Ep.4 Season 2 - Buying Gold and Silver - Understanding the Spot Price, Premiums and Total Spread

[@tennisgleem]

I like this guy.........approachable, professional, informative and legitimate, will definitely do business

[@nevending78]

very calm, thorough and informative. Legit guy

[@darrenpokorski7756]

Straight forward, no b.s., he understands the process and informs others

[@ZenkiCoyote]

Yup they chose the best guy honestly

[@jduff59]

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.

[@wizeaux]

you explained premium so perfectly in 15 seconds wow you got a sub

[@NAVYABHAN]

Looking in your Vault gives me even more ambition when things are a little difficult. Amen

[@kevinjoe1211]

he is very articulate and clarifies things very well...

[@Bomber848480015]

I am a beginner, that was awesome. One of the first things I noticed was the buy back price.

[@silverlover5817]

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!

[@TheGilbalfas]

This guy makes me feel good about investing in precious metals

[@lorieedwards180]

Excellent info, so clear to understand, learned a lot Thanks

[@SWPCayman]

Glad it was helpful!

[@javileon9698]

That was an excellent explanation on buying and selling. It answered all my questions thank you for this valuable information.

[@OriginalGarth]

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 KZbin 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.

[@lobotomyscam1051]

The sky is falling!

[@btcarmo5356]

Nowadays dealers are buying back silver coin 20% above spot price, selling at 70% above spot but out of stock

[@chrisnstac]

This is absolutely the best definition & explanation I have heard- thank you!!!!!!

[@dragon.fromindia3235]

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

[@KSASTAMPS]

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.

[@maryamkhalid2613]

Means can I buy now silver?

[@tonebonetones]

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.

[@EnlightenedPatriot1]

Indeed. Prices are still far too low in what they should be, viewing how other commodities have gone up.

[@eno88]

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.

[@garrycroft4215]

Nothing most of us didn't already know, however if spot is $15 and the premium is 10% then ship me some at $17

[@ratlips4363]

I wish I'd found you a few years ago. Your information is spot on (no pun intended)

[@mostlikely...]

🎯😂

[@keepingitsimple88]

Hey Mark, I recently picked up a 5g Gold Pamp Suisse bar. I'm a gold bug, and proud.

[@chriswalters6148]

Great brand

[@keepingitsimple88]

@@chriswalters6148 I will keep stacking Suisse for sure.

[@petero958]

I want one of those 10oz Pamp Suisse bars in the special plexi case.. just gorgeous!

[@Kickey165]

What made you choose Pamp Suisse over other ‘brands’?

[@keepingitsimple88]

@@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.

[@mariwillalwaysgivethanks]

omg! Thank you for explaining such an important aspect of buying/selling metals!

[@olegpetelevitch4443]

It,s always in the favor of sellers ,mints and coin shops ! 35yrs experience !

[@stevegaspar]

Great video. I'm seeing closer to 30% for silver premiums from many dealers. It's getting crazy right now

[@FishyFun57]

Two years later premiums are still $9-$15. They haven’t gotten any better as today silver fell to $27.27 Canada spot price.

[@robertson7693]

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?

[@eusebiolima1025]

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 .

[@molleyjake333]

Please tell me more about this , I really have to plan for myself this new year

[@davidgarry3449]

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 .

[@robbie6028]

@Hbob So true. I’m retired and just started three weeks ago. I have earned $24,000 with just $9,000

[@marksonhenry4377]

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.

[@polishsilverstacker3246]

Video explains spot price for any beginner of precious metal stacking. Thank you!

[@raniakme]

Very useful and simplifying jargons for newbie

[@SWPCayman]

Thank you

[@TheGilbalfas]

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!

[@liqurmeup]

The spread is hower much money they want. It's made up daily. It's a scam.

[@ShaneyElderberry]

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.

[@Eli-qr9hc]

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

[@Jorgecanelo94]

I love these videos. I just started investing in bullion and I've learn so much thru these videos! Thank you

[@justint.4254]

Spot price doesn't work in an honest way, but your explanation makes sense for a real market.

