Although the gold market this past month has suffered from the same volatility of the markets the yellow metal has done its job amidst a health and economic crisis.
Host Mark Yaxley interviews precious metals expert, macro economist and founder of the Morgan Report, David Morgan. David shares his thoughts on the state of the economy and provides his outlook for gold, silver and mining stocks in these volatile markets.
A precious metals aficionado with degrees in finance and engineering, David founded The Morgan Report, a monthly report that covers economic news, the global economy, and teaches investors how to make substantial capital gains by investing in the resource sector.
Typically, my answer to that question is yes and no. Purchasing silver coins or bars at the spot price would be similar to attempting to buy a car for just the cost of the auto-making materials, such as steel, aluminum, glass, and rubber.
You can buy silver close to spot price if you buy off the exchange. Or, using an automated gold and silver saving program, you can take delivery of 1000 oz bars at close to spot price.
Why? Because there is no manufacturing involved. If you want Silver Eagles, then you pay a premium just like everyone else does.
But remember, you only pay when you cash out your silver, not when you buy. You can take delivery later on when the premiums are back to normal.
Gold is a physical commodity subject to the vagaries of supply and demand. The value of gold often changes quickly, and gold's price moves can be quite large at times.
It's clear that roughly 90% of gold demand is based on its intrinsic value. In fact, at one point, most paper money was backed by a country's holdings of physical gold.
That time has passed, of course, with fiat currencies now backed by the promise of a government to make good on its obligations.
In case you have not been paying any attention... the recent crash of the stock market and the uncertainty of the Coronavirus has created a very unique buying opportunity.
Now we know most of you are panicking and this recent crumbling of the stock market is looking a lot like 2008 all over again. Don't panic.
This is the time to make huge profits if you can keep your head in the game. Because out of the rubble is rising a potentially explosive profit opportunity. In fact, you can get in at yard sale prices.
Plunging global yields have created the perfect scenario for precious metals to thrive.
Gold and silver are often referred to as "safe-haven" assets because they outperform during periods of uncertainty.
If the stock market has a bad day, or a Trump tweet riles investors, investors turn to gold as a store of wealth to ride out the temporary storm, so to speak.
