Dinar & Dirham Quoted In al-Quran & al-Hadith

Let's look and feel some evidences which the al-Quran is also a hadith that mentions the Prophet dinar and dirham. To evidences from the Quran, I include here a sign on the dinar and dirham another. Verse mentions the dinar is: "And among the People of the Book, there are people who, if thou trust him with a weight of treasure, will return it (properly) to you, and some of them who, if though trust store 1 dinar already, it will not return it to them unless though always demanded it. That is because they say: "We have no duty to bear the sins of those who neither read nor write," and they always say a lie against Allah while they know (that they are lying). "(Surah al-Imran: Verse 75 )

While verse mentions the Dirham is: "And (Brethren) sold him for a low price, the number of silver coins and they are the people who do not appreciate it." (Surah Yusuf: Verse 20). Urwah bin Abi Al-Ja'd Al-Bariqi, he said: "The Messenger of Allah gave him a dinar to buy a goat, then he bought for the Prophet saw two goats with the money. So it sold for a price of a dinar and bring one lamb and one dinar to the Prophet. Then the Prophet pray: "He (Urwa), if buying dust will certainly profit also" (Narrated by Abu Dawood (2810) and At-Tirmidhi (1/287)). The Quran is the greatest miracle that is owned by the Prophet Muhammad, the Quran to be the constitution of the whole world nnti, insyaAllah .. remember that Quran warn, warning, threat, sentences of law, history, future, sentences of shifaa 'and many more. In reference to me, I've seen a lot of sentences in the Quran tells Muslims since trading in his old decades, moreover mind Islam more than European in the future trading system. Whether you remember to Ashabul Kahfi story ever told in the al-Quran, the story of a group of men who put to sleep by God that in some of their history has been put to sleep for 309 years. They have raised up from the bed and place a few stories to open the cave door. In the letter al-Kahf, Allah tells three stories of the past, the story Ashabul Kahf, the story of meeting Moses and Prophet Khidr as well as Dzulqarnain story. Ashabul Kahf story get more attention to be used as the name of the chapter in which there are three story. This is certainly not a mere coincidence, but because the story Ashabul Kahf, as well as other stories in the Quran is not a mere story, but there are also many studies (ibrah or guide ) in it. Ashabul Kahf is the name of a group of believers who lived in the time of King Diqyanus in Roman, a few hundred years before He sent the Prophet Jesus. They live in the middle of Pagan Society with a king who dzolim. When the king knows there is a group of people who do not worship idols, then the king was angry called them and ordered them to follow the faith of the king. But Ashabul Kahf refused and fled, find them to be killed. When they escape from the circle of royal troops, they came to the mouth of a cave hideout then worn. With God's permission they then put to sleep for 309 years in a cave, and raised again when the society and their king was changed to the community and the king who believe in God. ( Ibn Kathir: Tafsir al-Qur'an al-'Adzim; volumes: 3; hal.67-71 ). In the short story one of them named Tamlikha in sent to the market to buy food and etc (although they do not realize that they were living in a different time). With a few pieces of dinars and dirhams in his hand went to the market. Looking at the atmosphere of the city that big different / foreign to him he was amazed. When she reached the bread stall occurs dialogue between him and the bread seller, " Hi Artisan Bread, what will the name of this town? " " Aphesus," replied the seller. Passover name of the king are you? "asked Tamlikha again. "Abdur Rahman," replied the Roti Seller. "If what you say is true," said Tamlikha, "this affair very strange! Take this money and give food to me! " See the dinar, the roti surprise due Tamlikha of Money is money in the past that the larger size and more weight. Rabbis who ask a then stood again, she said to Ali bin Abi Talib: "O Ali, if you really know, trying to explain to me how long the dinar value compared with new money!" Imam Ali explains: "Love Muhammad Allah's Apostle told me, that the money brought by Tamlikha compared with new money, are each equal to ten dirhams long and two-thirds of new dirham!" (10 times). Ali then went story: Bread Seller and said to Tamlikha: "Oh, how lucky I am! Apparently you just found a treasure! Give a waste of money to me! If not, I would I have turned to the king! " "I did not find the treasure," said Tamlikha. "The money I get three days ago as a result of the sale of dates worth three dirhams! I then left the city for all people to worship idols Diqyanius! " Bread sellers angry. Then he said: "What is after you find treasure still not willing to hand over wangmu waste to me? Furthermore you was talking about a king who claims to be rebellious god, when the king was dead for more than 300 years of the past! What so you want to mock me? " And so on .... (Can be found here: 'Ali tells Ashabul Kahf i) Version of the Qur'an Allah says in the Quran: And so we raised them up (from sleep), that they might question each other. One of them asked: "How long will you sleep?" (Perhaps) they said: "We have tarried a day or part of a day". (Others) said: "Your Lord knows best how long ye have stayed here now send one of you with silver (Dirham) yours to the town: let him find out and choose any type of food better lawful (sold on it), then let him bring you provision from it, and let it be kind gentle earnest (when in town) and do not he do something that causes anyone to be conscious of you. The above verse explains that they asked one of his colleagues to buy food in the city with the money of his. Not paid the amount, but a clear silver (dirhams) . If we assume that the youth bring 2-3 pieces of silver only, then the transfer to the Ringgit Malaysia (RM) will now be around RM90.00 . (Source World Islamic Mint ) With the money of the same now ( 1 Dirham now around 30.00 ) we can buy food for some people. So after about 18 centuries, the purchasing power of silver is relatively the same.

