The Best Way to Buy Gold

Discussing the best way to buy gold - buying it directly vs playing the GSR game.
Published April 14th, 2020
Spot price and retail pricing from February 11th, 2020
American Silver Eagle 1oz
$21.71 retail vs $17.65 spot = $4.06 (23% premium)
Silver Sunshine Bar 10oz
$187 retail vs $176.5 spot = $10.5 (6% premium)
Gold American Eagle 1/10oz
$178 retail vs $157 spot = $21 (13% premium)
Gold American Eagle 1/4oz
$426 retail vs $392.5 spot = $33.5 (8.5% premium)
Gold American Eagle 1oz
$1645 retail vs $1570 spot = $75 (4.75% premium)
Note: I am not a financial advisor. I'm just some guy on the Internet. YMMV.

[@SilverBritches]

Great video brother and I agree if you want gold buy it, but I also will play the GSR. If I sold my eagles that I bought last year I would make $100 a tube right now if I sell privately. I like both options.

[@2is1gold]

Hey, SB! You wouldn't be able to convert it to gold, though! You could probably find a buyer for silver today at inflated pricing because of the hysteria, but you wouldn't be able to find a gold seller willing to part at flat value. You'd be dealing with the same overvalued situation on the other side of the transaction, and you'd still be paying premium twice to get gold once.

[@2is1gold]

(To be clear, I don't give anyone a hard time about buying and selling silver on its own.)

[@SilverBritches]

@@2is1gold there's tons of buyers right now begging for it on the Facebook group's. If you haven't joined one you should because there's also major dealers on there selling cheaper than major sites.

[@skullstaxx]

I buy both and ignore the ratio

[@samatar1025]

I see gold as better to store purchasing power in because it is easy to hide in your pockets or shoes or socks. However try taking bags of silver to a lsc shop when there is turmoil in the streets . Govt store gold mostly and not silver for a reason. I like your explanation. You convinced me to forget about the ratio. As you said there are many ways to grow your capital. For example, if you invested thr cash equivalent of 100 ounces of silver to buy tesla stocks like 10 years ago. You can sell that stock and buy many ounces more of silver then you can possibly gain in the s/g ratio. Overall if you have the financial education, you will fare better growing your wealth using other investment vehicles that can help you buy more gold.

[@2is1gold]

Yeah. Gold isn’t the way to make money. It’s the way to store money. Thanks for watching!

[@1redrubberball]

@@2is1gold You can say that over and over and some will never hear you. PM is an insurance against loss of buying power. It is not an investment medium. That insurance occurs over a long period of time, because it does not track in a linear fashion. Furthermore, I agree with you that buying silver with a future plan to sell and buy gold as/if the GSR narrows is not a sound plan. There are no guarantees. Buying both metals for their own virtues isn't a bad idea. Playing the metals as a diversification strategy is ok.

[@frankiestimmel300]

Moral of the story is, If you want to play GSR then do it with paper Gold and Silver ETFs lol. Don't get me wrong if the GSR drops to 20:1 then yea sell the silver buy the gold, but I would not cement that in as my strategy, I would just take advantage of the Lucky/Brief opportunity that it just presented.

[@silverchickadee4130]

Catching up on you videos. Lol. I agree, playing ratios is not as easy or profitable as some people claim. I’ll lighten my silver load someday and I’ll likely buy gold with the proceeds, but I won’t sell my gold to buy silver.

[@2is1gold]

It’s a one way road for me too. Cheers!

[@ReeferGil]

3 year video and still relevant. Thank you!

[@2is1gold]

🤜🤛

[@CryptoDestelo]

thank you for the upload and helping out with information. i have a question where do you buy the coin protectors?

[@biblicalpolitics602]

I like both but silver is more in my budget. Doesn't seem like the process is very easy when the whole purpose is to avoid losing value through inflation. Now we lose value through premiums, resell and taxes. Uphill battle.

[@2is1gold]

BIBLICAL POLITICS true. Gold has a lower premium until you get down to 1/10 oz coins. (A 10oz silver bar would have a lower premium.)

[@LunaticTheCat]

I would try to resell on Craigslist if I ever wanted to sell.

[@luckywinner4936]

In order to decide whether you should buy gold or silver, ask yourself these questions? What are central banks buying & storing? Why? What is the most acceptable in all parts of the word and that is easily convertible into the currency of wherever you are? Once you figure this out then you will know what to do?

