The Real Money Show
The Real Money Show - March 5th 2016
the real money show talk radio am 640 the number as always you know it by now one eight seven seven eight silver online to guildhallwealth.com the investor kit the precious metal advisor all the details and how you use your registered funds to fill up with precious metals i'm talking real physical metal here it's rsp's tfs a's rsp's lifts lures all that stuff information coming during the show exactly how to do that and as always the top corner you got the easter you can invest online from the comfort of your own home as the expression goes daren will start with you today how's the the week that was well john is a big week because we just passed the rsp contribution deadline as of monday of this past week and for us this marks the largest single client in month we've ever had in guildhall history so we want to thank everybody for coming aboard trusting us to help you with your investments in gold silver colored diamonds and it was a tremendous february for guildhall so here we are beginning of march and uh we do definitely want to talk a little bit about the market the price of gold as we're taping the show on thursday standing at around twelve fifty eight while the price of silver about fifteen twenty gold is your best performing asset year to date overall and that includes equities and all indices so it is having a fantastic run so far this year and what we saw during the last month was a rush into different types of vehicles including ETFs which uh the gold ETFs beat an eight-year record as inflows for february reached um posted seven point eight billion dollars worth of outlays so again these are indicators we don't advocate the purchase of paper assets like an ETF but this is the best way to get an indication of what the general public at large is doing us investors also have been the most keen to buy gold in terms of inflows relative to starting assets under management so this is a very very good month good quarter developing so far for gold and certainly leads us to believe that if these prices stay in this range and slightly higher we could see what we saw in 2011 easily and on top of that we're also watching other various areas now speaking as a firm only this has been one of the best months the month of february for silver purchases also we had a tremendous amount of uptick in the amount of hundred ounce bar being purchased ten ounce bar being purchased silver maple leaf coins being purchased i mean i think right across the board paul there was a pretty big uptick in all types of product absolutely we're still back ordered on product going from the beginning of january so you know we're still almost six weeks behind with deliveries i mean a lot of the product obviously has gone into rsps and tfsas but our own physical product for delivery we're filling all of our orders obviously but at the same time we're back ordered for two months which means i've got product on order yeah it's allotted to me but we're just not getting it in which tells me that people are buying gold and silver it's smart that's where the smart money is going the stock market is kind of rocky i'm just reading a piece uh on cmbc from actually um one of the chief uh lecturers at harvard and he says bubbles are bursting everywhere and that's the australian housing market the south african markets europe japan zero interest rates um these are all markets that are tending uh sooner or later to come unstuck and gold and silver has always been an asset that has stood the test of time it's there it's an insurance policy against these markets especially the stock market we've had you know a four five year run up in the stock market it's starting to show signs of weakness um the gold ETF for example is being loaded up people are smart they're putting their money in a gold ETF i would rather see people put money into physical gold and take it out of the system whether they take it home whether they put it in our depository or whether they even put it in a tfsa or an rsp it's much safer and you're getting the physical product a guildhall we only deal in physical products we are not in the equity business we don't sell ETFs we don't sell certificates we don't sell futures or options on futures we sell the physical product if you want to buy it even a small amount you can go to our eas store go to guildhallwealth.com right hand corner is our website it's as easy as clicking a mouse to get to our website you can buy silver maple leaves one ounce bars ten ounce bars hundred ounce bars all royal mint product the same thing you on gold you can buy one ounce maple leaves quarter half ounce maple leaves one ounce gold ten ounce gold kilo gold it's very very easy you can take it home but if you're buying a large amount we don't recommend taking the product home or even putting it back into the banking system and putting it back into a safety deposit box we feel that as depository which is safe secure allocated we give you the bar numbers if you request them you can visit your metal and it is outside the banking system it's the same thing even though rsp season is over it doesn't mean you can't buy gold and silver for your rsp or tfsa if you're in the market if you've got mutual funds if you've got stocks that are just not performing they are dogs and i mean dogs cash them in you're not going to lose anything in your rsp put it into gold and silver there is more upside in gold and silver than it is possibly in the stock market one eight