Coins vs Bars - Expert Tips on Gold and Silver Coins and Bars

in this episode of inside the vault we're going to be talking about the differences between coins and bars so let's get over to the workstation and get started [Applause] [Music] [Music] before we start talking about all the differences between bars and coins and there are a few of them we're actually going to go over the similarities that each bar and coin has with one another and it's important that you understand these things especially if you're new to precious metals so if you take any coin or any bar whether they be manufactured by a sovereign mint a private mint or a refinery you're going to notice four things that they have in common the first thing is it's going to tell you who manufactured the product whether it be the Royal Canadian Mint whether it be Pam Swiss the second thing you're gonna notice is that it's going to state how much the product ways for example this coin weighs one troy ounce and this bar over here weighs one kilo the third thing that you're going to notice is the purity of the product each precious metal product has to state clearly what the purity is in most cases are there going to be three nines or four nines and the last thing that they have stamped on them very clearly and I mean this should be obvious from the color but in case it isn't you is the type of metal is that silver is it gold is a platinum or is a palladium when you're thinking about buying precious metals there are many different options available to you the three primary things that you're going to be looking for one is do I want to buy bars or coins and we'll get into the differences between each in more detail during this episode secondly is what type of producer am I looking for am I looking for a sovereign mint for example the Royal Canadian Mint or the US Mint a sovereign nation that operates a mint that produces products or am I looking at a private refinery or a private mint and there's reasons why you would consider both and then you're going to want to think about the different sizes am i looking to buy the smallest size available maybe I believe that it's easier to barter this size of coin or am I looking to pay the lowest premium possible for example you get into these larger bars we're gonna pay a little bit less per ounce so we're going to talk about all those different things let's talk brands are there any brands that are more favorable to own than others short answer is yes like anything in life there are some brands that are stronger or more favorable than others just like buying a car there's really two things you're gonna want to be looking for here first of all the reputation of the producer do they have a good reputation when it comes to the product that they're putting on the market does it look good first of all but does it more importantly meet the purity requirements that they state on the bars generally speaking when you're looking for a reputable producer you can find them either on the LBMA good delivery list or the Comex good delivery list those are two great places to look to see if a refinery or a sovereign mint has a solid reputation within the marketplace second thing that you're going to want to consider is the resale ability or the resale value of their products when it comes time to liquidate your precious metals holdings which you might not be thinking about today but you should consider for the future is how much will I get when I sell this particular product so you're gonna want to do a little bit of research into that brands resale ability or general resale value now typically speaking when you buy a product from a sovereign mint or a private refinery that has a good reputation you're gonna pay a little bit more upfront for that product but when it comes time to liquidate it you're gonna have an easier time liquidate in it and you're gonna get more money for that product [Music] as you can see here on the table we've got a number of different sizes of products so there's a lot of options out there on the market available too when we're talking about gold typically the conversation starts as small as one gram now we don't have a 1 gram coin on the table today because those are really collectibles or something that you might give it a wedding or to a grandchild for their birthday when it comes to an investment grade bouan typically we're gonna start the conversation at 1 ounce at 1 troy ounce so when you see the price of gold whether it be on Kiko comm or any other reputable website for a spot price this is how much gold they're talking about so that's one ounce product we're moving our way up here we've got a 5 ounce gold bar a 10 ounce gold bar and finally a kilo gold bar now these are all these are all sizes of bars that are fairly typical for investors who are looking to enter into gold and silver investing you do have the larger 400 ounce gold bar formats that are available the industrial sized bars that you may have once seen in a James Bond movie or something like that they are available to purchase as well but they're not so common with general investors on the silver side conversation basically starts at 1 ounce as well you can get into factional ounces but it's very high premium and again more or less giftables here on the table we've got a 1 ounce silver coin produced by the Royal Canadian Mint we've got a 10 ounce silver bar 100 ounce bar and a thousand ounce bar and the important thing to know here there's kind of some general rules to follow when you look at the different size of did you say to myself what is the best size to own first of all and most importantly is the premium and there's general rules to follow when you're talking about premium first general rule is gold products tend to have a lower premium than silver products second rule is that bars tend to have a lower premium than coins the cost to produce per ounce for a 510 ounce or kilo gold bar is going to be lower than the cost to produce per ounce for a 1 ounce gold coin the same holds true for the silver products over here the last thing to remember is as you ramp up in size you're gonna pay less per ounce so the different costs per ounce for this 1 ounce coin versus this thousand ounce silver bar over here is going to be pretty significant for example you might pay 2 dollars and 50 cents / spot for this one ounce product and you might pay as little as 50 cents an ounce / spot for the stazon ounce silver bar do keep in mind this bar right here weighs 70 pounds so if you plan to take delivery at home or move this around yourself you're going to want to take that weight factor into consideration we've also got these junks silver coins over here people always ask me what's inside these bags we've got some junk silver coins they are an option for investors who are looking for fractional silver these are old US currency coins pre 1964 and you can get these at a fairly low premium as well [Music] so I'd like to take a minute to explain what the premium is because some people in that might not be familiar when they're talking about buying precious metal is what the premium is so basically you have the international spot price which you can find again on a website like Kiko comm it's a reference point that a lot of us in the industry use and the cost per ounce for example for this one ounce gold coin above that spot price is considered the premium so the difference between the spot price and the actual total cost of the product the difference is the premium so it's important that you understand that when you're going on buying this stuff and then you can compare the premium for different products and different sizes for gold and silver for coins against bars for example again if we take this one ounce gold coin the premium over the spot price today might be something around 4% and if I then move up to a five ounce gold bar which is just five pure ounces so basically the equivalent of five coins the premium over spot might be something like two and a half percent so just by buying one five ounce gold bar versus five one ounce coins I've saved one and a half percent premium for that for that same investment purchase now we talked a little bit about silver being higher on the premiums when you're buying silver one ounce coins it can get pretty pricey I'm not saying that you shouldn't consider them there are arguments to be made for owning them but you might pay anywhere from ten to twenty percent premium over the spot price but the good news is is you ramp up into these larger sizes either hundred ounce silver bars or thousand ounce silver bars you can get that premium down to as low as about three or four percent over spot [Music] now something that comes up often that I'd like to address is that there's a misconception out there that borrowers are less liquid than coins so just let me clarify people tend to believe that it's easier to sell a coin or to liquidate a coin when it comes time to sell off their investment as a precious metal dealer I have a little bit of an issue with that and I'd like to take the time to talk about it because I think it's important that people understand that it's equally easy to sell a bar than it is a coin so you shouldn't be pushed into a corner into thinking I have to buy these coins that might be at a slightly higher premium than the bars the truth is if you're dealing with any reputable precious metal dealer they will make a bid on your bars as well and they should make a competitive bid somewhere around the spot price the difference is is that you might pay a little bit higher premium when you purchase the coins and you can also expect to get a little bit more when you sell them but the idea that it's actually difficult to sell these bars isn't correct the only time that you might run into a little bit of a challenge liquidating bars is with these large thousand ounce industrial bars because the buyer may want to refine the bar before they purchase it if the bar has been outside what we call the chain of integrity or you cannot prove the history of that bar I hope that you enjoyed today's episode and then we were able to demystify some of those common questions that you may have had about bars and coins these things might seem simple but they're really important when it comes time to buying precious metals I'm marki actually for swp join us again for the next episode of inside the vault [Music]

