Mark - this is an important video and I recommend this to any new stacker. Watch this video when you first start stacking, and then bookmark it and watch it again a couple months later. You may miss a few points, and when you watch later - they will seem more valid. Thanks again Mark, I'm grateful for this valuable info.
Thank you for been professional and informative. I love my equities and index funds. I just want to learn more about precious metals, but all across TH-cam the topic seems to be covered by a more apocalyptic crowd. I've watched a few of your videos and I appreciate the calm and clear energy you have. You've gotten me to subscribe.
An important facet about "Spot": Spot is the cash price currently paid for 1000 ounce industrial silver bars (minimum 5 bars or 5000 oz transactions). You can demand delivery of the industrial bars from the cash market, but it will take 4-8 weeks to get delivered as the depositories are not geared up to actually deliver silver. Normally, they just change ownership labels on the bars that sit on deposit. If you can EVER buy a small finished product such as 1 oz rounds or silver coin AT SPOT that is an unusual circumstance. The current huge premiums on small finished products simply shows that virtually all these products have been bought off the market. Due to the virus, there is virtually no new supply coming onto the market (mines and fabricators are idled). Even if a fabricator has to purchase in the spot market to obtain silver, it will still take 6-12 weeks for new supply to hit the market. Current pricing is pure supply and demand--no conspiracy needed to explain it.
What most people are perhaps hoping, not unreasonably, is long term rises in spot will offset any deposit side of the total spread. In other words, the spread will be in their favour when they sell it in the future.
I was wanting to start buying some gold bars and coins but I didn't understand what the prices were and why I would pay $75.00 over gold price and now I do. I learned more than that but ty for the information.
Basic concepts which you presented in a logical and straightforward manner. This was a great refresher and very informative,more than I expected, thank you, stay safe🙏🏻❤️
I bought 20k of coins when gold was 850 20k in coin at 950 and 15k at 1130 $ or so and now with the bulk of my coins bought and the price of gold doubled now goldline is still trying to tell me I am just breaking even. Talk about feeling like there trying to rip me off. Any advice?
@@bloodorphanreti3621 Just wait. Elections, conflicts, Viruses, all these can make the spot go up. I'd wager a month before the election could be the best time. And try and sell locally, if possible.
Very educational. You make me just want to buy bars...maximise my return. But some dealers don't tell u buy back price so you never know the spread. But I will now be looking at that now and the premium. THankyou!
@@Kickey165 I prefer the way they let the gold shine through its solid finish and fine writing. The Canadian Maple or Silver Eagle, you cant see that fine finish, it is too engraved with imagery etc.
Mark is very help full in understanding precious metals, and it can be very valuable, and profitable in the years ahead, however as many of us know that it will have the up in downs. It is a very interesting business to work in, and an awesome hobby. More to come. Joseph Fallon
Thank You so much for taking the time to educate people like me, the Rookie, very informative. definitely will watch this from time to time to help me keep learning. Thank You Sir.
@ykshootraw x Totally agree. I got killed for years trying to sell silver without getting cheated - it is much easier to deal in Krugerrands and sell them at a price at or even above spot.
@@ryanbianchi6582 Education in the precious metals market in the 70's was not as easy to arrive at in the metals market. Now, if happens to one it's ones own fault with the information all over the place but 45 years ago it was not the same landscape. Lucky, even after getting burned, I did not sour on it and the school of hard knocks made me into a better investor. Something like this is good for young investors as it makes them wiser over time. I now am able to help younger folks wanting to enter into this area.
@ykshootraw x If you have no debts go ahead and buy gold and silver provided you have at least 5 months of saved money of expenses in a emergency fund. Always have the emergency fund first, zero debt second then invest. Only invest in things that you are willing to wait 5 years on. Whenever you feel uncertain, you can dollar cost average, that is buy it in small bits over months so you get the average return. And of course, don't invest till you have zero debt first.
It seems to me that the spread with rounds is usually the lowest spread, which is why I stick with them rather than coins. Not interested in having to worry about, calculate, and negotiate premiums if and when I ever sell. I'm stacking for the metal value as a long-term hedge against inflation, not for the premium value and not for a quick profit. I'm hoping to hold on to them for many years, hopefully decades, at which point spot will likely be much higher than it is now anyway. If and when I ever sell, I'll be fine with getting a bit under spot for them.
same strategy as me, my friend. About 90% of my total stack consists of 20oz tubes of 1oz round/generic .999 coins, .999 10oz Bars and 1kg Bars. When I first started stacking I was buying American Silver Eagles at US$25.00 per oz when the spot price was US$14-15.... I've done the maths on my purchases and I'm much better off buying locally-minted New Zealand Silver Fern .999 1oz coins & bars at 5% above spot price, which are genuine .999 quality anyway, than paying the 50-70% premiums for ASEs and Perth Mint coins. When it comes to sale time in a few years the dealers will only offer around spot or slightly below spot price anyway, and in a few years the price will be higher than US$14-17 anyway, in fact I'm not going to sell until it goes above US$60 per oz... so I will have made a tidy profit regardless. Pure silver is pure silver.
I agree with both of you for the reasons, although I have both rounds (bullion) and ASEs. The only time I can think where selling rounds for a great deal under spot would be if the manufacturer of those rounds, for whatever reason, might be unpopular at the time. If you are selling to dealers, they would be looking to re-sell those rounds, and if they aren't selling very well, they would have to lower their purchase offer to buy from you.
