How to Buy and Store Physical Metals

Published on
August 22nd, 2020
Duration
50 minutes

Fleckenstein and Rule: Miners Are a Call on Unintended Fed Policy


How to Buy and Store Physical Metals

The Interview ·
Featuring Mark Yaxley

Published on: August 22nd, 2020 • Duration: 50 minutes

There will always be debate surrounding what is the best way to gain exposure to precious metals. Should you buy gold miners, an ETF, maybe trade futures? It can all seem very complicated, but what if you want to do it the way it has been done for centuries -- owning physical metal with your name on it stored in a vault in a secure location? Mark Yaxley, general manager at Strategic Wealth Preservation (SWP), sits down with friend and client Raoul Pal to answer that very question and discuss how SWP has made it easy to buy, sell, and store precious metals in the Cayman Islands in a safe, legal, and affordable way for countless clients from all over the world. Together, they also discuss the state of the physical gold market, Mark and Raoul’s outlooks for the asset class, differences between coins and bars from assorted global producers, and the types of clients Mark is seeing step into the physical market at this exciting time for precious metals. Filmed on August 19, 2020. To find out more about SWP or open a physical metals account, go to http://www.swpcayman.com/realvision.

Comments

Transcript

  • BA
    Bader A.
    4 September 2020 @ 11:31
    Thank you for the informative interview. Is SWP thinking of securing its supply chain with DNA marking?. I have seen some use cases for diamonds, where they combine the DNA marking with blockchain technology. Thanks
  • AA
    Andrew A.
    25 August 2020 @ 13:15
    I've read through most of this thread and haven't spotted any reference to www.bullionvault.com or www.glintpay.com or www.revolut.com. Bullion Vault is one of the world's largest gold custodians and enables the purchase and storage of gold, silver and platinum bullion in multiple jurisdictions. The bullion is certified genuine, fully insured, independently audited, individually allocated and fully redeemable for fiat currency. Glint is a prepay Mastercard where you can instantly convert fiat (US$, GBP, EUR) for gold and vice versa. You can effectively spend your gold using the card. Revolut is similar to Glint (Visa instead) but you can also convert your gold to crypto including Bitcoin, Etherium and Litecoin as well as multiple fiat currencies. I own gold bullion using all three to reduce counterparty risk. There are alternatives to the services offered by SWP.
    • RD
      Russell D.
      26 August 2020 @ 07:52
      Andrew, Revoult is a UK based App. Since liquidation of gold and BTC triggers capital gains in the U.S., does Revoult track basis and transactions and generate a yearly report of gains that can help when taxes are due?
    • AA
      Andrew A.
      31 August 2020 @ 21:53
      Effectively yes. You can access statements showing all transactions for each asset enabling you to easily calculate gains and losses.
  • MB
    Michiel B.
    27 August 2020 @ 08:06
    This is not promotional, but we’ll leave a link anyway. Right. Anyway, I enjoyed the conversation.
  • cz
    chris z.
    26 August 2020 @ 20:14
    I have a question regarding the premium on gold bullion. Back in 2019 I was purchasing 1oz eagles for $50 premium above spot price. Since COVID the 2 dealers in town have raised the prices to $130+ premium. They keep telling me that this is due to short term supply shortage. Does anyone have any information about whether this is a global increase in price? Is it temporary? Should I wait it out or just suck it up and pay the extra premium because it's the new normal?
    • MB
      Michiel B.
      27 August 2020 @ 08:04
      Last year there were long queue’s at gold dealers in several countries. If the bullmarket continues, expect to pay a premium and buy on dips. The supply is simply limited, only ones that are selling now are the miners and people in need of cash.
  • AM
    Alexander M.
    22 August 2020 @ 18:39
    Excellent questions and answers. Will follow up shortly as I intend to use SWP. Thanks guys.
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 23:06
      We look forward to working with you Alexander.
  • DS
    David S.
    22 August 2020 @ 19:19
    Excellent presentation. Thanks. DLS
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 23:05
      Thank you David - thumbs up!
  • SW
    Stephen W.