[@2is1gold]

(Hint: gold) 😁

[@charleslanci4904]

Hi, I presently have $20,000 to buy gold or silver what would you suggest I buy and who do you suggest I buy it from thank you, Charlie

[@2is1gold]

I would buy 1 oz Buffalos and/or Eagles, personally. JMBullion has Buffalos for something like 6% premium at the moment. (I might consider a few Canadian Maple Leafs as well for lower premium.) SDBullion and APMEX are other online sites to check. Good luck!

[@charleslanci4904]

Ty👍🏻

[@shekatagani]

i think you are right. The people who could really make a profit on silver and gold for that matter are the ones who purchased it way back when prices were much lower. That was then...this is now, Buy silver and buy gold and hold onto it for as long as you can...they will both go up in price.

[@CA-yp5bz]

Basel 3 28 June 2021.

[@RaisiaFan1919]

Only a select few caught that D&D reference. :)

[@2is1gold]

Damien Montrovant the really sharp few! 😄 🎲 🧙‍♂️🐉

[@Kid_Ikaris]

I've only played once but I appreciated that. I heard a miner say recently it's coming out of the ground now closer to 10 to 1. But take that all with a grain of salt. I think the GSR is only for real pros/people dedicated to learning about the metals. Most people are better off buying a bit of gold and maybe some fractional silver. Silver is nowhere near its next high. It will likely increase in price just from industrial demand once Covid ends and as electric vehicles and renewable energy becomes more common. But it's also not as cheap as it used to be, and if you buy towards the high you can spend a long time waiting for it to go up again.

[@theenglishprofessor8411]

@@2is1gold ...the good old early ‘80s days of D & D! 🪄🧝‍♂️ 👑 (How much were those little cast iron figures??? 💸 )

[@TheGilbalfas]

Buy gold with cash

[@2is1gold]

👍

[@craig6903]

if you found someone selling silver eagles from an estate sale, for $28. Would you buy them out?

[@2is1gold]

I wouldn't.

[@Soonerstacker]

Gold only for me

[@whatmattersmost6725]

Great Vid, more PLEASE... Now what interesting is in 2016 when I started to buy 2015 Silver Canada Maple Leafs, I paid $1.49 over spot so my dead cost was $21.69 a coin shipped, so 4 years later the the same seller shows them at about $19.00 out of stock now... But also got gold and it's about $275 more than I paid, so buy both, now with Gold at $2K for ASE or CML coin no sure in 4 years will be be $275 above what I paid?? We shall see.

[@2is1gold]

Christopher Engell hopefully, that and then some! Who know, though? There’s a lot of price manipulation in precious metals.

[@MetaPrometheus]

I have very modest silver and gold goals, but I would never stack silver with the intent to trade up for gold later. I just get silver for diversification with gold now, but premiums are way too high. I've seen 60-80% premiums anywhere I've looked for silver!

[@2is1gold]

I agree on premiums - it's crazy! A lot of people would say, though, that the premiums are so high because the spot price is lagging behind futures.

[@TheGilbalfas]

I think the GSR is a factor that will see its day. the only problem by then you may not get the Gold u want. It may be unavailable. Best to stack both now. They are both beautiful and you will love them both.

[@togr824get]

You obviously made this video years ago..Im curious,if since then, Have you ever played the Silver, Gold Ratio ???

[@elparnell]

Again, I agree. I have traded silver for some pre 33 gold, but find its not the most sound way if you do it a lot. I’ve had better luck just saving some each month and buying gold. The longer you are in the game, the more you see that to be true.

[@2is1gold]

Yeah, silver is a bad intermediary. If you already have it, great. But buying silver to get gold is an expensive path. Thanks for watching!

[@mapleleafmetals814]

You know you make a lot of sense I did do this at 82-1 last fall. I flipped kilos and generics to get the gold but even that now that I think about your right I had to pay the premium on both. Oh well got my gold out of it. Funny I have hardly Bought silver since then been almost all gold. You sound a lot Like me when it comes to the silver train I jumped on had 400 or so ounces and jumped off converted to gold and never looked back. Still got a few ounces but nothing substantial less than 50 I think. Anyway good vid. Your doing wonderful

[@2is1gold]

I still have a few hundred ounces of silver, primarily in bars, but I have no real attachment to it. I don't think its future lines up with gold. Thanks for the comment!

[@ozgott1415]

When you said D&D was 10:1 I subscribed immediately, because I WAS THINKING THE WORDS WHEN YOU SAID IT OUT LOUD !!!

[@2is1gold]

That’s hilarious! You, me and like two other people got that! 😂

[@D130401]

The problem is the Premium on each. I took the today's (04/19/20), Gold Eagle Retail Price (with Premiums) and divided that by the Silver Eagle Retail price (with Premiums) and came to a 73.8 GTS ratio. Not the Paper price ratio of 101. I look at the real price I need to pay that counts, not the paper price numbers.

