I agree with you on the lower premiums for larger coins and I agree with your get the most for less philosophy, but with that being said not every one can afford to buy 1 oz gold and 10ths and 1/4s are very liquid and that premium (all though less) does stay with the fractional sizes when you go to sell. They are not hard to move when you need to, and in my opinion I believe its important to include fractional gold in your stack. I would not say the same for silver though. I think fractional silver is a complete waste of money unless we are talking about junk silver. Just my opinion
@@DrSchorhis logic is that he doesn't have the will power to save money until he can buy an ounce. So you buy fractional gold before you waste the money on something else because it's sitting in your account.
I started stacking 1/10 gold after I became wealthy because it doesn't matter about premiums, and I don't need to sell a whole oz. A lot of buyers shouldn't be buying metals because they are still struggling with their finances.
Your rational is 100% on. The problem is some people (including me as a youngin) can’t save. For those, I would say it’s better to buy a 1/4oz than try to keep that money in an account when you know full well it will get spent elsewhere before you save up enough for a full oz.
I could argue that through your diligence, you actually did it the RIGHT way. Not only do you finally have that ounce, you also have the pieces of fractional adding further weight to your collection
As a stacker I believe you should have the 1/10, 1/4 and 1/2 ounce coins in case you need some fast cash. I cannot save cash for the life of me so I started stacking to have as a savings account that is hard to buy anything from. When things happen, you can sell that fractional gold instead of a full ounce then buy that same fractional gold later that same year.
Many of us stack so we have portable wealth in case something happens. And I'm not talking about a full apocalypse. If your house burns down and your wallet with your bank card and/or credit cards just happened to be in it, but you have a few grams of gold in your keychain container, you can go to many coin shops or banks (at least here in Canada) and have cash pretty quick.
I started to put money in a gold ETF regularly. And when I have saved enough, I sell some shares, visit a coin show and buy a 1oz gold piece. Making sure buying and selling the ETF is free of transaction fees and it has a low expense ratio. With this I have more gold exposure and I save a lot on premiums.
Way too much work and risk, imo--the minute the stock market is involved. As other commenters said, the premiums stay with the fractional piece when you sell--as long as you stay away from numismatics (collector) coins. Besides, you can't hold an ETF in your hand and watch it sparkle.
Here in UK our sovereigns tend to have the same premium as the 1oz Britannia, granted it still doesn't add up perfectly as they're 1.8g shy of an ounce with 4 full sovereigns (finne weight) but as they're so liquid and affordable it's hard not to trust in them here especially if you can snag a shield back
Was it a mistake or part of the learning process? There are valid reasons to get smaller fractional gold in spite of the premiums, but if you're looking to maximize your gold purchase buying one ounce is almost always better. Thanks!
When you think back to buying those early 1/10oz. gold coins if you hadn't bought those & gotten the gold 'buying bug' would you even be buying any gold now & would you even have a stack, no matter the size? I didn't buy a Rolex for my first wristwatch but the inexpensive watches I purchased when I was younger made me a watch enthusiast/collector so that over time I worked up to purchasing that Rolex. Sure, I've sold a few & traded a few but I still have & enjoy my watch collection & it all started with that affordable Timex/Citizen/Bulova/Seiko.
Bro, these prices are way too high. I bought today 10 june 2023 2g and 5g Metalor bars and I paid 125€ for the 2 gram and 305€ for the 5 gram bars and the cheapest 1 gram they had was a PAMP 1gr for 70€...I bought them from a jewelry store in Wien Mitte The Mall , Vienna.
31.1 grams is correct for the Troy ounce. I've been using 28.4 and dividing that into 2100 for gold and thinking then that would be about $74 per gram---It should be $67---And I foolishly bought over 50 1 gram w/assay cards and loss my tail on it---Live and learn sometimes the hard way.
That can change. Plus, you need to be comparing like to like. Gold Eagles to Silver Eagles, Gold Maples to Silver Maples. Generic gold bars to generic silver bars. Comparing generic Silver to Gold Eagles isn't exactly like to like.
Some may think that the smaller piece will be cheaper because the spot price is lower even with the higher premium you’ll still pay more with the higher spot price. The amount of money spent is the end goal. If you buy just one or two small pieces for sure. I’d rather spend 573 on 1/4 oz than 2000 plus for one ounce. Which one is cheaper out of pocket? Depends on the stacker of course
I bought a couple 1/4 oz rounds other day. I got a kruger and a maple. The premium was 65 for those but if i got a 1/4 oz eagle they were charging 75. I cant believe the premiums alot of folks pay. Ive never paid 2 bucks premium for an oz of silver.