    22 August 2020 @ 20:34
    a good honest interview from a vested interest, usually when you ask people who sell gold about gold they go off in Schiff mode.... printer go brrrrr, Weimar Republic, 10,000 USD..........a refreshing approach.
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 23:04
      Thanks Stephen!
  • MD
    Matt D.
    22 August 2020 @ 23:11
    Enjoyed this interview Raoul and Mark. Thanks. ? Out of curiosity, is it possible to be totally off the radar - if a government wanted to track gold purchases, they could look at transaction details on a bank account? Gold dealers/vaults can offer privacy but there is still a money trail? Unless cash is used? Still, the withdrawal and transportation (via air) of cash is monitored. I believe in Australia, transactions under $10,000 were not reportable to the government (by the gold dealers). May have changed since I was told that (about 10 years ago). Would have thought there was gold vault in the Caymans a long time ago with all the pirates in the region ...?
    • SB
      Stephen B.
      23 August 2020 @ 04:18
      Can't speak for the US or UK but in Canada, bullion dealers, if asked, will tell you their reporting limit (it used to be US$6,000). Below that figure, you can (or could - i haven't done so in a couple of years) walk in with cash and walk out with bullion, with no name, no address and no ID. Also, you could repeat that multiple times a day, without triggering a reporting obligation. Above that figure, dealers are obliged to report the transaction. Note, however, some have their own internal procedures, in that they want to know their customers, even if they do not need to report individual transactions. It wasn't the tax authorities that concerned me (I pay my taxes!) - i just didn't like the idea of any hacker gaining access to that sort of information. Eventually, however, I put my bullion on grid by handing it over to a storage facility (Brinks). The relief of not having to worry about storing it at home exceeded the superficial attraction of being under the radar.
    • JM
      James M.
      23 August 2020 @ 09:46
      $5000 in AU now...
    • PJ
      Paul J.
      23 August 2020 @ 11:29
      Singapore have not reporting requirements for gold purchase and storage. Bullionstar are great - they also accept payments in crypto.
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 23:02
      Good question. Any transaction involving the banking system leaves an imprint. Whether or not the bank/system will scrutinize that particular transaction is the unknown factor. Crypto is a payment option which we accept.
  • bW
    brendan W.
    22 August 2020 @ 23:39
    Mark - Thanks for the great interview. Which one oz bar or coin do you recommend for platinum?
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 22:59
      Hi Brendan, Usually it is the 1 oz Platinum Maple Leaf coin, however any pure 1 oz platinum product produced by a reputable producer will work. Right now, Maples are sold out, so people are buying Philharmonics and Brittanias.
  • RC
    Rob C.
    23 August 2020 @ 00:38
    Hi what's the level of insurance held on gold in storage? is 100% of the value insured - thanks
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 22:57
      Hello Rob, We actually insure slightly more than the replacement value of the metal in the vault to account for market fluctuations.
  • SB
    Stephen B.
    23 August 2020 @ 04:21
    Mark, out of interest, is it possible and/or practical for you to take delivery of my physical gold holdings (stored in Canada), for storage in the Caymans, or would the better approach be to sell it and re-buy from you?
    • KM
      Kevin M.
      23 August 2020 @ 08:23
      Mark, I have the same questions as Stephen B., please advise. Could we deposit precious metals with Brinks or another one of your local partners and have the holding transferred to your vault on Cayman Island?
    • WW
      Will W.
      23 August 2020 @ 18:58
      Don't want to speak for Mark, but I am in the process of moving some of my bullion to SWP and they do have a process that makes it pretty easy to do.
    • IZ
      Ileana Z.
      25 August 2020 @ 02:06
      Hi Mark, I too would love to transfer my holdings for storage.....is there an easy way to do this from a "left coast state in US"?
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 22:56
      Hello Stephen and others below the original comment. The answer is yes, we can help you move your metals from an existing vault/storage location to SWP Cayman or to one of our other vault offerings worldwide. The movements are fully insured and we prepare all the necessary paperwork, etc. Generally, it is less expensive to ship the existing metal than to sell and then re-purchase the metal in another location. From experience, we usually go with the shipping option for our clients, however there are some occasions that call for selling and re-buying. If you are interested, email us at info@swpcayman.com
  • sc
    sung c.
