Episode 237

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As Good As Gold. Patrick Yip


Episode Description

Have you ever considered investing in gold, silver or other precious metals? It is often overlooked by most investors when compared to traditional investments such as real estate and the stock market. However, Silver and Gold have been around for centuries and were even used as currency before paper money was introduced.

In this episode, Patrick Yip-Director of Business Development at APMEX and One-Gold, talks about the benefits of diversifying your portfolio with precious metals in uncertain economic times. Whether you’re a seasoned investor or a beginner, are precious metals worth considering for your portfolio?

Let your investments work for you by gifting yourself (or friends!) some shiny gold. Invest $100 with One Gold to snag an extra 5 bucks that’ll go towards future buys – not bad eh? And full transparency, we get $5 too.

$5 from One-Gold

Let your investments work for you by gifting yourself (or friends!) some shiny gold. Invest $100 with One Gold to snag an extra 5 bucks that’ll go towards future buys – not bad eh? And full transparency, we get $5 too.


About Patrick

Patrick Yip joined APMEX in 2011 and has held roles in Merchandising, Sales, Project Management and Business Development. He played a key role in the company’s 250% growth on marketplaces such as eBay, Amazon and Walmart.

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Episode Transcription

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[00:00:00] Bob Wheeler: Have you ever considered investing in gold, silver, or other precious metals? It is often overlooked by most investors when compared to traditional investments such as real estate and the stock market. However, silver and gold have been around for centuries and were even used as currency before paper money was introduced throughout history, gold and silver have always had an intrinsic value that has withstood financial storms and economic unc.

Owning Precious metals can also provide investors with an alternative asset that is uncorrelated to most other types of investments, giving them a way to diversify their portfolios. In this episode, Patrick Yip, director of Business Development at apmex and One Gold talks about the benefits of diversifying your portfolio with precious metals in uncertain economic times.

Whether you’re a seasoned investor or a beginner, precious metals are worth considering for your portfolio. Apmex, the leading precious metals dealer in the United States understands the needs of gold and silver investors. Now surpassing 20 years in business, APMEX distinguishes itself through exceptional customer service, unmatched product quality and options, and a brain trust of resources to help all types of investors develop their ideal investment portfolio.

I’m Bob Wheeler, and this is money you should ask. Where we explore why we do what we do when it comes to money.

Patrick Yip. Joined apmex in 2011 and has held roles in merchandising, sales, project management, and business development. He played a key role in the company’s 250% growth on marketplaces such as eBay, Amazon, and Walmart. Patrick, it’s so wonderful to have you on the show. Hey, thanks for having me on. Bob.

I’m actually excited cuz I have a personal stake in what you do, but you are the director of business development at apmex. Can you tell us more about what your position is and what

[00:02:06] Patrick Yip: you. Yeah, so I’m the director of business development at apmex and actually one gold as well too. So apmex, for those of you who don’t know, is one of the largest online precious metals retailers in the us.

We’ve been in business for about 20 years. We’ve done over 15 billion in lifetime sales to retail customers. I personally have been with the company for about 12 years. I’ve held various roles in merchandising, sales, project management, marketplaces, and business development. And some of the more recent things I’m doing.

One, I’m running the Company’s one Gold Platform, which is an online investment platform that allows customers to own a vaulted position of gold, silver, platinum. And the second thing I’m doing right now is working on the bullion card. It’s basically the first precious metals rewards credit card, and it actually just launched back in August and we got thousands of customers, so.

Oh, that’s really

[00:02:51] Bob Wheeler: cool. Okay, so I buy silver from your company. Oh, I’m gonna mail you a check for 2,500 bucks and this silver’s gonna come in the mail to me. 2,500, $5,000 worth. I don’t buy big, but I get this big cardboard box that’s not real obvious, but it’s heavy. Several of those boxes and it shows up in the mail.

I thought it was gonna be a scam. So I did like a thousand the first time, cause I didn’t really believe it, even though a lot of people said, this is a really great. Do you lose a lot of silver and gold ?