It’s a new year with bright and beautiful ideals , hope you’ll got a huge list for this 2021 . Coz last year was messed up due to many weren’t wise enough to consider investment . But the question, what will you achieve this year?
Nothing other than the gift of life. And I have consider venturing into something lucrative and profitable , last year was a lesson to everyone especially me . Well seeing 2021 is enough reason to sit down and think about your financial life .
if you knew about bitcoin since 10years ago you won’t be poor ever again. But the truth is that is never late to bitcoin, this year bitcoin is hitting the moon .
My first bitcoin investment of Mrs Sophie Clare Williams gave me profit over 10,000 usd and ever since then she has never failed to deliver and I can even say she’s the most sincere person I have known.
One year ago, as a newbie, I made a pretty stupid and negativistic comment. After learning a lot more, and having started investing in metals since then, I'm retracting everything I said. I had misunderstood the purpose of it all, it's not about making money, you're not "playing the stock market", it's not about having something nice and shiny to look at (even though it is nice and shiny to look at). It's about hedging against inflation, it's a lifeline in case the economy goes tits up. It's the "money" in your mattress that never* loses its value. @SWP you guys have made here an excellent video on HOW to invest, but the WHY wasn't in there. It took me quite some time to realize that part, and I'm glad I was stubborn enough to not give up.
Interesting. The housing collapse didn't even get the ounce over 2,100 by 2011. But I mean. I guess 10k is possible. I'm just wondering what has to happen to us to get that price?
xxterribleone1899xx well to invest in Gold is to bet that the US economy can not sustain itself without, A. Writing off all or most of private and nation debt or B. Throw money out of helicopters into accounts of banks, corporations, businesses and individuals and do it under the disguise of bail out or stimulus to keep the system running. They have been pursuing option B for many decades now and it is intensifying rapidly with these recent stimulus checks. Russia, China, India and many others, are positioned to stop demand of US currency for their own trade. Combination of scenarios which is playing out now will seal the coffin on the dollar. In 2008 only Sadam, Ghaddafi and the Taliban posed a threat to the US dollar by deciding to trade oil and gas in gold and non dollar currencies and we bombed them. The Americans can not afford to bomb Russia India China, times are different this time around
I’m with you Arya, clearly some people here can only recall the past 20-30 years of history at best. Ignoring or outright dismissing possible outcomes that have happened many times, just not in the past decade.
Last year, 50 cents premium when silver was $18 spot. Now the premium is 10x at $5 OR MORE while silver is only $15 spot. Yeah, profit margins are HUGE now. The story he tells is the SAME story as a year ago, only the dealer greed has gone up. End of days behavior. These premiums have led me to stop stacking and buy my first crypto.
Dude bitcoin is worse. Unless you get out in time. It's a cycle of bubbles that inflate and pop over and over making a lucky few obscenely wealthy while everyone else is stuck holding the bags. What I'm saying is that it is highly highly manipulated. And of course it is. What are you paying for anyway? A collection of data/ numbers stored within an encrypted block? why is that block valuable? what is it backed by? Let me ask you this: What would happen if the people who own most of all the bitcoin begin dumping it off for pennies? How much will you be able to sell the bitcoin you bought for 10,000?
The bitcoin is not what is valuable. The technology that it is run on is the valuable part. Blockchain technology. Please people do not be fooled. If you do not realize this you will get burned.
This is why it's practical to trade these metals for other valuable crafts and arts in person. For examples, someone might trade a few kg of silver for an exceptional painting directly from an artist.
Great video. Just started investing and I learned a lot watching your video. I checked your channel and is very professional and well produced but don’t see recent videos. Do you have a different channel?
Thats what people said in the 2008-2009 recession. Silver tanked shortly after. Silver right now is still cheap, but you are crazy if you don’t sell if it goes up like after the last recession. I buy silver to play the game.
@@Kickey165 Yes, I would know because I've catalogued every purchase I've made over the past six years to include what I paid and the spot price. So historically I've paid premiums between $2.29 - $4 over spot for common silver bullion coins like ASE, Maples, Britannia. Always pay by check and purchase in bulk (in tubes) rather than individual coins. The premiums for silver kilo coins and bars is even less than that. My 100oz bar was $1.21/per oz over spot (!) which is the norm. I will make a video covering all this.
Fantastic explanation, but i have one simple question. In every gold websites you can see the spot price,but is that the gold bid or gold ask spot price viewed?
Useful info, thanks. I wish I'd known all that 9 years ago when starting off, but am hopefully not in too bad a position, avoiding graded/proof and collector coins - except all 3 beautiful Queen’s Beasts collections. I think buying Capital Gains Tax-free legal tender coins for me in the UK has influenced my choice of coin, but not all, I do like a variety. I slightly regret buying 2 or 3 1kg silver bars back then (when price was high), plus a 1kg Kook coin, purely because they cost less per oz. Still, they should come good in time. All better than the fiat currency depreciating in a bank.
Holly shit the amount of gold and silver behind him is worth billions of $ never seen so much money in one place amazing most people have no clue how much money that is
SDBullion has 2021 ASE’s 40.00 and 2021 maples 36.50. I couldn’t use your analogy in this experiment. The ASE’s are the ones that are more expensive. (+3.50)
I bet if you try to sell, the dealers would pay 8 dollars per ounce at a 15 dollar market. Then Turn around and sell said ounce at 23 dollars.It's to fake for me. I'm done stacking.
