The Real Money Show
The Real Money Show - March 12th 2016
The Real Money Show from March 12th, 2016.
And welcome to The Real Money Show, the number to start investing very simple, one, eight, seven, seven, eight, silver, and online to guildhallwealth.com. So guys, welcome, Jeremy, how are you? Very, very well. Thank you. Big week. I know. Right. It's been a very interesting week in the market. First thing is we have Chris Powell from GATA coming on the show next week. It's something we're really excited about. We're sending out an email to all of our subscribers to let everyone know about Chris Powell and send some videos of other interviews he's done because it's going to be certainly a breakthrough interview for us. We're glad to have him on the show for the first time. GATA is the Gold Antitrust Action Committee. And they have been discussing in the media for a very long time about exactly how central banks surreptitiously go about controlling the gold price. And it's something that we can get into in terms of what is, what is the reason for that, what's the motive for the gold price to be manipulated by central banks, et cetera. Speaking of central banks, the ECB this week, they are going to continue to quantitative ease and they're continuing to lower rates. We've seen the markets react and then not react. Well, today, Draghi came out with the negative rates that the central bank lends money or the money that banks park their money with central banks to four-tenths of one percent. So it costs the bank or banks money to park their money. Also, he's increased the amount of money they're buying are bonds and other probably no good issuances of up to. They went from 60 billion euros to 80 billion euros a month that they're going to be buying garbage. So it's a real interesting situation. So what happened is before he came out and made his speech this morning, the Dow futures was up about 130 points as we're recording the show round about two o'clock today. Dow Jones is down 130 points. Gold and silver before Draghi made his speech was off a little bit. As soon as he's made his speech, gold shot up to around about $1,270 an ounce. Silver went as high as 1562. We're trading as we're recording the show right now. Silver is trading round about 1562. Gold is round about 1270. On the year so far, gold is up to date 20%. Silver is up just over 12%. That's a pretty good return considering if this is I feel is the start of a bull market. And in fact, that's going to be one of the big topics today that we're going to cover here, John, is the fact that some are saying that gold is officially back in a bull market, which is great to see. So we're going to just look into what we're seeing in terms of delivery of gold, allocations of gold. One of the big news that we saw this week was that BlackRock is stopping issuance of their gold ETF because of a lack of product. It's just something we're going to get into a little later on as well. Something is back and we're very excited. What would that be? That is that for every $5,000 you spend in an in an RRSP, you get one gram of gold. That's US, 5,000 US invested because gold and silver is traded in US funds. And this is something that all of our customers enjoyed receiving Guildhall likes giving and it was just a great promotion. It really worked both ways because one of the big things is, you know, some people will say, well, what are the what are the fees? What are the fees, you know, all included? And there's a lot of the there's only two minor fees, which are there's a trade cost, which is pretty small. And then you have to you have to pay to actually allocate the product. And by receiving some gold back, you're you're getting a rebate plus. Nice. So if you if you got a gram of gold and you bought in December or November, even January into your RRSP or TFSA, you're up 20% on your gold. Just on that gram of gold. Right. So it's it's not only are you getting something, you're getting something that's moving up in value, plus it's a way to cover all of, you know, there's a couple of little fees, of course, to get involved in the market. What we're doing with the RSP, which I think is the reason why people are finding so much value in it. And as we talk today about what's going on with gold globally, I think, I think the listeners might come to appreciate it more, which is we're taking the product out of the market, actual product, and physically allocating it to that customer. So now there's no counterparty risk that client has serial numbers. They can go and personally audit their product, but it's unencumbered. It cannot be used by anybody else. There is no ifs, ands, or buts, if that product actually exists and where it where it is stored outside the banking system, and it's outside the banking system. It can't be hypoticated because if you purchase 20 ounces of gold, you've got the bar numbers for those 20 ounces of gold. If you ordered 50 100 ounce bars of silver, you've got the bar numbers, you know, quite, quite straight that it is actually a partner and the custodian that's handling all the paperwork and everything involved with owning an RSP or a TFSA or any other registered retirement plan. We do the purchasing. We use the depository that's owned by the wholesaler. It's one of nine depositories is recognized by the comics as well. It's Iraq approved. Every product that goes into the depository is segregated, allocated. It's insured with Lloyd's in London. It's also insured through Questrade as well up to a million dollars, I believe. Is that correct, Jeremy, for each client? So it's pretty, pretty safe. And you're taking the product and you're taking it out of the system. Um, I was reading something this morning in actual fact about the comics where gold right now is being traded, something like 452 times to every one ounce of physical. That's scary. No, Paul, 