[00:03:22] Patrick Yip: We always get that question a lot too. So we have about 2 million customers, like I mentioned. We’ve done over 15 billion in lifetime sales.

We’re gonna do north of 2 billion this year. All our packages, first of all, they’re sent in a discreet packaging, so it’s just brown boxes. They’re not gonna say precious metals, they’re not gonna say gold. They’re not gonna say silver, right? Nothing obvious. They are independently insured. So we have a policy with Lloyds of London.

So in the event that your package does get lost or stolen, it is insured. In terms of loss. I mean, fortunately we haven’t had any major losses, but we obviously, with sending anything in the mail, things do get lost. And in those cases we do have a controlled policy where we can reimburse customers.

[00:04:01] Bob Wheeler: Yeah.

Well, to me this day and age, it’s still hard to process, but again, for me, I like the physical possess. If the world comes to an end, I wanna know, I can grab my precious metals and run, not wait for a certificate to get cashed in Toronto .

[00:04:17] Patrick Yip: Yeah, and that’s a great point too with precious metals. They have thousands of years of history.

They have no counterparty risk. It’s tangible asset. It can’t get hacked away. You have control of it as long as you don’t lose it or if it doesn’t get stolen, you have a hundred percent ownership and title. You could pass it on to your kids, pass it on to friends, whoever you wanna do, all your taxes are self-reported.

I do recommend that you do report your taxes, but the ownership of Precious Metals is probably one of the most private investments you could ever have. Yeah,

[00:04:44] Bob Wheeler: I love that and I appreciate that you said report it and pay your taxes. Absolutely. You’ve been at me for a long time. What do you enjoy about your job there?

What makes you get up and want to come to.

[00:04:54] Patrick Yip: Every day is different. As I mentioned, I’m leading one Gold, which is that online vaulted platform launched the bullying card, which is an industry first. I mean, I know there’s been a couple debit cards out there too. I know there’s a company in the UK that did a debit card.

Actually, I think both companies are in the UK that did a debit card, which allows you to spend precious metals. But what we like to do is we like to be innovative. So we’re saying, Hey, how could we incorporate precious metals into your everyday life? So like if you go to Target, you go to Costco and you spend money like you normally do, you’re gonna spend money there.

How could you earn some precious metals? So instead of airline miles or cash back, let’s earn gold, let’s earn silver. So that’s what we brought with a bull card, is we’re trying to introduce precious metals to people’s everyday lives. But that’s what gets me up and going every day is new. We’re always innovating.

We’re always trying to be the best and every day’s different.

[00:05:39] Bob Wheeler: That’s awesome. Well, personal experience, I’ve only had positive experiences at apmex and I enjoyed it. It made it easy to get in because it wasn’t like I had to invest $50,000 to start off. You can actually start off with a small amount of money, and for a lot of people that’s a very doable thing and you get physical possession.

So as long as your roommates and family aren’t stealing your silver and gold, it’s a great thing because you actually do have the.

[00:06:06] Patrick Yip: Yeah, and we take all types of orders from as little as like a couple grams of silver or gram of gold thir 20, 30 bucks for an ounce of silver all the way up to, we have people who spent north of 50 million, obviously doesn’t go in the mail.

We’re not sending 50 million in the mail. But for those large customers, we do send a Brinks truck. So , if you’re taking tens of millions of dollars, I person who wouldn’t store tens of millions of dollars in my house. But yeah, everyone’s there for it. We do set a brain strap for those

[00:06:31] Bob Wheeler: large orders. Yeah, keep it at the office.

Under . Yeah, under locking key. Now, let me ask you this on a personal note. I know that in 2008 with crash, you lost about half of your investment portfolio. It had to have been devastating, I would imagine. What was that like and what steps were you able to take to heal from that loss to continue investing?

[00:06:53] Patrick Yip: I was invested back in 2008, and your typical stock and bond portfolio, just like most of the mainstream public, was, I didn’t know that much about finances. I just trusted my financial advisor. Obviously the financial crisis hit. I lost half of my portfolio. I joke right now that my 401k became a 2 0 1 even though it wasn’t funny at that time.