@@liqurmeup Funny you mention price gouging. Peter Hug was just discussing that here th-cam.com/video/9-v629DVanE/w-d-xo.html (skip to 3:12) To summarize, it's the wholesale distributors charging dealers 6%- 8%. It's a ripple effect but no need to worry, just study the Gold-Silver Ratio and utilize that strategy as an exit strategy. The link below explains the current environment and projections seekingalpha.com/article/4328893-higher-silver-prices-thesis-is-valid
I bought some 2 onces silver Canadian mint coins in March. I paid 31% and 48% premium. The premium for an American Eagle is now 60%. This is a lot more than with your example were 18+3=21$ gives 17% and even more than the 9-10% you mentionned. Those who bought at those "vintage" premiums were Lucky. Premium asked in my place for gold onces are not 3-4% but 10-14%.
I think it'll go back to normal premiums in later August or after this virus is under control. Its just that Paper silver (stock market) killed the spot price once it was sold off to get cash to buy more stocks at all time lows. Spot dropped off to 14 bucks from that dump. Once that happen bullion dealers weren't about to sell off their inventory at a lost. So their reaction was to say they were all sold out. Yet no one, not one person, online in our community has reported getting silver sub 17 dollars when spot dropped to 14 and change. In reality they were hoping spot price wouldn't hold at that level and would bounce right back to 16-18 dollars and tried to hold out. Once it didn't, they came up with the story of being sold out and even raised their orders to a 300 dollar minimum. Low stock but you have to order 300 dollars or more? Doesn't make sense. There's less inventory but you have to buy in bulk? Anyways, what they didn't predict is that wholesalers would shut there doors due to Covid 19 and wouldn't be able to order more inventory at a lower spot price to lower they're overall price per ounce at their stores. If you see in a timeline of what has happened its pretty easy to understand. Now as spot price goes back up slowly, the 300 dollar minimum has been lifted and their brand bullion is starting to come back in stock with a higher premium. Yeah silver that didn't sell before is first to come back. Spot is just under 16 dollars. But with the hype, some dealers are taking advantage for sure. GSM for example has started to sell Silver shield coins that you could get for 19 dollars, taxed, and shipped before for 35 bucks now. Saying Silver is finally selling at it's true price. I think our community is smarter than this and most have already said this is a time to sit back and stop buying. If you look at the history price of silver it makes perfect sense. Some years it was just too expensive to buy and people who bought during those years are now currently at a huge loss instead of gain. Imagine you buying silver at 30 dollars for it to sink to 14 now. Some times its just better to sit back, relax, and focus on other things while this blows over.
@@xxterribleone1899xx , thank you for this valuable study. I am somewhat new to this market. I had a good hit when silver went to 50$ an once and succeeded to sell scrap at 37$ an once. Since that event, I was quiet focusing on other things. I just returned and faced this premium thing. I also must deal with the 40% Can/US dollar exchange. This will hurt at the end because when price of all metals will go up, the Can dollar will go up too. Anyway, I bought some silver because I think that the price will eventually go up a lot, enough to offset premiums and exchange fees. I think / hope that prices will go down to allow me to make some other purchases to lower my average cost. I expect that this will happen in the next 6 to 9 months when the stock market will crash again. There is no valid reasons why the stock market is so high when most companies are facing bankrupcy. When people will sell everything while stock market get to the Bottom, silver and gold should be used to cover losses and will go down… for a short time. This will be the best time to purchase in my dreams.
@@maxcloutier5285 Yeah our Canadian dollar is more like a Mexican peso ☹️. I avoid buying as much as possible items imported from states. I used to sell in usd on eBay in 2013-2014. So it allowed me to buy in usd without the exchange rate charges.
Hello Ludovic, Spot = Ask Premium = The amount over spot that you are paying for a product. Please note that these prices are ever changing. Should we do a video explaining and breaking down how to calculate premiums ? -SWP
Unless you have an idea of a quick profit I'd suggest only looking at the buy price for regular world wide recognized bullion like Eagles, Maples, Krugerrands, Philharmonics etc. My impression is that what dealers give the most for when selling to them fluctuates over time. For regular non collectors bullion in Europe they usually pay the same. Semi collectors items like past years of lunar series etc. they might give a little bit more for but they also sells for more and overall it's not a great deal if looking at silver side of it. Selling privately you might have a little better profit on the lunar series but it really depends on a lot of factors. The moral - unless you spot a great deal just stick to whatever regular bullion that is the cheapest. Sure if some is almost same price then you might choose the next cheapest. Personally I like to have a little diversity if difference is insignificant.
When buying gold or silver bars. Does it matter what brand it is ? Or what matters is that the online dealer is reputable and it’s listed as 0.9999 pure silver or pure gold. ? I’m talking In terms of resellability in the future depending what brand it is. And the other question is whether buying items on sale on those websites such as Jm billion and others is a good thing or are those items on sale not recommended
I just want to SCREAM at how low income gold and silver buyers are treated ...the only options they even have to buy now is to be ripped off ROYALLY ...For example a low income California buyer is forced to pay SALES TAX of like 8% where anyone with money enough to buy $1500+ in single purchase pays NONE ...and that is HUGE! THEN because they can only afford small price they will pay HUGE premiums on fractional pieces! The less the amount then the MORE premium they will pay even up to 100% or more in the case of tiny fractional amounts ...probably shipping too which the richer buyers typically get free shipping ....I mean yes it is their own ignorance but still it is so sad they can't participate econmically! Most of these buyers are probably unlikely to make a dime and instead lose BIG the first time they need cash and have to sell ...they will go to a pawn shop or coin store and likely fail to even get spot value. Listen you low income folks that want to particpate? SAVE UP! And/or look for opportunity to buy from private party! BUT make sure to educate yourself how to spot fakes because there are LOTS of em out there! LOTS that look SO real! You have to at minimum have a magnet, calipers and scale and even that won't insure you don't get ripped off! My advice save up and buy from reputable dealer....avoid sales tax like the plague! Even if you have to wait until out of state if you are in a state that taxes gold etc ...DO NOT buy fractional gold with sales tax and premium on Ebay etc! You will get burned! Fractional gold goes for big premiums and yet dealers will NOT give you premiums on buy backs....Dang this makes me crazy seeing what is happening!