    25 August 2020 @ 00:56
    Lot of great questions clarified. Thank you Raoul and Mark. Good stuff.
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 22:50
      Thank you Sung, much appreciated.
  • NK
    Nick K.
    25 August 2020 @ 14:49
    What is stopping the US or another larger nation arriving on the island and deciding to confiscate the holdings within the vault/s?
    • NK
      Nick K.
      25 August 2020 @ 14:49
      "Larger" than the island not the US.
    • SB
      Stephen B.
      25 August 2020 @ 17:51
      In love, war and financial crises, anything is possible - including expropriation in foreign jurisdictions. You just have to weigh the odds.
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 22:49
      Hello Nick, It's a good question. In short, there are two primary reasons I believe why the US or other large nation wouldn't take such actions: 1) The act of one nation arriving in a foreign country and kicking down doors to steal gold is a breach of heaps of international and local laws. Such an event would trigger an international conflict involving the United Kingdom and its allies. It short, quite the big deal! And ALL that trouble for a relatively small amount of money/gold in terms of the budgets/debts large nations operate with. 2) In my opinion, a nation so desperate, would be much more likely to target their own citizens' pension plans, savings accounts, investment accounts, etc. prior to invading a country to rob a private storage facility. Firstly, they would have access to a much larger sum of money and most of it is already in digital format, which is much easier to confiscate than a physical commodity residing in another country. Just my two cents.
  • JG
    Jory G.
    25 August 2020 @ 18:05
    I have honest question. Are investors some how protected / insured should the owners of the vault skip town or the vault be breached in some other fashion?
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 22:37
      Hi Jory, Yes, all precious metals stored in the vault are fully-insured up to their full replacement value.
  • SB
    Sean B.
    25 August 2020 @ 19:11
    Thank you, this was very interesting and informative.
    • MY
      Mark Y. | Contributor
      25 August 2020 @ 22:36
      Thank you Sean, always a pleasure to appear on Real Vision.
  • AW
    Andrew W.
    22 August 2020 @ 11:38
    Gen4 fakes out of East Asia that pass the magnetic susceptibility test (they perfectly counter the paramagnetism and dimagnetism of other materials), xray test (only works for purity of the surface material which could be a plating), and density test would have to fail the ultrasound test because it's impossible to create any combination of materials that can pass all 4 tests. However, most of the western bullion dealers haven't been educated yet that they need to include the ultrasound test for this reason. I've corresponded with three different precious metal dealers, and not a single one of them even knew what I was talking about. They're all using magnetism and xray and some are using density. Only the vaults in Europe, China and Singapore seem to be doing this test because of the amount of fakes out there. Who knows how many of them have made their way to North America in the last 2 years. Meanwhile, taking delivery from the comex is not an option because the contract spec states a delivery can be satisfied by 99.5% purity which is unacceptable. Mark Yaxley did a video on youtube on how they test and that didn't even mention the ultrasound test or show the apparatus for it. I'd like to see him confirm that SWP does non-destructive ultrasound assay on every bar coming in and out of the vault. The apparatus is very affordable and should be used on kilobars or larger. Refiners with insufficient smooth surfaces to enable testing should be avoided. It's becoming a major problem, bullion dealers don't understand the physics, and first-time precious metal buyers need to be aware of this.
    • JL
      Jack L.
      23 August 2020 @ 00:44
      Fantastic constructively-critical reply, I hope Mr. Yaxely et. al research & reply on this potentially very serious issue.
    • PW
      Pratik W.
      25 August 2020 @ 04:09
      Andrew! I am involved with Nondestructive Testing of Metals and I absolutely agree with your answer. Using Ultrasound, velocity measurements can be made which reveal the density and elasticity of the metal. I have never done it for gold before but I am about to research who does it. That could be my next job!
    • AW
      Andrew W.