542. Oh my gosh. So, you know, wow, 542. There you go. So that's even worse, but it's being traded sooner or later. You know, the crap's going to hit the fan and something's going to happen where if people start wanting to take delivery of this product, this paper product, when you're trading futures and options and futures, not a lot of people take delivery, except for the Chinese, the Indians, the Russians and the Russians, they want the product. If they're buying a contract, they want that product eventually, you know, restored to them. So therefore, that product gets taken out of the market and there's less products available. Guildhall, we only deal in physical product, whether it's gold, silver, platinum, or palladium, you can buy a physical product through our e-store. If you go to guildhallwealth.com, right hand corner, click on Guildhall, the e-store. You can buy product, whether it's silver or gold, take it home. We don't recommend if you're buying a large amount of silver or gold to take it home. In most cases, to put it in a safety deposit box, what you're doing is putting it back into the banking system. You want to take it out of the banking system. So we recommend that you put it into the depository, which is safe, secure, allocated and segregated. It is easy to make a trade to whether even when you own the product and you want to sell something, the market's moved up today and you'd say, okay, I bought it at $14. It's trading at $15.60. I want to take some profit off the table. It's a phone call away. You don't have to drag that silver, which a hundred ounce bar of silver weighs close to seven pound. Thousand ounces is 70 pound. Five thousand ounces is 350 pound. You've got to be a bloody weight lifter to pick that amount of product up and take it and sell it. And then again, that product has some cases. If it wasn't purchased from us, we would have to send it out to be a SAID. That's a time. There's a lot of time to get that SAID. It's not something that happens overnight. So it's an easy buy and sell if it's in the depository. Or if you haven't purchased a TFSA, you can put up to 46,500 Canadian into a TFSA. That's a tax-free savings account, which, you know, that's about 30, $1,000 worth of metal in US dollars. You can put that into a tax-free saving account. What a bet. What's an unbelievable way to own gold and silver. And I, you know, encourage people to go that route. And we have something right now as well in the depository. If you just want to be a depository client, or even if you want to take it home, if you buy 1,000 ounces of silver right now, there's 10, 100 ounce bars, we will give you as a bonus, one 10 ounce bar, completely freight. One eight, seven, seven, eight silver and online to guildhallwealth.com, Jeremy. So one of the big topics or themes, I would say, is uncertainty. And the reason why people are moving towards gold and silver is to protect against uncertainty, knowing that, you know, you see things like green span going on CNBC saying low interest rates and zero interest rates and negative interest rates, long term, don't work. When you have major central planners saying that we don't know the outcome. And the only answer we have is to continue on the path that we have. You know, at what point do you change course and take a little bit of of pain? And the central bankers don't seem to want to take any, any sort of pain. So what we have is just growing debts, growing debts, growing debts. It's becoming untenable. And that idea of uncertainty has got people really scared. And I think as well, when we speak to people, there's this idea that, well, shouldn't there be some sort of correction along the way? There, there's something unnatural about a stock market that doesn't come down. There's something unnatural about a real estate market that is not, that is not coming down. It's not seeing any sort of regulation in terms of just pricing, that there should be something like that. And people, I think, expect some sort of normalcy that that's a good thing. Things should go down in price at some point. And so you see prices of gold and silver and you say, yeah, they're still very much undervalued. One of the things we're going to look at and talk about in the next segment is really talking about allocation. What we've been talking about allocation for the RSP account and we've been talking about it, but what does it mean globally? What are we seeing allocation-wise around the globe in precious metals? And what does that look like in terms of the supply side? Because you want to get a sense of, well, is gold cheap? Is there a lot of it out there? We're going to answer those questions in the next segment. Lots to come. One, eight, seven, seven, eight, silver online to guildhallwealth.com. And a reminder, the special as Jeremy announced off the top of the show is back for every $5,000 US invested in gold. You get one gram of gold again. E-store is available top right corner and more information on your registered funds can be had on the website as well. Real Money Show on Talk Radio, AM640. The Real Money Show, one, eight, seven, seven, eight, silver, guildhallwealth.com, the E-store top right corner, registered funds, so many ways to get physical bullion into your accounts and get it out of the banking system. As you like to say, Jeremy, you're talking about allocation at the end of the first segment. Yeah. So allocation is all about understanding that people want to know that that the gold that they own is physically allocated, that it's not a paper investment. And this week's news, I believe it was early this week's news, where BlackRock has suspended releasing new shares of their gold ETF, demonstrates that there's a lack of product. Now they're saying that they have to file that they didn't quite, they didn't quite keep up with knowing that gold was going to move