Gold premiums dropping hard at my local coin shop! Reckless Crypto buyers are the reason they say.
I stopped into my local coin shop today to pick up a few more ounces of silver and saw something that I have never seen in there in the past 6 years. They are now paying less than Comex spot prices when you sell them gold bullion, they wont even give you spot pricing if you have a gold Canadian Mapleleaf! On the buy side the premiums are a lot lower than usual as well. Cost for Maples is 10.00 over spot. If you have name brand, serial numbered gold bars you can only get them to buy it at $50.00 below the spot price, which has not happened around here in almost two decades.
When I asked them why and how this could be the case when we have multiple national disasters looming, N Korea acting irrational, a bloated bubble stock market and a government 20 Trillion in debt who is printing money like never before. He told me nobody wants to buy gold right now, and all his customers are selling gold to move their money into Bitcoin! The last time this dealer could remember anything happening similar to this was in the year 2000 when everybody stocked up on gold believing that it was the end of the world and when it didn't happen they rush right back in to sell it. He says he literally has no customers wanting to buy gold at this time.
In my opinion this is one of the signs to let you know that the next bull run in the metals market is coming. Investors who are dumping their metals for crypto coin's are possibly making a good play, but they are also releasing real wealth that has been valued for over 6000 years. To me this is a very foolish play, I am a big supporter of bitcoin and crypto currency's however I think you should use them to leverage your way into a larger metal stack. If a person wants to buy crypto coin's it is best to do it with fiat cash and not with hard assets. While crypto coin's may run and run and run, I think the day will come when investors regret releasing their metal for a digitized asset. I guess the old saying is true..... "a fool and his money are soon parted. ". This trade is exactly what governments and bankers what you to do with your gold. China, Russia and The other Bricks nationals have not been importing massive amounts of metal for the last 6 years for no reason people. They have controlled the price, controlled the narrative and stacked the shiny until the sun sets, and when they feel like they have the lions share of it all they will flip the script and run the price so high that it will run the average investor out of the market. Cryptos are big and gonna go higher, but when this game of musical chairs stops will you have a seat. Or will you be in the corner......sticky, broke and confused in a pile of crypto coin ICO'S ?
Metal is GOD'S money and the second you don't think so, you will have none and the banksters will have total control over your life. They hate Bitcoin! They will tolerate it right now to herd up all you hard assets, but the day will come when they turn on us like the devil in disguise. Bankers don't want most of it, they want all of it and they won't take this lying down.
Listen to the OG Broncnutz, hold your gold and silver. Use Cryptos to stack real wealth and NEVER trust a banker!
Definitely gold and silver have been valuable for tens of thousands of years they are not going out of style any time soon! Stacking up those cryptos and appreciate all your upvotes plus the witness vote!
Thanks Jerry, I have learned a lot from you.
only lucky people get jeryy's reply :D lol you are lucky :D
Jerry is cool, he has replied a couple of my posts. I have learned a lot from him.
Just a point of clarification... 5-6 thousand years for silver & gold. But correct insofar as it has NEVER failed, not once, in all that time.
Excellent piece of blog OG @broncnutz sir ....
The main theme I would derive from this article is that "I am a big supporter of bitcoin and crypto currency's however I think you should use them to leverage your way into a larger metal stack. If a person wants to buy crypto coin's it is best to do it with fiat cash and not with hard assets".
This is so true because you may plan your life and financial portfolio according to the present scenario and trend but at the same time you cant undermine the value of something which has got rich heritage across the world for over 6000 years or so. GOLD and Silver are precious metals and will remain precious from generations to generations and cryptos are the new generation's money.....so both are equally important.
Thanks a lot ...steem on & stay blissful...
Thanks for the observation, @broncnutz. I've seen this kind of action several times before where dealers aren't willing to buy product, or they will at significantly below spot. It's usually in response to people who get into PMs as a quick-hit investment rather than as a long-term wealth insurance vehicle.
It happened after 2000 like you mentioned and it also happened in 2011 after silver spiked to $50 then came crashing back down.
Local Coin Stores are just not able to handle large inflows and outflows like a big bank or a brokerage handles stocks, and that bottle-neck is one of the downsides to stacking PMs. There's no quick in and quick out.
Not that that's ever bothered me. I've been stacking since the 90's and in all that time, I've never once considered selling any of my product. I bought gold in the $250s in 2000 and I bought gold in the $1900s in 2011. I'm not in this game to buy low and sell high. I'm in it to buy, buy, buy! I'm in it because I KNOW the system WILL break down and I want to be prepared for me and my loved ones. I fully expect to pass it down to my family if the inevitable reset does not happen in my lifetime. All I know is that it HAS to happen.
Interesting observation that dealers are paying below spot, but it does not impact me one iota.