COIN STUDY

Coin Study: Learning The Coin Collector's Language.
To be a master in a certain field, one must first learn to be well versed of the language in that particular topic; be it politics, economics, science or coin collecting. As coin collectors, we must learn the language of a Numismatist. 

Coin Study will be a series of knowledgeable database written to allow coin collectors to learn different topics regarding their coin. Today the topic is "Learning the Coin Collector's (Numismatist's) Language". In today's topic, you will learn the basic terms used by coin collectors when they buy their coins and the condition of the coins they are buying. 

Spot price is the current trading price of the item in discussion. Spot price of precious metals is mostly affected by demand and supply. Three main precious metal demands include: Investment Demands, Industrial Demands and Jewelry Demands. Supply comes fresh from the mines or scrap metal being re-melted down. 

Premium (aka spread) is the difference between the buy price and the spot price. In physical metal exchange, premium is mostly a result of minting, distribution and administration costs. For e.g. If spot is at $35 and you bought a coin at $40 (exclude shipping), the premium for that coin is $40 - $35 = $5.

Bullion is precious metal considered in mass (grams) rather than collector's value for investment purposes. When a coin collector speaks of bullion, it usually means investment grade 99.9% gold or silver that contains little to no collector's value at the time of release. To be considered as true bullion, the coin must not have alloy and should contain 99.9% of the investment metal (gold or silver).

Face Value is basically the monetary denomination stamped on the coin. 

Coins. Although common society have linked coins to almost anything that is round and flat, the real difference between a coin and a normal round is not shape but its legal tender status. The ability to use a coin as money or not determines whether you should call it a coin, or a round. 
In other words, With a coin, you can buy a bowl of rice at face value because it has legal tender status issued by the government.
With a round, you cannot buy a bowl of rice because it is not a legal tender, but you can keep it for the metal's value. 
However, nobody buys anything with the face value of precious metal coins. The face value of an American Silver Eagle (ASE) 1oz 99.9% Silver is $1 US dollar, but the metal content of a 1oz ASE is around $34 US dollars; Using it according to the face value means an instant $33 loss on the investment.

Rounds is just another round and flat item. The reason there are so many investment rounds out there is because the premium on the rounds are always considerably lower compared to the premium on bullion coins. 

Brilliant Uncirculated (BU) is a term used to describe a coin (usually bullion) that is not circulated amongst the general public and is in mint condition. BU is also known as Mint State (MS) by grading standards. There are about 10 grading levels that determines how well strike a BU coin is. We will cover that afrerwards

    
Notice the Proof (left) has mirror finish on the background and matte relief; while the Brilliant Uncirculated (right) one has a matte background and polished relief. 

