Anny asked,

“I would like to know what is Mike’s opinion on Chinese silver Panda & their extra premium…sign of futures economical relation with Chinese?”

Continuing from our mastermind meeting, Michael Maloney answers question #5:

“Any coin that has a premium you get back when you sell it back to a dealer is fine. Gold and silver Eagles, that is the case. Chinese Pandas, you’re going to lose some of that premium when a dealer buys it back.

I believe in buying gold and silver as close to spot as possible with the exception of the extra premium you pay for some government coins because they have another “desirability” factor and that’s something called, 1099-B reporting. I don’t want to get into that on this video, but because of that they’re more highly sought after.

When silver fell from 21 bucks in March 2008 all the way down to about $9.50 in November, there was a big shortage that happened. During that shortage, the Eagles developed a premium beyond the premium the U.S. Mint charges. They were on eBay when silver was just $9.50 spot price, Eagles were selling for $35 bucks an ounce. 100 ounce bars were selling for $18 an ounce. So, you’re talking double the premium for 100 ounce bars.

So, I like Eagles because I do think they are going to develop a premium when there’s a rush on gold and silver, and when everybody wants it. They’re going to go for more and you’re going to get even more. The extra premium you’re spending, you’re not just going to get it back, but it’s going to grow with the price of the precious metals when you’re talking about gold and silver Eagles.

As for the Pandas go, they’re really pretty. Go ahead and buy them because you like them…but, unless a dealer is offering you the same amount of premium above the cost of other items he is purchasing (you can check this online), then I don’t recommend them.

So, thank you very much for your question. I hope that answers it.”

Michael Maloney of www.GoldSilver.com

To Your Success,

Larry Corbi

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