so so high early this year and that caught them off guard. Okay, that may be the truth, but is gold that easy to come by? And the fact that they have to suspend it means they have to acquire that product. And just to give some ideas about that, in the last segment, Paul mentioned that on the comics, there's 542 ounces of paper backing every single ounce of gold. That's a little scary. And this is something that we're going to get into with Chris Powell from GATA next week on the show. But just as in contrast, as a contrast, Andrew McGuire, who's considered a he worked for JP Morgan, he was a whistleblower. He does interviews on on King World News often. He was discussing the fact that on the that the comics has very little, if any, deliveries of physical gold, there's no deliveries from that from that exchange. But in contrast, the Shanghai Gold Exchange takes deliveries of over 49 tons a week. Geez. So just to just to keep thinking about that for a minute, just to give you the numbers on that, that's over 1.5 million ounces that that people are taking delivery of, investors are taking delivery of, institutions are taking delivery of. We discussed a couple of weeks ago that Russia in January alone purchased over 600,000 ounces of gold and that China bought over 500,000 ounces of gold and then everyone is railing against the fact that that Canada sold off less than than one ton of gold. So it puts things into perspective knowing that where is this gold coming from? Now there's a there's been a recent deficit in terms of how much has been mined and how much was how much was demanded. There wasn't enough. So what should happen is if, is if supply is being strained and the price is low and people are buying a lot, then the price should go higher. But because that's not happening just quite yet, it means, and this goes for silver, that people are able to buy more than their fair share because that's what happens. If something's on sale, you buy more than your fair share. It's Costco time at gold and silver. That's what's going on. And so understand that those who have been buying at the lower prices and buying more than their fair share for the last four years are not planning to sell it, should gold or silver move up a measly 20%. They're buying it and they're buying more than their fair share and they're buying at what they consider a low price because they are looking for somewhere certain to put the value and that's what gold and silver does. It's it's a store of value. The interesting thing was that Blackrock with their filing or they don't have enough product for their ETF yet Goldman Sachs came out and said gold is going to drop to $1,000 and there was an actual, a little bit of a sell off. I think that was a head fake. I think they were talking out of both sides of their mouth. Gartman, poor Dennis, poor Dennis Gartman. Yeah. Who has his Gartman newsletter. We're always picking on him. Well, he's he's headline today on CNBC futures. Now it's a good time to buy gold by Gartman. He always seems to miss the boat. When it goes up, it's a time to buy. But again, when we're looking at gold and silver, it's been a safe haven. It's an insurance policy. Everybody has life insurance, health insurance, home insurance, car insurance. But how do you ensure your capital? And the best way to ensure your capital is in a hard asset, which is gold and silver. You can't, you know, you can hypothecate if you can take an ounce of gold and keep on selling it over and over in paper form 542 times as much. That's one way, but if you have gold or silver in your possession, it's going to be your insurance policy against countries printing money. For example, today, Draghi came out and he said, lowering the central bank rate to banks, he's going to buy 80 billion euros a month in bonds and whatever debt, you know, to help the banks out. The DAX, which is the German stock exchange dropped 225 points. The foots dropped 110. The CAC, which is the French dropped 75 points. It seems like it's starting to have an opposite effect where before when quantitative easing or low interest rates were being introduced, the stock markets would get very excited about that, that they're getting, you know, they're getting access to the punch bowl that, you know, they're getting fed, fed their heroin. And now it seems that the stock markets don't want it anymore because it's saying that they, that this is not solving the problem. It's almost a reverse effect at this point. I mean, even today, the euro, as soon as Draghi made his speech, it doesn't make any sense, but the euro went up almost two cents against the US dollar. Doesn't make any sense whatsoever. If you look at mining stocks, for example, mining stocks have no correlation to the hard asset of gold and silver. Gold is, gold is up 20%, silver is up 12% year to date. Mining stocks have not come anywhere near that couple of percentage points. You know, one of the things that are worrying and we're talking about debt before is credit card debt in America. Right now it's at $900 billion, almost a trillion dollars in credit card debt. We've spoken before about car loan debt. How are the car, you know, the car industry is just booming, booming. You know, if you go past the lots and we've seen aerial photographs of cars on the on the lots, which is inventory, you know, do they count that inventory as sales or do the car manufacturers count it as we've sold those cars, even if they're sitting on the lots of, you know, car dealerships? A trillion dollars in credit card debt, it's scary. You know, even today, oil, for example, dropped in price because they said they were going to have a meeting in Russia with the OPEC countries, whether they're not OPEC countries on, you know, how to kind of control supply. You can't control two of these countries. How can you control 30, 40 of these countries? You