Proof coins are higher standard coins that are minted to perfection. The common proof coins should have a highly polished background followed by a matte relief. The origin of proof coins started as "trial coins" to be given to the mint-master for approval before mass producing circulation coins to the public. As coin collection becomes more popular centuries ago, proof coins are produced as numismatic coins to be sold to coin collectors. 

Specimen graded coins are neither BU nor Proof. They are sometimes also termed as Special Mint State by some grading organizations. Based on my research, specimen coins are a grade higher than BU coins and a grade lower than Proof coins. Some mint produce them as the modern day "trial coins" but others produce them out of different manufacturing methods that has a burnished and satin effect on the coin. There are no standards as to how a specimen coins are produced.

    
Kangaroo at Sunset has three different designs. Proof (left), Brilliant Uncirculated (center), Specimen (right).

Milk spots are white marks visible to the naked eye on polished (silver) coins. Milk spots are usually caused by the minting process called "annealing", improper handling of coins and metal reaction with excessive humidity. It is very hard to remove milk spots on the coins though there are various methods available online. Milk spots do not affect the metal value of the coin; however it will reduce the premium over spot. 
You will only find milk spots on investment grade bullion/rounds and milk spots do not appear on proof finish coins. 

* Note a huge milk spot near "IZAB" and some little ones scattered around the coin.

"Don’t be so busy focusing on making money and solving problems that you fail to develop your key resource—your people." [Robert Kiyosaki]

Privy/Mint Marks (Common)
Privy marks are little symbols or alphabets that are engraved onto the coin. These marks are originally used to determine the location the coin is produced. Nowadays, the privy marks are still used to determine the location of manufacture; but it is more often used to determine the rarity of a coin by collectors and to commemorate a special event by the mint. 
For example: 
Perth Mint engraves the "P" mint mark in their coin to show that the coins are produced in Perth. 
A "dove' design privy on the Australian gold nugget coins to celebrate 50 years of peace since World War II.

Figure: 2 oz 1994 Kookaburra with gold plated 1937 crown privy (Left). The coloured 2006 Red Back Spider 1 oz (Right).

Coloured (Common).
Coloured coins are coins with their features coloured using Acrylic or Enamel paint. According to Wikipedia, coloured coins were the first coins to be introduced as non-circulating commemorative legal tender coins. 

Gilded (Common)
Gilded coins are coins that have their features plated in 24 karat gold for collector's purposes. This is done through a process called "electroplating", where a metal solution is moved by an electric field to coat a cathode (metal). Although gilding and gold plating has the same theoretical meaning, practically it is used in a different way. A gilded coin only has part of its surface plated in gold for decorative purposes. Whereas a gold plated coin is wholly gold plated base metal; deceptive to those who are uninformed.

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*Never ever buy gold plated coins according to gold spot price. Refer to the next term.

Mills
The term "mills gold" actually meant millionth of an inch plated gold on a base metal. If an item is advertised as "999 mills gold bar", it is a gold plated base metal with a coating with thickness of only 0.0023976 cm.

High Relief (Quite Common)
"Relief" is a word borrowed from the Latin word "rilievo", meaning "raised". High Relief coins means the feature of the coin is raised more than normal bullion coins, hence producing a more protruded effect on the feature of the coin. High Reliefs can be achieved during manufacture by striking the dies longer than compared to normal coins.

    
Figure: Note the higher relief on the 2009 Ultra High Relief Double Eagle (Left) and the lower relief on the normal American Gold Eagle (Right).

Bimetallic (Common)
Bimetallic coins are generally coins that use a different metal for its outer ring surrounding a core. Bimetallic coins are more commonly used for circulation coins.

    

Figure: Note the difference in metal colour on the core and the outer ring of the coin. 

*Some Bimetallic coin collectors term plated coins as bimetallic coins as well. 

