Bob Coleman: Identifying Hype From Education in the Metals Space

Tom Bodrovics welcomes back Bob Coleman from Idaho Armored Vaults. They explore current trends and insights in the precious metals markets. With gold and silver reaching record highs, excitement for investors should be palpable, but retail participation remains low due to factors like premiums and negative sentiment. High net worth individuals continue driving demand and the impacts of Indian gold and silver imports and buying activity was also discussed.

The conversation delves into the dynamics between managed money funds and swap dealers, the role of options markets, and the shift from COMEX to ETFs for investment. Bob also examines recent changes in margin requirements by the CME and their potential impact on market trends. Coleman emphasizes the importance of understanding dealer business models and avoiding sensational and fear-based reasons for buying precious metals. He warned against manipulative dealers, inflating prices through social media tactics, and advises careful reading of storage agreements.

Coleman further discusses physical precious metals demand from high net worth individuals due to tax planning, estate planning, counterparty risk concerns, and potential election policies. However, lease rates pulling back and increasing COMEX inventories indicates lower physical demand. Coleman also cautioned investors about overly sensational or fear-based reasons for buying precious metals. Investors should be cautious of agreements that move liability to the client. He emphasizes the importance of being prepared for market volatility, consider taking profits or protective measures, and understanding spot dealer practices.

Time Stamp References:
0:00 – Introduction
1:14 – Market Status & Highs
6:52 – Shorts & Metals Demand
12:00 – P.M. ETF Flows/Demand
17:05 – Demand Drivers
19:04 – Lease Rates & Premiums
24:02 – Compare Prices & Premiums
29:04 – User Agreement Red Flags
33:03 – Sensationalism & Fear
40:15 – Selling Back Metal
44:00 – ETFS & Metal Claims
49:44 – Elections & Narratives
53:00 – Wrap Up

Talking Points From This Episode

• High net worth individuals are driving precious metals demand despite low retail participation due to premiums and negative sentiment.
• Understand dealer business models to avoid manipulative practices and sensational reasons for buying precious metals.
• Tax reductions, elections, and geopolitical events significantly influence precious metals market trends.

Guest Links:
Twitter: https://twitter.com/profitsplusid
Website: https://www.goldsilvervault.com/

Bob Coleman is a Registered Investment Advisor since 1992. In 2001, he founded Profits Plus Capital Management, LLC (RIA) and Dollars and Sense Growth Fund. Recognizing the necessity for physical metal storage, he founded Idaho Armored Vaults and Gold Silver Vault in 2008. They are a distinguished and respected leader in the precious metals industry specializing in storage, transportation, shipping logistics, and security.