know, one wants to produce the other. They need the money. Saudi Arabia needs money. For example, you know, they need $80, $90 a barrel in Saudi Arabia, $40 a barrel. They just have to produce twice as much. What's happening is so much oil is flooding the market. This is affecting the stock markets, and it's also going to affect printing of money. This is why I'm getting back to gold and silver as a hard asset and natural fancy color diamonds. We're going to talk about a little later. It's a hard asset that's going to be your insurance policy as long as countries keep on printing, you can't buy 80 billion euros a month in bad debt forever. Something's going to suffer. The banks are lending money. There's some real bad debt in the States or it's even in Europe. That's why they don't want to lend money. So it's safe to be in gold and silver. So you need to own it physically, whether you go to our store, Easter Guildhall, wealth.com, right hand corner by doesn't matter whether you buy maples, one ounce silver bars, 10 ounce bars, 100 ounce bars. Majority of the product that we sell on that website is all from the Royal Mint. We love Royal Mint product. It's Canadian product, it's available to you. We are back-ordered right now, a couple of months worth of back orders on gold and silver, but we have enough product to fill orders and every customer gets his order filled. One eight seven seven eight silver online as Paul said to Guildhall wealth.com. Jeremy, not hypothegated metal that Paul mentioned, one of 542. What if I'm one of those 542 and I say, you know what, I'd like my physical metal, please. Well, that's just the big question because month after month, for whatever reason, people are not taking delivery of their product on the comics. And they make it very difficult to take delivery. That's the problem. But around the world, they are taking delivery. So it's almost as though they're running this this commodities exchange in a cocoon and something that's going on is not is not legit. And eventually, eventually the market will overrun that. And you know that that's happening because you're seeing all of the delivery being taken. And because there's this movement towards allocation where it can no longer be hid, it cannot be obstructed. That's why, again, why is BlackRock no longer issuing shares of their gold ETF? Is it because they're worried about that obfuscation? Of the product is something coming down the pipe? Is it just actually that there's no product available? Well, that's a big key right there. You know, the fact that that they could lever up to over 500 ounces to one says, well, wait a minute, the price must be extremely undervalued. Let's play a game. I'm country Jeremy and I own and I have a million dollars in circulation. And I owe John, country John, a million dollars. There's really only one way for me to pay it off. Either I earn it off, right? Or I can print money. See, if I earn it off, I've got to raise taxes. I've got to do a whole bunch of things. Not going to be my citizens will not be happy. So I'm just going to print the money. Let's say in my country, gold is worth a hundred dollars an ounce. But I print another million dollars to give you. So now you have a million and I have a million. What's the price of gold? Still a hundred else. What should it be? It should be two. Exactly. It should be two hundred dollars an ounce. But if I keep it at one hundred dollars an ounce, if you're in my country, you're going to think, well, everything's fine. If the price starts to rise to two hundred, people are going to say, what's wrong? And this is where the US dollar is. It's pretty scary. The US dollar is 19 trillion plus in accounting and debt. China's dumping treasuries and the only people buying it are the US themselves. And people don't know exactly where the price of gold should be at this point. How high should it go? That's what people are asking now. That's probably the number one trend in articles on gold is where should it go at this point? It's clear it's going to go past two thousand. But is four thousand enough? Is five thousand enough? Is ten thousand enough? Is fifteen thousand enough? What's enough when the value of your currency is going is being obliterated? How long can you keep piling on debts before the currency gets completely obliterated? And the point is, is that gold should have a certain value. You should be able to buy a certain amount of goods with gold. Right now, because it's undervalued, you need a lot more gold to buy the same amount of goods. That's what makes it such a good time to get involved. Over time, it's going to rise. It has to naturally rise. It's going to naturally rise to where it should rise, which is to reflect the value of the currency. Now, in every other country, if you're a Canadian listening to this, you can perfectly understand the Canadian dollar fell last year by a lot. And the price of gold went up. So that function worked. It's not showing the same case in the US, but it's just a matter of time. One eight seven seven eight silver online to guildhallwealth.com. The other half of this equation is natural, fancy colored diamonds. We love those. Paul is all prepared for that. So we'll take a quick break. The E store online, you can check that out as well. Start investing today. The Real Money Show Talk Radio, AM 640. Real Money Show Talk Radio, AM 640. You got guildhalldiamonds.com. You want to check out that website during this particular segment. And one eight seven seven eight silver is the number to start investing. Let's talk diamonds, Paul. I know you'll love this part of the show. Yes, we do. And it's funny. We had a meeting with a client this week that has a very, very large selection of natural, fancy colored diamonds. And the collection ranges from yellows to pinks, intense vivid yellows, all internally flawless, and