I disagree! The minting-costs for 1 oz are basically the same as for producing 1/10 oz pieces. The fractional coins will probably hold their premiums pretty well. If you believe the gold price will go up significantly than you must ask yourself how many people will still be able to afford 1oz goldcoins in the future: Full ounces could become quite illiquid and impossible to sell over spot at some point in time!
Right now, if I only have enough to invest in either a 1/10 gold maple leaf or the approximate same cash amount in 1 t oz maple leaves - the premiums are almost the same.
Your theory is correct, but it depends on when you purchased the gold coins. If you purchased 30 years ago, it doesn’t matter what premium you paid, you definitely made money.
I don't believe it was a mistake! You'll make your money back sometime in the future when gold will be used for currency and/or bartering! I loved, loved loved this video because I learned something new!!! Thank you soooo much! Will put the money away until I have enough to buy gold again hopefully! We want the price to go up, but then it gets too expensive too buy!👍🙏
OK, so how come you don’t just sell off the fractional and rebuy whole 1 oz pieces? I think that is a good idea to have some fractional in your inventory because nobody can predict the future. And I would rather have some fractional gold at my disposal in the future just in case we are in for reasonable to sell than an entire 1 ounce piece.
When it really matters it won't matter that you paid so much for the fractionals but in the here and now if you think bartering might be in your future then just buy silver. Pre 1965 US coins are even more divisible than the fractional gold, It is much easier to verify authenticity. For the price of a 1/10th oz gold coin today you could get roughly 110 silver dimes, This is much more divisible. Now if you really want fractional gold then you have to learn how to shop. Don't pay full retail, Be a regular at your favorite shop, Get to know the folks that work there and it is likely that you will get hooked up with better deals. The dips are a gift! Grow your stack!
Buying old European fractional circulated gold coins (90% or 91.67%) is way cheaper than those modern Britanias or Eagles and you will get more gold for your dollars at buying and when you sell you probably will get spot for both options. So, why would anyone buy modern normal bullion when you can get historical coins struck more than a hundred years ago and the 90% versions of those coins are even more sturdy and heavier in weight due to their silver added content. Britanias, gold buffalos and eagles sucks (most dealers would pay you spot or maximum $20 over when reselling) but old gold sovereign or French Roaster or German 20 Marks are not being made any more (fixed supply means value may go up in the future) and they are sturdier and man these coins are more than 100 years old. (You will get between %95 and 100% of spot price when reselling them) yet you will pay only 4% or 5% over spot to get .1867 oz or .2304 oz or .2354 oz of gold for those historic coins. And they are still government coins backed by respective governments of United Kingdom, France and Germany.
I’m with you Emmit. I like the old south and central American coins as well. I don’t think you can go wrong with these as the premiums are so low and I’ve never gotten less than 98% of spot
I agree. I like sovereigns and francs and marks. Do the math and they are usually the best bang for your buck. Plus they are old and grow fewer in number every day. Hopefully the stacker masses don't discover them before I can collect a wheelbarrow full.
yeah, but there's also market conditions. if you're in a good dip and gold goes up 20% while you're saving up to purchase oz, fractional sounds less bad. it's somewhat likely to see a dipped price on the chart again at some point. but it's also a tossup whether a low price will ever be seen again after a few years. we're never seeing $400 or $500 gold again that's for sure! 😄
Look at bars rather than coins, premiums are much less, applies to silver too. Also check the spread of buy/sell prices. Some gold coins are better than others.
Bars are the easiest and most easily counterfeited form of gold which makes them hard to resell. The latest crop that hit shops in CA two weeks ago fooled both the Sigma and the XRF. I would not touch gold bars with a 10 foot pole and even my LCS advises against them and only buys them at a steep discount...
I throughly enjoy your videos but I think you should be a little more upfront about any type of sponsorship or partnership you have with SD, or have had. especially when making a video solely with their website using their prices.
@@johnmc3 saying buy something from here isn’t the same as disclosing a paid sponsorship, I’m just saying. I love his videos I just think it’s a gray area he should consider being a little more transparent about.
@@brokechef1606he is very upfront about the SD Bullion partnership imo. Atleast he was. Maybe in the last month or two he has not been but was never an issue to me Just my opinion
You’re wrong again. You can buy Valcambi sheets of gold and silver bars and the premium wouldn’t be that high. You can buy a sheet of 50 1 gram bars for $3,496.95. Spot price on 50 grams is $3,131.66. That’s Spot price so that comes out to only $7.31 over spot for each 1 gram gold bar. DO THE MATH BUDDY!!
I don't understand why silver is a smart buy over fractional gold when for the most part, premiums on silver are higher than premiums on fractional gold.
