Understanding Premiums Vs. Spreads On Gold & Silver - (Coins, Bars & GoldBacks)
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- Опубликовано: 6 сен 2024
- Understanding premiums and spreads is very important for anyone stacking gold & silver. In this video I'll delve into this topic and address some misconceptions I've come across regarding spot price, premiums & spreads for bullion products.
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#goldbacks #gold #silver #silverpremiums #spotprice #goldprice #silverprice #bullion
Most people don't realize the revolutionary feat fungibility is in the gold space. We've known it our whole lives in our fiat so it is taken for granted. But, as fiat draws to its end, finding it in a Goldback is, and must be, remembered as a Herculean achievement. Gold has changed forever because of this single fact.
Goldbacks are amazing, love the cash like attributes, owning smaller amounts of gold and being able to spend it is extraordinary and unheard of until now.
Bitcoin is infinitely divisible.
@aggrevatedmonkey ditto!
I hate when people complain about the premium on the Goldback when the spread is what's important. The market and price history speak for themselves.
The premium has never mattered. It has always been the spread. If this wasn't the case, we wouldn't use $100 bills at all as they have no melt value. Excellent video!
This guy is smart
So you are perfectly fine with a dealer charging you one hundred dollars more because they are looking to recoop costs on a falling market price?
Excellently stated!
If a dealer charges you one hundred dollars more and the dealer buy it back for the same price you bought it or lets say a small spread does it really matter?
@@TheMostSlyFox
I'm assuming you would rather them sell it for spot but buy it back at a huge spread.. Great idea lol @@TheMostSlyFox
If anyone has any questions about Goldbacks please feel free to ask me!
I also have information in my channel description, as well as my contact info if you have any questions and prefer to talk one-on-one!
My biggest question is why wouldn't I be better served with a 1/10oz or 1/20oz coin with a 15-20% premium, over goldbacks with a nearly 100% premium?
@@TheMostSlyFoxIt depends on what you're stacking for!
If your goal is to get as much gold weight for your USD, then you may be best served getting gold shot or larger gold bars/coins, like you're asking about.
If your goal is to have a form of money that has the necessary properties to be used in transactions easily, Goldbacks are in my opinion the best game in town because they're fungible etc.
If you want a diverse stack, some combination is probably best!
Really, it depends on what your intentions are! There's no one-size-fits-all in stacking 😊
@@TheMostSlyFox What are you going to do with a tiny, possibly fake 1/10th oz coin? A $4.00 Goldback can be easily used as money where gold could never be used before. Also, the premium doesn't matter at all. The spread does.
It's all about how you buy them and use them. The exchange rate is where you can trade them for today they are at $4.20/unit. They doubled in value since they launched a few yrs ago. They are 100% real gold and legalized in 5 states so far. They can be held at the UPMA and by opening a debit card account you can make any purchase that accepts Visa. The Goldback ATM is being launched next week in Utah. I think Goldbacks have a real shot at a secondary currency worldwide. Don't forget these are not meant to be STACKED although you could if you want to. They are meant to be CIRCULATED.
They tell us on the GB site to learn to explain goldbacks in thirty seconds to perspective merchants but don't give us anything on what best to say. They have a link to a ten minute video but well, that ain't thirty seconds, is it? Can you help with something we can use to explain goldbacks in a very short time to a merchant?
Goldbacks are great! I don't give a hoot about the premium, it's fricken 3 4 bucks per unit, big deal. Alpine Gold and hero bullion have best rate. These are great for preppers.
Also, if you live in a state that has authorized them to be used as currency, such as Utah, Nevada, Wyoming, New Hampshire, stacking them makes sense. Just don't buy them from some
of the big name bullion dealers. They charge almost double what the going price is.
yeah just go to a store if its an option .. or go to the sources dealers like defy the grid 2ed party to the gold back office .. still high premiums but lower then dealers but i wish they just treated them like gift cards $1 =3.95 trade in value according to the calculator $4.29 only 0.02 diff on the 5's
Defythegrid, has the best price overall. Free shipping and no credit card fee. At 3.79/gold back and the exchange rate at 4.25, it’s a solid price.
Excellent explanation and appreciate your honesty when speaking about dealer premiums.
Thanks JB!
Silver is up 20% since the beginning of October 💰
I have just a very few $5 gold backs. I think they're very cool looking. I bought ones from my own state. I plan to give a few way for christmas. I've never been able to afford to give gold away before lol!
As usual, another home run video!
I couldn’t take my eyes 👀 off of that beautiful 100 oz. Engelhard bar…🤩
I am getting a full band of goldbacksl like that asap. Sometimes you just want things you know.
