That refers to government assigned denomination or what they will be worth as a medium of exchange for goods and services, not the intrinsic worth of the metal in the coin.
Most of us silver stackers are so because we aren't baller enough to afford gold regularly and are too impatient to diligently save up for gold and only buy 3-4 times a year instead of weekly or monthly.
E R I K I hear that buddy. I stack mostly silver but I do get 1 gram bars and 1/10 eagles and maples just to add some gold to the stack. I definitely can afford to.go buy a 1 ounce gold coin.
E R I K VERY TRUE!!...I CAN PICK UP 40ozOF SILVER EVERYMONTH....BUT FOR 1ozOF GOLD IT WOULD TAKE ME 2 MONTHS OF MY SAVINGS....AND SOME MONTHS I CAN'T EVEN PICK 40 OZ OF SILVER....SOME MONTHS I PICK UP ONLY 20ozOF SILVER....BUT I AT LEAST GET IT EVERYMONTH....LOL...
This was my instinctive guess as well. I felt like people are just mad they can’t afford gold and so start making countless excuses as to why the metal they can afford to buy is better
Finally an auditor approach to a more accurate ratio. Carry your efforts another level and factor the Roth IRA inclusion opportunities and potential SIGNIFICANT TAX BENEFITS
E R I K is “spot” on. Gold purchases take a lot of discipline and patience. And you have to be willing to have a “denser” stack that doesn’t translate as well on CZcams as a massive spread of PMs. 😏 However, both gold and silver should be stacked. And no less than a 1/4 ozt of gold to minimize premiums, and no silver fraction rounds (use junk) to minimize those premiums. My opinion anyway. 👌🏼👌🏼
If you think the ratio is never going to change, buy gold. But if you think it will go to say 65 to 1, buy silver. Basically convert at the ratio premiums are offset. I'll drop a link to a video you may find informative.
Link on converting. I have another one too but this one sums it up fairly well. It's why most silver stackers stack silver vs gold....not to mention the affordability of it. czcams.com/video/nBYIHjZNGx0/video.html
Fantastic math my friend! I you are very correct on the ratio being inflated but usually peoples buying reflects two things. First their budget and second their design likes. I think most buy silver to get all the designs they like and keep the investment interesting withoit breaking their budgets. Thanks for sharing buddy!!
@@hibye9661 I enjoy how you say no at the start if ypur retort, however the two things ypu site play into a persons budget. I have 1000 dollars and can invest in gold or silver. Silver is held down and has a string use in commercial affairs. This means I get more silver at a lower cost than gold and am banking on a higher spot pruce in the future. The two items you mention are true but to say that budget is not a key reason for purchase is simply incorrect. Do appreciate the retort though.
@@dwingsworld2581 i definitely dont disagree that budget isnt a key reason why someone would choose silver over gold. I just strongly disagree that most people would prioritize budget and design playing into the decision over the potential financial gain.
@@hibye9661 neither one of us is disagreeing with those points and my comment was specifically about the buying of gold and the subject of this vid. Qualifying people as stackers means that they were going to buy one of the metals no matter what anyway. My comment is a reflection of after those decisions have been made. In relation to gold, no matter the current ratio, there are two types of stackers. Ones that dont stack it and those that do is what I am saying. If someone can afford to buy gold normally they just buy what they want either way. For most stackers (the other side of that coin) usually they take into account their budget and that does not allow for much gold to be bought at once. This is why a lot of stackers flip silver to gold after a period of time. I am saying usually when this is the case then these people are budget and design driven. This means that rhey qpild like more gold, however silver is cheaper and will allow them to get to a point where they can have more. They buy what they can afford and will biy designs they believe to be popular in the future because in order to get a good return it makes sense to buy what people like. Perhaps I shpuld have clarified more in my initial comment but in my head we were past people deciding to stack and reasoning. I was at I am a stacker, I have this much cash, would stack both but one is a little put of reach, I will go with silver cause its more realistic, if it goes up great and if it doesnt I can turn it into gold after a period of time. Hope that cleared up our different thought process. Appreciate the reply and I did qualify this with usually so that just means a good number of stackers.