seven seven eight silver online to guildhallwealth.com as paul mentioned the easter in the top right corner we uh we're showing any evidence uh darina you mentioned this in past shows that the global economy started to fail again well it is john i mean i think we could look towards the us as being the only salvation in that particular equation simply because the mainstream continues to bombard us with signs that the economy is gradually growing when in fact what's actually happening is that the major global economies have had a staggering debt and now the last time i looked at it was about quarter two was the last report of two thousand fourteen and debt at that time was about one hundred and ninety nine trillion dollars in the global economy the most recent figures will be closed for probably around two hundred and twenty to two hundred and thirty trillion because after two thousand and fourteen the ecb european central bank the jeep the japanese and the chinese they've all resorted to massive monetary easing programs while the us debt continues to escalate alongside of it so with every passing second you're getting growing total debt and as a percentage of gdp believe it or not it stood at two hundred and eighty six percent so for every dollar of goods domestic product coming into the market there's two dollars and eighty six cents in debt being spent and the latest numbers that are going to come out are going to be proved to be much much worse especially when you consider in factor in compound annual growth rate and percentage of that total debt now how that world reset is happening i mean what we're looking at is all forms of madness they they've got to come eventually to an end including the printing we've witnessed in the u_s and around the rest of the world in the current economic madness it started with the decline of both base metals crude oil prices i think the central banks are not able to prop growth or in uh inflate so we've always referred to the world economies resetting in the past as the global reset and it's currently underway and the equity markets are a good inkling as to where that's happening and how it's happening they've jumped on the bandwagon along with other asset classes which are plummeting rapidly and again when we saw the 2007 financial crisis it was due primarily to the easy monetary policy by the fed if anybody more recently has watched the movie called the big short they'll see how the housing market in particular was established and how it just ballooned into something that was a monstrous uncontrollable asset class and essentially it's the same thing happening the fed sowed the seed to the financial crisis of 2007 by lowering interest rates from what was about i guess six or seven percent in may of two thousand to one percent in june of two thousand three now the interest rates went higher between '03 and '08 at the time it happened but they fell right back again those low interest rates as well as easy credit are what encouraged investors to pump money into the housing markets and consequently the prices of houses soared as they've done here in Canada too the banks leveraged their balance sheets to unmanageable levels and it continued to extend reckless lending if you look back you we saw the Lehman brothers had a leverage ratio of 31 while Bear Stearns had a leverage ratio of around 36 and it resulted in their collapses this is happening again right now the writing's on the wall i mean if you don't move to have insurance in your portfolio to some extent whether it be paying down your mortgage that's insurance owning your house outright is insurance against the loss that you might incur in a portfolio if the stock markets go to heck in a hand basket so this is another asset class in gold silver natural fancy color diamonds that we discuss on a weekly basis that are forever going to be considered insurance policy in your portfolio like Paul said we've just come through the rrs p-season this is no time to stop if you have money that could be put into a tfsa and you're over the age of 26 you have forty six thousand and a half dollars that could be contributed to a tfsa whereby if you own silver physical or gold in a portfolio or a tfsa and the price goes up and you want to benefit from that your capital gains free within that tfsa so this is an ultimate opportunity at a low price where something like silver is super undervalued the ratio between gold and silver is above 80 which is astronomically high especially even historically that's astronomically high and again you're seeing the same type of thing happen in all corners of the world have we learned our lesson i would i would say no Paul we learned our lesson i mean the the creditors are still out they're still taking the debt it's transferred itself in different forms to repeat itself if it's not one thing it's another i mean look at the oil business um how many oil companies are really banging trouble how many oil companies uh owe the banks money and i'm not talking about Canada i'm talking about the US how many of these bank loans that have lent to bank to oil companies that they will not be able to retrieve um gold and silver is an insurance policy everybody has uh home insurance car insurance life insurance why not ensure your wealth your capital and one of the easiest ways to do that is by owning a hard asset whether it's gold whether it's silver or natural fancy colored diamonds silver is up almost nine percent on the year gold is up actually 17 and a half