In fact I might sell my 50 gram combo bars for right price EXCEPT I KNOW what would happen ...I would put them on Ebay for 60ish a gram bar (as opposed to the $85ish they go for) and then people with money would just buy up every single one of em I KNOW they would....so forget THAT. I guess there is no remedy other than to plead with people not to get taken.....save your money and buy smart from reputable dealer or trusted private party if that is possible
Spread and premiums go hand in hand. It's all trade and merchant way of doing business. Why did he not mention profit margins, also taxes, and also GST, etc let alone storage fees for the product.
I just bought some silver American Eagles for about $40/oz from Apmex. But the spot price is $27/oz. You're telling me I can sell it at discount for like $26/oz? Did I just get scammed and lose like 40% value on purchase?
I like this guy.........approachable, professional, informative and legitimate, will definitely do business
very calm, thorough and informative. Legit guy
Straight forward, no b.s., he understands the process and informs others
Yup they chose the best guy honestly
Mark - this is an important video and I recommend this to any new stacker. Watch this video when you first start stacking, and then bookmark it and watch it again a couple months later. You may miss a few points, and when you watch later - they will seem more valid. Thanks again Mark, I'm grateful for this valuable info.
Looking in your Vault gives me even more ambition when things are a little difficult. Amen
you explained premium so perfectly in 15 seconds wow you got a sub
Excellent info, so clear to understand, learned a lot
Thanks
Glad it was helpful!
That was an excellent explanation on buying and selling. It answered all my questions thank you for this valuable information.
Thank you for been professional and informative. I love my equities and index funds. I just want to learn more about precious metals, but all across TH-cam the topic seems to be covered by a more apocalyptic crowd. I've watched a few of your videos and I appreciate the calm and clear energy you have. You've gotten me to subscribe.
The sky is falling!
Thank you very much for the video.
Please make another video for a tour inside this vault; it's nice to see those silver bars behind you!
An important facet about "Spot": Spot is the cash price currently paid for 1000 ounce industrial silver bars (minimum 5 bars or 5000 oz transactions). You can demand delivery of the industrial bars from the cash market, but it will take 4-8 weeks to get delivered as the depositories are not geared up to actually deliver silver. Normally, they just change ownership labels on the bars that sit on deposit. If you can EVER buy a small finished product such as 1 oz rounds or silver coin AT SPOT that is an unusual circumstance. The current huge premiums on small finished products simply shows that virtually all these products have been bought off the market. Due to the virus, there is virtually no new supply coming onto the market (mines and fabricators are idled). Even if a fabricator has to purchase in the spot market to obtain silver, it will still take 6-12 weeks for new supply to hit the market. Current pricing is pure supply and demand--no conspiracy needed to explain it.
Means can I buy now silver?
This guy makes me feel good about investing in precious metals
he is very articulate and clarifies things very well...
I wish I'd found you a few years ago. Your information is spot on (no pun intended)
🎯😂
This is absolutely the best definition & explanation I have heard- thank you!!!!!!
GOLD AND SILVER ARE SAFE INVESTMENT THAN CRYPTO DURING WAR TIMES...IN FUTURE GOLD REACH TO 2500$/oz and silver will reach to 92$/oz in this year 2022
Nowadays dealers are buying back silver coin 20% above spot price, selling at 70% above spot but out of stock
Nothing most of us didn't already know, however if spot is $15 and the premium is 10% then ship me some at $17
Very useful and simplifying jargons for newbie
I am a beginner, that was awesome. One of the first things I noticed was the buy back price.
Really enjoy your videos! Very professional!
Great video. I'm seeing closer to 30% for silver premiums from many dealers. It's getting crazy right now
Two years later premiums are still $9-$15. They haven’t gotten any better as today silver fell to $27.27 Canada spot price.
What most people are perhaps hoping, not unreasonably, is long term rises in spot will offset any deposit side of the total spread. In other words, the spread will be in their favour when they sell it in the future.
Indeed. Prices are still far too low in what they should be, viewing how other commodities have gone up.
I was wanting to start buying some gold bars and coins but I didn't understand what the prices were and why I would pay $75.00 over gold price and now I do. I learned more than that but ty for the information.
Glad it was insightful!
I love these videos. I just started investing in bullion and I've learn so much thru these videos! Thank you
Video explains spot price for any beginner of precious metal stacking. Thank you!
Basic concepts which you presented in a logical and straightforward manner. This was a great refresher and very informative,more than I expected, thank you, stay safe🙏🏻❤️
omg! Thank you for explaining such an important aspect of buying/selling metals!
OR, you sell your coins privately, you make above spot instead of getting burned by a dealer.
Completely agree.
Do you have any experience with that personally? How would you go about it?