100% agree with the thought process. The tough part is to resist the desire to get some gold in the stack but knowing the smart thing to do is to wait and save for that 1 oz. Will be sticking with silver for now 🙂
Thanks for sharing. I appreciate the information so thanks SD 🐉 as always 🐅 Also I’ve noticed the best way to go is to save, and just buy an ounce of gold.
I'm happy to stick with silver for now. It's the only viable option for storing wealth. But if the chance to buy one ounce of gold pops up, I'll certainly take it
I think you should have used the qty costs of the smaller coins/bars. So for Grams & 1/10 as it would have been much lower as you would get them at lower cost per oz prices. Yes still paying premium over 1oz prices but not as much of one. Also a bit more liquid in sales plus premium when sold.
@AutarchKade it would depend, yes, cheaper by the OZ however if you want a "more tradeable" fractional amount the premium may be worth it as pointed out they didn't use the correct quantity amounts vs oz / Grams in their info. They compared apples to orange in price but not the other quantity that made weights even.
It’s like a silver eagle. If I bought at 22$ eagle and can sell at 33$ now and also bought a round at 20$ and can sell for 28 then i would have made 11$ margin on eagles and 8$ margin on rounds with a higher premium for same amount out metal
Thr problem that we have in the UK with buying silver if you cannot afford gold to start with is silver is taxed here at 20% so add the dealers cut and it would tack you a long long turm to even break even on buying silver gold is tax free so if you have plenty of money to start with its not a problem.
1800 George 3rd GUINEA 22 carat gold 91.67% pure Diameter 17mm . 2.8g selling for in UK £185.00 depends where you get it. 1908 GOLD SOVEREIGN ( GVF ) MELBOURNE MINT 7.98. Pure gold £425.00 so I prefer Guinea or Sovereigns nothing modern it's a antique and wil increase in value.
I think you made a very good point. If you don't have 20K, don't buy gold. Otherwise, you are throwing your money away on making someone else rich with your overpriced premiums. Impeccable thinking. And Best Comment Here.
Hi, I'm new to the gold & silver market and would like to know why there's a market set price for a troy oz of silver, yet when buying silver coins, the price is different due to what's actually stamped on the front & back of the coin?
But when purchasing 1 troy ounce of any gold bullion, don't you want to receive the highest purity for your dollar spent, like .9999 fine instead of Krugerrands or USA bullion coins. Shouldn't the Krugerrands and the USA bullion coins either be priced less or weigh more than 1 ounce since they are less than .9999 fine?
They weigh more. You still have one ounce of total Au content which is why price is close enough where difference is driven by market demand, not by purity. The downside of .999 gold is durability. Your 22kt eagle and 24kt buffalo start at basically the same price, but the buffalo is way more easily scratched. A little copper and silver mixed in makes for a more durable coin.
Interesting comment on the premiums on the gold coins. what you didnt discuss is what premiums do you get when you sell these coins.. Its not such a bad deal if these smaller coins keep their premium when you sell them,, So what does a coin dealer pay you when you sell?
I believe in the near future it won't matter if its fractional or ounces, the demand will be so incredible the supply won't be able to keep up. Just me.
if you can only buy one ounce or less in a year, I think fractional pieces are fine. Definitely a mistake for anyone wanting to build up significant holding in physical gold.
Silver Dragons, I don't look at the premium and calculate it the way you do, unless you are buying many gold coins. I just buy 1 coin not lots of coins. I look at the overall price. With larger coins you are also paying more money overall. The premium does not factor into the equation. I just buy the coin based on the total price. Im sure most people are not going to their local coin shop with a calculator to figure all this math out, they just buy whatever coin whether its even 1 gram by the total price.
Amazing that the 10ths are going for less of a premium than the 1/4 oz. Wise advice. Save up for the full oz. I issued a challenge to silver stackers for this on my channel.
But when you sell the fractional gold don’t the premiums go with it . Buy it now and then sell 30 years later you will make money. Or even if you sell it a year later to a friend or your coin dealer you still break even or make more .
But a dealer would buy back 10 tenth ounces coins to equal an ounce more than a single 1 ounce coin. So you would re coupe some of the high premiums but yes by far one ounce is the way to buy.
Your premise is incredibly naiive. In the past (before 2021) it was worth getting fractionals, they were hitting premiums of $50 for 1/4 ounce eagles and $70 for 1/10 (on SD bullion, no less!). TODAY and in the future it is not worth it. You WERE smart to collect fractional then before it was too late. You lucked out, in reflection!