pinks mainly argyle pinks or VS quality. And we were doing some checking on prices, what he purchased the product for to what we are selling today. And on average, just on average, we would say the yellows are up about 15% and the pinks are up about 35% a year, which is a pretty good return. We talk about natural, fancy colored diamonds as an investment, as an it's not a flip. It's not buying a house where you buy it. You put in some hardwood flooring, put a coat of paint on and you're flipping. It's an asset where you put it away. You don't worry about it. It's not something where you see the price every day. But because of the rarity, and I have to emphasize the rarity of natural, fancy colored diamonds, they keep on going up in price. The type of quality that we buy at Guildhall Diamonds is of nothing but the best, the cream of the cream. And the reason that we do this internally flawless yellow diamonds, I think we have one of the largest collections, and I call it a collection of natural, fancy colored yellow diamonds on our website more than anybody in the world. I'm a collector myself, so when I find it very difficult to find product, I have to put some of my own product into the market, which I hate doing because it's like giving money away. You bet. It's easier to just take it, keep it at the back of the safe, and watch it grow every single year. In the last 40 years since they've been keeping records, natural, fancy colored diamonds of investment grade have never, ever dropped in price through inflation, deflation, stagnation, whatever other nation you've got. They've never dropped in price in 40 years of keeping records. In fact, the fancy colored diamond research foundation, which was formed a couple years ago, now this was formed by one of our guests that was on our show three, four weeks ago, Eden Rakmanoff, and the members of this foundation are the largest suppliers, dealers, retailers of natural, fancy colored diamonds, and this is to keep the integrity of the product. You have as members, people like Cartier Tifnas on as members of this foundation, and they do research of natural, fancy colored diamonds. The same is when we buy a natural, fancy color diamond at Guildhall, we're looking for four features. The first feature that we look at is color. Now color has to be saturated, it has to be evenly saturated, and there's different types of color. There's fancy, intense, and vivid. So there's three basic grades. There is another grade which is light, fancy. We don't touch it because to us, it's non-investment grade. So we start off, in fact, in actual fact, it's like owning a car. You can own a Ford, you can own an Audi, or you can own a Rolls-Royce. To me, a light fancy is like owning a pedal bike. So we don't count it as an investment. So the first thing is color. The second thing that we look at is the clarity of that diamond. And the clarity of the diamond means that it doesn't have inclusions. Now, for example, pinks do come with inclusions. Those are natural inclusions. So we go for VS quality, which means very slightly included, which means you have to use a 40 times microscope to even find the inclusion on a diamond. With a jewelers loop, which is 10 times, you have to have a trained eye to know what to look for. So we only handle VS. In yellows, we mainly carry internally flawless, which means there is no inclusions. There is nothing wrong with a VVS or a VS in a yellow diamond, because the first thing we look at is the color. Is the color evenly saturated? That's the most important thing that you're buying. In fact, the difference between an internally flawless and a VS quality diamond may be 5 to 10% on the cost. But if you're going to buy a Rolls-Royce, you might as well have one that's pristine. You don't need one with a scratch and dent. So that's the way I look at it. The next thing we look at is the cut. Now, the cut is the most important thing as well in the diamond, because the cut will bring out the fire and the scintillation and the diamond. When you look at a diamond that's well cut, the colors just fly off of that diamond. So there are certain cuts for natural fancy color diamonds, like cushion, which is, you know, a square looks like a cushion, a radiant or a pear shape, even a brilliant, which is round, but not all round diamonds hold their color. So they're extremely rare. We actually have got one going up on our website this week, and it's a 1.51 fancy vivid, internally flawless yellow that is absolutely stunning. The saturation is magnificent. It's an incredible stone. But let me get back to the fourth one that we look at, the fourth C, and that's the carrot wave. So when we're selling a diamond, yellow as we sell over a carrot, when we try to sell a pink, we normally sell, round about a quarter of a carrot is what we go for. Nothing, not occasionally I may do a 23 or a 24 pointer, but I'm just, the reason I'm doing that is again, first come is color. And if I see a magnificent color, a purposefully pink, for example, in an argyle, it's just, I can afford to go smaller because the stone is so amazingly great. When we sell pink diamonds, most of the diamonds we sell pink are argyle pinks. Now that's from the argyle mine in Western Australia. That mine is supposedly going to close in 2018. They produce 90% of the world's diamonds. Yet it's only one tenth or one percent of their total production. They produce white diamonds, brown diamonds, industrial diamonds. It's owned by Rio Tinto. The production is down on that mine. There is not too much left in that mine, so that mine is closing. It's going to be like an artist dying. There will be no more diamonds coming out of that mine. Yes, there are other pink diamonds. There are pink diamonds from Russia. There are pink diamonds from South Africa. There's some other countries that produce pink diamonds, but it's a very