WHILE trying to find the best investment opportunities for their clients, major financial experts are looking at the commodity markets with a specific eye on precious metals.
Gold and silver have been a valuable form of currency for thousands of years, and it is highly unlikely that their intrinsic value will diminish much in the future, considering they are being used more than ever.
“We are seeing a trend of our global customers migrating some of their funds from traditional investment instruments, such as stocks, bonds, forex, commodities, property to safer haven like bullion,” said MyNet Capital Sdn Bhd executive chairman Terry Ghani.
A case in point is the company’s biggest market, which is Japan. This market is dominated by an older, wiser generation who understands and appreciates what it is like to be hit by uncertainty after being struck bythe fallout of both the natural tsunami and the financial tsunami.
“This is why they believe in our products. We are trying to educate Malaysians that whilst things are still rosy, one should already be looking at diversifying one’s wealth portfolio to hedge against uncertainty in times like these,” he told Business Times.In Japan, the fixed deposit rates are at zero and if one is close to retirement or are retired without an increase in income, one must think of ways to hedge wealth against inflation and currency depreciation.
Terry said the price of gold rose by 34 per cent from January last year to June 2011, while silver saw more than 100 per cent increase during that period.
As the technology sector continues to produce an amazing volume of computers and cell phones, all of which require silver to operate, there is a silver boom just around the corner.
MyNet Capital, an online silver and gold bullion trader, sees silver having the potential to create a tsunami in the financial world due to its competitive price and wide acceptance in the global market.
“We can expect a tsunami for silver in years to come as its price is more stable…,” he said, noting that people look at bullion as a safe haven against inflation and currency depreciation.
Terry said in Malaysia, there is huge potential for the dirham while the silver retail market is virtually untapped.
“Unlike gold which is currently going at US$1,661.60 per oz (RM5,300), silver is only US$31.98 (RM102). The ratio is 15 units of silver to one unit of gold,” he said.
As a promoter of wealth preservation through the acquisition of physical bullion, MyNet Capital endeavours to empower the masses in the practice of prudent wealth management by creating a user-friendly, safe and secure online platform to purchase or liquidate; to take delivery or to store, competitively priced physical bullion at the touch of a button from anywhere in the world.
Early this month, MyNet Capital has introduced the One World 10 Dirham to encourage the preservation of wealth in the precious metal among Muslims.
The dirham was chosen instead of the dinar while silver was more affordable than gold. It also has a higher price appreciation compared with gold.
He said the dirham, minted in Bolivia, was the world’s only .99999 pure silver dirham and is sold in 25 countries, including Malaysia. Designed by a Malaysian, the dirham is equipped with security features such as an individual serial number, security printed certificate of authenticity and a custom designed hand-made box.
“It is the world’s first dirham inscribed in English to propagate its knowledge and appreciation among the global non-Arab speaking community,” he said.