percent on the year to date i think it's going to break out my personal opinion is it's going to break out and i'm looking for very very well actually i'm looking for new highs in gold and silver in 2011 gold hit a high of 1930 dollars we went down to around about a thousand dollars silver was as high as you know 50 dollars we got down 49 dollars as low as 13 dollars and 70 cents right now we're trading over 15 dollars in silver but in Canadian dollars we're looking at 20 dollars Canadian over 21 dollars i think there is it more upside than there is possibly in downside and one of the great things about owning gold and silver physically if you put it into our depository as an example you're going to pay around about one tenth of one percent of the value of the metal per month which is about one point three percent a year over the next four years can you see silver going up five percent because that's you've the cost of storing the metal right now we're up almost nine percent on the year on silver 17 and a half percent on gold i think there is more upside i'm saying it again and i think this is an unbelievable buying opportunity to buy physical whether you go and buy from our restore take it home put it into the depository or if you have room in your TFSA or if you have room in your rsp and you've got stocks that are not doing very well for you this is the time to get into gold and silver one eight seven seven eight silver online to guildhallwealth.com listen john when we come back we're going to bring up a couple of topics that i think people want to be prepared to listen to one is what is the rest of the world doing regarding gold two i'm going to tell you what Canada did and you're not going to like it if you're a listener and you believe in gold you're not going to like it so stay tuned i know exactly what you're talking about on that note we will take a short break again the numbers one eight seven seven eight silver online to guildhallwealth.com precious metal advisor eastern the top right corner all kinds of easy options that get started owning some physical metal we continue with more the real money show right here talk radio am six forty the real money show the numbers one eight seven seven eight silver and guildhallwealth.com get that precious metal advisor use the east or to start uh your first purchase maybe uh from the comfort of your own home and your computer then you take it further and get more and more and get uh properly set up but first get back to the article you were talking about daren well we were talking about the break before about the world economy resetting and honestly what we were just saying was that it's already begun essentially the world gdp is not enough it's not coming in at a fast enough rate we've been living well beyond our means we continue to do so especially in canada i mean every day i go somewhere drive somewhere i see people paying for credit for things that they should never pay credit for i mean think about it in our parents day and age how many parents paid or used a credit card to pay for groceries a credit card but that's because it's become so expensive to go shopping right a five-person family which i have cost me when i go shopping four to five hundred bucks and i'm going to tell you i pay for it every time but i always see people in line paying by credit and that's what's happened this become a highly leveraged economy and it's been spewing around the world and the same thing has happened around the entire global complex when the feds in the u.s sought to solve the problem of already existing high leverage in essence they told us by a headline that they were going to cure the problem but what they actually did is they implemented even higher leverage to do it every crisis is an opportunity correctly unbalanced system which will lead to years of instability on this very show once upon a time our good friend loose geezus told us that the only way to let this cure itself is to let it blow up and he might have been right i don't know i'll have to ask me still feels that way but the reality is the brilliant minds of those at the fed they sought to solve the problem of high leverage by means of implementing even higher leverage and they just basically transferred the leverage from the private buyers onto their own books and surprisingly the major global central banks follow them right along in this madness and this is what's happened around the world now who has benefited from the central bank's actions well the central banks have maintained interest rates near zero percent or in the negative in some countries as we're now hearing and have resorted to massive money printing the wealthy pumped money into various assets their holdings became inflated and the rich become even richer the poor had no money to invest nor jobs and consequently they were not extended any loans in order for them to participate in the stock market rally thus their struggles continue due to this the u.s. economy as the hallmark economy of the entire world has not responded positively and only few asset classes continue to perform the global reset will take us some five to seven years to play itself out john it's going to take a long time for people to realize that the amount of lying and the amount of information and data that's been swept under the rug in favor of giving us positive headlines about the economy growing is so enormous that we're literally going to be locked inside of a vacuum that's going to just basically cave in on itself