Mark Yaxley: Gold, Silver, PGMs — 3 Golden Rules for Buying Bullion

TL;DR

In this interview, Mark Yaxley shares his three golden rules for buying physical bullion and provides insights into the current market trends and popular products to consider. He also discusses storage options, considerations for buying silver and Platinum Group Metals (PGMs), and tips for gifting precious metals.

Transcript

thank you I'm Charlotte McLeod with the investing News Network and here today with me is Mark the axley managing director at swp thank you so much for joining me online today once again always great to see you hi Charlotte nice to be with you again of course and today is a very special day you're joining us from an exciting location so if you could... Read More

Key Insights

• 😘 Gold has lower premiums than other metals, making it a cost-effective option for investors.
• 😘 Bars offer lower premiums and total spreads compared to coins.
• 🤢 Larger bars provide better value due to reduced premiums.
• 🛀 The current trend shows central banks in Turkey, Pakistan, Qatar, and India actively buying gold to strengthen reserves and currencies.
• 🤢 The Royal Canadian Mint's one-ounce gold bars and one kilo gold bars are popular investment options.
• ✋ Investors should consider diversifying portfolios with silver and PGMs but be aware of higher premiums.
• 🥺 Supply chain delays have led to longer wait times of one to four weeks for physical bullion delivery.
• 🤘 Allocated and segregated storage options ensure the physical presence of metals for easy sale or delivery.
• 👪 Considerations for home storage include physical security, insurance coverage, and storage limits.
• 💝 Gifting precious metals, such as one-ounce silver coins or limited mintage collectibles, is a valuable and appreciating alternative during the holiday season.

Questions & Answers

Q: Why is gold considered a better value compared to other metals?

Gold has lower premiums in percentage terms compared to silver, platinum, and palladium. This means the additional cost paid for gold bullion is more cost-effective for investors, making it the best value metal in terms of cost savings.

Q: Why do bars have lower premiums than coins?

Bars tend to have lower premiums and total spreads over the lifetime of the investment compared to coins. While coins like the gold Maple Leaf or silver Eagle are popular choices, bars offer a more cost-effective option due to their slightly lower prices and similar metal content.

Q: How do larger bars provide better value?

Larger bars, such as kilo gold bars or thousand-ounce silver bars, offer lower premiums compared to smaller bars or coins. Buying in larger volumes allows investors to save on premiums, making bigger bars a cost-effective investment choice.

Q: What are some considerations when buying silver and other PGMs?

Silver tends to follow the general trend of gold but can be more volatile. It has the potential to outperform gold in a good market, so allocating around 30% of a portfolio to silver is recommended. Platinum and palladium are tied to the auto industry, and while they can be added to a well-balanced portfolio, the high premiums associated with them should be considered.

Q: What are some popular products for investors?

One-ounce gold bars are recommended due to their equal liquidity to coins and slightly lower premiums. Kilo gold bars offer good value with low premiums for larger investments. Larger silver bars are ideal for those seeking bulk purchases and reduced premiums.

Q: What are the wait times for purchasing physical bullion products?

Currently, wait times for most products range from one to four weeks due to supply chain delays. It is crucial to ensure that reputable dealers fulfill orders promptly.

Q: What are the considerations for storage and taking delivery of metals?

Allocated and segregated storage ensures the physical presence of metals and allows for easy sale or delivery. There are options to take delivery or sell the metals, depending on the storage provider. However, taking delivery should consider factors such as home security, insurance coverage, and border control regulations.

Q: Are there any final thoughts or advice for investors?

Investors should be mindful of high premiums and consider products that offer better value. Monitoring the strength of the US dollar is crucial, as it has a negative correlation with gold and silver prices. Additionally, gifting precious metals can be a thoughtful and appreciating alternative during the holiday season.

Summary & Key Takeaways

• Mark Yaxley shares three golden rules for buying physical bullion: gold has lower premiums than other metals, bars have lower premiums than coins, and larger bars have lower premiums than smaller bars.

• He highlights that gold bars offer a cost-effective option and suggests considering investment in larger bars for significant savings. He also emphasizes the importance of diversifying portfolios with silver and PGMs, such as platinum and palladium.

• Yaxley discusses the significant buying trend of central banks, particularly in Turkey, Pakistan, Qatar, and India, to strengthen their cash reserves and currencies. However, he notes that Western countries like Canada have not been actively buying gold.

• He suggests considering one-ounce gold bars for investment due to their liquidity and slightly lower cost compared to coins. He also mentions kilo gold bars as a popular product with low premiums. Additionally, larger silver bars are recommended for cost-effective bulk purchase.

• Yaxley advises investors to be patient during the current supply chain delays and wait times of one to four weeks for delivery of physical bullion.

• He discusses the importance of considering allocated and segregated storage options to ensure the physical presence of the purchased metals. Yaxley also emphasizes the need for appropriate home insurance coverage when storing precious metals at home.

• For gift ideas, Yaxley suggests gifting one-ounce silver coins or limited mintage collectible coins from reputable mints like the Royal Canadian Mint or the Perth Mint of Australia.