Above ground gold is about six times as plentiful as it was in 1980, yet today it is nominally priced about 150% of its 1980 peak. Due to industrial demand, above ground silver is about one sixth as plentiful as it was in 1980, yet today it is nominally priced at about 30% of its 1980 peak. Disregarding the market fundamentals, as a precious metal nominally silver should be five times higher priced. Taking into consideration the supply and demand, I expect that $100 per gram silver is in our future. Hopefully without any dollar hyperinflation, that is in today's dollars, $100 per gram of silver seems about right. No more 10 ounce bars for me. Even selling an America the Beautiful to a LCS would be a taxable event. 😠
The premiums are why I prefer mining stocks rather than physical metals. I’m tired of paying so much extra for something that doesn’t pay me to keep it. Don’t bother with the 1/10 oz gold, go for the full oz so you don’t get killed with premiums.
What miners pay dividends? Also in a worst case scenario, brokers and banks shut down and you will never see your money again. If you don't own the physical, you don't own it
I like the concept of the video. However, I feel like most people know APMEX is not a great place to buy silver, at all. They always have the highest premiums. Ebay (if there is at least an 8% Ebay bucks deal), bullionexchanges and PMSforsale are the best places to buy right now, especially junk
While nothing you said is untrue, your conclusion or at least, implication, is wrong. Silver is almost always more volatile than gold. It drops fast and rises faster, virtually always. So...gold is better to hold in a bearish market, and silver is better in a bull market. The fact is that when it is a strong bull market, silver can double, triple or quadruple in a short amount of time, and gold's gains, as a percentage are always going to be far less. Historically gold and silver have been at a 16:1 ratio, even just looking at recent decades 30 or 40 to 1 is very common. If you look at the historical charts, it is rare for the ratio to be above 80 to 1, and even with the premium losses that you describe - the smart long term money is in silver over gold. No problem having some of both, of course. But I'd be heavily weighted towards silver.
One thing that complicates the silver price is the fact that it is often a byproduct of copper mining. The copper itself subsidizes pulling cheap silver out of the ground. So, even when the silver price contracts to the point that a conventional silver-only mine would go out of business, silver can be dumped on the market at extraordinarily cheap prices. This is not the case with gold. I believe this adds hazard and complication for those investors who aim to achieve a store of value in uncertain times. The gold / silver ratio may never face a serious correction. Combine this with the fact that industrial demand contraction during economic downturns tends to cause a reduction in silver price and allows silver to fall when you need a store of value the most. For these reasons, and the hefty premiums that silver carries, I have avoided silver for the most part and focused on gold as a safer alternative.
So even when you add premiums silver is still under valued just another reason to keep stacking silver this is a moment in history that will never be available again take advantage
So good to see you back dude, hope you're doing well! Wish I could afford to stack either right now, but this is definitely good food for thought. I also wish generics were a thing in Europe. They seem to have great scalability. Even bars are stupidly priced here. Nice intro by the way, look forward to your next vid, don't make us wait so long again!
It's not just the ratio I look at, but also purchasing power of silver vs. gold and what it can buy you over time. Considering this, Silver is actually under priced, and Gold is overpriced. I'm only stacking Silver.
Great video but dependant upon online purchases or this is what you laid out for Us? This does not reflect the LCS in which I have a long relationship with and will do a 81-1 trade either way! I now this a rare case but is a scenario for more than just me im sure?! Preesh
SilverHustlin13 yea this is for online. That’s awesome you have a good relationship with your LCS, my old LCS was similar to yours. Most people, however, are closet metal shoppers who use online for convenience and anonymity - this video more likely reflects their experiences
@@dobson777a who doesn't know the us mint? Rounds look like anyone can make them. If fiat just collapsed and im selling food and have no clue about silver, i will take the eagles instead of some sketchy looking rounds
@@ve2430 did you not read my response? I said to buy eagles (which are made by the US Mint). I also said that individuals should be wary of buying rounds from other mints. I did not say US Mint.
dobson777a That's the problem nowadays with everyone trying to beat the system adding a much higher cost to an coin cause it was made at a certain area, if you thinking the silver in no name brand and American are different? Both are made of the same base metal..when it comes down to shtf both will be the same in value with testing to ensure both are the real deal beware there also a lot of fake silver eagles coins being sold never never buy any coin until a test of the item is done in your present get in writing from them that what they're selling you is good and let them know before you buy that you will also do a test on coins you receive, if they comply with your request then buy if not it's a red flag find someone else to do business.