[@bluefm7370]

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🙏🏻❤️

[@josephfallon7047]

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

[@noel6987]

Really enjoy your videos! Very professional!

[@hunterhamilton7111]

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.

[@unclemikecruz]

I just started to stack coins. This is a very informative presentation for me.

[@B400]

Please explain the process of stacking coins?

[@followedd]

The best video that I've seen about this subject. Very professional. Thank you so much!

[@jimmygog290]

Very professional, very good info. Thank you all for making the videos

[@khalidwalid3178]

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?

[@thesarge4457]

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.

[@scoooterbob2321]

Excellent beginner information! Explanation was easily obtained. Thanks!

[@Avicena-tf5uj]

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

[@xxterribleone1899xx]

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?

[@Avicena-tf5uj]

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

[@markfrance9924]

Arya viejo Don’t be so sure. China and Iran are looking for a beating right now.

[@silverfan2196]

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.

[@pablolucena4336]

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.

[@wosimtahan8576]

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

[@devilsandwich8849]

Billions nah hundreds of millions yes

[@82dockmaster]

Hi sir can you open a topic between whit gold, rose gold, yellow gold when it comes to advantage and different factors.

[@LuisluigiTexas]

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

[@ronrandall7118]

When the time comes to sell PM's, how do you sell the PM's in a private vault above spot price? For example, if you hold PM's in a private vault (overseas), instead of selling back to the seller at spot price and they gain the premium as pure profit + a commission/sellers fee, how else can you sell and gain at least a partial of the spot price + premium?

[@maryperrysmith5815]

You are doing exactly what I need to know thank you tons

[@SWPCayman]

Glad you found what you were looking for!

[@richardjr]

Thank you for your help ! Richard Jr.

[@SWPCayman]

Happy to help!

[@lbeckford77]

Extremely informative and well presented. Thank you.

[@Eli-qr9hc]

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)

[@baljinderpalsingh7003]

Thank you for all your help in understanding precious metals.

[@averagejose9949]

Very informative, spot on, thank you very much.

[@SWPCayman]

Glad it was helpful!

[@captainsplash24]

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?

[@benstone5650]

Damn good education for this beginner!

[@SWPCayman]

Glad you enjoyed it and think so !

[@chuckchapdelaine6110]

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!

[@EnglishVeteran]

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.

[@betod3113]

oh okay know I understand the spot price never understand it thanks for explaining 😊 👍

[@towdjumper5]

Great information video. Thx for sharing.

[@SWPCayman]

Glad it was helpful!

[@khallodah1]

Thank you Mark. good vid.

[@SWPCayman]

Glad you enjoyed it

[@Rosy_corner]

This was very informative, thank you!

[@SWPCayman]

Glad it was helpful!

[@livinglifeonlifesterms2450]

Thanks bruh very educational and applicable. New subscriber.

[@dougiequick1]

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!

[@dougiequick1]

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

[@tiedtight6895]

This video was needed 💯 💯💯

[@SWPCayman]

Glad you enjoyed it!

[@codyh123ful]

only catch is, any physical silver you can buy right now and for the last year and a half has been roughly 70-100% over spot. when will paper price reflect real(price the dealers offer us back)?

[@robertwidby2205]

GOOD SHOW MARK. A QUESTION: I HAVE AN APPOINTMENT TO BUY $500 in 90% CONST. SILVER TOMORROW. HOW MUCH SHOULD I EXPECT TO GET FOR THAT? Thanks

[@dapurnori7427]

Very informative. Thank you

[@dcooper004]

Mark....I’m a newbie and that was really good....thanks

[@SWPCayman]

Glad it was helpful!

[@joshflugel]

Very technical and clearly explained.

[@ludovicmatisse5445]

what is exactly the spot premium price? if I take this example, Gold Chart of this website goldavenue? (upper left corner) thx.

[@SWPCayman]

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

[@benjaminlehman3221]

Can you make a video about different brands and mints?

[@xskalibur]

Very informative video! Thanks!