You are bang on. I think a lot of people miss the point and potential of these notes.
Love Goldbacks. Bought some recently and will be attempting to spend them throughout NH. If that goes well, I'll be getting more. If not, well....
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Like the OZ 1/200 gold note nice colours and the silverback dragon note is super cool😮😂
Another brilliant video!
6 plus is ridiculous. I like and shop SD Bullion buy defy the grid sells for less than 4
And buy back for 3.60
I didn’t think goldbacks were controversial. Terrible for stacking, fun for stacking and enjoying their designs. I have a couple, I mostly use as bookmarks.
The purpose of Goldbacks is not to run down to the coin shop and sell them back to the octogenarian dealer. The purpose is to spend them in your local economy and divorce yourself as much as possible from being dependent on fiat currency.
I love my GBs. Don't knock them. They are to be spent and circulated. The value is in the utility as well as the gold.
What is the name of the band holding the goldbacks together, and how did you get it?
What's the spread on an ASE?
Is it worth the high premium vs generic rounds?
I stack both but have mostly rounds. Just curious if I should be adding ASEs.
You will get more for coins vs rounds, Eagles, Brittanias, Maple leafs, they are backed by the government and are recognized worldwide.
@@michaelmohrle1773 , but can ya recoup the higher premiums?
Great video! Great for a newbie like me😅
Where did you get the black goldback band?
Great video!
You pay the spot price, then pay the stores premium price, then you pay another price if you're not buying 99+ coins.
Are you concerned at some point in time that there will be a confiscation of gold and anything not US Minted would be worthless? I heard someone speak on this yesterday which concerned me regarding gold bullion items. Thanks for any feedback
There are several states that have made or are currently in the process of making gold and silver as legal tender within the state.
@Smartsilverstacker -where did you get the goldback band from? That band compliments them real nice !
Defy the Grid sells them with the band if you buy 100 one notes.
@@kivie13 thanks
From The wizard of oz The 1/200oz gold note i ment😮
Wow I think the Doomsday videos are indeed important because they do impact the price of gold and silver, I like these videos a lot more
Minimum quantity they will buy back and volume pricing?
Smart Silver Stacker... what are your thoughts about purchasing the 1/10 oz gold napoleon? Is it worth buying if I do not plan on purchasing the 1 oz version to complete the set?
It is a pretty sweet coin
Goldbacks are to be a supplemental to your gold stacking. Not to be a main stacking item. Defy the grid sells goldbacks for under $4.
Hero bullion has the cheapest prices on goldbacks.
Where did you get the GB ribbon?
If you make an order of 100 1 note GBs from Defy the Grid they come with the band. Also I believe if you request them in the note section when making an order they will give you some.
Dude... you threw SDBullion under the bus for ripping people off on the 1 Goldback denomination! That could be its own video right there. Why are some of these dealers gouging on the one denomination? I noticed that APMEX does it too. Very entertaining video and congrats on the sponsorship. I bet the CEO at Goldbacks is pulling his hair out right now, I know they are sponsoring your channel but did he know what you were going to say? Either way, I'd make it clear if your goal is transparency. It would be interesting to know if Goldback itself is paying to promote Alpine Gold. So many questions.... good job though.
Ultimately they charge what people are willing to pay! You're rewarded for doing your due diligence and checking around 😊
Goldback is a wholesaler they cant really control what stores sell them for.
I love SD Bullion and buy from them almost exclusively. It's not a ripoff, they just don't prioritize goldbacks, and they price them like traditional bullion products (IE the more fractional they are, the higher the premium). If you notice they actually have excellent pricing on the larger goldback notes.
@@SmartSilverStacker exactly!
Goldbacks are 100% a novelty. You can use premiums, spread, rumours, doesn't matter. They're incredibly expensive and a poor choice if you're stacking metals.
They're not really for stacking though, they are a gold currency for circulation, very hard to counterfeit, highly divisible etc.
@@SmartSilverStackerAre they really currency? How many places accept them and how many people are really trying to spend them? I'm guessing very few to both. I still see them as a novelty regardless. They're definitely cool, I just couldn't see spending much on them personally.
I've been stacking them for years and they have outperformed my other bullion BY FAR. The utility value also can't be beat as long as you know how to use it just like everything else.
@@kivie13 How exactly have they outperformed your other bullion? Nobody denies these are super high premium gold. I'd be curious how you apparently avoided those premiums. Or are you just making this up to make you feel better about your purchase. Please do tell.
