Ep.2 Season 1 - Gold vs Silver - Expert Advice on Gold and Silver Bars and Coins

this right here is over a hundred and twenty thousand dollars worth of silver and this is the equivalent in gold you might have already guessed today we're talking silver versus gold our clients often ask us which one should I own which is better I'm going to be sharing my answers to those questions in today's episode of inside the vault [Applause] [Music] [Music] to get started let's take a closer look at each metal gold on one hand has fewer and fewer industrial applications compared to silver which has a growing number of industrial applications including medicinal solar panels electronics even those lulu pants that you love to wear to your yoga class they've got silver in them for its antibacterial properties gold on the other hand is primarily used for investment purposes purchases from central banks ETFs or investors like you and me there's also a strong jewelry market that still exists but there's fewer and fewer other industrial applications for the yellow metal now I'm going to show you a few different product options that are available for gold and silver we're gonna pull out a few coins and bars we're gonna walk through each so you get a good idea of what's available for you on the market so I'm gonna move these forward for a second we're gonna start with gold tends to be everybody's favorite alright first up is a one ounce gold coin this is the size and/or denomination of gold coin that's most commonly purchased by precious metal investors it's also fairly easy to recognize the value of this coin because when you go online and look at the spot price of gold it's always referring to one ounce another common product that you're going to see purchased by precious metal investors are bars right here we have a Royal Canadian Mint five ounce bars so the size of this bar those five troy ounces is the equivalent of five of these coins next up you've got a pamp suisse ten ounce bar so you've noticed already that we've got different producers of products we had a few royal canadian mint products now we've got a PEM Swiss bart's produced in Switzerland imported into the North American market again it's the equivalent of two of these five ounce bars or ten of the 1 ounce products if you were to purchase one of these the premium is going to be a little bit lower than the smaller products that we already looked at and we've got a kilo gold bar a lot of our clients prefer kilo gold bars they get a good premium when they're purchasing them you see it's still quite light and easy to transport if you're shipping it or carrying it internationally versus some of the larger silver products that you're gonna see in a second so that's one of the things you're going to want to consider we saw earlier that the comparison between gold and silver silver is much larger it's a bigger volume product so that when you're shipping it or carrying it now it can get a little bit tedious but the conversation for silver still starts at or around the same point as gold you've got a 1 ounce silver maple leaf coin these two coins actually contain the same amount of precious metals but you'll notice the silver coins a little bit bigger because it's less dense than gold --is it also has a much lower price point whereas this 1 ounce gold coin would be somewhere around $1,300 today this 1 ounce silver coin is only gonna cost you about $18.00 u.s. so it could be a good starting point for someone who's just getting into precious metals even young people we'd love to see that 18-year olds getting in buying precious metals we think it's great next up quite common you got a 10 ounce silver bar this one is produced by Texas precious metals one of our favorite dealers out there and you know again it's the equivalent of ten of these coins so you're ramping up in the volume that you're buying you're getting a slightly lower premium still really easy to transport and get around next up I've got the hundred ounce RCM bar very popular with investors who are buying a little bit more precious metals that want to reduce their premiums they don't necessarily need the convenience of these smaller denominations they're looking really a metal from an investment perspective this is a product that we sell quite a bit of we're quite fond of it produced by the Royal Canadian Mint you can see it's quite attractive and in cemented form but again it starts getting heavy this is 7 pound bar so if you're gonna be storing these things at home give some thought to that and last up I got to make a little extra room I'm just showing you a thousand ounce silver bar these are industrial sized bars this bar weighs 70 pounds it feels like 120 very heavy not for everyone typically these are purchased and stored inside of vaults like this one they're used for industrial applications so if you own a solar panel company for example and you needed to buy silver in bulk to produce your solar panels you might go it in the market and buy a few of these and then melt them down to the specifications that you require but that being said investors can also purchase them again it's a question of premium it's gonna be a slightly lower premium than some of the other denominations of silver that we saw just in case you're wondering you can also buy the equivalent of these one ounce coins in one ounce gold bar formats or one inch silver bar formats they are available as well you can get smaller denominations all the way down to one gram which you can give as gifts or what'm presents things like that taking into consideration everything that we've already talked about you might be wondering now is what is the preferable mix should I own both gold and silver and if so what percentage of each should I own and in what form let me give you a few insights I always think it's a good idea to diversify amongst the precious metals so only committing to either gold or silver might not be in your best interest because each metal can outperform the other during certain market conditions one way to make sure that you benefit from each of those possibilities is to actually own a percentage of both so the question becomes how much of each you can go with a more traditional safe bet of a 50/50 split but what we see a lot of our clients doing is being a little bit heavier on the gold side they might commit sixty or seventy percent of their investment to gold and the balance to silver what I personally recommend is that you also consider the platinum group metals you could add some platinum some palladium or some rhodium to the mix as little as five or 10% and that's going to give you some additional diversification amongst your precious metals portfolio one thing to keep in mind when you're trying to make a decision between gold and silver or ultimately creating your bundle that includes both is what are the premiums above the spot price am I gonna pay for these precious metals it's important that you do know that gold typically has a lower premium sometimes significantly lower premium then it's silver cousin for example these kilo gold bars here that we have on the table will have a premium of anywhere between one to two percent over the spot price whereas these hundred ounce silver bars over here will have a premium of anywhere between three to five percent so if you're trying to accumulate this amount of silver or this amount of gold aside from the volume difference the actual cost you above the spot price is going to be significantly higher for the silver and it's important that you understand that so let's use this as an example if you had $10,000 to invest in precious metals how would you spend that money what I might recommend is if it was going to be the only $10,000 that you ever wanted to put towards precious metals that you definitely buy both products in that purchase you might buy $5,000 worth of gold and $5,000 worth of silver or 60/40 or 70/30 depending on whatever your personal preference might be or what's recommended to you by your precious metals dealer but if you intend to have subsequent purchases what you could do is use that whole $10,000 to buy gold and with your subsequent purchases buy some silver that way with the whole ten thousand dollars you can buy larger denomination products driving your premium down a little bit and the same would hold true when you buy your silver subsequently you could put all of that subsequent money towards one product and drive down the premiums again when we take a look at the actual volume remember we've got a hundred and twenty thousand dollars with silver here and we've got a hundred and twenty thousand dollars worth of gold here so the question becomes when shipping or storing precious metals is it more expensive to ship or store silver versus gold and the question the obvious answer is yes it is because of the volume because of the sheer weight of this silver if I wanted to ship it somewhere else in the world or store it inside of a vault like this I'm gonna end up paying a little bit more than for the gold so something else to consider especially if you're looking at long-term storage you're gonna save a few points along the way if you tend to lean towards gold to wrap it up it's actually not a question of one metal being better than the other they actually complement each other we recommend that you diversify amongst the metals I'm sure you still have a lot of questions about which way to go with your precious metals investment feel free to email us or tweet me until then I look forward to seeing you for the next episode of inside the ball [Music]

Channel: Strategic Wealth Preservation - SWP

Views: 751,136

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: 7OQ7d599Sv4

Length: 9min 47sec (587 seconds)

Published: Thu Jul 25 2019