[@christurgeon6277]

Extremely informative thank you!

[@DorangoBread]

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?

[@johnnyb3126]

Great information thank you for sharing 👍😉

[@crystalsheep1434]

6:26 like the coins ... Like the stock

[@SWPCayman]

Glad you enjoyed! Cheers!

[@DrGirth]

You mentioned about listing the coins with lowest Spread ! Can you post them please

[@thunderstorm864]

I want some silver and goldI need know which place is better buy those and cheaper or better price

[@paganphil100]

In the UK: www.bullionbypost.co.uk/ In the USA: www.bullionbypost.com/

[@kc8449]

What about hand poured metals in different shapes? Like skulls, etc? Are they worth buying?

[@kcash6359]

Depends on what you feel their worth is. As long as the silver content is there, they are worth the price of silver. How much the premiums would be to buy, or sell, would depend on the demand at that time. If you buy a skull, how many buyers would want to buy a skull compared to Silver Eagles. Sure, the skull is cool, but the demand for a silver skull would never be as much as the demand for an ASE. But, if you are collecting for your own personal pleasure, grab one, or more.

[@bryannguyen1012]

The best video, I learned a lot

[@bobbygzzz7116]

Great info...starting to stack gold n silver

[@latinbeater1]

Looking for the list of 10 best to buy?

[@samuelpelletier-langlois9097]

Was really good video thank you

[@EnlightenedPatriot1]

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.

[@josephgraham1065]

I would think that if you purchased the generic rounds instead of the premium rounds the difference in the amount of silver you get will make up for the difference in sell cost.

[@williamlindsey2048]

What about long-term and short-term investment say for instance if I buy a 10 ounce bar of gold which I am planning to do how fast would it gain value

[@maxcloutier5285]

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%.

[@xxterribleone1899xx]

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.

[@maxcloutier5285]

@@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.

[@FishyFun57]

@@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.

[@G74562]

what are the best places to buy that you would recommend?

[@Bill-xx2yh]

Great channel, thank you. PS. Your vault would be a GREAT Bread and Breakfast.

[@saxonstacker7269]

Great video. I've been educated. Thanks.

[@anthonys239]

Very informative video. Thanks for sharing👍

[@SWPCayman]

Glad it was helpful! Be sure to check out our other videos and subscribe to our channel.

[@sagittariusque8932]

@@SWPCayman Does the year matter when buying? If so what years do you recommend?

[@savagesuccessmotivation]

Great breakdown!

[@bookbearerplus]

Great explaination. Thanks!

[@stevenpaulk8788]

What about capital gain taxes. Which would be better then?

[@gratefulgirl2079]

Is scrap silver the same as junk silver?

[@twolegswalking1092]

Thank you for the informative video

[@HifiCentret]

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.

[@robertmcgee7083]

OR, you sell your coins privately, you make above spot instead of getting burned by a dealer.

[@Lehearthos]

Completely agree.

[@21rhocke]

Do you have any experience with that personally? How would you go about it?

[@bloodorphanreti3621]

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?

[@phoenixexploration3301.1]

@@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.

[@billstac9162]

Selling privately usually means advertising .too dangerous

[@avantgardetreasures3419]

I was looking for information good place to start

[@X-Factor-by2kz]

It’s my observation that ASE have a higher premium that the SML coins. That in itself is interesting because the SML is .9999ag whereas ASE are only .999ag. At the end of the day I’m not sure how much that matters. I just bought a Type 2 2021 ASE for $40 but now silver spots around $23. But sellers are still selling for well over $30 for them. That spread is just too much IMO.

[@goldenblooms6672]

Canadian Maple Leafs are 24k and Eagles are 22k. Why is the Eagle bought back for more money if it’s not as pure? Just wondering is it because America prefer American Eagles rather than the Canadian coin?

[@FishyFun57]

Yes and the American market is 10 times the size of our Canadian market. We just don’t have enough stackers/collectors in comparison!

[@SaintChauvin69]

AWOLNATION wants a premium for the intro music.