people don't understand that this the spot price of gold does not represent gold the spot price of silver does not represent real physical silver that day that silver dropped 13 14 in a single day was actually one of our biggest purchase volume days ever hi this is mike maloney and i've got alex daly the president of goldsilver.com on the line with me here alex how are you doing doing great mike always good to talk to you yeah so one of the things that we're going to do here and we'd like some feedback


from all of the viewers is we're going to do a market update and see what's going on you know alex is much more involved in the day-to-day uh train you know the the workings of the business where i'm involved more with the media team uh producing videos and creating educational content and so uh we wanted to get this perspective because there's been a lot of big changes that have happened in the past couple of years since the beginning of this year uh this whole market has gone through


some huge convulsions so alex what's your perspective on just the market in general sure and what we've seen is between you know march when the initial announcement of covid and now the silver price and gold movement over the summer that's been as everyone who's already invested in this sector knows pretty significant we've seen a lot of new people coming into the gold and silver markets you know we judge obviously by our own customers but also by external data if you even just look at say google


trends over the past month the searches for silver and silver prices and silver forecasts are up significantly and we've seen you know anywhere from 10 to 100 fold increase in interest in silver uh you know gold to a little bit lesser extent and we've definitely seen a pretty big increase in new customers to our list over this this period of time um you know premiums always go up during these uh periods of time when there's a rush toward precious metals when people get scared can you tell us a little bit about the


premiums and the available availability of supply i think a lot of people don't sort of understand fully how the physical precious metals market works right mines can only produce so much metal each month refiners can only melt so much each month and mints can only produce so much and this year has been sort of a confluence of two big circumstances one the increase in demand we've talked about right a lot more investors are waking up to the fact that they either need gold and silver or they just need more gold and silver


in their portfolios especially with this run in the stock market people are rebalancing so new and old customers are like are buying more metals at the same time covid caused a lot of staff shortages around the world especially in march april and may we saw pretty significant increases in the premiums that wholesalers refiners and mints are asking for finished product right we we've seen just over the past month roughly uh you know three-fold increase in the average ask price that the people on our


platform are competitively bidding for your business so when you place an order with goldsilver.com there's a whole network of of wholesalers and refiners and mints who are bidding on that business and we're seeing the the ask price to purchase new metals go up relatively significantly for short spikes goes up like it did in march and back down in april it went up over the last couple of weeks it's coming back down right now but it's still significantly higher than it was say two months ago


yeah supply and demand this is capitalism uh you know one of the things that uh my our producer dan uh suggested and it's true if anybody thinks there's a conspiracy between dealers i mean you you just said alex that there's hundreds of dealers and if anybody thinks that there's a conspiracy between dealers to jack the prices up then this is their opportunity they should go into this business they should right am i am i right alex if they really think that well i mean that there's a bunch a ton of money


absolutely here they should go into the business open up a precious metals dealer and compete with us and they'll find out just how hard this is right yeah i don't think people realize that gold is one of the least regulated financial assets and i mean that from the standpoint of there's the lowest barrier of entry for somebody to compete right you know you don't need a special license from the sec or finra in order to be a gold retailer or even wholesaler there's there's no special


magic there right you know that's why the premiums that dealers like us charge are so thin right that there there's 200 other gold shops around the corner we get to be one of the biggest in the country and in the world by providing great service by providing really competitive prices that a really small guy might not be able to get to right so we're competing on razor thin margins as as retailers in this space but anybody can enter the space it really has one of the most vibrant competitions anywhere i see a new gold


company turn up every two hours practically yeah you know um i've been basically doing what they call stacking uh you know put it putting away metals myself now for 15 years by the way this is august of 2020 so this is the 15th anniversary of when i incorporated goldsilver.com and i've been stacking since 2002 trying to get my own and you that i calculated uh how much i have to sell and basically i i am able to get about one tenth of one percent is what i end up with being able from so if you


want to uh if you want to put away a million dollars in precious metals you better be ready to sell a billion dollars worth of precious metals it's it's a it's it is a razor thin business when you pay all of the people that need to be paid and still make a living and so on um it's it's uh i i was amazed that uh when i first got into this that anybody was able to do this on the margins that uh that you're able to get if you're going to have any type of market share uh you have to be competitive in pricing


and to be competitive in pricing means you don't make much so you got to sell a ton so uh anyway um are we seeing uh more customers or more more clients and or different types of clients what's what's going on there with uh you know what people want and uh how they're finding this you mentioned searches for silver price and so on yeah just a good example there right we're seeing across the board you know any kind of public measures like google trends show just a decided increase


in silver and gold queries whether it be how to buy silver how to buy gold what's the silver price what's the forecast for the price and you start to see that in these kind of markets right any investment just starts to see that uptick it's certainly not you know following uh you know call options on robinhood level volumes here i don't think we've seen the the mass entrance to the market but we're definitely seeing you know three four five x as many new customers most weeks


uh than in a traditional year so uh we've definitely seen an increase in volumes too though from our existing customers so it's across the board i think people are realizing how vulnerable they are four or five trillion dollars in stimulus one day another three trillion the next at the end of the day is a recipe for the debasement of the dollar right and and that's the first time that this is really obvious to people i think you know even the sort of main street average person who thinks to