      25 August 2020 @ 09:46
      Yafen, nice to meet someone else familiar with NDT on here. I did my graduate work in signal processing for 3D phased array ultrasound. I know there are many dealers that do ultrasound assay using just the simple A-scan profile. They look at both the velocity confirmation for the material but also for the insertion of alloys. I imagine thinly plated samples you may not even see the first reflection but would easily rule out authenticity using velocity. I am able to verify my own gold kilobars using even just the A-scan of the pipe testers but I do prefer the phased array. I thought I was the first person to also try 2D phased array on gold kilobars but it turns out the central banks already have devices from Olympus for their big 400 oz bars and this has been done for over 10 years! Exact same physics as your field, so you can appreciate like me how simple this is and why the dealers truly have no excuse not to be doing this test universally :) It takes me about 3 minutes to test an RCM kilobar. Precious metal buyers deserve to buy from precious metal dealers that do this test on any secondary market bars.
    • AW
      Andrew W.
      25 August 2020 @ 09:54
      Yafen, the Safe House in Singapore is probably the most transparent about their use of ultrasound testing. They have a policy that you cannot deposit any silver or gold that doesn't pass their test, even if it's segregated storage. In this way, your bar is immediately eligible for liquidation at any time. No finding out 10 years later when you want to sell that you had dimagnetic tungsten alloy inserts.
  • DT
    Douglas T.
    25 August 2020 @ 00:40
    FYI check out PAXG, gold backed crypto on the Ethereum blockchain. It’s actually a good use case of blockchain. Might be easier and perhaps less risky than owning outright.
    • CD
      Charles D.
      25 August 2020 @ 00:45
      I personally think this is the best option out there for owning gold! Really impressive stuff!
    • TM
      The-First-James M.
      25 August 2020 @ 09:46
      Charles D. Is it possible to take delivery of your Gold from PAXG? Also, where and with whom is this Gold vaulted, and is it in fully allocated storage?
  • KZ
    Keyvan Z.
    22 August 2020 @ 21:17
    My understanding is that different coins have different level of purity of gold. I just checked it again online and seems like that’s correct, in the interview there was a question of if there is any difference between the coins and its not just their popularity but the actual gold content. The popularity may actually be deceiving. “The Big Four 1-ounce gold bullion coins and estimates of their total production, not including proof and other special mintages, are: The South African Krugerrand — production about 60 million. The coin, the first gold bullion coin introduced, in 1967, was created to market the metal produced in South Africa. It was quickly accepted but its imports to many international markets diminished in the 1970s and ‘80s because of boycotts protesting South Africa’s apartheid. The U.S. government banned its import in 1985. That ban ended after apartheid ceased in 1991. The coins are made of 22k, or 91.67% pure, gold. The Canadian Maple Leaf — production unknown. One source says 23 million were struck from 1979 to 2013, but the Royal Canadian Mint says it does not release production figures for bullion products. The second bullion coin introduced, it was struck in 22k gold in 1979, 1980, and 1981. After that, the purity was increased to 24k, or 99.99% gold. The American Gold Eagle — production about 18.7 million. The first U.S. gold bullion coin was struck in 1986 and quickly became the most popular bullion coin with U.S. investors. It is produced in 22k. The American Buffalo — production about 600,000 coins. The United States Mint’s answer to the 24k Maple Leaf was first struck in 2006 and quickly gained acceptance in America.”
    • AD
      AJ D.
      24 August 2020 @ 21:51
      Yes the purity is less in the Eagle, for example, but there's still 1oz of Gold. The thinking behind the lower purity level is that it's a more robust coin as a result and can be used for transaction whereas the 99% pure coins are far more fragile as pure gold is a soft metal. So the US Eagle and Buffalo have the same amount of gold (1oz) just in different levels of purity.
  • TR
    Thomas R.
    24 August 2020 @ 21:48
    To be clear. there is a price diffetence in trading coins based on the mint produced and % of gold While slight, can.maple leafa are 999.9% gold...us eagles are 91.7% gold. BTW Krugarrands are 91.67% gold.
  • SB
    Stephen B.
    23 August 2020 @ 04:40
    The Argentine crisis was in 2000. I was running a business in Buenos Aires at the time and I cannot tell you the impact that crisis had on everyone (including me - it changed me for ever.) There were three categories of Argentine citizen through that crisis: (i) The 5% - those that had their savings in US$'s in US banks in Florida (who didn't lose a cent); (ii) The 20% i.e. the middle classes - that had their money in US$'s in US banks in Argentina (screwed - had their savings frozen and forceably converted to devalued pesos); (iii) The 75% (everyone else) - with Peso accounts in Argentine banks (also screwed - savings frozen and devalued). After that experience, i decided that if this is ever to happen again (as it must), i want to be part of the 5% (which is why my savings are in physical gold).