Channel: Strategic Wealth Preservation - SWP

Views: 2,590,660

Rating: 4.8912773 out of 5

Keywords: Offshore Storage, precious metals, metal, SWP, Strategic Wealth Preservation, gold, gold bars, gold coins, bullion, bars, management, finance, silver, silver coins, silver bullion, gold bullion, palladium, platinum, secure, invest, investment, vault, cold storage, offshore, Cayman Islands, Grand Cayman, gold stacking, silver stacking, deposit, safe, security, deposit box, segregated, travelling with gold, travelling with silver, storing gold, storing silver, collecting coins, offshore storage

Id: jBVTjToFpDY

Length: 10min 19sec (619 seconds)

Published: Wed Jul 24 2019

Reddit Comments

[u/cestmarco]

My first purchase of both gold and silver were bars as they costs less. The once ounce bars often come in separate packages that take up a lot of room. So you need a bigger safe deposit box or bigger hole in your backyard.

[u/JasperSigna]

Wow I wish I could get silver coins for $2.5 over spot! Those days seem long gone. Another ape shared a video last night where today even the 1000 oz bars, if you could find them, were trading $3 over spot.

[u/CryptoSmith86]

Good advice here. I stacked maples after watching. Less premium then ASE but buyback price not much different

[u/1GIJosie]

Omg. I need a 1,000oz bar. Maybe GME or AMC will get me enough tendies.

[u/adriano_silver]

Very good primer - thanks for sharing

[u/GreenStretch]

PMs on a Caribbean cruise? The ultimate boating accident.