small amount. The color is completely different to an Australian diamond. Australian diamond has a lot of purple in it. There's a lot of red in it. It's pink. Whereas you get from other countries, they're more pastel color. So people like that strong color from an Australian diamond. As I said, that mine's going to close. They're going to become rare and rarer. We have on right at the moment. I have a diamond that I just purchased. It also will be going up on the website. I got a fancy vivid, purposely pink VS2. The stone is absolutely magnificent. It's a .40. The stone was appraised at $217,000. We've got it on the website for $140,000. That sounds like a lot of money. It is a lot of money, but this is the type of stone that will increase in value at a rate of about 35% a year. Give or take. It's on 20 years. So in 20 years, you're looking at $400,000 for a stone in 10 years, 12 years. Nothing. If you're looking to retire, you're looking for your kid's education. You're sick of the stock market. Whether you've been in mutual funds or you're in stocks and you haven't done very well. A natural, fancy-colored diamond is a safe way to put some money away. If you're used to real estate, it's great, but I think we've probably hit the bubble. You're sick of running around with a plunger. You're sick of running around, worrying about tenants. Are they going to pay their rent? And you want something where you can just put it in a safety-positive box or put it into a piece of jewelry, which we call wealth to wear. And you don't have to worry about it. You sit on it. It becomes an heirloom. If you want to pass it down to your kids, it's something that's going to be and grow in value. And in the palm of your hand, you can hold millions of dollars worth of diamonds. It's portable wealth. How do we sell a natural, fancy-colored diamond is we're always asked. Well, what's the exit strategy? If you purchase a diamond from us, we will be happy to sell that diamond for you. But we're not saying that you should sell it in a year or two years or three years because there's no equity built up. You need to hold that diamond. Jeremy, what would you say? Seven to ten years to get a true return? You know, the nice thing about a diamond is the more you invest, the more rare to your buying. So the larger the investment, the less time you would need to hold on to that diamond. So we're talking about real estate. It's very similar. If you bought a studio apartment, you can't necessarily flip that in a year. Even five years, you might not be perfectly happy with the gains. But this is about putting aside funds that you're not looking to use for the next 10, 15 years. It's like buying a group of seven. Nobody looks at it daily for how much it's made. Exactly. And that's part of it. You could also enjoy a diamond while you're owning it by having it in jewelry. But ultimately, it's a slow and steady growth. You are foregoing instant liquidity in order to get that growth. That is the exact same as people who purchase a GIC. You don't buy a GIC because you're looking to spend that money, and you're willing to put it away for five years. Well, what if you were willing to put that money away? But instead of getting two percent return. Two, one. Well, I'll talk to five, five years. Well, one, you should try one and pay tax on it. You could get 15 plus per year. Do you would, would that mean that in the fifth year you'd want to sell if you were continuing to get those returns? So the idea is that once you get involved in the market, you can see what it's capable of. And I think that that slow growth and steady growth is what people enjoy most about this market. And of course, it's something beautiful. What about once you give a listen to something about the Hancock Red? There's an interesting story about what a diamond has produced. Well, there is a rancher. This is one of the famous color diamond stories because there was a rancher in the 50s who bought a red diamond. And he passed away in the early 80s and the family owed the IRS over a million dollars. And they decided to sell off dad's diamond collection and sent it all to Sotheby's. Sotheby's sent back all of the collection. They kept three diamonds and which they didn't, the family didn't understand what the value of any of the diamonds were. They ended up being one of the first diamonds to sell in a single lot at auction. And they thought they'd get a quarter, 250, oh sorry, I think they thought they would get, I want to say 87,000, 85,000 for the red. And it ended up selling for 870. And it wasn't a big diamond, it was a small diamond. It was just under a carrot red. But that right now would be almost, you couldn't buy it. Good move dad. Yeah, exactly. But that saved the business, that saved everything, saved a lot of family problems. And that's something, in this case it's about legacy. This is about a gentleman that bought diamonds as part of a legacy. And even, and we've had meetings with customers who want that. They want to be able to hand something over that's going to continue to make money for their children, for their wives, for their husbands, that may not be so easy to sell, which can be a good thing in that sense. It's passing over something in a responsible way that's going to continue to work for the family. But it's not their total investment. We're not saying to our clients or any future clients, you've got to put everything in gold and silver and diamonds. You put a position, whether it's 20, 25% in gold and silver and a natural fancy color diamond. It's your protection. You don't put everything in real estate. You don't put everything in the stock market. You don't put everything into buying, anything. Whether it's baseball cards or postage stamps or art. You don't put every single penny that you have into one thing. You need to diversify. And to diversify into a