    • LF
      Liam F.
      24 August 2020 @ 21:37
      I lived in Mexico during the early 80's. Lived through several 100% devaluations of the currency. Literally overnight, the purchasing value of the MX Peso was devalued 2x in relationship to the dollar, ie, 12 pesos / 1 dollar, became 25 pesos, then 50, then 100, etc. Back then I didn't have much money, but it was rough for everyone. Gas and food prices doubled, while wages stayed fixed. Of course Mexicans were/are used to their government perpetually screwing them over, so it came as no real surprise. The poor really suffered, the middle class got screwed, and the in-the-know plutocrats made out like bandits. Guess what everyone started buying with their spare pesos? Dollars, silver, and gold.
  • KT
    Keven T.
    24 August 2020 @ 12:36
    Great, thanks for the exposure. Can we do an episode on resource shares, advantages and risks.
  • WS
    William S.
    22 August 2020 @ 15:34
    Of all the choices I researched for purchase and storage of physical gold that included allocated and importantly segregated by name SWP is one of the better ones. After further research however and if this point important to some, I decided on Pax Gold by Paxos because it allows conversion of the physical gold via a digital platform. This was important to me because not only did I want the physical component as a store of currency value, I wanted the ability in times of chaos/stress to easily convert that holding into some form of purchase value without having to physically retrieve the gold which in those times would likely be nil. The Paxos platform does that by linking the Pax Gold digital token (blockchain) equal to 1 troy oz into another digital medium such as bitcoin or ethereum. While in its infancy, Paxos and there are others, I believe will over time become the standard in monetizing physical gold holdings which cannot be readily done today except in dollars and requires numerous middle men and fees every which way you look. Finally at least for now Pax Gold charges no storage fees. Literally I was about to purchase with SWP when I ran across a Paxos interview with RP on RV. In the end its really all about why you are purchasing physical gold such as store of value, currency/inflation hedge, or an insanity hedge like a nut in the WH !! etc. Just a thought..
    • WA
      Wissam A.
      23 August 2020 @ 07:45
      I'm also have my gold with Paxos for the same reasons.
    • LB
      Louis B.
      24 August 2020 @ 04:21
      no storage fees? no gold!
  • gr
    graham r.
    22 August 2020 @ 10:51
    50 minutes on PMs , including a lot on the direction of the market, and not one mention of real interest rates!
    • gr
      graham r.
      23 August 2020 @ 04:33
      Subscribers who downvoted my comment obviously know nothing about the gold market! They should prepare for losses.
    • PB
      PHILLIP B.
      23 August 2020 @ 23:33
      This is a how to buy and store physical metals video. Re your other comment, you're over reacting. There are all kinds of probabilities in life. Each day, we wake up, there is a probability that we will die that day. Manage it. Oh, another risk, getting passed counterfeit currency. When I use a $100 bill here in town, they often have a machine, or marker, they use to inspect it. Holding $20s up to the light is not that uncommon in the town I live in.
  • WG
    Wade G.
    23 August 2020 @ 17:26
    There are a couple post below addressing cap gains tax, stating that in the US, some one ounce coins are not subject to CGT because they are legal tender; another questioning the premium for such coins. I'd like to push back on the basic assertion and ask for any knowledgeable persons to comment. I'm no expert, but I never heard that, for example, the US Eagle is CGT free because it's legal tender. I have read of a couple legal actions taken against businesses that tried to pay their employees in Eagles, valuing them at their legal tender stamp of $50, thereby trying to minimize declarable income and it's tax. This strongly implies the gov't doesn't give convenient treatment to these coins based on legal tender status. Further, again, no expert, but if Eagles were free of CGT while Pandas, Maple Leafs, etc., were not, I'd expect to see a material premium for Eagles, and I have not. I don't buy the assertion that legal tender gold coins are free from CGT. Can anyone provide evidence that they are, or confirm my concerns are legit?