Nothing is wrong about "buying bigger is cheaper" but... no one that I ever met, had trouble recouping their fractional premiums on a sale. Often, thanks to the market timing, it was even profitable to resell them later. So don't be completely mislead. Buy the gold you can afford, you'll be able to sell it later just fine, regardless and get break even or more, unless you just make a dumb, emergency sale, and you'd have lost doing that with "big" gold too.
@@NIGHTHAWK. me too. Maybe in 2030 we will look back now and say we wish we paid more when spot was $2k lol. Or than again, maybe spot will be back to $500 per oz. Who knows
It’d you resell to a decent buyer or LCS they should give you a portion of that premium back respectfully. If anyone knows where I can buy 1/10 for 197$ let me know!
@@brucehansen7949 there's more history than most people know about honestly, just very little of it... But I want to be Diversified, so platinum is way lower due to lower demand from manufacturers.. But Im speculating with a sell date between 2030 - 2033.. So I'm in no hurry to sell, but I'm sure Platinum will be used more by then.. makes a great catalyst 😉
The number I look at is the PERCENTAGE over spot, rather than the flat amount and then it really becomes obvious..for example at $188 over spot, that's (188/1986) = 9.5%. When you look at it that way, it becomes easier to get away from these high premiums. Imagine if you were going to invest 2000 in the stock market but the broker just took 10% right off the bat before you started.. it'd be like that.
It doesn’t matter what size you have, half or 1oz are good for those that can afford to spend that type of fiat without sacrificing much, but for those on a stricter budget 1/10ths and 1/4oz are good, even 1g bars are ok if you’re really struggling… the important rule is - buy what you can afford! …after all the idea is to protect your wealth, and we all have different levels of wealth, you’re not going to get rich quicker by buying bigger, you’re more likely to go broke if you overstretch your budget
I agree with you on the lower premiums for larger coins and I agree with your get the most for less philosophy, but with that being said not every one can afford to buy 1 oz gold and 10ths and 1/4s are very liquid and that premium (all though less) does stay with the fractional sizes when you go to sell. They are not hard to move when you need to, and in my opinion I believe its important to include fractional gold in your stack. I would not say the same for silver though. I think fractional silver is a complete waste of money unless we are talking about junk silver. Just my opinion
Theirs also the Scottsdale 1/100th ounce bar which seems pretty good for starters
I dont get your logic at all. help me out. if you can't afford a one ounce gold piece how can you afford a higher premium?
@@DrSchor you dont have to get my logic. You do you.
@@DrSchorhis logic is that he doesn't have the will power to save money until he can buy an ounce. So you buy fractional gold before you waste the money on something else because it's sitting in your account.
I started stacking 1/10 gold after I became wealthy because it doesn't matter about premiums, and I don't need to sell a whole oz. A lot of buyers shouldn't be buying metals because they are still struggling with their finances.
Your rational is 100% on. The problem is some people (including me as a youngin) can’t save. For those, I would say it’s better to buy a 1/4oz than try to keep that money in an account when you know full well it will get spent elsewhere before you save up enough for a full oz.
why can't you develop self control about how you spend your money.
are you a man or a mouse?
I could argue that through your diligence, you actually did it the RIGHT way. Not only do you finally have that ounce, you also have the pieces of fractional adding further weight to your collection
Excellent video and from my own experience, totally agree. Thanks for breaking it down to show exactly how much we lose buying fractional gold.
As a stacker I believe you should have the 1/10, 1/4 and 1/2 ounce coins in case you need some fast cash.
I cannot save cash for the life of me so I started stacking to have as a savings account that is hard to buy anything from.
When things happen, you can sell that fractional gold instead of a full ounce then buy that same fractional gold later that same year.
Same here
Many of us stack so we have portable wealth in case something happens. And I'm not talking about a full apocalypse. If your house burns down and your wallet with your bank card and/or credit cards just happened to be in it, but you have a few grams of gold in your keychain container, you can go to many coin shops or banks (at least here in Canada) and have cash pretty quick.
5:45 - thanks for the cheat sheet 👍
So easy to get caught up in collecting that it’s easy to overlook the premium that may be very hard to recoup even longer term.
Yo,...SD, really great video, especially for those of us DCA-ing. Great eye-opener!
I started to put money in a gold ETF regularly. And when I have saved enough, I sell some shares, visit a coin show and buy a 1oz gold piece. Making sure buying and selling the ETF is free of transaction fees and it has a low expense ratio. With this I have more gold exposure and I save a lot on premiums.
Way too much work and risk, imo--the minute the stock market is involved. As other commenters said, the premiums stay with the fractional piece when you sell--as long as you stay away from numismatics (collector) coins. Besides, you can't hold an ETF in your hand and watch it sparkle.
