Exchange Silver for Gold? My Silver Dealer tells all!

a lot of people think they can literally walk in hand over the silver to you and you're just going to give them the appropriate ratio of gold back is is that how it works well it does work that way okay except that's not how we do it hey everyone thank you so much for watching yankee stacking so you're interested in playing that gold to silver ratio with your silver well you came to the right place because you're going to hear from tim marshner my local coin shop dealer on the subject but before i do could i please have you hit that thumbs up for this video it would really help the video get recommended to others i would really appreciate it all right tim i have a question for you and this one is pretty popular in our stacking community a lot of people that are buying silver hoping to exchange it to gold they play the you know gold to silver ratio right and that ratio you know what i'm talking about um and and i've kind of warned them uh that there can be some issues with that um you know i thought about uh you know the the markup that may occur or what a dealer has to charge if you're running a business and you have to pay the bills by selling gold and silver you have to treat everything as a separate transaction and the simple reason is everything i buy i have to put into inventory at that price okay as if it's cash everything has a cash price that's what i put it in to inventory as i don't go into inventory and manipulate it because the price goes up so i don't reprice my inventory it's always in that cost so everything i buy put into inventory cost everything i sell i take out of inventory at the same cost that i put it into inventory so it's it's always two transactions if i bought it 10 years ago it's still in inventory at that price okay okay and then everything i sell i have to remove from inventory at that price i wonder if the all dealers do it that way wouldn't they look at this exchange as a way you know to make some extra seen some coin dealers who estimate everything i don't know how they ever do the taxes out because if they ever get audited they have no information they said well i'm not sure what it was but that's what i think it was you know everything i have is on paper that's why i've got stacks of paper everywhere coincidentally and it's only coincidental it does work out close to whatever the ratio is and with gold eagles and silver eagles it's very easy and it's very close to the ratio because we pay more for the silver eagles and we pay more for the gold eagles so we charge more for the silver eagles and we charge more for the gold eagle so if i brought in silver britannias and i wanted eagles gold eagles it wouldn't be as close to that ratio right no it probably wouldn't be but if you know we do pay more than spot for everything it doesn't matter if it's gold or silver um so it's not far off the ratio okay i've always had the expectation that there'd be something lost in the exchange because i'm selling you my silver one transaction then i'm buying the gold second transaction there's no way if you're going to stay in business there's no way it's going to be a pure ratio on on paper spot right coincidentally we've done that trent that exact transaction uh three times in the last week and one time it was um actually two times they were bringing in silver eagles not all 2021s they're all back dates one time it worked out the ratio was around 67 and the cost of the gold was 65 eagles so that's not far off the ratio so depending on condition and what type it could be very close to the ratio yes and you know if i'm paying less for something for a reason whatever the reason is as an example if it's not eagles it's going to be art bars you know that we end up scrapping um it's nowhere near the ratio okay so when it comes to government minted silver bullion silver eagles gold eagles am i going to lose something in that to those two transactions well uh probably because when i buy something i'm buying it with an idea of making a profit when i go to sell that item and the prospects are pretty slim you know since i know they're incredible i raised the price today of 41 because they cost me almost 40. and but that's the last batch you know when when i asked the wholesaler i said i'm going to come down and pick up 200 eagles and so i get there and he he says well i have your hundred eagles and i said i ordered 200 he said yeah i have your hundred eagles and i'm looking at the monster box which is open and there are five rolls in the master box and that's the last monster box that i saw there uh so i said well i guess i'll take the hundred eagles so he puts them on the counter so my first concern about potentially losing something in the transaction playing the gsr going from silver to gold is uh i think i'm right it depends on the market it also depends on what the wholesale market looks like i'm concerned tim that when it comes time after a major collapse reset whatever you want to call it um to exchange my silver that i have for gold it may be unattainable titanium right that's that's what gold is made of of obtaining that's my concern people are gonna flood in with a pile of silver saying where's the gold and it may not be there well there are a couple of facts and you know we all rely on the paper market to get our prices um the paper market um price for gold is out of the control of the wakes down on wall street uh because gold is as we i've been saying for years a barter currency between nations and silver is a biocurrency between individuals silver is pretty easy to control and we saw that when it was an effort to force the price up over thirty dollars an ounce and what the comex did was just you know widen the spread um want to cash out of the paper market you get what they're going to give you they're not getting any more than that on the other hand if um gold drops below 1800 they're about five nations out there that start buying it some of those nations can't afford to buy it but to buy it anyway and i you know that those you know the five big nations that we know about i mean it's you know if so if gold drops below a certain point there are probably 25 or 30 nations that start buying it that means it's out of the control of the paper market so my fear might be warranted in a worst-case scenario where if somebody is playing or trying to play that gsr and waits too long and brings in their silver there may not be gold to get that's true that's always true right now i mean why are people paying 200 over the spot price for a gold eagle because there's hardly any inventory around that is tim martiner's take on playing the gold to silver ratio with physical precious metals for me while i like to buy my silver and gold for specific purposes i like to buy my silver for barter potential speculative upside and as a wealth preservation asset those are the key reasons why i do it and i really don't trade between the two i know some of you do but i want to make sure that i don't lose anything in the transaction and that i have the gold when i need it let me know what your thoughts are in the comments below don't forget to hit the like subscribe ring that bell as always i hope your day is a-okay [Music]

Channel: Yankee Stacking

Views: 71,713

Rating: 4.9475784 out of 5

Keywords: silver, gold, silver for gold, silver dealer, coin shop, GSR, silver ratio, exchange silver for gold, spot price, silver spot, trade silver, buy silver, unobtainium, hedge, debt, currency, economy, wealth, stacking silver, stacking gold, precious metals, junk silver, bullion, stack silver, stack gold, silver bullion, silver stacking, silver coins, silver eagles, gold coins, gold bullion, gold stacking, invest, investing, investing in silver, how to invest, how to invest in silver

Id: hHxsl3593NQ

Length: 9min 3sec (543 seconds)

Published: Mon May 24 2021

Reddit Comments

[u/Bulky-strenght9524]

No way! Not at 68-1 ratio! I'll wait till it gets to 20-1

[u/GioDeano]

Yeah, nothing is guaranteed. If you want silver buy silver, if you want gold, buy gold but make NO assumptions of future easy exchanges.

[u/This-Sand2506]

Week ago changed 5 ozs Au for 290 ozs Ag in small bars

[u/Mothersilverape]

NO!

[u/AutonomousAutomaton_]

Another reason to buy ASE