    • TM
      The-First-James M.
      23 August 2020 @ 22:15
      I certainly can for UK Legal Tender coins such as Sovereigns and Gold Britannias: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg12602 I quote: "Currency in sterling is not an asset for capital gains purposes. It is the unit by reference to which capital gains are measured." Articles also here: https://moneyweek.com/3082/why-buy-gold-sovereigns ... and here: https://www.chards.co.uk/blog/capital-gains-tax-on-gold-and-silver-bullion/4 I cannot comment on US Eagles.
  • gr
    graham r.
    22 August 2020 @ 10:58
    So, you're saying - how do we know the metal is genuine? A- buy from a reputable dealer. How do we know the storage is safe from internal and external thefts? A - store with a reputable storer. If we want to buy PMs, we have to learn to trust! If we have cash in the bank, the government guarantees it. There is no equivalent with PMs, or crypto of course. I'd still buy both but this is the situation.
    • AW
      Andrew W.
      22 August 2020 @ 11:41
      Gold has this problem, see my comment above yours. But BTC solves the authenticity problem, and if properly custodied cannot be stolen. It's also scarcer than gold. So in these ways, it's far superior to gold. I like both, but I have to go through much trouble to have my gold authenticity verified and safely stored.
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:11
      Hi Graham, Reputation is key, but beyond that, we mention in the interview that the metals are audited by a 3rd party once per year AND more importantly, you are welcome to visit your metals in person as well. What could be better than a trip to Cayman to check your gold?
    • gr
      graham r.
      23 August 2020 @ 04:30
      Hi Mark, Thanks for your reply. I would say that auditing and the customer's right to inspect both simply bolster the reputation of the storer, neither is foolproof protection. It doesn't affect my point that it's not the same as cash in the bank covered by a FDIC scheme or Treasuries backed by the US government. People have put PMs in store successfully for centuries and will continue to do so, but the fact remains that there is a higher risk and you do have to trust the storer.
  • JS
    John S.
    22 August 2020 @ 14:06
    Great content. The sponsor of GLD says it is 100% backed by gold in vault in London. It seems that closes part of the gap between physical and paper gold, doesn’t it? And, if enough want withdrawal they will deliver the physical (clearly logistics and costs involved). What significant advantages remain with physical? Seems wealth confiscation can happen either way. U.S demands records from all countries, like they’ve done with bank accounts in countries like Lebanon. U.S government knows where all the vaults are. Thanks.
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:19
      Hi John, The major advantage of owning physical gold directly is that the physical gold is considered your personal property, legally speaking. Owning personal property vs. holding a promissory note or contract via a 3rd party is two very different things. If something goes wrong with that fund (mismanagement, corruption, etc.) means you are exposed to 3rd party risk. That 3rd party risk can be eliminated if you own it directly.
    • DS
      David S.
      22 August 2020 @ 19:24
      Excellent reply Mr. Yaxley. DLS
    • gr
      graham r.
      23 August 2020 @ 04:21
      In response to Mark's reply. It's not true to say the third party risk is eliminated if you have allocated gold in storage. True you own that gold but if it goes missing, you have still lost it. It has happened many times throughout history - through theft from the vault, or fraud by the storer or his agent. There may be money payable from an insurer of course but the customer is not the policyholder unless he takes out his own separate policy.
  • PC
    Philip C.
    23 August 2020 @ 04:03
    As a partial answer to RP's question about why someone would prefer a particular gold coin or bar over others: 1. Liquidity. Some coins, especially krugerrands and sovereigns, are highly liquid and you can trade them anywhere in the world with no difficulty. There are still places in the world where sovereigns are used for transactions. 2. Proof of genuineness. Coins are harder to fake and easier to test. One of the most accurate tests of a coin, and also one of the simplest and cheapest, is the ping test. If you balance a coin on the tip of your finger and tap it with something metal, the ring is very distinctive. There are apps such as Bullion Test (I think this is Android only, but there are probably equivalents on iPhone) where you can select from a couple of dozen of the most common gold and silver coins, ping the coin, and the app will compare the frequencies and tell you whether it is genuine. 3. Tax. As other comments have noted, depending on where you live, some coins count as currency and are free of CGT.