I bought 20k of coins when gold was 850 20k in coin at 950 and 15k at 1130 $ or so and now with the bulk of my coins bought and the price of gold doubled now goldline is still trying to tell me I am just breaking even. Talk about feeling like there trying to rip me off. Any advice?
@@bloodorphanreti3621 Just wait. Elections, conflicts, Viruses, all these can make the spot go up. I'd wager a month before the election could be the best time. And try and sell locally, if possible.
Selling privately usually means advertising .too dangerous
Very educational. You make me just want to buy bars...maximise my return. But some dealers don't tell u buy back price so you never know the spread. But I will now be looking at that now and the premium. THankyou!
The spread is hower much money they want. It's made up daily. It's a scam.
Very professional, very good info. Thank you all for making the videos
Hey Mark, I recently picked up a 5g Gold Pamp Suisse bar. I'm a gold bug, and proud.
Great brand
@@chriswalters6148 I will keep stacking Suisse for sure.
I want one of those 10oz Pamp Suisse bars in the special plexi case.. just gorgeous!
What made you choose Pamp Suisse over other ‘brands’?
@@Kickey165 I prefer the way they let the gold shine through its solid finish and fine writing. The Canadian Maple or Silver Eagle, you cant see that fine finish, it is too engraved with imagery etc.
Thank you for all your help in understanding precious metals.
The best video that I've seen about this subject. Very professional. Thank you so much!
Mark is very help full in understanding precious metals, and it can be very valuable, and profitable in the years ahead, however as many of us know that it will have the up in downs. It is a very interesting business to work in, and an awesome hobby. More to come. Joseph
Fallon
Excellent beginner information! Explanation was easily obtained. Thanks!
Thank You so much for taking the time to educate people like me, the Rookie, very informative. definitely will watch this from time to time to help me keep learning. Thank You Sir.
It,s always in the favor of sellers ,mints and coin shops ! 35yrs experience !
Thanks bruh very educational and applicable. New subscriber.
robbed when you sell, robbed when you buy.
@ykshootraw x Totally agree. I got killed for years trying to sell silver without getting cheated - it is
much easier to deal in Krugerrands and sell them at a price at or even above spot.
Sounds like you got "cheated" because you were not educated
@@ryanbianchi6582 Education in the precious metals market in the 70's was not as easy to arrive at in the metals market. Now, if happens to one it's ones own fault with the information all over the place but 45 years ago it was not the same landscape. Lucky, even after getting burned, I did not sour on it and the school of hard knocks made me into a better investor. Something like this is good for young investors as it makes them wiser over time. I now am able to help younger folks wanting to enter into this area.
@ykshootraw x If you have no debts go ahead and buy gold and silver provided you have at least 5 months of saved money of expenses in a emergency fund. Always have the emergency fund first, zero debt second then invest. Only invest in things that you are willing to wait 5 years on. Whenever you feel uncertain, you can dollar cost average, that is buy it in small bits over months so you get the average return. And of course, don't invest till you have zero debt first.
@@joycekoch5746 well if you try to sell during decade long bear market they are not gonna give you good price.
Great video! I love it how he explains the premiums involved with Silver, that is why for me, selling Silver is much more profitable than owning it.
In my experience with the major online dealers the ASE’s are the ones that are more expensive when comparing them to the Canadian maples
It seems to me that the spread with rounds is usually the lowest spread, which is why I stick with them rather than coins. Not interested in having to worry about, calculate, and negotiate premiums if and when I ever sell. I'm stacking for the metal value as a long-term hedge against inflation, not for the premium value and not for a quick profit. I'm hoping to hold on to them for many years, hopefully decades, at which point spot will likely be much higher than it is now anyway. If and when I ever sell, I'll be fine with getting a bit under spot for them.
same strategy as me, my friend. About 90% of my total stack consists of 20oz tubes of 1oz round/generic .999 coins, .999 10oz Bars and 1kg Bars. When I first started stacking I was buying American Silver Eagles at US$25.00 per oz when the spot price was US$14-15.... I've done the maths on my purchases and I'm much better off buying locally-minted New Zealand Silver Fern .999 1oz coins & bars at 5% above spot price, which are genuine .999 quality anyway, than paying the 50-70% premiums for ASEs and Perth Mint coins. When it comes to sale time in a few years the dealers will only offer around spot or slightly below spot price anyway, and in a few years the price will be higher than US$14-17 anyway, in fact I'm not going to sell until it goes above US$60 per oz... so I will have made a tidy profit regardless. Pure silver is pure silver.
I agree with both of you for the reasons, although I have both rounds (bullion) and ASEs. The only time I can think where selling rounds for a great deal under spot would be if the manufacturer of those rounds, for whatever reason, might be unpopular at the time. If you are selling to dealers, they would be looking to re-sell those rounds, and if they aren't selling very well, they would have to lower their purchase offer to buy from you.
I agree you will get much more silver buying the generic vice the premium which will make up the difference when you sell.
This was very informative, thank you!
Glad it was helpful!
You are doing exactly what I need to know thank you tons
Glad you found what you were looking for!
Extremely informative and well presented. Thank you.
It’s a new year with bright and beautiful ideals , hope you’ll got a huge list for this 2021 . Coz last year was messed up due to many weren’t wise enough to consider investment . But the question, what will you achieve this year?
Nothing other than the gift of life. And I have consider venturing into something lucrative and profitable , last year was a lesson to everyone especially me . Well seeing 2021 is enough reason to sit down and think about your financial life .