Thank you Dragons! It was nice to have this all spelled out so we could see it with our own eyes.
Here in UK our sovereigns tend to have the same premium as the 1oz Britannia, granted it still doesn't add up perfectly as they're 1.8g shy of an ounce with 4 full sovereigns (finne weight) but as they're so liquid and affordable it's hard not to trust in them here especially if you can snag a shield back
Silver is silver, ultimately. Just don't want to be holding much PAPER when the music stops!
I believe they were talking about a gold Britannia as opposed to a silver. I could be wrong though.
Was it a mistake or part of the learning process? There are valid reasons to get smaller fractional gold in spite of the premiums, but if you're looking to maximize your gold purchase buying one ounce is almost always better. Thanks!
I like what Harry from the coin shop said in one of Dragons' videos... those get put in the box labeled "tuition" as learning experience.
Really the only mistake would be not buying gold no matter what size at least you would have a little insurance in your pocket
When you think back to buying those early 1/10oz. gold coins if you hadn't bought those & gotten the gold 'buying bug' would you even be buying any gold now & would you even have a stack, no matter the size? I didn't buy a Rolex for my first wristwatch but the inexpensive watches I purchased when I was younger made me a watch enthusiast/collector so that over time I worked up to purchasing that Rolex. Sure, I've sold a few & traded a few but I still have & enjoy my watch collection & it all started with that affordable Timex/Citizen/Bulova/Seiko.
Bro, these prices are way too high. I bought today 10 june 2023 2g and 5g Metalor bars and I paid 125€ for the 2 gram and 305€ for the 5 gram bars and the cheapest 1 gram they had was a PAMP 1gr for 70€...I bought them from a jewelry store in Wien Mitte The Mall , Vienna.
Great video sir …. Would you make another one like this since prices went crazy .. very informative.. salute
Love your channel. Sometimes it’s nice to buy a piece of gold that’s affordable. It satisfies the craving lol
craving for what? spending too much money on a higher premium ? If you cant afford a one ounce piece, how is a higher premium affordable?
I like how you broke that down. Definitely an oz is the best way to go.
Actually I would think it's good to have some of each size.
I stay away from all gold bars. 1 oz coins are my go-to.
31.1 grams is correct for the Troy ounce. I've been using 28.4 and dividing that into 2100 for gold and thinking then that would be about $74 per gram---It should be $67---And I foolishly bought over 50 1 gram w/assay cards and loss my tail on it---Live and learn sometimes the hard way.
fractional gold has similar or lower premiums then silver
That wasn't the case a few months ago
That can change. Plus, you need to be comparing like to like. Gold Eagles to Silver Eagles, Gold Maples to Silver Maples. Generic gold bars to generic silver bars. Comparing generic Silver to Gold Eagles isn't exactly like to like.
Some may think that the smaller piece will be cheaper because the spot price is lower even with the higher premium you’ll still pay more with the higher spot price. The amount of money spent is the end goal. If you buy just one or two small pieces for sure. I’d rather spend 573 on 1/4 oz than 2000 plus for one ounce. Which one is cheaper out of pocket? Depends on the stacker of course
Great video brother thanks for the info
Yeah I heard the same bigger ozs smaller premium, smaller ozs bigger premium on gold..
I bought a couple 1/4 oz rounds other day. I got a kruger and a maple. The premium was 65 for those but if i got a 1/4 oz eagle they were charging 75. I cant believe the premiums alot of folks pay. Ive never paid 2 bucks premium for an oz of silver.
I disagree! The minting-costs for 1 oz are basically the same as for producing 1/10 oz pieces. The fractional coins will probably hold their premiums pretty well.
If you believe the gold price will go up significantly than you must ask yourself how many people will still be able to afford 1oz goldcoins in the future: Full ounces could become quite illiquid and impossible to sell over spot at some point in time!
Agree. Fractional coins and bars will still command a higher premium at the other end due to their higher liquidity.
People said who is going to buy gold coins for $100 back in the day. Now people pay thousands on the same gold coin.
Agreed. If the world goes to crap, fractional gold is great to have. Try and get change for 1 ounce coin.
Yeah. I’m a $5 gold Indian kinda guy. They’ve Always been my favorite
Right now, if I only have enough to invest in either a 1/10 gold maple leaf or the approximate same cash amount in 1 t oz maple leaves - the premiums are almost the same.
Great knowledge, because i was stacking 1g bars, i have a 10g and a few. 2G! Full OZs only moving forward for now, thanks
I did the same thing when I first started. Thanks for sharing your knowledge. Good video.
Your theory is correct, but it depends on when you purchased the gold coins. If you purchased 30 years ago, it doesn’t matter what premium you paid, you definitely made money.
