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Josh Phair: A New Generation are Creating Demand for Gold & Silver

Tom welcomes Josh Phair, President of Scottsdale Mint, to the show.

Josh describes his background in risk management and how that led him to become interested in the mining industry. While he liked the industry, he realized he had a great passion for the metals themselves. Fifteen years ago, there weren’t many brands in the industry. This lead him to start the mint to manufacture products with a higher-end image. The idea was to put the precious back in precious metals.

Demand was near-decade lows during the first three years of Trump since the economy was doing well. Then, when Corona hit, everything changed overnight, and demand exploded. Since then, demand has continued to roar and then continued as the Reddit WallStreetSilver took the lead. 2020 was a record year for their sales, seeing an increase of nearly five times. Logistics and finding supplies have been tricky at times. Raw materials have been available, but keeping on top of the product’s manufacturing has been difficult.

The spread on raw materials climbed significantly across the supply chain this year, and that cost has to be passed down to the retail market. Josh explains the various causes of higher premiums, including issues with staffing and the difficulties of bringing on additional personnel. In addition, there is a generational shift now occurring as new people come to the market.

Josh outlines various risks in the mining industry and why companies should consider insuring their assets in the event of regulation, confiscation, or government tax changes.

He explains their new solutions for obtaining loans based on precious metal holdings and their debit card options. In addition, they are building this out as a global platform that operates through merchant and loan fees.

Time Stamp References:
0:00 – Introduction
0:31 – His Background
7:24 – Demand Picture
14:08 – Raw Materials
23:39 – Premiums & Supply
27:12 – Vetting Suppliers
29:15 – Risk Management
31:53 – Market Risks Today
35:31 – Rehypothecation
44:23 – Educating Investors
49:33 – Price & Volatility
54:07 – Wrap Up

Talking Points From This Episode

  • His background and what led him to build Scottsdale.
  • Physical demand explosion in 2020 and 2021.
  • Supply, logistics, premiums, and raw materials.
  • Managing operational risk in this industry.

Guest Links:

Josh Phair is the Founder and President of what has become one of the world’s leading manufacturers. They are distributors of precious metals bullion for investment and collectible communities. The Scottsdale brand is known as the “Benz of Bullion”​ and is recognized and circulated in most major countries.

Josh was Principal and Founder of Scottsdale Firearms LLC and was Vice President of North American Mining Practice. He dealt with environmental finance dealing and corporate governance for publicly traded companies—evaluating global business risks both in operation and politics in Latin America and Africa.

Josh has a degree in Risk Management from Florida State University.

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