  • JF
    Jess F.
    22 August 2020 @ 09:31
    Before 23rd.,March this year the Bullion Banks surpressed the price of Gold and Silver through dirivative scams between the spot and futures markets. This is a long story, well documented in the alternative media. The banks had never lost money until the disruption to the Precious Metal supply chains caused by Covid caught them naked short. The scamble to prevent defaults on the Comex, and loss of credibility, has resulted in finally turning the Comex into a scource of real, rather than paper, metal. Check out the deliveries for Gold in April, June and August, and for Silver in May and July. This has been the real driver of higher prices especially for Silver in these recent months, and higher prices have created more demand. (no demand when Silver was in the bargain basement for years). By the way, Raoul, you expressed surprise that the Economist and other MSM never report on Bitcoin, it's the same with Precious Metals, all reporting has a negative slant,. The powers that be will never give oxygen to the competitors to Fiat.
    • AW
      Andrew W.
      22 August 2020 @ 11:48
      This video ought to also include content on how to take delivery from the comex, what brokers offer it, what the process looks like, and how to test the authenticity of your gold yourself using density and ultrasound if you're buying a few or more kilobars.
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 17:57
      @Andrew W. Thanks for the feedback. SWP does have a video on YouTube dedicated to testing precious metals. You may want to check it out: https://youtu.be/mzE1ImpkWVA
    • AW
      Andrew W.
      22 August 2020 @ 23:27
      Mark, does SWP use ultrasound testing as in these videos to counter fakes that otherwise pass the magnetic test featured in your video? https://www.youtube.com/watch?v=tVjRSye8z-c https://www.youtube.com/watch?v=15PD65fNny8
  • JL
    James L.
    22 August 2020 @ 20:33
    Gold Eagles and Buffalo Gold coins are legal tender and therefore not taxable in the United States vs. a Gold Maple Leaf coin.
  • WW
    Will W.
    22 August 2020 @ 17:15
    Mark: I have bought gold through SWP and have recently set up a segregated storage account, and as you said in the video the time from purchase to delivery can be quite long. I am also arranging with you guys to move some of precious metals down to the Cayman facility. I don't know legally or security wise what you guys can do, but with the travel restrictions it would be great if you could provide virtual/zoom access for customers to complete the circle so to speak
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:30
      Hi Will, First of all, thank you for trusting in SWP and we look forward to working with you. In terms of visiting Cayman, it looks like that won't be possible until December 1st. Meanwhile, we can send you photos of your holdings, but we won't stream live video out of the vault... simply too risky from a security perspective. If you do want to see the inside of the vault, check out our video series on YouTube called 'Inside The Vault'. Gives you an insider's look..
    • WW
      Will W.
      22 August 2020 @ 19:20
      Mark - thanks I assumed there were security issues that would preclude a virtual tour of one's holdings, but once we get the transfers taken care option B would be great.
  • ER
    Ernesto R.
    22 August 2020 @ 16:25
    Amazing interview with Mark and Raoul thanks for the knowledge have a great weekend real vision team
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:25
      Thank you Ernesto - glad you benefited from the information.
  • jn
    joseph n.
    22 August 2020 @ 14:51
    The best summary of how to invest and own gold I have ever seen
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:22
      Thank you Joseph - your kind words are very much appreciated!
  • MS
    Michael S.
    22 August 2020 @ 14:15
    Thank you Mark for sharing your insight and knowledge. I’m a US Citizen domiciled in Wisconsin. Can a self directed IRA buy and store gold with your organization? Mike Schoendorf
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:21
      Hi Michael, yes you can. We work with two US-based IRA custodians (New Direction Trust / Preferred Trust) who allow you to buy and store gold with SWP in Cayman. Check out this page on our website: https://swpcayman.com/home/ira
  • JS
    Jon S.
    22 August 2020 @ 13:06
    One of the best videos I have ever watched. Great one.
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:14
      Thank Jon, I always enjoy talking gold with Raul.
  • LK
    Lalith K.