themselves ah yeah but you know the dollars you know it's fine it's been fine my whole life well now it hasn't lost most of its purchasing power it's going to lose a lot more of it real quickly and i think the recognition of that is showing sort of a general increase in demand for gold and silver um and so so i think we're going to just continue to see you know some pressure on prices and pressure on premiums upwards as as people continue to flood this market another leg down in the stock


market and and you know that robin hood call option volume might look small you know um i've i used to say that gold and silver one day will become an affordium and unobtainium and uh the uh people don't understand that this the spot price of gold does not represent gold the spot price of silver does not represent real physical silver uh that if you're paper trading then you can get gold and silver at those prices but um one of the things you know are are people buying the dips or are


they panic selling what's what's going on with that oh i haven't seen any panic selling in fact you know on a purchases side just like for reference that day that silver dropped 13 14 in a single day was actually one of our biggest purchase volume days ever what we're seeing is a lot more people buying the dip than there are people selling and we actually had extremely low sell back volume over the last couple of weeks as the silver prices has risen so you know just i think investors are being smart about the


market i don't think we've gotten into the sort of you know the the mania stage of of your sort of traditional bull market cycle here because what i'm not seeing profits really that's that's great to hear because that shows that our client base is fairly well educated about this they're not panicky jump in jump out investors because all of those people every every time i see somebody that jumps in and jumps out of things they always get slaughtered so one of the things that is beginning to


change though in the entire precious metals bull market that should be an enormous positive i don't think the dips are going to be that big because institutions are starting are just beginning i mean uh big funds are just starting to recognize gold and silver right now i mean basically nobody really owns it and wall street has been recommending either no gold and silver or like five percent maximum in your portfolio they you know it's interesting in the 70s they didn't recommend gold or silver


when it had its great bull market it was after it peaked in 1980 they said oh put 25 of your portfolio into gold and silver as a as a crisis hedge or whatever and then it became 10 and then it became five during that bear market then it was five percent and then by the time 2000 came around no wall street firm was recommending any gold or silver in your portfolio just when the big bull market seal when it was 250 they were telling you don't buy it and yeah so there's some great indicators in the markets that people


don't pay attention to about that institutional demand and you're right about it just starting right people i don't think realize that when you're buying gold at the level let's say we buy a gold or or a much larger institution than us would buy gold a morgan stanley at goldman sachs they're going to buy it on the futures exchange they're going to buy near-month contracts and they're going to do what's called exchange for physical they're gonna pay to have


that gold actually delivered they're gonna take it off of the paper contracts we've seen a steady increase over the past two to three months really starting in may especially of uh the exchange for physical prices on futures markets going up that's one of the reasons that premiums go up is the cost for wholesalers to get new product to backfill for what they're selling us is going up so that you know they're going to sell what they have on their shelf for more because the replacement costs


went up so it's not just a function of demand it's also a function of sort of decreased supply or increased demand in those middle channels from refiners so we are definitely seeing an increase in institutional volumes the futures markets say it we ourselves have a wealth business where we deal with some larger institutions wealth managers and such and and we're seeing decided upticks in volumes there so i agree a thousand percent with that statement mike we are seeing the the customers with the 10 and 50


million dollars portfolios start to walk in the door and say yeah i really should have owned five percent 10 gold and we we go back and tell them very simply well if you had owned 25 or 30 gold you would have seen better performance over the last 50 years the last 20 years any period since gold really started free trading in the 70s a portfolio with gold has decidedly outperformed a portfolio without it and the optimal allocation is somewhere between 20 and 30 depending on your mix of stocks and


bonds so you know we continue to tell people what the research has long said but but institutions are finally waking up to it that research that suggests uh 20 it's actually like 30 percent uh that is the uh best performing mix that lower that lowers volatility in your portfolio but that is from 1971 until today if you take the bull markets of the 70s and the bull markets have since since the year 2000 until now the best mix is actually just gold and silver no stocks no bonds it truly is yeah i


mean that's your wealth cycles work right there right i mean you're the better analyst than me right i'm an ops guy what i can tell you is the message is resonating in the wealth channel there's always something about portfolio allocation right you're never going to get somebody on wall street to say don't buy stocks because they're sort of cutting their nose off despite their face right yeah so yeah yeah but uh you know you want to mix your portfolio and have a good


thing but you're right like that the reason that those portfolios go up over the long run is that you lose less when the markets crash which means you recover faster you have more dry capital more free capital dry powder as they say when the market goes down so like in 2008 for example i think it took roughly two years jeff clark's written a lot of great stuff on this roughly two years to get back to normal for an all stock portfolio but only a few months to get back to normal for an all gold portfolio


so if you had 30 gold you know you you cut six eight months off your recovery cycle yeah yeah okay i want to thank you very much uh we're gonna wrap this one up so say goodbye to the audience goodbye thanks for having me thank you alex uh again everybody uh put in the comments whether or not you want to see these market updates uh every so often uh if you find this informative and you want more of it and uh go to if you look at uh the t television screen on the back of the right there go to the website and get my


book there's lots of informative stuff in there uh thank you very much for watching and we 'll see you next time