But now looking back, it was a good lesson to learn because what that did is and told me to take control of my financial future. So I talked to my financial advisor. I said, well, what happened there? Could anyone have predicted this? And he’s like, well, it was hard. No one could have really predicted. So doing my own research, I started looking into Austrian economics.

From there, got me looking into precious metals, and then during 2008, I later discovered that gold initially corrected with stocks and bonds, but then it ended the year up. Unlike stocks and bonds, which ended the year about 50% down. So it got me looking into that. Next several years, I started learning more and more about precious metals.

In 2011, I was actually in LA working in an aviation company, and I decided to relocate from LA to Oklahoma City where I’m at right now, and just get into precious metals and work for App Max. And like I said, I’ve been there for almost 12 years now.

[00:07:54] Bob Wheeler: Yeah, and correct me if I’m wrong, I think silver right now is dropping a little bit or it’s down, but here’s the great thing for.

I had a bunch of silver and I held onto it for about 12 years, 15 years. Anyway, opportunity to buy a house and I was just a little bit short of funds and the silver had risen in value quite nicely. So I made a nice chunk on cashing out my silver for that, and then you start again. But I was trying to get real estate.

But most people only do think about stock and real estate and it’s not as common. I mean, I know people will say, oh, you know, I have a gold necklace or this or that, but actually going out and like, I like silver rounds just because silver, the pieces are bigger than the gold . Even though the gold I know has more value, I like to look at it.

But the other reason for me, for precious metals personally, and I wonder if you’ve heard this before, but you know, I figure if Armageddon comes in LA and it’s pretty insane and I can’t get money out of an at m and there’s no electricity, if I’ve got silver rounds, that’s a pretty negotiable price. Like we know the value of silver and if I’ve got ’em in small one ounce or 10 ounce rounds, I can negotiate.

I’ve still got.

[00:09:04] Patrick Yip: Yeah, and that’s a good point. I mean, silver and gold have been money throughout history. I mean, you look at way back thousands of years ago, before you had digital, I guess money within the banking system, before you had cash, people naturally gravitated towards precious metals because they were tangible, they were fungible, basically.

Meaning one unit of gold is the same as another unit of gold. It’s not like this one’s better than that one. Right. But you know, in terms of like what I look at in terms of why would someone even care about precious metals, like you mentioned, it’s not really a mainstream investment. I think anywhere you look right now, you’re seeing inflation and I think it’s important to understand what gold could do in this inflationary environment.

So inflation’s at a 40 plus year high right now. If you look back at prior cycles too, we had inflationary cycles in the sixties and the seventies, and we really haven’t had one since then. But in the 1960s, it took the Fed nine years to resolve that inflationary cycle. And in the 1970s, it took the Fed five years to resolve that inflationary cycle.

My thought is like, what does this mean for the investors? Okay, you’re in inflation. Let’s look at different assets. Let’s say you held cash, which I don’t recommend you hold a lot of cash right now. Maybe you hold some cash in case there are buying opportunities with different assets, but don’t go all in in cash.

Probably not the best thing to do, but let’s say five years of, let’s say 8% inflation, which is where we’re at right now, that’s gonna erode about 35% of your purchasing power. And then let’s say inflation lasts nine. That’s gonna erode over half. So 55% of your purchasing power. And it’s important to note, we’re only year two in, and it looks like the fed’s not close to resolving this.

Let’s look at another asset class. Let’s look at stocks. In the 1960s, the s and p was down 26% during that nine year inflationary cycle and fast forwarding to the 1970s, the s and p was only up 4%. And keep in mind that inflation during these times was like north of 12%. Just because you’re staying flat doesn’t mean you didn’t lose money.

You actually lost muddy to inflation. And then lastly, let’s look at gold. In the 1960s, gold went up by five x from 35 to 200, and then in the 1970s you had a similar move from 100 to 850. Not saying history’s gonna repeat, but if it does, gold could do extremely well in this inflationary period.