I don't believe it was a mistake! You'll make your money back sometime in the future when gold will be used for currency and/or bartering! I loved, loved loved this video because I learned something new!!! Thank you soooo much! Will put the money away until I have enough to buy gold again hopefully! We want the price to go up, but then it gets too expensive too buy!👍🙏
OK, so how come you don’t just sell off the fractional and rebuy whole 1 oz pieces? I think that is a good idea to have some fractional in your inventory because nobody can predict the future. And I would rather have some fractional gold at my disposal in the future just in case we are in for reasonable to sell than an entire 1 ounce piece.
When it really matters it won't matter that you paid so much for the fractionals but in the here and now if you think bartering might be in your future then just buy silver. Pre 1965 US coins are even more divisible than the fractional gold, It is much easier to verify authenticity. For the price of a 1/10th oz gold coin today you could get roughly 110 silver dimes, This is much more divisible. Now if you really want fractional gold then you have to learn how to shop. Don't pay full retail, Be a regular at your favorite shop, Get to know the folks that work there and it is likely that you will get hooked up with better deals. The dips are a gift! Grow your stack!
Buying old European fractional circulated gold coins (90% or 91.67%) is way cheaper than those modern Britanias or Eagles and you will get more gold for your dollars at buying and when you sell you probably will get spot for both options. So, why would anyone buy modern normal bullion when you can get historical coins struck more than a hundred years ago and the 90% versions of those coins are even more sturdy and heavier in weight due to their silver added content.
Britanias, gold buffalos and eagles sucks (most dealers would pay you spot or maximum $20 over when reselling) but old gold sovereign or French Roaster or German 20 Marks are not being made any more (fixed supply means value may go up in the future) and they are sturdier and man these coins are more than 100 years old.
(You will get between %95 and 100% of spot price when reselling them) yet you will pay only 4% or 5% over spot to get .1867 oz or .2304 oz or .2354 oz of gold for those historic coins. And they are still government coins backed by respective governments of United Kingdom, France and Germany.
I’m with you Emmit. I like the old south and central American coins as well. I don’t think you can go wrong with these as the premiums are so low and I’ve never gotten less than 98% of spot
I agree. I like sovereigns and francs and marks. Do the math and they are usually the best bang for your buck. Plus they are old and grow fewer in number every day. Hopefully the stacker masses don't discover them before I can collect a wheelbarrow full.
yeah, but there's also market conditions. if you're in a good dip and gold goes up 20% while you're saving up to purchase oz, fractional sounds less bad. it's somewhat likely to see a dipped price on the chart again at some point. but it's also a tossup whether a low price will ever be seen again after a few years. we're never seeing $400 or $500 gold again that's for sure! 😄
Look at bars rather than coins, premiums are much less, applies to silver too. Also check the spread of buy/sell prices. Some gold coins are better than others.
Bars are the easiest and most easily counterfeited form of gold which makes them hard to resell. The latest crop that hit shops in CA two weeks ago fooled both the Sigma and the XRF. I would not touch gold bars with a 10 foot pole and even my LCS advises against them and only buys them at a steep discount...
Very good video!
I throughly enjoy your videos but I think you should be a little more upfront about any type of sponsorship or partnership you have with SD, or have had. especially when making a video solely with their website using their prices.
Kinda makes you question the validity of there content.
People truly do not pay attention
@@johnmc3 saying buy something from here isn’t the same as disclosing a paid sponsorship, I’m just saying. I love his videos I just think it’s a gray area he should consider being a little more transparent about.
@@brokechef1606he is very upfront about the SD Bullion partnership imo. Atleast he was. Maybe in the last month or two he has not been but was never an issue to me
Just my opinion
You’re wrong again. You can buy Valcambi sheets of gold and silver bars and the premium wouldn’t be that high. You can buy a sheet of 50 1 gram bars for $3,496.95. Spot price on 50 grams is $3,131.66. That’s Spot price so that comes out to only $7.31 over spot for each 1 gram gold bar. DO THE MATH BUDDY!!
I don't understand why silver is a smart buy over fractional gold when for the most part, premiums on silver are higher than premiums on fractional gold.
100% agree with the thought process. The tough part is to resist the desire to get some gold in the stack but knowing the smart thing to do is to wait and save for that 1 oz. Will be sticking with silver for now 🙂
Bullion Exchange has a 25g deal for $1850. That's only 300 over spot, but you have fractional gold.
Thanks for sharing. I appreciate the information so thanks SD 🐉 as always 🐅
Also I’ve noticed the best way to go is to save, and just buy an ounce of gold.
Great advice! And beautiful display as well. I wonder how often the 1/10 ounces show up as a great option?