Gold is better. AT least in europe. we have to pay VAT tax (~21%) on industrial metals. Gold have 0% vat. Also banks more holds gold not silver, and i think people should follow banksters. Also all wars was because of gold. SIlver is nice but gold will always be top notch money.
Excellent video. The way I look at it is that you pay extra premium for easier liquidation.
I like the math. Do you know why the Gold Eagle 1oz says $50 and the Silver Eagle 1oz says $1. Maybe a conspiracy 50:1 ratio?
That refers to government assigned denomination or what they will be worth as a medium of exchange for goods and services, not the intrinsic worth of the metal in the coin.
GREAT video, outlining reality, some refuse to exist in lol
Great Video. I appreciate your analysis. New Sub here!
Very good information. Thanks for sharing. Keep on stacking!
After watching this I've decided to focus on gold in 2019, thanks for the insight!
Is that what he's saying?
Ive been more focused on gold over silver, although, im still stacking silver.
Simple but effective lesson on how the paper market is controlling the physical metal price...most excellently said by u
Most of us silver stackers are so because we aren't baller enough to afford gold regularly and are too impatient to diligently save up for gold and only buy 3-4 times a year instead of weekly or monthly.
Don't let people hear you making sense with your $
E R I K I hear that buddy. I stack mostly silver but I do get 1 gram bars and 1/10 eagles and maples just to add some gold to the stack. I definitely can afford to.go buy a 1 ounce gold coin.
E R I K VERY TRUE!!...I CAN PICK UP 40ozOF SILVER EVERYMONTH....BUT FOR 1ozOF GOLD IT WOULD TAKE ME 2 MONTHS OF MY SAVINGS....AND SOME MONTHS I CAN'T EVEN PICK 40 OZ OF SILVER....SOME MONTHS I PICK UP ONLY 20ozOF SILVER....BUT I AT LEAST GET IT EVERYMONTH....LOL...
This was my instinctive guess as well. I felt like people are just mad they can’t afford gold and so start making countless excuses as to why the metal they can afford to buy is better
What’s your thoughts then on Buying mint set gold coins vs circulated gold coins?
Finally an auditor approach to a more accurate ratio. Carry your efforts another level and factor the Roth IRA inclusion opportunities and potential SIGNIFICANT TAX BENEFITS
Valid point about silver being more weighed down by premiums, but i still that using silve to buy gold when the ratio tightens up is a good stratagy
Only into 1:19 to your video I'm new here and subbed, your doing good
Fantastic video thanks!!! 👍👍👍👍
E R I K is “spot” on. Gold purchases take a lot of discipline and patience. And you have to be willing to have a “denser” stack that doesn’t translate as well on CZcams as a massive spread of PMs. 😏 However, both gold and silver should be stacked. And no less than a 1/4 ozt of gold to minimize premiums, and no silver fraction rounds (use junk) to minimize those premiums. My opinion anyway. 👌🏼👌🏼
That's a really good point. I never looked at it that way before. Thanks.
If you think the ratio is never going to change, buy gold. But if you think it will go to say 65 to 1, buy silver. Basically convert at the ratio premiums are offset.
I'll drop a link to a video you may find informative.
Link on converting. I have another one too but this one sums it up fairly well. It's why most silver stackers stack silver vs gold....not to mention the affordability of it.
czcams.com/video/nBYIHjZNGx0/video.html
Fantastic math my friend! I you are very correct on the ratio being inflated but usually peoples buying reflects two things. First their budget and second their design likes. I think most buy silver to get all the designs they like and keep the investment interesting withoit breaking their budgets. Thanks for sharing buddy!!