Please tell me more about this , I really have to plan for myself this new year
if you knew about bitcoin since 10years ago you won’t be poor ever again. But the truth is that is never late to bitcoin, this year bitcoin is hitting the moon .
@Hbob So true. I’m retired and just started three weeks ago. I have earned $24,000 with just $9,000
My first bitcoin investment of Mrs Sophie Clare Williams gave me profit over 10,000 usd and ever since then she has never failed to deliver and I can even say she’s the most sincere person I have known.
One year ago, as a newbie, I made a pretty stupid and negativistic comment. After learning a lot more, and having started investing in metals since then, I'm retracting everything I said.
I had misunderstood the purpose of it all, it's not about making money, you're not "playing the stock market", it's not about having something nice and shiny to look at (even though it is nice and shiny to look at).
It's about hedging against inflation, it's a lifeline in case the economy goes tits up. It's the "money" in your mattress that never* loses its value.
@SWP you guys have made here an excellent video on HOW to invest, but the WHY wasn't in there. It took me quite some time to realize that part, and I'm glad I was stubborn enough to not give up.
I just started to stack coins. This is a very informative presentation for me.
Please explain the process of stacking coins?
I don’t care if I pay a few dozen bucks extra here or their for premium. I buy for the long term, I’m expecting 10,000 $ an ounce gold 2024
Interesting. The housing collapse didn't even get the ounce over 2,100 by 2011. But I mean. I guess 10k is possible. I'm just wondering what has to happen to us to get that price?
xxterribleone1899xx well to invest in Gold is to bet that the US economy can not sustain itself without, A. Writing off all or most of private and nation debt or B. Throw money out of helicopters into accounts of banks, corporations, businesses and individuals and do it under the disguise of bail out or stimulus to keep the system running.
They have been pursuing option B for many decades now and it is intensifying rapidly with these recent stimulus checks. Russia, China, India and many others, are positioned to stop demand of US currency for their own trade. Combination of scenarios which is playing out now will seal the coffin on the dollar. In 2008 only Sadam, Ghaddafi and the Taliban posed a threat to the US dollar by deciding to trade oil and gas in gold and non dollar currencies and we bombed them. The Americans can not afford to bomb Russia India China, times are different this time around
Arya viejo Don’t be so sure. China and Iran are looking for a beating right now.
Your living in a dream world gold will never get there it's time to wake ☝ people. There ripping you off right now because it's hard to get.
I’m with you Arya, clearly some people here can only recall the past 20-30 years of history at best. Ignoring or outright dismissing possible outcomes that have happened many times, just not in the past decade.
Very informative video! Thanks!
Last year, 50 cents premium when silver was $18 spot. Now the premium is 10x at $5 OR MORE while silver is only $15 spot. Yeah, profit margins are HUGE now. The story he tells is the SAME story as a year ago, only the dealer greed has gone up. End of days behavior. These premiums have led me to stop stacking and buy my first crypto.
Dude bitcoin is worse. Unless you get out in time. It's a cycle of bubbles that inflate and pop over and over making a lucky few obscenely wealthy while everyone else is stuck holding the bags. What I'm saying is that it is highly highly manipulated. And of course it is. What are you paying for anyway? A collection of data/ numbers stored within an encrypted block? why is that block valuable? what is it backed by?
Let me ask you this: What would happen if the people who own most of all the bitcoin begin dumping it off for pennies? How much will you be able to sell the bitcoin you bought for 10,000?
The bitcoin is not what is valuable. The technology that it is run on is the valuable part. Blockchain technology. Please people do not be fooled. If you do not realize this you will get burned.
@@EE-ky5nt and here we are 4 months later. I choose gold over volatile bitcoins. One big pump and dump show.
@@trojanhorse7897 and 5 months later look at Bitcoin it hit over 65k for every one Bitcoin lmao
Extremely informative thank you!
Very informative. Thank you
Very informative, spot on, thank you very much.
Glad it was helpful!
My local dealer is charging 68.4% over spot for silver coins.
What a thief !
@@nicholasmohammed36 yes terrible
Hey, he got bills to pay. lol
That's what I am saying. They make up this SPOT price as they see fit. Fuck them, it's all a scam.
Did you buy at that mark-up
Spot price doesn't work in an honest way, but your explanation makes sense for a real market.
Great information video. Thx for sharing.
Glad it was helpful!
oh okay know I understand the spot price never understand it thanks for explaining 😊 👍
This is why it's practical to trade these metals for other valuable crafts and arts in person. For examples, someone might trade a few kg of silver for an exceptional painting directly from an artist.
Another consideration is Tax. In England you do not pay VAT on Gold but you do on Silver. You pay Capital Gains Tax on Bars but not Coins.
Great channel, thank you.
PS. Your vault would be a GREAT Bread and Breakfast.
Damn good education for this beginner!
Glad you enjoyed it and think so !
Great information thank you for sharing 👍😉
Very technical and clearly explained.
Great explaination. Thanks!
This video was needed 💯 💯💯
Glad you enjoyed it!
Great video. Just started investing and I learned a lot watching your video. I checked your channel and is very professional and well produced but don’t see recent videos. Do you have a different channel?
Thank you Mark. good vid.
Glad you enjoyed it
Thank you for the informative video
You have to be crazy to sell your coins so close to the finish line of this fiat marathon.
Right
Thats what people said in the 2008-2009 recession. Silver tanked shortly after. Silver right now is still cheap, but you are crazy if you don’t sell if it goes up like after the last recession. I buy silver to play the game.