Opal Inserts (New) 
Opal coins made their first appearance in the Australian Opal series. It was an innovative approach to producing collector's coins. Australian opal is precisely engraved and inserted into the middle of the coin. The opal is then covered in a black dyed glass to allow the display of Australian flora when light shines through the glass.

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Curved Coin 
Curved coins has resurfaced again in the Royal Australian Mint's Southern Sky - The Crux silver proof coin. Unlike normal coins that have a flat surface, curve coins is basically a coin that have an domed surface.

Patinated Coin
Patina is a type of tarnish that forms around the coin after years of aging and exposure. Patinated coins usually come in green colour. Ancient coin collectors collect patina coins because the patina effect is essential to prove the authenticity of the coin. However, the patina effect can be engineered on a coin; the process is called "Patination". Various chemical compounds can be applied on the coin to produce different patina effect on the coin.

Various Inserts
Nowadays it is very common for coin makers to add in a second element into their coin to enhance the marketability of the coin. Nowadays, inserts such as Swarovski Crystal, gemstones and jade are a popular addition to a collector's coin. If done properly, the inserts gives a soul-like perception to the coin.

Figure: Ural Owl with Swarovski Crystal insert (Left), Perth Mint's Year of the Dragon coin with gemstone on the eye (Center), Laos Year of the Dragon 2000 coin with Jade inserts (Right).

STORY BEHIND THE NEW RINGGIT MALAYSIA

This new money can be used in August 2012 before Hari Raya.

And find out why money recently launched the eve feast ..? Reason at that time to use public acceptance is considered as duit raya .. When all want new elections must be new shirt, new pants, and duit raya new also have wished.  BUT this new money printing Despite the fact the Government has no money to meet the General Elction-13th.

Among the reasons the government has provided "gula-gula" on the public such as: - 
1 - BR1M (1Malaysia People's Aid) which provision entire campaign amounted to RM2.6 billion. 
2 - Implement BB1M campaign (1 Malaysia Book Voucher) which provision for IPTA / IPTS RM260 million. 
3 - And much more gula-gula given intended as a campaign before General Election-13th. This is the obvious where the money goes, who do not see the other calculated.

But why only since lately only such assistance is given..? 
Those with eyes to see will understand it.

Because they want to stay in power in the elections that will be by soon.

Only here do you ever think in a way what the government actually get the money to spend much less easily give sweets to the public?

Among them, print money based on debt. 
How..? 
To print the new currency, the new debt will already exist.  Been so customary when there is the person who created the debt must have the tax payer. 
When government makes debt .. who paid it ..?  WE !!!

How do WE pay for it ..? 
Out tax accumulated, with price increases, rising fuel prices, and etc.

When calculated by the government debt has reached RM605 billion and if divided by the number of Malaysians who totaled 29.1 million average for each person to bear the government debt almost RM20,790.00/person. 
Amount will be increased from time to time and this debt will never be paid until the collapse of the paper money system.

Stay tuned after the General Election-13th no matter BN Government or might be PR Government  win hike in fuel prices, rising prices of essential goods and an increase in tax rates would still be up.

Caused what ..? 
Caused the paper money system makes humans continue to be enslaved and wealth circulating in certain groups.
The rich will remain rich and growing wealth and the poor will remain trapped in poverty and poor will increase.

For those who see only the external points of what they see banknotes only a new look, beautiful and try to get it soon. 
Only the use of his eyes will be able to see the truth.

Truth that how ..? 
Truth that we all are slaves to the system created by the Antichrist. 
During our system as being born into a prison that we do not taste, smell or touch.

Until after the time we all wake up from sleep aware of  realities.

If you get awareness..convert your paper savings into gold and silver.
If you feel that this story is incorrect, ignore and continue to live like before.
I  just to share and tell the truth.

Is Silver the New Gold..???

The value of silver has skyrocketed in recent decades –leading many investing experts to believe that silver’s price could outpace gold for the first time in history.

This infographic covers silver’s meteoric increase and the factors that have led to silver’s exploding value. In short, it’s not speculation: silver is a commodity that’s being influenced by old-school supply and demand. We also take a nod to the future to see where silver’s price may be headed based on the most up to date demand data.