@@okgroomer1966 With a UPMA account you avoid the high premiums. If you choose to vault (they charge no fees for GB vaulting) and sell back to them they buy them at 100 percent what they sell them for. If you are a "if you don't hold it you don't own it" person if you hold physical GBs and want to sell get a UPMA account and they buy them at 5 percent less what they sell them for (pretty darn good in my opinion). You can also get a Visa debit card linked to your GB account and use that account like a checking account. There are monthly fees for the debit card however you can avoid those by only turning it on for emergency purchases. Lastly, if you want your GBs that are vaulted to grow and work for you then you can lease them back to the UPMA and get paid monthly starting at a 2 percent APR (another way to also avoid the visa debit by having some leased to pay for monthly fees).
A couple years ago I put a deposit into my account and it totaled 5555 dollars. Now, without making any more deposits it is valued at just over 6500. Try doing that with your silver eagles that at the same time were going for close to 40 dollars an ounce.
I hold physical, vault, and lease Goldbacks and fortunately I haven't had to turn on my Visa and spend any. I am very pleased with their performance considering when I started buying them they were around 3.40 each and today at the UPMA they are 4.02.
Yes you can profit from Goldbacks, and yes you can spend your Goldbacks even if you live in a state that has no Goldback representation by using the Visa. If you are lucky enough to live within driving distance to Alpine Gold in Salt Lake City you can use their services just like a physical bank you would walk into to do transactions for your account. I heard the recently opened a branch in New Hampshire as well. Hopefully all states that gets Goldbacks gets Alpine Gold branches and they become just like another bank franchise.
Feel free to give Alpine Gold a call and they can verify everything I am saying. If anything has changed or I am wrong please respond and let me know as I want to be truthful in my claims.
I don't put everything into Goldbacks. I have fiat, gold, silver, and Goldbacks. I like to diversify what I have. It's just what I do your mileage may vary.
Alpine Gold = UPMA (Alpine Gold serves the UPMA) if you are confused by my terminology. And the UPMA deals in gold, silver, and Goldbacks.
Also, and most importantly, the premium of the Goldback is part of its utility which stays with the Goldback. Just like you would not sell your perfectly good running vehicle for its scrap value you should never sell or barter your Goldbacks for the spot, or melt, value. Why? Because they both have a utility value. It costs a lot of money to make a Goldback and the value of that money stays with that Goldback. If anyone, including the bullion dealers try to buy them back from you for spot price or just over spot they are trying to scam you.
You should have listened to me and bought Bitcoin.
Who says I didn't?
Hype
2nd
Goldbacks are for framing. Nothing more
the most polarizing bullion on the planet! I agree they look nice
So when I bought food at the farmers market with Goldbacks that was nothing more?
@@SmartSilverStackerI'm quoting you.😮
Goldbacks are awesome there not just for a frame, they have less of a spread them silver rounds or junk silver do I bought 20,000 worth of gold backs back when they were 3.50 now I can sell them for 4.81 a pop so I’m ok with that or I can spend them at 5.00 now so how are they only good for framing???
You lost me at goldback brother.
My GBs have outperformed my other bullion by far.
@@kivie13 No way to verify who printed it or how many were printed or if it really has any gold in it or not. It is way overpriced, gold would have to triple for you to be even let alone make any money with it. Glad you're happy with it , that's what counts. Good luck trying to buy anything with it outside your echo chamber.
@@jy9383Oh here we go with another one..
Like I said, my Goldbacks have out performed my other bullion by far. Especially my silver. Period.
I can buy just about anything I like with my Goldbacks, however I like them to work for me so I can get more. Yes... I can buy just about anything I want using my Goldbacks. Well, actually I am incorrect in that statement. I can buy ANYTHING I want using my Goldbacks assuming I have enough of them to buy what I would want.
Yes they can be verified and yes they have security features.
If you are so good then go right on ahead with your bad self and start your very own GB counterfeit operation. Do it. I'm waiting.
Heck, since you are so Mr Big Galaxy Brain liberal show all of us a counterfeit Goldback that has been verified to be fake. They have been making these things for years now so there has been plenty of time for the fakes to make it out there. Do it Galaxy Brain. I am waiting.
Only if you sold your bullion for less than half of spot.
@@kenofken9458 Nope, I can sell my Goldbacks that I bought a couple of years ago for 3.43 each for 3.99 each today.
I,we alot of major problems the times rite rite and some of the art
And the legal. No way
Hate to break,it they have been copied all ready
So no here. Neat but ahh next
Just remember, there are no poor metal dealers or jewelers 🫤
probably because they're adding a lot of value 🤷