I think the demand for silver will go up in the next next couple of
years to on the industrial side.
So when the retail I'm talking about like, Silver, Eagle, silver,
Maples, and so on like that.
So there are high premiums right now.
I think anyone who's bought silver recently as seen the premiums have
skyrocketed.
They're almost a crazy levels.
It's basically a function of Supply Demand, on the supply side.
First, you have the US Mint, winding down the Productions of the 2022
dated coins.
Obviously, it's December 2020 to you.
Have some mints that are done with a 2:40, some are still in the
process.
That's the first thing.
The second thing is, we are seeing a trend change on the apmex, I'd
wear less customers.
Are selling metal.
So typically we would get an inflow of metal from retail customers and
then that that is now declining to.
So a lot more people are holding onto metal in the past couple years,
then then then let's say, 55 10 years ago and then third, there's a
shortage of blanks.
So it's important to note that a lot of these mints, especially the US
Mint.
They don't make the own, their own blank.
So, these are the Round Disc before coin is stamped.
They actually have to Source it from a third-party production company.
And what's happened in the past couple of years is you've had the
Easy to manage 2011 2012.
And then you had a whole bunch of flat years where the metals did not
do any many much.
So you had 2013 up till 2019.
I mean anyone, who's looked at the metal start, see that the metal
really didn't do anything.
So these these third-party companies have almost right size, their
production for lower volumes and then obviously 2020 comes.
You have a spike up in demand and, you know, now these companies
cannot keep up, so that's that's what's kind of going on, you know, on
the supply and demand side, I mean, we've been seeing crazy tomb and I
mean, at Max, has been in business for over 20 plus
Ears.
We've seen some of our busiest days this year.
So basically it's like tightness and supply high demand that's
creating unusually high premiums on the physics on the retail precious
metal side but we can get into the wholesale side to.
It's a little bit different over there, but I could tell you in the
u.s.
when covid first hit people ran out and they bought all the toilet
paper they could.
I don't know why people did that but that's what happened.
And what happened there is.
If you went to any of the stores, Target Costco, whatever over here in
the US, you can buy toilet paper.
Sure enough to supply chains caught up in toilet papers now readily
available.
So if you look right now, the same thing is happening on the metal
side, on the retail side, on Silver's, is like, you have these
bottlenecks, you have the blanking company, you have the minutes, you
have a lot of parties in the supply chain that cannot catch up right
now and demand is just crazy.
So you are seeing it's basically supply and demand.
I mean obviously there's not a lot of Supply so the prices go up but
the the demand is a little bit different in the wholesale side.
If you want to get into like thousand out, silver.
Bars and grain.
We're not seeing the crazy premiums over there on that side.
Yeah.
So let me just start by saying we need thousand ounce bars for one
gold.
We primarily don't sell a lot of these to retail customers just
because their clunky, they're hard to authenticate and so on like
that.
But we buy thousand ounce bars for one gold as a data point.
We've done about three million ounces of silver, just this year on one
gold,
But the Thousand ounce bars are still available.
We're currently paying about 34 cents over spot so much different than
the Silver Eagle Market where they're selling for like $13 over spot.
But I can tell you that inventory is getting tighter so before this
whole pandemic mess.
So let's let's go back to 2019.
When we when we first started one gold, we are paying about 3 cents
per ounce over spot for 4,000 out, silver bar.
So, like it is basically 10 times higher but they are, they still are
available.
And this, that's one thing that I personally I like using
One gold because it gives me access to Silver at the lower premiums.
As I mentioned, we're selling silver for 2% over spot 48 cents.
We're making a couple cents on it, I'm getting exposure to Silver
right now and then when premiums go down and we are seeing premiums
contract and last couple weeks on the gold and silver side, I could
then redeem it out and get the silver and I don't need to pay $13 over
spot.
Maybe Silver Eagle premiums drop down to 55 dollars over spot.
I could then get into there and one of the things I always tell people
to, it's like you don't want to pay, you want to speculate
The silver price you don't want to speculate on premiums.
So silver is $24 right now.
Let's say you bought a silver eagle at $14 over spot.
You paid $38 all in let's say silver went up from 24 to 30.
You were right you know good call but silver premiums went down from
that $14 to $5 so you paid $38 for the silver eagle now your silver
eagle selling for $35 you lost money despite silver going up four by
six dollars.
So I said you want to get an exposure to Silver.
I'm personally doing it through one gold but physical is also great as
well too.
Yeah, so AB, we like to have solutions for all types of investors.
So we we have 25,000 products on our site.
I would say the majority of our customers probably about two-thirds of
our customers are what we call investors.
So these are the customers that are looking to hedge against
inflation, they're looking for portfolio protection.
Obviously those are likelier hundred ounce silver bars or Gold Eagles,
your gold Maples and so on like that we also have silver stackers to.
So these are they make up about 10% of our customers?
This is these are the guys who want as much silver as
Possible.
So like we also like to cater to them to we have rounds, we have low
premium products and then you have a small percentage of customers.
I would say about four percent are what we call Modern collectors.
So, these are the collectors that like, to collect a lot of the new
stuff.
For example, let's say, Perth Lunar Series, I think is a great
investment to because what happens over there is typically the metal
appreciates and the premium appreciates and then you have vintage
collectors to.
So, collectors of let's say, Old Morgan dollars.
Thank God, it's pretty 33, you know, twenty dollar Liberties and so
on.
That so we like to have a solution for all types of investors.
But what I would do is I would recommend that you your, you get
familiar with with, you know, the different products and you decide
what works best for you.
I mean, there's people who make a living in numismatics and there's
also people who get burned in it.
So if you do I would just say, you know, make sure make sure you know
what you're doing.
But when you're buying silver or gold close to the metal price, you
really can't go wrong because you know, if you lose a premium you
didn't lose much.
Yeah, silver is an interesting thing too because obviously it could it
could go two different ways.
One.
Follow gold and be that monetary asset to and it'll be interesting to
see what if stocks continue to crash, which I actually think they will
in the next year.
Whether silver goes that way or whether it goes to the new, I guess
Tech way and Industry way.
It's done both in history too but I think the demand for silver will
go up in the next next couple of years to on the industrial side, you
have silver is the most conductive metal out there.
And it's with the most reflective metal to.
So, a lot of a lot of industries that
Solar for example, they need something that's highly reflective.
So it makes sense to use silver industries, that need basically
efficient electrical electrical conductors basically the best best
conducting metal gold shoes silver because it's the best metal.
It's better than copper is better than gold and conductivity, it's
just, it's the best.
I mean.
So I think the man will go up to as well.
Yeah, I think actually I'm I'm looking forward to seeing industry,
pull some of that demand because what happens?
Like, let's go back to that silver.
Squeeze time.
So what that did.
This is a lot of times it depleted that retail silver inventory to, if
you really want to have like a silver, squeeze, I almost think that
you need a deplete it on the wholesale level.
So the Thousand ounce bars, the Grain and so on and all it's going to
take is some type of tech company that says, okay, silver makes up a
small percentage less than one percentage of my finished good.
Like, I mean, I don't let's say Tesla, for example, Tesla's probably
uses a small percentage of silver for their vehicles, their vehicles
cost.
Let's say north of 100 thousand dollars so they don't care.
If silver is $28 or you know fifty dollars or two hundred dollars,
right?
So they're going to say well I'm just going to buy it regardless of
cost and at that point, I think that's when you really have.
The silver squeeze is when you have the industry players who need it,
regardless of cost, just buying it and depleting the inventory.