In short, silver is a limited commodity that’s in short supply…and high demand.

Gold Silver Ratio Exceed 50, So…

Gold Silver Ratio is one of the main indicators to determine the value of gold and silver. Gold Silver Ratio basically means how many oz of silver it takes to exchange for on oz of gold. The calculation can be done by dividing gold price with silver price. For example, if gold price is $30 and silver price is $3, the calculation will be 30 / 3 = 10. The Gold Silver ratio will be 10.

Right now, gold price is $1766.00 and silver price is $33.90. That would make Gold Silver Ratio as 52.09

Gold Silver Ratio mainly fluctuate between 50 to 55 for the past 6 months. Recently Gold Silver Ratio hit 59 and is obviously approaching 60. It is time to give a more serious thought into Gold Silver Ratio when we invest in silver. This is how Gold Silver Ratio looks for the past 6 months.

Looking at the 6 months chart, Gold Silver Ratio is on the uptrend.

In fact, if we look at the following 1 year Gold Silver Ratio chart, it has broken the 2 major resistances at 54 and 58 respectively. Which further proves the point that Gold Silver Ratio is on uptrend.

Okay, it’s on uptrend, but so what? What does it mean to investors?

If you plan to exchange your gold for silver right now, think again. Reason is simply because Gold Silver Ratio is on uptrend. 1 oz of gold might change you 58 oz of silver now. If you are willing to hold on a little longer, 1 oz of gold might change you 68 oz of silver in the next 6 months.

Gold Silver Ratio can only go up base on the following 2 variables:

1. Gold price goes up faster than silver.
2. Silver price drops faster than gold.

$26 is a very strong support for silver price. Recently, the market has been testing it several times and luckily it has not been broken. Once it is broken, the next support we are looking at is $18.

Are You Losing Money In Silver ???

When come to investing silver, are you making money from silver or are you losing money in silver? Many people wish to make money from silver market but unfortunately most people are losing money. Sad, but it’s true.

Take a look at this chart:

This chart shows silver price is on downtrend since 28th April 2011 at $48.70 down to $26. If a silver investor has enter the market anytime in within this period, we could safely tell he is either not making money or losing money.

When this happens, most silver investors start to lose confidence in silver, some even give up on silver. They lose hope and probably thinking silver is not such a good deal after all. This is clearly observed in the market. When silver price is on the uptrend, more people are participating in forums, Facebook group pages, seminars, bullion dealers transaction etc. When silver price is on the downtrend, most the activities related to silver would slow down.

What these people didn’t realize is, when silver price is going towards a downtrend, it is a good time to buy more instead of running away!

Someone asked me a question whether now is a good time to enter market. I don’t have a crystal ball and I cannot accurately forecast the future price, but I will give my personal opinion anyway.

There are several very strong resistance, and support level for silver for the past 2 years. The numbers that we are looking at right now are $26 and $34. Since the price is around $27 these few weeks, I will tell you more about $26 support level.

$26 has been tested for several times this year. Once it hit $26, it is a dangerous sign because once it is broken, it will potentially go down to $18-$17. Again, $26 is a strong support. I see $26 as a bottom price. For now it is quiet unlikely to go down to lower than $26. Silver will be traded within the range of $26 – $34 in the short to medium term.

Today price is about $27, it is very near to the support level (the bottom $26), so to answer your question, yes, it is a good time to enter the market now.

One of the reasons why I’m being positive about this is because of the trend we are at. We are clearly at the end of consolidation since the peak in April 2011.

If silver price break support at $26, it will be supported at $17-$18. We would need another 6-12 months for silver price to climb back up. The good news is, if silver price doesn’t break $26, silver price will potentially go up to $50 or even $60 by end of 2012.

January – June 2011 Silver Price 50% Increase

Here is a shocking news. Although it happens more than a year ago, it still worth sharing.

GATA - The Gold Anti-Trust Action Committee was organized in the fall of 1998 to expose, oppose, and litigate against collusion to control the price and supply of gold (silver) and related financial instruments. GATA sued Federal Reserve and won twice. I believe I don’t have to further convince you on the credibility of GATA.