Keep on Stackin, Brother!
Great reply once again Stacks! I never sell either, the system will break in out lifetime and metal is one of the best ways to keep yourself from being a govt slave. Stack on!
@broncnutz,
You are absolutely correct! Yeah people mad with BTC and other cryptos! But those are cryptos and those are not real :D Who seen them anyone seen it real? Any of you! NAh no one seen crypto in real life and this market can show high fluctuation anytime! So as you said before METAL is here in last 6000 years and will be too! Therefore, the BULL market will happen anytime soon on metals and it will rise and rise as usual!
We need to balance everything! I am not saying we should sell all cryptos and buy gold! But I mean we need to keep cryptos and atleast 25% of the crypto funds should be allocated to buy GOLD!
You said this before and it was a "Million Dollar Worthy Quote" for me!
Balancing everything will give you ultimate benefits, so better spend 25% of your cryps investments to buy GOLD and SILVER!
Thank you very much for sharing such great article with us! Really appreciate your effort!
Cheers~
Hmm, my brother went to Reno a few weeks ago with a friend and his family. He told me that he sold some Gold coins and put them into Bitcoin and a few ICO's... I can't tell him what to do... He was tired of the crimex and banksters manipulation over the last bear market and saw more upside with the crypto's. I'm holding onto my Silver Eagles myself...
Please do unless you run into a serious financial emergency. It will always be worth something no matter what happens.
Selling metal anywhere in the state of Nevada is way to dangerous for me......I'll loose it on the blackjack tables and then be really pissed!
Your probably better off betting on a Bronco's game.... Or take up card counting... lol
The only way to Stack is to hold on until the rollercoaster ride is over , you will feel the relief and see you wealth rise as well . I personally have a gold bar that I've been holding for years now until I really need the money , I have hope that prices will rise
My father was buying gold when it was 30ish an ounce. Imagine if you had bought at that price? The price is meaningless anyway. What is important is what it will buy. Gold will always buy a large amount of goods. That is what makes it so valuable. No matter what happens, it is a good store of labor.
ITs a great store of labor! Most people miss this important fact! Man I really wish I had some 30.00 gold.
It is crazy to think about, right? Still, I'm stacking now, and my children will be that much richer.
You just keep holding and when your hands feel weak.....pull up a historical gold chart and ask your self the honest question of why it would go lower when gold has never lost value over the long term. Metal is the only real way to protect yourself.
That's true , gold has always really increased and never really dropped , maybe that's why I'm still holding . Metal may be the way to go . Go hard or go home
The only way I'd sell any of my stacks is if I had a financial emergency. Otherwise, I'm holding until I retire, and I don't plan to ever quit working. Retirement? I am not sure what that is other than no longer having a day job, but I'd still be making money to make more money for me.
I only sell metal to pay debt if I have to.
I have and always will love bullion. I remember a few years ago giving my nephew 3 silver eagles for his 5th birthday. His parents looked at me like i was cheap since i didnt give him some random crappy toy made in China. Fast forward to today and he still has those eagles and non of those Chinese toys.
Giving silver for gifts is so awesome. Everyone wins!
Content is great as always!! But what sets your posts apart is you always find ways to make people have a smile on their faces with your humor!! The bicoinmania pic is hilarious!!
Thanks for the compliments. I always try and make it entertaining......put a lil Broncnutz spin on it.
Hahaha never change that attitude!!
@broncnutz - Excellent analysis & excellent article Sir. Metal was the past, metal is the present & metal is the future too Sir. So, I wish to spend a half of my investments on metal Sir. All crypto investments are imaginations & only metals are the real Sir. Love your wonderful article Sir. Therefore, I wish to ReSteem your post.
+W+ [ReSteemed & UpVoted]
I went to the Long Beach Coin Show yesterday and I talked to 10-12 dealers that did not want to buy any 90% Junk Silver from me at 12.7 times face. That is what Provident Metals one of the Biggest Bullion Dealers in the US was willing to pay on their website. It was interesting to me that the Best quote I got from any of these dealers was 12 times face. None of the Dealers really wanted to be a Strong Buyer at the Show because of the Weight of the Silver to drag back home with them..........Nevada Coin Mart did tell me if I brought the Silver to their physical store they would have paid me the 12.7.........Looks like I need to take a little Vacation to Nevada soon.
Won't provident buy it back? I have bought some of their junk silver, and I believe they will.
Provident had a table there at the show and they did not want to buy $400 in face because the did not want the added weight to carry back home.
Ahh, I'd call them. I could have sworn they had a buy back guarantee in the past, but it could have changed with the drastic drop in silver purchasing lately. :(
P.S. It's too bad we are not local. I'd barter or buy it from you! haha