[@2is1gold]

DW yeah, definitely a great point. The GSR is a lot different if you consider actual price. The premium on silver was a lot lower in the February timeframe I used for estimates.

[@4ninesfinesilver315]

I think silver gold ratio is gonna go up to over 150 to 1. Once gold gets too expensive then silver will start to go up.👍

[@2is1gold]

Silver is a weird one. I'm not sure futures or current demand support it right now - people are paying crazy premiums right now - but it'll be wild if your GSR prediction happens. I don't even think of silver relative to gold at this point. Gold spot seems to be a bit of a leading indicator of where it _might_ be going. But it's so heavily manipulated, it's hard to tell.

[@Bill-xx2yh]

I pretty much agree. I definitely feel my stack of PM’S are full..for now. Never felt comfortable "exchanging" silver into gold, or the reverse. Although it is certainly possible … I guess.

[@tonyw.3210]

Amazing how low the premiums were 2 years ago on silver coins compared with now like $15 over spot😢

[@steveciarico9824]

Thank you for confirming what I have felt for years.

[@deanthroop8054]

Using silver for LCS recon and to fill out an even cash buy with a gold oz is useful too.

[@amorypaz515]

I checked out your recommended site, APMEX. Thanks for the information. I’m interested in the liberty gold coin double eagle that’s labeled $50. I checked this recommended site and it only has some labeled “double eagle” with only one eagle on it and I don’t see any labeled $50 like you showed in another recent video. Does it matter if it only has one eagle and is labeled $20. Is this more or less valuable than one with two eagles and labeled $50? Thank you so much for the time. Great information! Or is there another site you recommend?

[@2is1gold]

You’re looking for an “American Gold Eagle” 1 oz coin. I’d check prices on SD Bullion before buying from APMEX. Good luck!

[@goldmaple4360]

The best way to buy gold is to buy fractionals. Since everyone seems to be going for Eagles, Pandas, Queens Beasts etc which carry high premiums, I would stay away from these coins. I would buy Krugerrands . That's right the coin you do not like but it's not very popular right. It is still gold right? If people are not rushing too hard for them as other coins then the premiums on these coins will generally be lower and they would be better pickups than the more popular gold bullion coins.

[@2is1gold]

Krugerrands are the fourth most common resold coin at local coin shops where I live (Eagles are the most popular, Buffalos and Maples are next and about the same, and then Krugs). I have one. I'd agree that they're a smart purchase. I just don't like the copper tone of the coin.

[@stackingskier]

Thanks for the video -good info, smart logic -the double premium pay-game will cost ya too much so get yer gold now! Keep em coming.

[@2is1gold]

Thanks for watching. Cheers!

[@kostadinustavalkov1902]

All that makes sense thank you! Although when I heard just buy gold something clicked lol just buy gold huh 😅 2 grand an ounce, I'll just gonna pick me up some fiat from the money tree on the street 😅

[@2is1gold]

Yeah, it’s crazy. Fractional coins look better and better! Cheers!

[@kostadinustavalkov1902]

@@2is1gold true ,higher premiums but overall number doesn't look as intimidating 😄 ! Cheers mate !

[@ShutterEmotions123]

Spread the hedge and buy both 💪🏻💪🏻💪🏻

[@txsilentknight]

Thank you. Really appreciate your content. Subscribed

[@2is1gold]

Thank you, and welcome!

[@calebdoner]

People shouldn't be thinking about premium above spot, but rather the buy-sell spread. In the stock market, this spread is often tiny for high volume stocks and ETF's. Gold has a much higher bid-ask spread than stocks, and silver has an even higher bid-ask spread than gold. Of course, each product will have different bid-ask spreads within the asset class.

[@2is1gold]

Yeah, that's a good point and an even larger spread than it was when I uploaded this video. Cheers!

[@jimmygreen490]

Great video but the audio was too low.......😊

[@2is1gold]

Jimmy Green I struggle with that a bit. I used an automatic optimization for this one rather than tweaking it manually. Thanks for the feedback!

[@masterstacker2833]

Dollar for dollar, silver is a lot heavier.

[@TheInterestingShow]

Why doesn't anyone do the math of conversion at sale price instead of the spot if you do the math it's more like 75 to 1

[@2is1gold]

The GSPPR? Gold to Silver Plus Premium Ratio? :) I agree that sunk cost is the right way to factor conversion.