Fiat ain't going away, and if it did your silver is still just silver. Don't overpay for this stuff, you're better off in dividend stocks.
Chris Gilliam Man Stuff well maybe not but this particular one and all the debt based "assets" that it supports definitely have some vulnerability
THIS. 2008 didnt have GLOBAL CORONA stopping all trade. Shit is gonna end. Keep your gold and silver.
Great breakdown!
Interesting you didn't mention the historic norms for PM bullion premiums compared to what we're seeing today which is outrageous.
SoCalFreelance I’m curious to know what an acceptable premium should be today, for gold and silver? Would you know?
@@Kickey165 Yes, I would know because I've catalogued every purchase I've made over the past six years to include what I paid and the spot price. So historically I've paid premiums between $2.29 - $4 over spot for common silver bullion coins like ASE, Maples, Britannia. Always pay by check and purchase in bulk (in tubes) rather than individual coins. The premiums for silver kilo coins and bars is even less than that. My 100oz bar was $1.21/per oz over spot (!) which is the norm. I will make a video covering all this.
SoCalFreelance you’ve earned a sub :) and to answer to the question, I guess because he has something to sell... even today hahaha
@@SoCalFreelance Thanks for the information! I look forward to your video as well.
It's called supply and demand.
Thank you for your help ! Richard Jr.
Happy to help!
Mark....I’m a newbie and that was really good....thanks
Glad it was helpful!
I already “liked” the video, but I watched it again to pick up on other knowledge, and would give you another “like” if I could!
Fantastic explanation, but i have one simple question. In every gold websites you can see the spot price,but is that the gold bid or gold ask spot price viewed?
Great video. I've been educated. Thanks.
Was really good video thank you
Useful info, thanks. I wish I'd known all that 9 years ago when starting off, but am hopefully not in too bad a position, avoiding graded/proof and collector coins - except all 3 beautiful Queen’s Beasts collections. I think buying Capital Gains Tax-free legal tender coins for me in the UK has influenced my choice of coin, but not all, I do like a variety. I slightly regret buying 2 or 3 1kg silver bars back then (when price was high), plus a 1kg Kook coin, purely because they cost less per oz. Still, they should come good in time. All better than the fiat currency depreciating in a bank.
Very informative video. Thanks for sharing👍
Glad it was helpful! Be sure to check out our other videos and subscribe to our channel.
@@SWPCayman Does the year matter when buying? If so what years do you recommend?
that info was amazing
Holly shit the amount of gold and silver behind him is worth billions of $ never seen so much money in one place amazing most people have no clue how much money that is
Billions nah hundreds of millions yes
SDBullion has 2021 ASE’s 40.00 and 2021 maples 36.50. I couldn’t use your analogy in this experiment. The
ASE’s are the ones that are more expensive. (+3.50)
Anyway there is nothing left to buy, unless you pay 50% premium. Too late folks
Here I was freaking out about 13% premium 👀
I bet if you try to sell, the dealers would pay 8 dollars per ounce at a 15 dollar market. Then Turn around and sell said ounce at 23 dollars.It's to fake for me. I'm done stacking.
There will be an over production when things get back to normal, and they will. And so prepare for a price drop unprecedented
@@liqurmeup Funny you mention price gouging.
Peter Hug was just discussing that here th-cam.com/video/9-v629DVanE/w-d-xo.html (skip to 3:12)
To summarize, it's the wholesale distributors charging dealers 6%- 8%.
It's a ripple effect but no need to worry, just study the Gold-Silver Ratio and utilize that strategy as an exit strategy. The link below explains the current environment and projections
seekingalpha.com/article/4328893-higher-silver-prices-thesis-is-valid
theres plenty left to buy. i see silver coins and bars for sale everywhere.
I bought some 2 onces silver Canadian mint coins in March. I paid 31% and 48% premium. The premium for an American Eagle is now 60%. This is a lot more than with your example were 18+3=21$ gives 17% and even more than the 9-10% you mentionned. Those who bought at those "vintage" premiums were Lucky. Premium asked in my place for gold onces are not 3-4% but 10-14%.
I think it'll go back to normal premiums in later August or after this virus is under control. Its just that Paper silver (stock market) killed the spot price once it was sold off to get cash to buy more stocks at all time lows. Spot dropped off to 14 bucks from that dump. Once that happen bullion dealers weren't about to sell off their inventory at a lost. So their reaction was to say they were all sold out. Yet no one, not one person, online in our community has reported getting silver sub 17 dollars when spot dropped to 14 and change. In reality they were hoping spot price wouldn't hold at that level and would bounce right back to 16-18 dollars and tried to hold out. Once it didn't, they came up with the story of being sold out and even raised their orders to a 300 dollar minimum. Low stock but you have to order 300 dollars or more? Doesn't make sense. There's less inventory but you have to buy in bulk? Anyways, what they didn't predict is that wholesalers would shut there doors due to Covid 19 and wouldn't be able to order more inventory at a lower spot price to lower they're overall price per ounce at their stores. If you see in a timeline of what has happened its pretty easy to understand. Now as spot price goes back up slowly, the 300 dollar minimum has been lifted and their brand bullion is starting to come back in stock with a higher premium. Yeah silver that didn't sell before is first to come back. Spot is just under 16 dollars. But with the hype, some dealers are taking advantage for sure. GSM for example has started to sell Silver shield coins that you could get for 19 dollars, taxed, and shipped before for 35 bucks now. Saying Silver is finally selling at it's true price. I think our community is smarter than this and most have already said this is a time to sit back and stop buying. If you look at the history price of silver it makes perfect sense. Some years it was just too expensive to buy and people who bought during those years are now currently at a huge loss instead of gain. Imagine you buying silver at 30 dollars for it to sink to 14 now. Some times its just better to sit back, relax, and focus on other things while this blows over.