I'm happy to stick with silver for now. It's the only viable option for storing wealth. But if the chance to buy one ounce of gold pops up, I'll certainly take it
I think you should have used the qty costs of the smaller coins/bars. So for Grams & 1/10 as it would have been much lower as you would get them at lower cost per oz prices.
Yes still paying premium over 1oz prices but not as much of one. Also a bit more liquid in sales plus premium when sold.
Agree. With the 1 gram you need to buy 31. The SD price was around $3 less at this quantity which would reduce the premium by around $100.
If you're buying 31 grams at once to get the discount, then buy a ounce instead.
@AutarchKade it would depend, yes, cheaper by the OZ however if you want a "more tradeable" fractional amount the premium may be worth it as pointed out they didn't use the correct quantity amounts vs oz / Grams in their info. They compared apples to orange in price but not the other quantity that made weights even.
This is exactly the information i was looking for. I appreciate you.
It’s like a silver eagle. If I bought at 22$ eagle and can sell at 33$ now and also bought a round at 20$ and can sell for 28 then i would have made 11$ margin on eagles and 8$ margin on rounds with a higher premium for same amount out metal
Good information for the new Stacker👍
Thr problem that we have in the UK with buying silver if you cannot afford gold to start with is silver is taxed here at 20% so add the dealers cut and it would tack you a long long turm to even break even on buying silver gold is tax free so if you have plenty of money to start with its not a problem.
UK folk should never buy silver
Then buy gold
Don’t the premiums stay when you sell also? So, if it’s a rare or proof coin it keeps it re-sale value, yes?
1800 George 3rd GUINEA 22 carat gold 91.67% pure Diameter 17mm . 2.8g selling for in UK £185.00 depends where you get it. 1908 GOLD SOVEREIGN ( GVF ) MELBOURNE MINT 7.98. Pure gold £425.00 so I prefer Guinea or Sovereigns nothing modern it's a antique and wil increase in value.
Right now, if you buy a ten oz gold bar, on SD bullion, its only a $35 Premium. You know, for who ever has $20,000 laying around.
I think you made a very good point. If you don't have 20K, don't buy gold. Otherwise, you are throwing your money away on making someone else rich with your overpriced premiums. Impeccable thinking. And Best Comment Here.
Can u tell us the premiums on junk silver. Also are theyre bargains on scrap gold
I think you have to compare premiums and make the decision that you are comfortable with
Hi,
I'm new to the gold & silver market and would like to know why there's a market set price for a troy oz of silver, yet when buying silver coins, the price is different due to what's actually stamped on the front & back of the coin?
But when purchasing 1 troy ounce of any gold bullion, don't you want to receive the highest purity for your dollar spent, like .9999 fine instead of Krugerrands or USA bullion coins.
Shouldn't the Krugerrands and the USA bullion coins either be priced less or weigh more than 1 ounce since they are less than .9999 fine?
They weigh more. You still have one ounce of total Au content which is why price is close enough where difference is driven by market demand, not by purity.
The downside of .999 gold is durability. Your 22kt eagle and 24kt buffalo start at basically the same price, but the buffalo is way more easily scratched. A little copper and silver mixed in makes for a more durable coin.
Interesting comment on the premiums on the gold coins. what you didnt discuss is what premiums do you get when you sell these coins.. Its not such a bad deal if these smaller coins keep their premium when you sell them,, So what does a coin dealer pay you when you sell?
I know! I know! Pick me! They pay you as little as possible, right? Well, was I right or not?
Are the new coins better than old coins? There is a sale on French 20 Angel coin. But maybe its better to go for the new minted?
Great video
Crazy premium s 💯
The shop I go to for gold talks more about the spread then premium , as in the gap between the buy and sell price.
I believe in the near future it won't matter if its fractional or ounces, the demand will be so incredible the supply won't be able to keep up. Just me.
Only if they fake bro, then you made a mistake. But if they real, you just added to your war chest 😎👍
if you can only buy one ounce or less in a year, I think fractional pieces are fine. Definitely a mistake for anyone wanting to build up significant holding in physical gold.
Silver Dragons, I don't look at the premium and calculate it the way you do, unless you are buying many gold coins. I just buy 1 coin not lots of coins. I look at the overall price. With larger coins you are also paying more money overall. The premium does not factor into the equation. I just buy the coin based on the total price. Im sure most people are not going to their local coin shop with a calculator to figure all this math out, they just buy whatever coin whether its even 1 gram by the total price.
Thanks for the math and business information.
Amazing that the 10ths are going for less of a premium than the 1/4 oz. Wise advice. Save up for the full oz. I issued a challenge to silver stackers for this on my channel.