[@gatonaranja2258]

Are you buying online or at a coinshop. Which one's cheaper? I've been buying online and avoiding the shop cause of this crisis. But the prices you've listed were way lower than the stuff I saw during that same time.

[@2is1gold]

Did you catch that I was referencing prices from February? In normal times, I could get a Buffalo for $75 or $80 over spot at the LCS. Prices at APMEX are always quite a bit higher than they are at my LCS options, but it’s worse now. Online (APMEX) a week ago, it was $200 over. The upside of ordering online is getting exactly what you want.

[@BeardlyGentlemen]

Just for reference, about 1 year later, I can't seem to find a 1oz Gold Maple for less then 8%

[@2is1gold]

Things got expensive fast!

[@thomashaynes907]

I love that you say D&D the ration of gold to silver is 10 to 1… you just got way cooler too me hahah

[@2is1gold]

Ha!

[@dangermandave67]

Interesting to look back on this video now that the GSR has contracted to 79. I think the take-home is that silver is more volatile than gold so it is better to use for the "trading" portion of a metals portfolio.

[@2is1gold]

I cringe looking back at my videos! :) You're right on with silver. It seems to zig a little too often. I prefer sticking to gold. Cheers!

[@jaywilkins7383]

Great info , thank you

[@tog4138]

Wow..This video is great!!

[@tog4138]

Wow..This video is great!!

[@国外正能量]

dear friend, I am in Malta(Europe), I would like to know which website I can buy the real gold coin and deliver to Malta. Thanks so much for anyone who can give me a good advice.

[@VicsYard]

Bingo!

[@leel8099]

Voice is too slow sorry but it was really helpful thank you so much!

[@nemoflicks8643]

Playback speed :)

[@miked6097]

I like them both. I think silver might have a lot of future potential with all the “green” methods and electrical uses. But I have more gold than silver.

[@2is1gold]

Me too, but I’m not real optimistic on silver. I could be proven wrong, though! Cheers!

[@LunaticTheCat]

@@2is1gold I think I agree with you on silver. My reasoning is that it's simply not something people talk about much. If less people talk about it, less will think about buying it. Gold on the other hand I am very high on. I strongly believe that there will be an economic crash (maybe a depression) relatively due to how Covid has created a situation where there is both an increased demand for things and an increased supply at the same time, something never seen before. That is a disastrous combo and the fed pumping trillions into the economy is doing nothing but delaying the inevitable as it's not doing anything to increase production. Wallstreet believes that people will start spending again once we have Covid under control, but most likely this isn't the case. A lot of people are going to be scarred from losing their income during Covid (and all the consequences that came with that), and will save a lot more than they did pre-Covid once they have their income back. If enough people react this way, which I think is very very likely, there will be no rebound and we will be stuck in a depression, perhaps worse than the Great Depression. This will cause many to lose faith in the dollar. It's always great to have gold before a crash, but I think the price is going to spike more than we've ever seen before this time around. Because of the rise of Bitcoin, a lot of people that never thought about alternative currencies before are now aware of the fact of the existence of alternative currencies. Because of this a lot more people will be willing to leave the dollar when the crash happens, simply because more people are aware that this is something they can do. The increased public awarness in alternative currencies due to bitcoin also means that a much higher percentage of people will be thinking about investing in gold too. All this info combined means that a disastrous crash is inevitable, and that the price of gold will skyrocket more than ever seen before whenever it happens. I am pretty confident this is what is going to happen. The V shaped recovery that Wall Street is hoping for is most likely wishful thinking as they are not taking into account that many people are going to save more money than they ever have before. This is what happened to people that lived through the great depression and it will happen to people that lived through Covid. Long story short, there has never been a better time to invest in gold than at this moment in time, right now.

[@rogerbrandt6678]

6.48k subscribers, what is that 6480?

[@2is1gold]

Thereabout.

[@bigkanak797]

It’s 2011 all over again. It’s a poor time to buy. Those of us that’s been at this a while know better.

[@2is1gold]

Definitely reminds me of 2011. I think there are some unique conditions this time around, though. I don't see gold being valued at $1,200 in seven years. Thanks!

[@bigkanak797]

@@2is1gold crazy how the premiums have outpaced the price due to demand. Everyone is holding. It’ll be interesting to see how all markets react after election.

[@2is1gold]

@@bigkanak797 the premiums are frustrating. The dealers are having a banner year with premiums _and_ volumes up.

[@CA-yp5bz]

Basel 3.

[@Smfsilver]

Great video. Like your content. New sub here.

[@2is1gold]

InfidelMetals thanks for checking it out! Glad to have you.