natural fancy color diamond, even if you're a beginner and you want to just get started, you can get into a one-carat, one-ten-carat, fancy yellow, internally flawless. For around about $14, $15,000, we would be happy to take that diamond back any time. You want to upgrade into an intense or a vivid, no different to starting off, you know, in life where you start off in a small condo or a small little townhouse. And then you get into a semi and then, you know, you have a few kids and you may need a four-bedroom or a five-bedroom. You got it. You know, you didn't have the money to start off with to buy that five-bedroom home. You wish you did, but you didn't. All you could afford was the, you know, a three-bedroom townhouse. Keep, it's the same thing with a fancy or an intense diamond. You can get started, $15,000, $20,000. If you have the funds, you don't want to put everything that you've got into a diamond. But a portion of your portfolio, if you're worth $100,000, you can afford to buy a stone for $15,000, $20,000. If you're in the stock market right now and you're looking at your stocks, you know, even if you're in an ETF or an RSP, don't hold on to dogs. Get into something that's moving. Go put some, switch it up, call us about investing in an RSP or a TFSA, switching from the brokerage house that you have to Questrade, where we can buy you gold and silver and put it in. You know, they're talking about government is talking about buying gold. Everybody's talking about buying gold because they know printing money is inevitable. Inevitable, I should say that it's going to collapse. 1-8-7-7-8, silver and all-line to guildhallwealth.com and guildhalldiamonds.com as well. I think when it comes to the stock market investments, there is a paradigm shift that has to occur because most people who are in stocks like that fast action trading and don't want to hold on to things for a long time. So it's people who don't want to look at stocks and don't want that thrill of a ride are going to really enjoy a natural, fancy colored diamond. You know, yes, you can buy a fancy for 15,000 Canadian, but at one time they were selling for, and I'm talking less than three years ago, they were selling for under 10,000. And you could actually buy a fancy, intense yellow for 15. Today, those are selling 13,000 five years ago. Today, we've got them on the website, 25, 27,000 dollars. And to find the quality that we're looking for is getting harder and harder and harder. They're just not out there. 1-8-7-7-8, silver, online to guildhallwealth.com or guildhalldiamonds.com. Lots more to go through and it will recap some of the show topics and show points that we've gone to up to this point. The Real Money Show continues Talk Radio AM640. The Real Money Show Talk Radio AM640. 1-8-7-7-8, silver, guildhallwealth.com. We ran out of time last segment, Paul, but you had a diamond in mind. Yeah, I've got an Argyle diamond. It's a fancy, intense, purposely pink. It's a VS to it's an Argyle. It's a .23. I said in the previous segment, we don't often handle diamonds. We normally go for a quarter of a carrot, .24. This is a .23, but the color is so magnificent. It's an Argyle. The diamonds appraised around about $55,000. This was early last year. We've got it on for about $34,000. I think it's an incredible buy. This is the type of diamond you'll sit on for 10 years and will easily be worth $90,000 to $100,000. It's such a great, great diamond. And because it's an Argyle, because it's intense, because it's purposely pink, the purple adds value to that diamond. Purple is one of the rarest colors in a natural, fancy colored diamond. The rarest is red. Then we go down to purple. Then we get into pinks. So a purple is really on that top sphere of color. And I think this is an incredible starter stone for $34,000. I also have a .25 and this stone I also love. It's not an Argyle, but it's a fancy deep pink. It's almost like a vivid color. We call it a step cut, which is like an emerald cut. And that stone as well is on for $31,500. It's an incredible, incredible two stones. Incredible. So this would be a good starter for anybody that wants to get into collecting. I can't think of too nice. And we also got an internally flawless fancy pink. Come on. And we also got a vivid VS1, I think, pink. So we've been going after and just jumping on some very, very intriguing diamonds. Well, there's been a pink drought lately. There has been, and we've just been quietly going about looking for things and jumping on some product. And they're going to be all coming up on the site soon. But what it is providing is an unbelievable selection because, you know, especially if you've got a tax rebate coming. What a great time to take that rebate, whether you put it in a gold or silver or put it into a pink, add a little bit of money to it. This is such a great, great investment. Maybe some gold and silver to go along with, right? Absolutely. Let's recap where we are so far, Jeremy. So what we talked about today is we talked about the fact that it's become official that gold is in a bull market. We're going to be publishing that article in our weekly newsletter this week. So please feel free to sign up for that at guildhallwealth.com and you'll see some of the articles that we're talking about. So again, gold has officially entered a bull market. One of the other things we discussed this week was the idea of allocation, that with all the uncertainty right now in the market, people want certainty. They want to know that the product they have is theirs. It's unencumbered, that they've got the serial numbers. It's been taken out of the market, held in an independent vault outside the banking system. And this has become very, very important. It's a trend we've seen over the last several years of people moving towards this demand of allocated product. People do not want