The chairman of GATA, Bill Murphy has made a public announcement that during January to June 2011, JP Morgan was compelled (being forced) to stop manipulating the silver market. That means during January to June 2011, JP Morgan could not manipulate silver price and silver price was traded in free market.

And see what happen when silver price is traded in free market during January to June…

Silver price has gone up from $26 to $50 dollar! Almost 50% increase!

Bill Murphy said:
Silver practically went straight up to $49 an ounce. THEN, it collapsed for no apparent reason. That reason, from my most well informed source, was that JPM came back into the market in June.

We are expecting “some movement” from August 2012 onward. Most people would see the price goes up and price goes down, and they do not have the skills to take advantage of the price movement. I hope you are not one of these people.

New Ringgit Old Silver

Bank Negara Malaysia has issued the third series of currency notes carry a theme named “Distinctively Malaysia” and are inspired from motifs of flora and fauna drawn from various cultures in Malaysia to “reflect the diversity and richness of Malaysia’s national identity”.
The interesting part is, the color choice of the new paper currencies is very similar to the “hell money” used by Chinese. As part of Chinese’s tradition, these “hell money” is burned to their late ancestors.

A person can spend few Ringgit to buy Millions, Billions and even Trillions worth of the “hell money” notes. The reason why few Ringgit can buy few Billions worth of “hell money” is because the “hell money” can be printed at a very low cost. So, this started to ring a question… What is the difference between the “hell money” and the paper currencies issued by Bank Negara Malaysia?

Fundamentally, both of these money are printed by machines. Both of of these money do not have real monetary value in it – it is merely a “belief”. When it comes to paper currencies, Mike Maloney accurately pointed out “we are all dreaming the same dream“, dreaming that the paper is money.

This new RM20 note is intentionally damaged by someone. If more parts of the paper currency is being damaged as such, I wonder if this piece of paper would still carry the value of RM20. Realistically, if the new paper currency of RM20 is being used for the next 10 years, that is exactly what is going to happen to the paper note.

When that happens, do you think the paper currency note is so rare that Bank Negara will need to refurbish the paper currency and re-use it? No! Bank Negara will simply print more paper currency – they have the “authority” to do it very quickly and very cheaply. Print! Print! Print! By the way, who gave Bank Negara such ”authority” to create money and de-valuate all the other paper currencies in Malaysia? Some people call it creating inflation? Hmm….

Now let’s look at physical silver:

Physical silver CANNOT be “printed” by Bank Negara. In order to produce 1 oz of silver, it take a lot time, a lot of effort and it costs a lot of money. This is the form of honest money that represents a storage of value because Bank Negara cannot print physical silver and de-valuate the value.

When a paper note is damaged, Bank Negara will response with “Never mind, we will print some new ones…”; when physical silver is found after a long lost, it goes into international news. It is being dug up even when it is at the bottom of the ocean:

Example 1 - 200 Tons of Silver Found on WWII Ship

Example 2 - 17 Tonnes of Silver Found Hidden at Puri Math

Example 3 - 48 Tons of Silver Found 3 Miles Below Surface of North Atlantic.

Paper currencies can be manipulated anytime. Silver is a form of precious metal that has limited supply and it has been used as form of monetary metal for thousands of years. I’m not sure about you, for me physical silver seems to be much more valuable than paper currencies.

The fact is, the Ringgit is “paper currency” while silver is “real money”. For the past 41 years, since 1971, US Dollar is totally off the gold standard, the whole world (yes, including you and me) has been brain washed to believe that paper currency is money. No! Paper currency is NOT money!

Currency has the following characteristic:

• medium of exchange
• a unit of account
• portable
• divisible
• durable
• fungible

Money is:

• all the characteristic of currency.
• storage of value.