[@brooklynsilver5751]

First let me start by saying, silver is a long term play. In saying that you should be stacking both, but silver more right now with gold close to it's all time highs. Gold has for the most part out performed silver, and you should be investing in other assets that out perform both as well. I believe I own one silver eagle and %95 of my silver rounds and 10 ounce bars were bought from spot - $1 over spot. In response to Cowboy Gold let's see if playing the GSR is always wrong or %100 inaccurate, this is going to be long winded, patience and timing has a lot to do with it.The last time you could have played the GSR was in 2011. Let's do some history, say you got into Gold and Silver in the early 2000's, let's say 2003. Silver was going for $6 an ounce with premiums, and Gold $430 an ounce with premiums, give or take. That would put the GSR at about 72-1, if my math is right. In 2011 silver was steadily rising and hit $40 an ounce in late March, early April. At that time Gold was about $1,450 an ounce with premiums, give or take, that would have put the GSR at 36-1. Applying the the GSR at this time would have doubled your Gold position, a modest investment of $5,000 in Silver and in Gold from 2003 would have put your Silver gains at about 7 times your currency and Gold gains at about 3 1/2 times your currency. I didn't use the GSR when silver went to $49 an ounce later in the month of April 2011 because it's rare people buy at the lowest lows and sell at the highest highs. So it seems although Gold does for the most part have less volatility and is more stable, you are wrong when you say the Silver bugs are never right and have%100 inaccuracy rate. So if you want to just stack gold, more power to you. I will stack both, but a lot higher percentage in Silver at this time. Peace.

[@2is1gold]

Great points, Brooklyn. I'm not going to dispute the fact that you can make it work, and anyone watching this video should read your comment. It's a great example. That said... I was buying silver beginning in 2009 and had enough to feel the run up in 2011. I can tell you (and maybe you were there too) that when silver was at $48, everyone was saying it was on its way to $80. I didn't want to sell it - it was finally doing something. That hype stuck well into 2013 when I sold enough to reclaim some space in my safe. Since 2013, the advice that's been very energetically given is that silver is undervalued - buy buy buy, it's going to the moon. IT HAS NOT. It has stayed flat with a gradual decline for eight years. If I could go back to 2011 when silver was on its way up, I would ignore it and buy AMZN and AAPL. That money would have increased 2,000% whereas silver would have possibly gained 100% if you timed it perfectly and sold. If you missed the 6-month window and held it, like a lot of people did, it would have lost all of its gains and taken you 25% into negative territory. It's very hard to time volatile investments. Silver is typically a slow, negative burn. When it is volatile, it's fun. It's easy to get caught up in the swell of excitement. That makes it a terrible investment vehicle (for me). I have bought a few 10oz bars recently and may buy a few more (at $1 over spot per ounce), but this is the best I've felt about silver in eight years. I'll likely convert that to gold. So, in that sense, I could say I'm playing the GSR on these few purchases, but there was a lot more going on with the purchases than the ratio. I appreciate your comment. Lots of good info - thanks for taking the time!

[@vickyskye8492]

thank u for this video its helpful :)

[@2is1gold]

Glad it was helpful!

[@StrongStacker1]

Good advice. I agree

[@2is1gold]

Thanks for watching!

[@Eli-qr9hc]

Great info. Thanks!

[@2is1gold]

Eli thanks for stopping in!

[@brironmanbtl1162]

Wisdom! Thanks for the info

[@2is1gold]

You bet!

[@appleztooranges]

Wouldn’t take 60 silver 1 oz coins to make a 1 oz gold coin? Since silver is around $30/o z and gold is $1800/oz? Would be 60:1 for silver to gold?

[@2is1gold]

Silver is $25.50 today. Gold is $1,814. GSR is about 1:71. The premium on silver is much higher, though.

[@appleztooranges]

@@2is1gold nice that make sense. So what was the highest gold has ever made at spot value? $1950?

[@jayfedaiy270]

Good video 👍

[@2is1gold]

Jay Fedaiy thanks!

[@PBS-nm1uu]

where could i buy real good that i can trust ??

[@2is1gold]

PBS #007 I like APMEX.com

[@amorypaz515]

Thanks for the information. I’m interested in the liberty gold coin double eagle that’s labeled $50. I checked this recommended site and it only has some labeled “double eagle” with only one eagle on it and I don’t see any labeled $50 like you showed in another recent video. Does it matter if it only has one eagle and is labeled $20. Is this more or less valuable than one with two eagles and labeled $50? Thank you so much for the time. Great information!

[@PBS-nm1uu]

??????????