keep expanding it. Sellers need cashflow, thats why they happy everytime they sell something, but when the thinking sets in, actually paper money is pretty useless over long term other than being liquid instantly .... so I dont really think sellers are the winner, and customers are losers in today environment. Sometimes I feel sellers are the biggest loser , they are bearing more risk than buyers.
ReplyDeleteyou only watch/pay attention to one thing in chart, that is parabolic movement ... nothing survives parabolic movement.
ReplyDeleteIf statistics sinusoidal wave works, we are still using BRITISH POUND or ROMAN GOLD COINS or some ANCIENT GREEK COINS today because statistics said, things will crash for 10 years and rebound/recover like nothing happens before, it is god given natural cycle.
ReplyDeleteWell it can actually work that way if free market correction works to kill the reckless weaker one, but today it is manipulated to the core until we get mispricing in almost everything.
In history, things overexpanded and died and attempted to rebound but became weaker and weaker and weaker ... then eventually wiped off from history. Today the biggest failing state to come is AMERICA, it is still coming.