Silver Price Explode 2012

I have talked about the flag pattern earlier in March 2012. The forecast was, when silver price approaching the end of the flag, silver price is set to explode! If you have not read it, feel free to check it out here: Cheap Silver Ends In 2012. This is how the flag looks like:

Right now, we are at the end of the flag pattern. Silver price is set to explode anytime now. Yesterday (20/8/2012), silver price has up +.51 in a single day. Chris Duane (the founder of Silver Shield Report) mentioned:

We need to get above $30.61 to get the party started and bring out the silver rockets.  The reason I say $30.61 because that is the 200 DMA and the point that breaks out of the 16 month cup and handle formation.  I feel we have until next month until the real fireworks start.  And unfortunately you are probably not going to like the kind of fireworks you are going to see…

On July 24th, Mike Maloney suggested that silver investors only had a month at the most before beginning a breakout with the price of silver.
Take a look at this chart:

You see, silver price is MIGHT NOT explode tomorrow but we are nearing the end of bear market. I mean very very near. When the price explode to $42-$48in the next 6 to 12 months, you will be grateful that you have bought your silver now at $28+. Why $42-$48? In fact, that is a very potential price you should target to exit your silver for the short term.

Personally, I have buying silver like crazy for the past 1 month to prepare for this moment. I have been buying a lot of silver rounds and some silver bars. I prefers silver rounds over silver bars because silver rounds is always being perceived as money (even though it is not). The bottom line is, I do not want to beat myself up and regret that I didn’t take any action when silver price is cheap. If you can remember during year 2008-2010 (3 years), property price in Malaysia was dirt cheap. Right now when we look back, we might call ourselves silly for not taking action to invest in property back then in 2008-2010.

Silver Breakout – To Buy Or To Wait?

I wrote a post titled: Silver Price Explode 2012. Market started to get exciting and silver price closed at $30.82 last Friday. Without a doubt silver price has its breakout. It is being trapped into the flag since May 2011 and finally has it breakout now.

There was a reader got a little too excited with the price moving straight up for 3 days and bought 20oz of physical silver. Right after he bought them, silver price started to fluctuate around $30.50 and did not go up much. He started to get worried and asked me what happened. Well, silver price does not move up continuously for many days without any pull back. We need to set our expectation right. I repeat, silver price will not going up straight consecutively for 30 days without any pull back.

Anyway, the questions I have been getting for the past few days are:

• Should I buy silver now?
• Should I wait?
• How high will silver price goes?
• Will silver price come down?
• When is the best entry point now?

I will answer all the questions above with the following diagram and give you a “suggestion” what you should do later on.

Referring to the graph, there was quiet a resistance at price $30.50 (end of 2011) that stops silver price from going up. Although silver price broke out, silver price is now hitting the similar resistance like what happened in end of 2011.

I won’t bore you with a bunch of technical analysis, let’s get straight to the point of what does it mean and what we should do.

1. If you did not follow my “suggestion” to buy when price was $26-$27, what should you do now? Should you wait any longer or buy now? Obviously, the short answer is “Don’t wait, buy now. Silver price is going to move up much higher, this is just the beginning.” Right now the price is about $30, imaging when price went up to $60 by end of next year, you will be beating yourself for not taking action now. (Just like how you didn’t buy property in KL / Penang during year 2008 / 2009?)
2. If you did not follow my “suggestion” to buy when price was $26-$27, what should you do now? Should you wait any longer or buy now? Obviously, the short answer is “Don’t wait, buy now. Silver price is going to move up much higher, this is just the beginning.” Right now the price is about $30, imaging when price went up to $60 by end of next year, you will be beating yourself for not taking action now. (Just like how you didn’t buy property in KL / Penang during year 2008 / 2009?).
3. For short term, silver price is facing a possible pull back at $30.50. If you want to be cautious, you might want to wait for silver price to break $32 before entering. Personally, I do not like betting the price to go up or come down. If I have RM200, I will spend RM100 to buy silver now. If silver price does pull back, good, I will spend the remaining RM100 to buy cheap silver; if silver price continues to go higher, great! I will spend the remaining RM100 to buy again the catch the bull trend. There is no right or wrong method but that’s how I will do it myself and how I have been advising my eBook readers and lifetime membership members.