[00:11:05] Bob Wheeler: Yeah, and I think for people like this is silly, and I know most of us work emotionally, even though we’re not supposed to.

We invest emotionally, and you’re not gonna be buying and selling gold on a daily basis. It’s not like day trading. I’m just making up a number. But if I buy gold for 500 and I need to immediately sell it tomorrow to somebody else and gold sell at 500, I’m probably gonna get like 4 95. I’m gonna lose a little bit of money in that transac.

But that also happens in the stock market. I forget I have to pay a fee when I buy the stock and when I sell the stock, but I think for me, initially I was like, but I don’t get all my money back if I have to trade out. But it’s not something that I want to be buying and thinking I’m gonna cash out in a week or two.

For me, it’s a long-term investment.

[00:11:50] Patrick Yip: I think that’s a great point too. The way I look at a lot of investments too, is you look at your risk and reward. For example, silver’s around $23 right now. It’s been as low in the modern times as $12 back in 2020 when we had that Covid crash. It’s also been at $50 twice in history.

It’s been there in the 1980s. It’s been there in 2011. So I look at the downside versus the upside. Maybe you got 10 or $11 on the downside, but you got 20 plus on the upside, almost $30 on the upside. So you look at that and it’s like, well, do you get in at 23? Maybe you buy in Entrenches. Maybe you buy a third right now.

Buy a third if it goes down to 20 and buy another third. If it gets to 17, not guaranteeing it’s gonna go to 17, you average in, but you look at your risk of reward. And I look at the same thing with the stock market too. The s and p was as high as 4,800 earlier. This. Could it go higher? Sure, it could go higher, but you know, it’s been 14 years since the major recession.

We’ve went from 2008 to 2022 without a recession, so it could go higher. But I think there’s more downside in stocks than upside.

[00:12:45] Bob Wheeler: It’s funny because there’s always the joke, you know, buy low, sell high, and we all, most of the time are holding on like, it’s gonna go up five more cents, it’s gonna go up five more dollars.

And by the time we make a decision, it’s already on the downward slope. And if we stop trying to maximize. You know, it’s like going to Vegas. I’m just gonna do one more coin. No, just walk away with the couple thousand bucks you won and call it a day. Yeah. Maybe you could have won 2200 instead of 2000, or you could have lost it all.

And I think for me, I’ve gotten better about not trying to worry about if I could have shoulda have woulda if I stayed in. No, I did. Well, let me leave.

[00:13:24] Patrick Yip: I’m. And I think this whole buying TRAs could apply both the buying and selling process. So let’s say, like I mentioned, silver’s at 23. Maybe you buy one FR at 23, the other 20 the third at 17.

Maybe you think it’s gonna go to 50. Or maybe let’s say conservatively just said, Hey, we’ll go for 45. Maybe you sell the last pro at 45, a troche at 42 and another one at 39. So that way. You don’t know what the top is, you don’t know what the bottom is. But Elise, you could get the majority of the move by doing that.

So Elise, if you sold one or two tranches up at the forties, you could say, well, at least I got out that third tranche had never hit 45 or whatever your target is. But you know, Elise, I got two tranches. I cashed out in the 40 of ’em. Good.

[00:14:00] Bob Wheeler: Exactly. Be grateful you didn’t lose. Well, let me ask you this. You know they always say, don’t put all your eggs in one basket.

Do you agree with that? And even though you’re really into precious metals, do you still have money in real estate? Do you still have money in the stock market or is it, you know, all be precious metals.

[00:14:16] Patrick Yip: Let me first say that everyone’s situation is different, so there is not a one size fits all. Sure.

Obviously, my wife’s parents are in their eighties and I was looking at the stock market and I said I wanted to go in stocks. I probably wouldn’t even go on precious metals because you might need the money in the next year. Right. Obviously with them I recommended cash. I mentioned earlier I wanted hold a lot of cash, but for them it’s like having that very short horizon.