No most buy silver because its stupidly manipulated and its industrial use
@@hibye9661 I enjoy how you say no at the start if ypur retort, however the two things ypu site play into a persons budget. I have 1000 dollars and can invest in gold or silver. Silver is held down and has a string use in commercial affairs. This means I get more silver at a lower cost than gold and am banking on a higher spot pruce in the future. The two items you mention are true but to say that budget is not a key reason for purchase is simply incorrect. Do appreciate the retort though.
@@dwingsworld2581 i definitely dont disagree that budget isnt a key reason why someone would choose silver over gold. I just strongly disagree that most people would prioritize budget and design playing into the decision over the potential financial gain.
The key words there are "most people"
@@hibye9661 neither one of us is disagreeing with those points and my comment was specifically about the buying of gold and the subject of this vid.
Qualifying people as stackers means that they were going to buy one of the metals no matter what anyway. My comment is a reflection of after those decisions have been made.
In relation to gold, no matter the current ratio, there are two types of stackers. Ones that dont stack it and those that do is what I am saying. If someone can afford to buy gold normally they just buy what they want either way. For most stackers (the other side of that coin) usually they take into account their budget and that does not allow for much gold to be bought at once. This is why a lot of stackers flip silver to gold after a period of time. I am saying usually when this is the case then these people are budget and design driven. This means that rhey qpild like more gold, however silver is cheaper and will allow them to get to a point where they can have more. They buy what they can afford and will biy designs they believe to be popular in the future because in order to get a good return it makes sense to buy what people like.
Perhaps I shpuld have clarified more in my initial comment but in my head we were past people deciding to stack and reasoning. I was at I am a stacker, I have this much cash, would stack both but one is a little put of reach, I will go with silver cause its more realistic, if it goes up great and if it doesnt I can turn it into gold after a period of time. Hope that cleared up our different thought process. Appreciate the reply and I did qualify this with usually so that just means a good number of stackers.
Solid vid! I always enjoy your posts.
Above ground gold is about six times as plentiful as it was in 1980, yet today it is nominally priced about 150% of its 1980 peak. Due to industrial demand, above ground silver is about one sixth as plentiful as it was in 1980, yet today it is nominally priced at about 30% of its 1980 peak.
Disregarding the market fundamentals, as a precious metal nominally silver should be five times higher priced.
Taking into consideration the supply and demand, I expect that $100 per gram silver is in our future.
Hopefully without any dollar hyperinflation, that is in today's dollars, $100 per gram of silver seems about right.
No more 10 ounce bars for me. Even selling an America the Beautiful to a LCS would be a taxable event. 😠
BTW, in that last part which answered my objections you stated that the silver was $1 more.
Was that per ounce, or for the whole transaction?
The premiums are why I prefer mining stocks rather than physical metals. I’m tired of paying so much extra for something that doesn’t pay me to keep it. Don’t bother with the 1/10 oz gold, go for the full oz so you don’t get killed with premiums.
What miners pay dividends? Also in a worst case scenario, brokers and banks shut down and you will never see your money again. If you don't own the physical, you don't own it
GOOOLDD! PERIOD!
Great information and very thoughtful!
I like the concept of the video. However, I feel like most people know APMEX is not a great place to buy silver, at all. They always have the highest premiums. Ebay (if there is at least an 8% Ebay bucks deal), bullionexchanges and PMSforsale are the best places to buy right now, especially junk
While nothing you said is untrue, your conclusion or at least, implication, is wrong. Silver is almost always more volatile than gold. It drops fast and rises faster, virtually always. So...gold is better to hold in a bearish market, and silver is better in a bull market. The fact is that when it is a strong bull market, silver can double, triple or quadruple in a short amount of time, and gold's gains, as a percentage are always going to be far less. Historically gold and silver have been at a 16:1 ratio, even just looking at recent decades 30 or 40 to 1 is very common. If you look at the historical charts, it is rare for the ratio to be above 80 to 1, and even with the premium losses that you describe - the smart long term money is in silver over gold. No problem having some of both, of course. But I'd be heavily weighted towards silver.