@@xxterribleone1899xx , thank you for this valuable study. I am somewhat new to this market. I had a good hit when silver went to 50$ an once and succeeded to sell scrap at 37$ an once. Since that event, I was quiet focusing on other things.
I just returned and faced this premium thing. I also must deal with the 40% Can/US dollar exchange. This will hurt at the end because when price of all metals will go up, the Can dollar will go up too. Anyway, I bought some silver because I think that the price will eventually go up a lot, enough to offset premiums and exchange fees.
I think / hope that prices will go down to allow me to make some other purchases to lower my average cost. I expect that this will happen in the next 6 to 9 months when the stock market will crash again. There is no valid reasons why the stock market is so high when most companies are facing bankrupcy. When people will sell everything while stock market get to the Bottom, silver and gold should be used to cover losses and will go down… for a short time. This will be the best time to purchase in my dreams.
@@maxcloutier5285 Yeah our Canadian dollar is more like a Mexican peso ☹️. I avoid buying as much as possible items imported from states. I used to sell in usd on eBay in 2013-2014. So it allowed me to buy in usd without the exchange rate charges.
Thank you. Very well explained.
The best video, I learned a lot
what is exactly the spot premium price? if I take this example, Gold Chart of this website goldavenue? (upper left corner) thx.
Hello Ludovic,
Spot = Ask
Premium = The amount over spot that you are paying for a product.
Please note that these prices are ever changing. Should we do a video explaining and breaking down how to calculate premiums ?
-SWP
Can you make a video about different brands and mints?
Great !!! Very useful Thank you very much.
Unless you have an idea of a quick profit I'd suggest only looking at the buy price for regular world wide recognized bullion like Eagles, Maples, Krugerrands, Philharmonics etc. My impression is that what dealers give the most for when selling to them fluctuates over time. For regular non collectors bullion in Europe they usually pay the same. Semi collectors items like past years of lunar series etc. they might give a little bit more for but they also sells for more and overall it's not a great deal if looking at silver side of it. Selling privately you might have a little better profit on the lunar series but it really depends on a lot of factors. The moral - unless you spot a great deal just stick to whatever regular bullion that is the cheapest. Sure if some is almost same price then you might choose the next cheapest. Personally I like to have a little diversity if difference is insignificant.
When buying gold or silver bars. Does it matter what brand it is ? Or what matters is that the online dealer is reputable and it’s listed as 0.9999 pure silver or pure gold. ? I’m talking In terms of resellability in the future depending what brand it is. And the other question is whether buying items on sale on those websites such as Jm billion and others is a good thing or are those items on sale not recommended
Two thumbs up!
Thanks for watching, glad you enjoyed it!
I just want to SCREAM at how low income gold and silver buyers are treated ...the only options they even have to buy now is to be ripped off ROYALLY ...For example a low income California buyer is forced to pay SALES TAX of like 8% where anyone with money enough to buy $1500+ in single purchase pays NONE ...and that is HUGE! THEN because they can only afford small price they will pay HUGE premiums on fractional pieces! The less the amount then the MORE premium they will pay even up to 100% or more in the case of tiny fractional amounts ...probably shipping too which the richer buyers typically get free shipping ....I mean yes it is their own ignorance but still it is so sad they can't participate econmically! Most of these buyers are probably unlikely to make a dime and instead lose BIG the first time they need cash and have to sell ...they will go to a pawn shop or coin store and likely fail to even get spot value. Listen you low income folks that want to particpate? SAVE UP! And/or look for opportunity to buy from private party! BUT make sure to educate yourself how to spot fakes because there are LOTS of em out there! LOTS that look SO real! You have to at minimum have a magnet, calipers and scale and even that won't insure you don't get ripped off! My advice save up and buy from reputable dealer....avoid sales tax like the plague! Even if you have to wait until out of state if you are in a state that taxes gold etc ...DO NOT buy fractional gold with sales tax and premium on Ebay etc! You will get burned! Fractional gold goes for big premiums and yet dealers will NOT give you premiums on buy backs....Dang this makes me crazy seeing what is happening!
In fact I might sell my 50 gram combo bars for right price EXCEPT I KNOW what would happen ...I would put them on Ebay for 60ish a gram bar (as opposed to the $85ish they go for) and then people with money would just buy up every single one of em I KNOW they would....so forget THAT. I guess there is no remedy other than to plead with people not to get taken.....save your money and buy smart from reputable dealer or trusted private party if that is possible
Spread and premiums go hand in hand.
It's all trade and merchant way of doing business.
Why did he not mention profit margins, also taxes, and also GST, etc let alone storage fees for the product.
Hi sir can you open a topic between whit gold, rose gold, yellow gold when it comes to advantage and different factors.
It is the best thing I ever heard!
Great info...starting to stack gold n silver
I just bought some silver American Eagles for about $40/oz from Apmex. But the spot price is $27/oz. You're telling me I can sell it at discount for like $26/oz? Did I just get scammed and lose like 40% value on purchase?
Yaxley, you sound EXACTLY like I do providing these explanations, like verbatim, uncanny!
I was looking for information good place to start
68% premiums .....on silver...no thank you.