They might need cash in a couple years. I’m 41. I need some cash, but I shouldn’t have a heavy position in. One of the things I like to do is let’s look at history to see like what we could learn from how various asset classes performed in the past. So if I look at the past 50 years of data, so basically the 1970s up to 2022, let’s look at what a stock portfolio did, what a bond portfolio did, and what an allocation to gold would’ve done.

So if you invested in a hundred percent stock portfolio, You would’ve got an average annual return, and this is assuming you held it for a 10 year basis. So I’m not gonna penalize stocks in 2008, nor I’m gonna reward gold in 2011. I’m assuming that you’re gonna hold it for 10 years and I’m gonna average those returns in the 10 year period.

So if you held stocks, you’re gonna get a 7% rate of return and a 5% standard deviation. So this is basically your standard deviation is how well you could sleep. You don’t want your portfolio going up 50%. Down 50%, you’re gonna give yourself heartburn with that portfolio. Exactly. So that’s the stock portfolio.

7% return, 5% standard deviation. Your bond portfolio is typically viewed by financial advisors as being a little more conservative, so that’s gonna yield the 5% return in a 3% standard deviation. So lower return, lower standard deviation. If you look at that 50 year data, if you allocated 80% to the s and p, 20% to gold, looking at that period, you’re gonna get a 6.7% return.

So 0.3% lower than your stock portfolio, but your standard deviation is gonna be 2.7%. So lower than that bond portfolio deviation. That’s what history says. And look, in the past 50 years is 20% a good all. But like I said, everyone’s situation is different. If you think that maybe the world’s gonna collapse, maybe you go heavier, maybe you go 70, 80% gold.

If you think everything’s gonna be good and stocks are gonna go rallying up next year and, and the Feds fixed inflation, maybe you’re down have 5%. It really depends on your outlook.

[00:16:22] Bob Wheeler: Well, and what if you’re a beginner? Like I’m a beginner. I don’t know a whole lot about silver and gold. Maybe. I don’t know much about stocks either, but I know I’m supposed to be saving and investing and not staying in cash.

Do I need to know a whole lot if I’m going in to do some buying and selling of gold, or even just buying, like do I need to know a lot? Do I just get some basics and jump. How do I get started? If I want to get into precious metals besides getting your new credit card ,

[00:16:49] Patrick Yip: I would say, first of all, with any asset, you wanna look at the bid and aspir.

So when you’re buying gold, when you’re buying silver, you’re buying a raw commodity, and there is a price of that commodity. It’s called the spot price, which is basically the current, current price of gold and silver. So for example, silver is roughly 23. It’s a spot price. I think it’s a award to look at what you’re paying and you are gonna pay a little bit over the spot price because there is a cost to mi this, to manufacture the coin, to distribute it, and so on like that.

It’s just like coffee could be trading and I don’t know what coffee’s trading at. Let’s say it’s $2 a pound. If you go to Starbucks, you’re not gonna get coffee at $2 a pound, right? There’s a cost in them making it, bagging it up, making the coffee, and so on like that. So with silver, it’s $23 is the spot.

You’re gonna pay a little bit over for. For a premium for that manufacturing, minting and so on. And then when you sell, there’s also a price too. And sometimes for some products that’s over the spot price, sometimes that’s under the spot price. I would say what you wanna do as a beginner is you wanna look at the price of the commodity, whether it’s gold or silver, and what it costs you to get in and out of that product.

You wanna look at that bid ass

[00:17:50] Bob Wheeler: spread. Okay, that’s helpful. And do you think if I look on your website or even other websites, I can get a silver round or I can get a fancy buffalo? That’s an actual coin, but if you melt ’em down, they still weigh the same. So to me, like I tend to go towards rounds because I’m figuring the weight of the silver, the weight of the gold is what I care about.

But I know some people like the pretty little emblem or the fancy buffalo. Does that make a big difference? If you’re reselling later on, and we’re not talking about melting down, does it make a difference if I actually have a coin versus a round? Yeah, it

[00:18:25] Patrick Yip: does, and this gets back to the whole bit as spread.

