Mark Yaxley: Gold, Silver, PGMs — Stock Market Suffering, How to Build a Physical Portfolio

TL;DR

Demand for physical gold has been strong in 2022 but is starting to cool off. Gold remains the favorite among investors, followed by silver and the platinum group metals. When building a portfolio of physical precious metals, a basic recommendation is to have about 60% in gold, 30% in silver, and 10% in platinum group metals.

Transcript

i'm charlotte mcleod with the investing news network and here today with me is mark yaxley managing director at swp thank you so much for being here in person with me at brac great to see you it's my pleasure thank you for having me of course so it's our first time speaking so we're gonna go a little bit basic on our questions so swp it's a preciou... Read More

Key Insights

• 😎 Demand for physical gold and silver has been strong in 2022 but is starting to cool off after two record-breaking years.
• 🤘 Gold remains the favorite among investors, followed by silver and the platinum group metals.
• 🤘 When building a portfolio of physical precious metals, a basic recommendation is to allocate about 60% to gold, 30% to silver, and 10% to platinum group metals.
• 🤘 It is important to consider the premium when buying physical metals, with gold generally having a lower premium compared to silver and platinum group metals.
• 😘 Buying larger format bars can result in lower premiums.
• 🏸 Major mints and refiners are recommended for their better resale value.
• 🪙 There is a place for collectible coins in portfolios, but it is important to consult a professional and be cautious about common collectible coins.
• 🤘 When selling precious metals, it is advisable to compare buyback prices from different dealers and negotiate for a better deal.

Questions & Answers

Q: How strong has the demand for physical gold been in 2022 so far?

Demand for physical gold and silver has been strong in 2022, with record-breaking years in 2020 and 2021. However, demand is starting to cool off in April and May after a two and a half year run.

Q: How does demand for physical gold compare to demand for other precious metals?

Gold remains the favorite among investors, with about 80% of the metal sold by SWP being gold. Silver is the second most popular, followed by the platinum group metals, which have a smaller market share.

Q: What is the recommended percentage allocation for building a portfolio of physical precious metals?

The basic recommendation is to have about 60% of the portfolio in gold, 30% in silver, and 10% in platinum group metals. However, these percentages can fluctuate depending on market conditions.

Q: Are there standard recommendations for products when investing in physical precious metals?

When buying physical metals, it is important to be aware of the premium you will be paying over the spot price. Gold generally has a lower premium compared to silver and platinum group metals. It is also recommended to consider buying larger format bars, as they often come with lower premiums. Major mints and refiners, such as the Royal Canadian Mint and the U.S. Mint, are recommended for their better resale value.

Summary & Key Takeaways

• Demand for physical gold and silver has been strong in 2022, but it is starting to decline after two record-breaking years.

• Gold remains the favorite precious metal among investors, with about 80% of the metal sold by SWP being gold. Silver is the second most popular, followed by the platinum group metals.

• When building a portfolio of physical precious metals, a general recommendation is to allocate about 60% to gold, 30% to silver, and 10% to platinum group metals. These percentages may vary depending on market conditions.