Buying Silver, Bank charges too high?

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Buying Silver, Bank charges too high?

Postby avch26 » Sun May 29, 2011 1:12 am

Previously, I went to the bank and asked about the Silver prices and the bank charges for buying silver.
Here was what is mentioned to me by the UOB bank officer about the bank charges:
There is an annual admin fee (in ounces of silver) of 0.2 ounce per month or 0.375%p.a. on the highest balance per month, whichever is higher.

Giving you an example: Let's say that Bank sells at $46 per ounce. Min to buy is 10 ounce Silver.
So let's say that I can afford to buy 10 ounce silver. 10 x $46= $460.
However, every mth there's a 0.2 ounce charge, which they would only deduct at the end of the year, meaning a total of 0.2 x 12= 2.4ounce to be deducted. Meaning, I'm left with 10-2.4= 7.6ounce (24% charge)

From this, I deduced that it is definitely not worth to buy at small sum. I think you need to buy at least 100ounce ($4600) so the interest doesn't kill you, in this way, 100-2.4=97.6 (charges will be only 2.4%).

This is just to warn those unaware, not to be influenced by others to buy Silver.
Make sure you do your maths first! Make sure that you have the budget to do so too! If you can only afford 10ounces, don't buy! If you can afford 100ounces, then go ahead.

As what Dennis, have mentioned in his seminar, that Silver has good potential to grow in value.
Is there any other place to buy Silver other than UOB?
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Postby avch26 » Sun May 29, 2011 1:22 am

I realised that this was in the wrong forum, should be under Investing. Sorry.
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Re: Buying Silver, Bank charges too high?

Postby daringd » Sun May 29, 2011 1:25 am

avch26 wrote:Is there any other place to buy Silver other than UOB?


Hi avch26

Another avenue to buy silver is Silver ETF. Dennis mentioned it before. The reason he chose UOB silver savings because it's in SG$ and he already has Gold ETF. Hence in order to diversify, he opt for UOB silver savings and Gold ETF instead of both in ETF.

Dennis, correct me if I'm wrong though.

Hope this helps.
Kind Regards

D.D.
www.DonnaDaritan.com
Living through questions, reflections and actions.
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Re: Buying Silver, Bank charges too high?

Postby Dennis Ng » Sun May 29, 2011 11:09 am

daringd wrote:
avch26 wrote:Is there any other place to buy Silver other than UOB?


Hi avch26

Another avenue to buy silver is Silver ETF. Dennis mentioned it before. The reason he chose UOB silver savings because it's in SG$ and he already has Gold ETF. Hence in order to diversify, he opt for UOB silver savings and Gold ETF instead of both in ETF.

Dennis, correct me if I'm wrong though.

Hope this helps.


Hi daringd,
totally correct.

For me, I hold about 2,500 ounces of Silver through UOB, so the charges are very minimal, about 0.4% to 0.5% per year.

Hi avch26,
please create discussion thread in the correct section in future.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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Postby lop » Sun May 29, 2011 9:17 pm

Hi avch26,

Silver ETF is available in USA stock market code SLV. It is convenient as it can be traded online from most local stock broker, instead of going to UOB branch to buy/sell silver deposit.
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Postby Dantey » Wed Jun 01, 2011 2:22 pm

Hi lop,

If we invest in Silver ETF via Singapore's stock broking firms, is the trading currency in US$ or S$?



lop wrote:Hi avch26,

Silver ETF is available in USA stock market code SLV. It is convenient as it can be traded online from most local stock broker, instead of going to UOB branch to buy/sell silver deposit.
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Postby Dennis Ng » Wed Jun 01, 2011 3:58 pm

Dantey wrote:Hi lop,

If we invest in Silver ETF via Singapore's stock broking firms, is the trading currency in US$ or S$?


US$.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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Postby equilat » Thu Jun 02, 2011 3:56 pm

Dantey wrote:Hi lop,

If we invest in Silver ETF via Singapore's stock broking firms, is the trading currency in US$ or S$?


Hi Dan,
It is better to open a US trading account with discount brokerages online. Shop around and you will be amazed that their commission is so much lower than local ones. But choose those that are public listed in US.
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Postby redlipstick » Mon Jul 18, 2011 3:37 pm

If UOB charges 2.4oz every year, then at the end of year 4, the 10oz will only be left with 0.4oz and year 5, a negative balance??? :cry:
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Postby Dennis Ng » Mon Jul 18, 2011 10:46 pm

redlipstick wrote:If UOB charges 2.4oz every year, then at the end of year 4, the 10oz will only be left with 0.4oz and year 5, a negative balance??? :cry:


UOB charges 0.375% or 2.4 oz every year, whichever is higher.

For UOB silver saving account, you should buy minimum of about 100 oz of Silver. If you have less money than that, then perhaps can consider iShares Silver Trust.

I have 3,100 ounces of silver through UOB Silver Savings account.

This info already shared by seminar graduate avch26 in the posting I quoted below.

Cheers!

Dennis Ng


avch26 wrote:Previously, I went to the bank and asked about the Silver prices and the bank charges for buying silver.
Here was what is mentioned to me by the UOB bank officer about the bank charges:
There is an annual admin fee (in ounces of silver) of 0.2 ounce per month or 0.375%p.a. on the highest balance per month, whichever is higher.

Giving you an example: Let's say that Bank sells at $46 per ounce. Min to buy is 10 ounce Silver.
So let's say that I can afford to buy 10 ounce silver. 10 x $46= $460.
However, every mth there's a 0.2 ounce charge, which they would only deduct at the end of the year, meaning a total of 0.2 x 12= 2.4ounce to be deducted. Meaning, I'm left with 10-2.4= 7.6ounce (24% charge)

From this, I deduced that it is definitely not worth to buy at small sum. I think you need to buy at least 100ounce ($4600) so the interest doesn't kill you, in this way, 100-2.4=97.6 (charges will be only 2.4%).

This is just to warn those unaware, not to be influenced by others to buy Silver.
Make sure you do your maths first! Make sure that you have the budget to do so too! If you can only afford 10ounces, don't buy! If you can afford 100ounces, then go ahead.

As what Dennis, have mentioned in his seminar, that Silver has good potential to grow in value.
Is there any other place to buy Silver other than UOB?
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng
Site Admin
 
Posts: 9781
Joined: Tue Nov 29, 2005 7:16 am
Location: Singapore


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