So with a coin, typically you’re gonna pay more over spot than a round. But when you sell back, you might get a little bit more than that round. For example, just throwing out rough numbers. Let’s say you paid $5 over spot for a. A dealer might buy that for $3 over spot. So your spreads $2 on the other side.

Let’s say you buy a round, it’s gonna be cheaper than the coin. So let’s say you buy it for $3 over spot, the dealer might say, Hey, I’ll pay you $1 over spot for that. And these are just rough numbers. These are not, and you can of exactly what’s out there in the market. The market’s always changing. I recommend look at our website, appx.com to look at that, but that’s an example too.

You wanna look at your bid s spread because in some cases coins could be a better deal. In some cases, bars could be a better deal or. And then you could also look at larger bars too. We have one ounce silver, we also have 100 ounce silver bars. So these are probably a little larger than your cell phone, but depending on what you want and depending on your budget, I mean, if you wanna spend a couple thousand dollars or if you wanna spend a hundred thousand dollars, I mean, there’s the right product.


[00:19:21] Bob Wheeler: absolutely. And you guys make it easy. Let me ask you this, inflation’s going on right now. There’s a lot going on. What are you seeing in terms of trends right now with inflation, with stock market, horrible, all these things? What trends are you seeing and maybe specifically in relation to precious metals.

Yeah, so

[00:19:40] Patrick Yip: the precious metals trends, it’s been extremely favorable for us. So let’s go back to like 2019 before this covid mess. Before any of this, like when the condo we used back to normal, we were doing about a billion dollars in sales a year, which is, you know, a pretty sizable number. And then fast forward to 2020, you had the whole Covid crash in March where all assets sold out off.

From there, we saw 1.5 x increase in number of customers, and we basically did over 2 billion in. Since then, we’ve been doing over 2 billion in sales. We’ve seen a doubling in customers from that 2019 level. I mean, people are just running to precious metals. I think if you look at the main markets, it’s interesting because you look at stocks and bonds, and typically what’s supposed to happen in the economy is if stocks go up, bonds maybe are flat, or stocks go down, bonds increase, and you’re supposed to have that negative correlation.

Where one’s supposed to protect the other so that you’re not losing on both. But what happened in this year is stocks are down, bonds are down. So that portfolio diversification, if you have that stock and bond portfolio did not do much. In fact, it turning you because both are down. So I think a lot of times people are running to precious metals these days and they’re just looking for something different.

They’re like, okay, this clearly isn’t working, and what’s the solution?

[00:20:48] Bob Wheeler: In terms of that, so here I am. I’ve decided precious metals, that’s where I’m going. Silver or gold? Is it that silver is a lower entry and it’s easier, or gold is a little more volatile? Like what are some of the things that I might be looking at to determine silver or

[00:21:05] Patrick Yip: gold?

Yeah, we get that question all the time too. I typically look at gold as a monetary asset. It’s like a currency without a country. So unlike the dollars, unlike Euros, where you have a central bank that could print them to infinity with gold, you have like basically money that cannot be printed. It cannot be manipulated.

So gold is almost like that stable monetary asset. And then if you look at silver, what silver has historically done is it’s the more leveraged equivalent of gold. So in prior rallies, you had gold move. And then silver moved after gold, but to a much bigger extent. So getting back to like what I mentioned too, like where let’s say in the 1970s, gold had that eight x move from about a hundred to 850 from the bottom, the low point of silver in that move to the high point of silver was a 12 x move.

So silver’s almost your more leverage gold play. So obviously if gold goes up by 1%, silver may go up 2%. On the other side of gold goes down 1%, silver may go down 2%. So it really. I personally own both, but you know, gold is more of the financial asset. Silver is more of the higher beta. Maybe it outperforms gold in the.