    22 August 2020 @ 10:38
    Thanks for this video. There are a couple of additional points which I would have like to have seen discussed: - Are CGT-exempt coins (due to their legal tender status in certain jurisdictions) better value than bars, despite their higher premiums/spread? - Comparison of verification and storage between physical metals and bitcoin (which anyone can verify at very low cost by running a full node).
    • gr
      graham r.
      22 August 2020 @ 11:02
      We'd need to know your CGT liability and your tax residence to answer the first question! A better question would be - what is the premium on the coins? And then figure it out for yourself.
    • LP
      Luke P.
      22 August 2020 @ 16:15
      UK wise Gold Bars would have CGT. Speaking for retail investors in the UK like myself, silver (coins/bars) is subject to VAT (20%) so with the spread on coins (10-15%) and and also the premium for selling it can be significant markup before you even break-even. Correct me if someone knows better way around this. ETFs seem a possible route but again it is pointed out there is risk not owning physical metal in your hands.
    • JC
      Jonathan C.
      22 August 2020 @ 17:07
      Luke P, Gold Britannia's and sovereign are UK CGT exempt.
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:10
      Hi Lalith, RE: Comparison of verification and storage between physical metals - we mention in the interview that the metals are audited by a 3rd party once per year AND more importantly, you are welcome to visit your metals in person as well. What could be better than a trip to Cayman to check your gold?
  • RN
    Robert N.
    22 August 2020 @ 10:15
    The FAQ states that on sale of gold: "We will remit the proceeds to you by bank wire or check. " Is there a crypto option?
    • AW
      Andrew W.
      22 August 2020 @ 11:45
      Or even, can the funds be deposited into an escrow so that they could be used to purchase another asset like real estate, which would also be unreported, or can the funds be deposited into a trust?
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:06
      Hi Robert, yes we can settle in crypto. When selling to SWP, if you wish to be paid in crypto, the minimum transaction amount is $100,000. If you are buying and wish to pay in BTC, the minimum is only one ounce of gold or 100 ounces of silver.
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:06
      @ Andrew - the funds can be deposited in a trust, yes.
  • RN
    Robert N.
    22 August 2020 @ 10:11
    Very interesting and many additional questions come to mind. The FAQ states: "we accept Bitcoin as payment for orders of any size. We also accept other Top 20 cryptocurrencies and tokens for orders above $100,000 USD in value. we rent safe deposit boxes for the cold storage of cryptocurrency wallets and other storage devices." It would be interesting to hear what percentage of customers pay for their Gold in crypto and what the crypto preference is. Also, whether this the use of crypto as payment is accelerating.
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 18:02
      Thanks for the feedback Robert. Approximately 2% of our gold trades are settled in Bitcoin. Although it doesn't represent a huge number, we have seen it grow over the years and are firmly committed to continuing to offer settlement in crypto. Recently, we have seen a resurgence in demand to settle in crypto.
  • SU
    Shakeel U.
    22 August 2020 @ 09:19
    Brilliant 10/10 😀
    • MY
      Mark Y. | Contributor
      22 August 2020 @ 17:53
      Thanks Shakeel - I always enjoy sitting down with Raoul.
  • WS
    William S.
    22 August 2020 @ 17:11
    Sorry - correction it was Yusko/Bennington interviews
  • AB
    Alastair B.
    22 August 2020 @ 16:57
    It’s not possible to buy gold or silver with China’s new digital Renminbi.
  • jn
    joseph n.
    22 August 2020 @ 14:54
    I would very much like to see a similar video on digital currency’s . There is so much talk about owning digital currency and I hit a wall whenever I ask brokers how to execute such trades.
    • AB
      Alastair B.
      22 August 2020 @ 16:54
      Lo0k at opening an account with crypto.com to buy the crypto, and a ledger nano x to use as a cold wallet
  • MS
    Mark S.
    22 August 2020 @ 16:31
    Great interview Raoul
  • JS
    Jon S.
    22 August 2020 @ 15:59
    The best part of this video is that I was and I am a gold bull but this video has made me a crypto bull... I do not why but I finished watching and about some cryptos...
  • MW
    Marcus W.
    22 August 2020 @ 14:58
    I'm learning alot from Andrew W's comments on this video as they are great questions.
  • RM
    Ric M.
    22 August 2020 @ 14:18
    Thanks, For the update