Patrick Yip: Protecting Your Savings with Gold and Silver
Tom welcomes Patrick Yip to the show. Patrick is the director of business development at APMEX, the largest precious metals dealer in the United States.
Patrick discusses how everything is becoming more expensive and we see that in the one year performance of most commodities. The CPI report of 7.5% seems to be very understated. This rate of inflation alone would remove 35% of your purchasing power in five years.
He discusses the bar shortages during the silver squeeze. Premiums remain somewhat higher than pre-covid levels and have yet to decline. They are seeing wider margins across the supply chain.
Patrick discusses their most popular products which are typically U.S. gold eagles. Silver rounds like Buffalo’s are popular along with various discount bars for metal exposure. Silver eagles are also quite popular.
He explains how everything they bring in is checked for authenticity. It’s important to keep in mind who you are buying from and do they have a good reputation. He recommends you buy only what you understand. Numismatics means coins that have collector value above the value of the underlying metal.
Patrick discusses the procedure for purchasing bullion back from retail investors. The market for metals is extremely liquid so it’s fairly easy for them to sell metals.
He discusses the OneGold service and how that may be a good option for those who want exposure to metals but don’t want to hold the metal themselves. It’s a pooled service but is allocated and segregated. If you want to take physical possession you will need to cover any premiums.
He discusses the pros and cons of ETFs like the GLD and SLV. The biggest issue is that they clearly state metals are not insured. You don’t know where the metal is stored or if it’s secure. ETFs are often far removed from the actual metal since it’s held by other parties.
Everyone’s allocation for metals is different. They’ve looked at fifty years of data and compared returns for different investments. A gold weighted S&P portfolio is shown to outperform.
Time Stamp References:
0:00 – Introduction
0:36 – Historic Markets
5:20 – Demand & The News
8:43 – Silver Solutions
11:12 – Premiums & Products
15:13 – Watch the Spread
17:43 – Collectible Coins
22:52 – Selling Your Bullion
24:22 – Storage Options
28:33 – Bullion Credit Card
30:20 – ETF Downsides
31:54 – Allocation & Risk
34:10 – Metal IRAs
36:05 – Concluding Thoughts
Talking Points From This Episode
- Inflation and metals pricing and supply over the past couple of years.
- Popular products and the importance of understanding what your buying.
- Their OneGold bullion service and their upcoming metal backed credit card.
- Concerns around insurance and safety of metal ETFs and IRAs.
Patrick Yip serves as the Director of Business Development at APMEX, and currently manages the fast-growing digital precious metal platform, OneGold.com, which has processed over $650MM in transactions during its first three years in business. Mr. Yip joined APMEX in 2011 and has held roles in Merchandising, Sales, Project Management and Business Development. He played a key role in the company’s 250%+ growth on marketplaces such as eBay, Amazon and Walmart. Prior to APMEX, Patrick has held roles at asset management companies, and at Fortune 500s, such as Disney and Twentieth Century Fox.