[00:22:07] Bob Wheeler: Now I’ve heard this. I do not know if this is true and I’m curious. So I’ve heard silver potentially has not, maybe a greater value, but there’s an incentive to go into silver because it’s actually used in production, it’s used in manufacturing and industrial, like silver is actually utilized, whereas gold is, Hey, I look pretty, my shiny.

And we don’t use gold as much as we do silver. And so that it’s maybe being more exhausted so that there at some point might be less silver than there is of gold. I mean, it might be a million years from now, I don’t know, but have you thoughts on that?

[00:22:42] Patrick Yip: So the majority of gold is stored. I mean, there’s a joke that it’s pulled out of the ground and put into the ground again in a vault it kind of sits there, right?

Silver has a lot of uses and it actually is the most reflective metal and the most conductive metal out there too. So basically it has other uses. I think a lot of it depends on your outlook on the economy. Obviously, let’s say we go into a deep recession and, and we go into a financial prices, gold will likely do well, and because a lot of industry will get pulled.

Silver could go either way. Maybe it goes along with gold and it becomes that financial asset. Or maybe people view it as an industrial commodity and they say, well, let’s sell it off like copper. It really depends. Unfortunately, no one knows the future, and that’s why I would say it’s good telling ’em both.

I mean, like I said, I wish I knew the future, but you know, yeah, understand all your tools. Understand what stocks would do. Understand what real estate would do. Gold, silver, and. And decide for yourself, like based on your own outlook?

[00:23:32] Bob Wheeler: Yeah. So how come nobody’s buying copper ? Like I don’t see any copper rounds,

[00:23:39] Patrick Yip: We actually do sell copper rounds and bars. I personally would not buy them . I mean, I obviously the company makes money on them, but to me it’s like coppers and industrial metal. Right? And I don’t know what anyone would be doing by buying copper because it’s like, it doesn’t. As big of a two-way market like golden’s over.

Yeah, I would say it’s more of a novelty If, if you want something fun, you like the designs or the round or the bars, it’s copper’s cheap. I think it’s like three or $4 a pound. If you want something to play with something fun, go for it. But , don’t go crazy into copper. Don’t go

[00:24:11] Bob Wheeler: crazy on copper. Patrick, we’re at the fast five, so we’re gonna shift the energy a little bit fast.

Five is brought to you by Survey Junkie. Join millions who take online surveys and make extra cash. Click on the link in the show notes to learn. All right, so down and dirty, Patrick. We’re just gonna have some fun. Who in your family is the best with money?

[00:24:29] Patrick Yip: Outta my immediate family, I would say probably me,

Okay. .

[00:24:34] Bob Wheeler: What’s the best money advice a friend ever gave you?

[00:24:37] Patrick Yip: I would say it’s about saving to me. It’s like you have the people who spend a ton of money and they go into deep debt, and then you have the other person who saves. And to me it’s like life will throw you a curve ball at some point, and having that savings is gonna help you make it through that rainy day.

[00:24:51] Bob Wheeler: Absolut. At what age did you start to feel the most comfortable with money? I would say

[00:24:57] Patrick Yip: in, probably in my thirties. I’m 41 right now, but I felt like I really started getting a grasp of things probably in my mid thirties.

[00:25:05] Bob Wheeler: Okay. Do you ever have a like a little voice come in and going, it might all go away, or maybe that’s just me.

I hear voices, but everyone’s in a while. When the economy goes crazy, I’m like, Ugh. Do you ever stress.

[00:25:17] Patrick Yip: I’m in a fortunate position where I very rarely stress about money. It’s funny, I have this little spreadsheet and it tracks my financial life up until I’m in my eighties. It has all my income, all my expenses, it has my mortgage, it’s everything escalates according to inflation.

It tells me when I can retire, tells me how much I’ll have at retirement. I look at this thing super closely and I’m fortunate to not stress very much about.

[00:25:40] Bob Wheeler: People that are listening, listen to Patrick. If you don’t pay attention to your money, you don’t know where you’re gonna end up. And even though you can’t completely predict the future, the more that you pay attention and you’re intentional, the more you can have a much better outlook than a lot of other folks.

