hi this is mike maloney and i've got jeff clark on the line with me the senior precious metals analyst from goldsilver.com and he's going to go over some of the most frequently asked questions that precious metals investors or especially newcomers have so jeff how are you doing i'm doing great mike it's great to be back with you again and yes we do get a lot of questions from our customers of course and we've gotten a a lot more recently because of the increased demand in gold and silver and so one of the


uh biggest questions we're getting from newcomers people new to goldsilver.com is how do i start what do i buy uh if you didn't own anything in the current environment mike what would you start buying how would you do that uh for accumulating gold and silver well for me i make sure that uh i take a physical position first and then uh you can add mining stocks and so on later i stay away from the etfs and uh any uh futures anything that has to do with the commodities exchange there's fishy stuff going on there i


think and uh uh so i mean what do you do well i i agree wholeheartedly i'm all about owning only physical i i don't want to own a paper product in this particular environment there may be other times in history where owning a paper product might be okay but the risk right now is so much higher and so i'm only wanting to own physical in this particular environment um we've already seen uh gdx and gdxj those are mining stock etfs for producers and juniors respectively and they actually the price temporarily


separated from their underlying components for a short period in march during that big sell-off the the fund actually sold off more than the underlying components did so that was very disconcerting to the holders of those funds at the time so that's just one example of how a paper product may not actually keep up with what the true price of an asset is and i could easily see that happening uh in in a you know turbulent environment ahead for a paper gold etf as well so i only want to own physical and i like


having a mix of both gold and silver yeah i also like uh smaller increments on them uh you know i don't own any kilo bars or 10 ounce bars uh on gold i've got one ounce bars and then uh the vast majority of my position is in one ounce silver products uh and i do have 100 some hundred ounce bars of silver but i don't buy anything over the i think silver is going to be triple digits one day and uh um and if you want to sell just a a little bit uh you can't when you've got 100 you


know if you've got a thousand ounce commodities exchange bar plus premiums uh if we're going through a consolidation here a consolidation phase where gold and silver possibly will go sideways a little we don't know i mean it could they could just explode to the moon they could uh fall and do a bit of more of a pullback but i'm hoping for a consolidation phase and then premiums come back down as you know whenever there's a rush that you can tell that the commodities chain exchange and the etfs are a bunch of


hocus pocus because uh the price of real physical that that you can buy and hold diverges so much from the spot price that the commodities exchange is making so on a consolidation that's a good time that's when i want to add to my position is when premiums come down because uh you know um during the price spike uh last week or a couple weeks ago uh premiums went pretty big but not nearly as big as they went back in the crash of 2008 or uh back in you know in march there was uh some big premiums there are times when


it's just really hard to source precious metals uh that's a good point and i also want to highlight the point you made about buying in smaller denominations because what you want to think of is what you're going to use this metal for when you actually go to sell it if you need just to buy some groceries for the week and all you have is a kilo gold bar well now you've got to liquidate the entire bar just to go to the grocery store for that week so uh you do want to have it in smaller denominations


because it's simply more practical and so that's uh probably good advice even for high net worth uh investors you want to have at least some in smaller denominations because it might serve a very practical purpose at some point so mike i want to sneak in uh oh did you have something yeah well you know one of the things that i haven't done is when i moved to puerto rico i liquidated my holdings and then repurchased and the so that i could set a new cost basis i had to be out of precious metals


for 30 days and we have tax exemptions here that i qualified for so i i liquidated everything and when i repurchased i just i repurchased fewer items i didn't have the variety of items that i used to have but i used to have a you know thousand dollar face value of dimes uh quarters half dollars and silver dollars bags uh of them and i do want to get some dimes again but you know premiums on them are especially uh whenever there's a run-up or a pullback the premiums can explode sometimes


and uh uh so i'm i'm hoping that there's a consolidation phase here uh because if there is premiums shrink and it's a great time to be dollar cost averaging in and uh you know there's a couple i normally don't buy any gold at these high gold silver ratios with the gold silver ratio over uh 70 but uh i have a tube of gold eagles and there's only 12 in it and i want the thing to be full so i got to buy some gold eagles and these are just uh you know these aren't the things that i keep


uh at my storage holdings uh the vast majority of what i own uh is in storage because it's safe it's insured and it's highly liquid and it's not very expensive to store so anyway so what's the next main question that viewers have well i was just going to highlight something for you real quick our most popular products are the mint cases of uh silver eagles so the 500 ounce mint case and the 100 ounce silver bars those two products in particular are among the most popular that are


purchased by by our customers so that uh is maybe a good place for someone to start that happens to be the majority of my holdings so there you go yeah and by the way we do have a very good guide on our website it's called the complete guide to buying gold and silver so it's a great introduction great starter guide for someone who's just getting started about what to buy why to buy and why you might want to consider having it in storage and getting it out of the house getting it out of the house in the


current environment environment we see ahead yeah i like having it highly liquid brinks is a private company it's not part of the banking system uh during the uh week of 9 11 when all of the banks were closed uh brinks was still open and still delivering medals uh it it's insured there's guys with guns guarding it and it's you can instantly sell sell it back and turn it into cash so when we get to the peak things are going to be moving fast like you said volatility is going to go up


and you you you don't want to have the majority of your holdings if you want to try and sort of catch something near that peak you really need to be able to sell it instantly not to have to ship it back to uh some you know a dealer or whatever and uh wait for it you want to lock in a price right now which you can do at goldsilver.com uh but so what are the other questions that uh viewers have well that's a good point i just want to highlight that as well is that you know would you have a


storage account you don't have to drive there and go pick it up and then go find a dealer you can literally just log on in a few clicks you can lock in your price and sell as mike has said and the proceeds can be on their way to you within a relatively short period of time so and all the while the metal has been out of your house and it's been safe and secure so we do like that option uh so it's something for someone to consider at least for part of their metal holdings yeah for me when i sold some stocks it took


a lot longer for that cash to get into my account than it did for than it does for gold silver to uh you know when you uh make a sale from a storage account uh you get your cash back into your bank account much quicker than selling stocks at you know i've i've got a merrill lynch account and uh i was surprised at how long it took yes it's it's very quick so it's very efficient we have the system down and it's in place uh so it's there for someone to use as they need it even on a moment's notice


if that becomes the case so well this is a great topic mike thanks for weighing in on this and we'll catch you on the next video thank you okay thanks you