BUY ONE OZ GOLD. Silver is for fractional sizes and therefore small purchases , in the future..
Very costly to be cheap and think small with gold🤑
Dear God silver dragons how much money do you have I thought you were middle class until I saw that gold lol
But when you sell the fractional gold don’t the premiums go with it .
Buy it now and then sell 30 years later you will make money.
Or even if you sell it a year later to a friend or your coin dealer you still break even or make more .
But a dealer would buy back 10 tenth ounces coins to equal an ounce more than a single 1 ounce coin. So you would re coupe some of the high premiums but yes by far one ounce is the way to buy.
Scammer
I have a maplegram, premium wasn't really a consideration. It was a cute little coin to collect just for the novelty.
Another great video! Great advice. Best to save up for 1oz or at minimum 1/2oz
Your premise is incredibly naiive. In the past (before 2021) it was worth getting fractionals, they were hitting premiums of $50 for 1/4 ounce eagles and $70 for 1/10 (on SD bullion, no less!). TODAY and in the future it is not worth it. You WERE smart to collect fractional then before it was too late. You lucked out, in reflection!
1/4 oz gold coins is a good weight.
I agree with everything you said ....but I am retired and the best I can do is 1/10 oz...I mainly stick with Silver bars but wanted a little gold
Nothing is wrong about "buying bigger is cheaper" but... no one that I ever met, had trouble recouping their fractional premiums on a sale. Often, thanks to the market timing, it was even profitable to resell them later. So don't be completely mislead. Buy the gold you can afford, you'll be able to sell it later just fine, regardless and get break even or more, unless you just make a dumb, emergency sale, and you'd have lost doing that with "big" gold too.
Can you believe in 2004 gold spot was $500?
No! I wish I was smarter back then.😢
@@NIGHTHAWK. me too. Maybe in 2030 we will look back now and say we wish we paid more when spot was $2k lol. Or than again, maybe spot will be back to $500 per oz. Who knows
It’d you resell to a decent buyer or LCS they should give you a portion of that premium back respectfully. If anyone knows where I can buy 1/10 for 197$ let me know!
idiot! are you living in a fairy tale? dealers are not respectfully giving your money back. as any other business, they are in business to make money.
Good video!
So I guess my LCS is doing me a solid selling me gram bars at spot…. $60 each last week.
What is the deal on selling?
The best way to buy gold is to buy silver now and redeem gold with it once it goes to the moon.
Yeah, I don't buy anything less than a 1/4 0z. of gold. Good advice.
by the same perfect reasoning, why buy anything under a kilo? thanks for explainging.
Yeah, I'm just stacking silver but I am stacking platinum too.. Not much though.. Just want to get to 5oz or so
Curious why platinum? Not much history behind it like gold/silver
@@brucehansen7949 there's more history than most people know about honestly, just very little of it... But I want to be Diversified, so platinum is way lower due to lower demand from manufacturers.. But Im speculating with a sell date between 2030 - 2033.. So I'm in no hurry to sell, but I'm sure Platinum will be used more by then.. makes a great catalyst 😉
Great video
Keep your eyes on the premiums. It's not unusual to find deals on fractional that make them just as attractive as full ouncers.
Hey bro. What's that black rubber looking surrounding your gold coins in capsules called?
@@ello_au cool, they look so convenient.
I thought there were 28.4 grams per ounce of gold---Didn't you say 30.1?
When it comes to Gold stick to one ounce . When it comes to Silver, Kilo bars is the way to go.
The premium's or mark up on this stuff is to much
Can this apply to platinum as well?
can what apply to platinum exactly?
The number I look at is the PERCENTAGE over spot, rather than the flat amount and then it really becomes obvious..for example at $188 over spot, that's (188/1986) = 9.5%. When you look at it that way, it becomes easier to get away from these high premiums. Imagine if you were going to invest 2000 in the stock market but the broker just took 10% right off the bat before you started.. it'd be like that.
That hypothetical broker is still better than buying silver. The percent over spot for premiums are insane
Was the gold to silver ratio over 60? Then yes.
It doesn’t matter what size you have, half or 1oz are good for those that can afford to spend that type of fiat without sacrificing much, but for those on a stricter budget 1/10ths and 1/4oz are good, even 1g bars are ok if you’re really struggling… the important rule is - buy what you can afford! …after all the idea is to protect your wealth, and we all have different levels of wealth, you’re not going to get rich quicker by buying bigger, you’re more likely to go broke if you overstretch your budget
If I had any gold...which I do not, I would sell it and buy silver...I have zero interest in gold....silver lures me big time!
What's more important? Premium or spot price?