So I love that you’re doing that. If you had to spend $10,000 in four hours, where would you spend that?

[00:26:01] Patrick Yip: I can easily spend it in gold. , not copper. I think it depends on what your portfolio allocation is. I mean, you can do gold, you can do stocks. I’m into resource stocks as well too. I think with inflation here, a lot of resources are gonna go up in value too.

Look, you go to Target, you go shopping, guess what? Your grocery bill’s a lot more expensive these days. Yeah,

[00:26:21] Bob Wheeler: absolutely. What is your biggest financial goal for 2020?

[00:26:25] Patrick Yip: That’s an interesting one. I would say to continue on my journey of, like I said, I’m fortunate to be in a position where I very rarely worry about money.

Just continue down that path to hit that early retirement and enjoy life too as well. I think it’s important to also travel a little bit. Do what you love. I mean, I love my wife, I love my son. We’ve been to almost 60 countries right now. We love traveling. So continuing on my financial goal and also enjoying life.


[00:26:49] Bob Wheeler: gotta enjoy life. That’s what we’re here for. We are at the m and m spot, our sweet Spot, money and Motivation. And I’m wondering, Patrick, if you have a practical financial tip or a piece of wealth wisdom you could share with our listeners.

[00:27:00] Patrick Yip: Yeah, I would say every asset has a certain tool like use asset as a tool in your portfolio.

Gold has a tool, stocks have a tool, bonds have a tool. I think if history repeats and this inflationary cycle’s gonna last for a couple years, I would say at least allocate a portion of your position to gold. Maybe you start small, maybe you do one 2%. If you feel it’s good, hey, maybe two percent’s right for you.

If you feel it like you’re still a little light in gold, maybe go to three, 4%. At some point you’ll probably feel okay, and then that’s probably your allocation. Awesome.

[00:27:27] Bob Wheeler: Great, great, great. Well Patrick, this has been so much fun. I love this because like I said, I didn’t know until I realized that where you worked, that was a company that I bought from.

So it’s sort of fun for me just cuz my own journey of getting into the precious metals. So that’s just a fun component for me. But I appreciate that you also talked about like real estate, all these other things there. Everybody’s situation is different, and even though gold happens to be your mainstay and your expertise, but the same thing for you may not be the same thing for somebody else.

And to really go into it with a little bit of information, even if you don’t know a lot, like do some research. If you’re beginning to get into gold or silver, do a little. The great thing about the internet is there’s so much information out there if you wanna research and understand the s and p or if you wanna understand what mutual funds are and all those things.

But for me, it’s important to don’t put all your eggs in one basket and put a little bit of money over here and put a little bit of money over there. Again, age is so important. If somebody’s in retirement age in their seventies or eighties, high risk or no access to cash, probably not a great idea. I had a couple older clients put money, a few hundred thousand dollars into a REIT that got frozen, couldn’t touch their assets.

So you need to be mindful of your own situation. When you’re going in and investing, do you need liquidity or this is a long term kind of thing. So I just really appreciate you bringing your expertise. I’m excited about the credit card. I don’t like credit cards, but I do sometimes get attracted to those miles.

I’d be more excited about getting a little bit of gold. I might check out the copper section of your website, but I’m probably not gonna buy anything. But Patrick, this has just been so wonderful. Where can people learn more about you and

[00:29:10] Patrick Yip: apmex? Yeah, so if you wanna buy the physical metal, I would recommend checking out atx.com.

That’s AP M e x.com. If you want to get into that vaulted solution where you basically own precious metals, but not actually take delivery of it, you basically store it in a Brinks or Loomis vault. That’s one gold.com. That’s O N E G O L d.com. And if you want that credit card too, check out the landing page.

It’s the bullion card.atex.com. You can learn all about it. Complete terms and conditions are over.

[00:29:38] Bob Wheeler: Well, Patrick, thank you so much for coming on. This has been really informative. I appreciate you taking the time. Great. Thanks Bob.

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