I buy 50/50 gold silver. And primarily buy amarican eagles.
One thing that complicates the silver price is the fact that it is often a byproduct of copper mining. The copper itself subsidizes pulling cheap silver out of the ground. So, even when the silver price contracts to the point that a conventional silver-only mine would go out of business, silver can be dumped on the market at extraordinarily cheap prices. This is not the case with gold. I believe this adds hazard and complication for those investors who aim to achieve a store of value in uncertain times. The gold / silver ratio may never face a serious correction. Combine this with the fact that industrial demand contraction during economic downturns tends to cause a reduction in silver price and allows silver to fall when you need a store of value the most. For these reasons, and the hefty premiums that silver carries, I have avoided silver for the most part and focused on gold as a safer alternative.
👍
So even when you add premiums silver is still under valued just another reason to keep stacking silver this is a moment in history that will never be available again take advantage
So good to see you back dude, hope you're doing well!
Wish I could afford to stack either right now, but this is definitely good food for thought.
I also wish generics were a thing in Europe. They seem to have great scalability. Even bars are stupidly priced here.
Nice intro by the way, look forward to your next vid, don't make us wait so long again!
(Just realised CZcams notifications made me miss a couple of vids, ignore that.)
Excellent analysis. Good to see you back!
Now, that's power thinking !
One of your best vid
Fat fingers sorry. One of your best videos ever. Knowledge is power. Thanks💰💰💰
It's not just the ratio I look at, but also purchasing power of silver vs. gold and what it can buy you over time. Considering this, Silver is actually under priced, and Gold is overpriced. I'm only stacking Silver.
Great explanation! Thanks for sharing 😁
Great video but dependant upon online purchases or this is what you laid out for Us? This does not reflect the LCS in which I have a long relationship with and will do a 81-1 trade either way! I now this a rare case but is a scenario for more than just me im sure?! Preesh
SilverHustlin13 yea this is for online. That’s awesome you have a good relationship with your LCS, my old LCS was similar to yours. Most people, however, are closet metal shoppers who use online for convenience and anonymity - this video more likely reflects their experiences
Its a big scam by sellers and buyers that been going for thousands of years, With silver eagle being the biggest RIP off on the markets today....
Good to have some anyway. Sheep will take it if fiat collapses as it looks legit and made by US treasury mint
Actually you would be smart to buy eagles as they are the most widely recognized coins. Try to sell rounds when no one recognizes the mint.
@@dobson777a who doesn't know the us mint? Rounds look like anyone can make them. If fiat just collapsed and im selling food and have no clue about silver, i will take the eagles instead of some sketchy looking rounds
@@ve2430 did you not read my response? I said to buy eagles (which are made by the US Mint). I also said that individuals should be wary of buying rounds from other mints. I did not say US Mint.
dobson777a That's the problem nowadays with everyone trying to beat the system adding a much higher cost to an coin cause it was made at a certain area, if you thinking the silver in no name brand and American are different? Both are made of the same base metal..when it comes down to shtf both will be the same in value with testing to ensure both are the real deal beware there also a lot of fake silver eagles coins being sold never never buy any coin until a test of the item is done in your present get in writing from them that what they're selling you is good and let them know before you buy that you will also do a test on coins you receive, if they comply with your request then buy if not it's a red flag find someone else to do business.
What up...interesting vid...I’ve done a few videos check em out
Kendall Kidd you’ve got my sub, good to see you buddy 🤠
Silver Future thx bro
Gold is better. AT least in europe. we have to pay VAT tax (~21%) on industrial metals. Gold have 0% vat. Also banks more holds gold not silver, and i think people should follow banksters. Also all wars was because of gold. SIlver is nice but gold will always be top notch money.
Buy a new metal for once!
We get two once of silver, to buy a half of gold!