pool accounts. They're becoming suspect of ETFs. And it's funny, Paul, you and I were discussing this week about the fact that the ETF had a whole bunch of withdrawals and the price went down and then all of a sudden they jumped back up. You know, Tuesday, Wednesday, they announced that there was unbelievable withdrawals in the ETFs. And yeah, all of, you know, today they come out, Draghi comes out with his minus four tenths of one percent lending, buying 80 billion dollars worth of euros a month in whatever they want to buy from bank stocks to bonds or whatever. And yet gold jumped up because the smart money knows it's a head fake. They know it's BS. So the point, and then of course we talked about BlackRock suspending its shares of physical gold ETF and what that can mean potentially for the market. And overall, there's a sense that there's a lack of physical product out there. Well, I also think they put scare tactics out there and whether it's BlackRock or whether it's Goldman Sachs, you know, to get you to try to sell your physical product and they're snatching it up. They're telling you it's going to drop, it's going to drop, it's going to drop because they can't get product. They've lent their product out. They've hypothetically did their product. They need to get product into their hands. But an admission that they're not releasing any more shares is an admission that there's a lack of product and that that is bullish for gold and gold being up 20% this year and that there's a lack of product says that this run has a lot more legs in it. And the question that on most people's minds these days as something that we discussed this week on the show is where can the price of gold go? Where do you think it'll go? Well, you know, the thing is, is in 1980, the US debt was at 1 trillion and gold hit 850. It also hit one to one to the Dow, which meant that the Dow was trading at 850 points. Now, if you take 850 in times it by 19 trillion, the number, you'd be looking at over $16,000 gold, which is interesting because that's where the stock market's trading at. But at the end of the day, looking at the last bull market in precious metals, you saw gold go from $35 an ounce in 1971 to $350 an ounce in 1980. So unless you bought it at the top, you probably did very well and it did its job. Just like if you bought gold in Canadian dollars 10 years ago, you would have paid $600. Today in Canadian dollars, you'd be selling it for over 1700. It's done its job. That's what it's supposed to do. Hedge against dollar devaluations, hedge against uncertainty like geopolitical unrest. We were talking today as an example, John, we were saying, if I'm country Jeremy and I owe you a million, I got to print money to pay you off, right? Maybe I also someone else money and they're saying, well, hey, what about me? Okay, so I have to go into debt to do that. I want to make sure that my population thinks that everything's just fine and dandy. So I pull out, I pull out, who's a Berkshire Hathaway guy, Warren Buffett to say that everything's great. Meanwhile, things are not great. Tension is rising between you and I because I keep putting you off. Meanwhile, country Paul over here, we'll call him Germany says, you know what, I think I want my gold back. Things get tense. That's geopolitical unrest. You know, 10 years ago, geopolitical unrest meant, well, you know, someone might bomb the Strait of Hormuz and oil will skyrocket and we'll have problems. We have a lot bigger problems today, a lot bigger problems. I was just seeing something that Iran just put a, just created a missile and put something, you know, saying negative remarks about Israel on it. You know, they lift the sanctions and all of a sudden, Iran's getting back to all tricks. The fact is, is there is a lack of product, there is huge demand and it's got to be filled somehow, somewhere. And if it's not going to be the price, that just means that more people and we discuss this, that just means more people are going to continue to buy as much as they can at these lower prices until the fact, until the time comes that we get a naturalization in the market, real price discovery. And when you've got, again, this is something we discussed earlier in the show, when you've got over 500 to one paper gold to real gold, you know that the price is extremely undervalued. Next week on the show, we've got Chris Powell from the gold antitrust action committee to discuss this topic exactly and we can get further into where we think the price of gold could actually go from here. The interesting thing this morning was, overnight and early this morning, before driving, you made a speech and there's a five, six hour time difference between France and Italy than there is in Canada, gold dropped down to $1,239 an ounce. As we're recording right now, we're $1,271. So, you know, that's $32 move up. Silver dropped down to $15 and 15 cents. We're trading at $15.55. That's a 40 cent move. Somebody made a lot of money by pushing it down and pushing it back up and they know that these markets are going to go higher and higher. In 2011, silver went to $49 and gold was at $19, $20, $1930 and we've come off in four years, you know, incredibly 40, 50 percent. In the case of silver, it's off, you know, 60 percent. But there is so much upside to where it can go downside. It's not a stock. Silver, it's not Bombardier. It's not the Toronto Star where, you know, it's gone down to almost penny stocks. Gold and silver can't go down to zero. It's impossible and we think this is the best time to buy gold and silver. 187, 7, 8, silver is the number you want to talk to the guys, call that number, go to guildhallwealth.com and remind you these specials back for every $5,000 US invested in gold, you had a gram of gold courtesy of Guildhall, the real money show. back again next week right here on talk radio, AM640.