if you don't have quality assets in your portfolio my belief personally is that you are going to get caught and you're going to drown and if you're going to drown you might as well have something to hang on to that's of value so that when you hit the bottom at least you can pay the guy to get out of that jail free you know have some gold have some silver but better yet not only should you have it for that opportunity we're going to talk about natural fancy colored diamonds later in the show and i'm more convinced than ever one hundred and ten percent that this is also an asset class that is going to make money hand over fist going forward so these are the problems that are happening and i said before the break that we would mention something that's happening candid that a lot of people aren't happy with or shouldn't be happy with we brought to your attention a number of weeks ago the fact that our own bankers here including the minister of finance who incredibly enough controls the final say on what happens to our gold holdings started to sell off our gold now they told us that this is a normal course of action it's used to balance books it's used to balance uh debt and used to balance other incoming revenue and of course there was nothing more said about that a few articles written here we have an article this week written by zero hedge in which we're told now that as of today this article came out march third as we're taping the show it's official canada has sold all of its gold reserves one month ago and looking at the latest Canadian official international reserves as the article says we noticed something strange canada had sold nearly half of its gold reserves in one month according to the february data total Canadian gold reserves stood at 1.7 tons that was just 0.1 percent of the country's total reserves which also include foreign currency deposits and bonds now as we fast forward to today we see that in fact we have a staggering and this is the drumroll part 77 ounces left come on yes sir i've got more than that in my pocket now yeah so this is laughable why just leave the 77 ounces just you know well listen it may just be a balance thing who knows but uh canada's reserves that's a hundred thousand dollars can is that you know nothing twelve hundred forty dollars an ounce 77 and around a hundred thousand dollars it's nothing so i mean basically uh you know what they said what the minister of finances said essentially was that uh canada can focus on buying better assets as to whether the government's decision to dump gold was wise in astute well we'll have to check back on that the gold is up 17 and a half percent this year alone and we're just a march the third i mean that's crazy makes me think back central banks were the biggest purchases of gold last year or up to february now if they're the biggest purchases that means every other bank except the us and except because they haven't had an audit of Fort Knox where they supposed to have all the gold for 50 years no one's even been inside to see what's in there there's probably just crumbs skids and wooden skids piled up not product and for canada to sell off its gold i mean that is real money also a sign of what's going to come makes me think back to what we saw when we first started this business ball once upon a time there was a very large holding of gold in the u_k_ and our good friend mr. Chancellor brown yes sir it was two hundred and fifty dollars an ounce he sold it all all of it all of england's gold gone down the drain every fifty ounce yes but you know what mr. brown got he got a thank you nice pat on the back the golden handshake he became prime minister so of course that happens all over the world and of course these are the handshakes that lead to bad decisions checker they make really good decisions absolutely this is why i never get it the you got politicians running the country not one of these people are business people i mean they're told to do certain things and they juggle and you know the left hand doesn't know what the right hand's doing but you know whether it's the ontario government whether it's the federal government whether it's u_s whether it's you know it's just remarkable that they make so many bad decisions and get away with it nobody pays the price it's incredible well listen i mean the bottom line is that gold is evolving from what the mainstream analysts call a barbaric relic to one of the biggest winners of 2016 so far as paul said gold's up seventeen and a half percent it's leading the charge it's beating indices it's beating stocks it's beating everything bonds all kinds of different investments and really gold's combat come back could dominate the landscape for 2016 this precious metal is the year's best performing major asset and this is above and beyond high yield and investment grade bonds treasuries currencies major stock indexes in developing and in emerging countries so you've got a lot of turmoil across global equity and currency markets and it's leading to this uncertainty which is telling people by the safe haven but if you look at the stock market if you look at the uk stock market and you look at the canadian stock market it's filled with mining stocks if you have got mining stocks why and you believe in it why would you sell off all your hard asset why would you sell off all the gold it doesn't make sense and that's the pain you know robbing peter to pay poor and that's what it is well this is a physical thing we've got it it's not making us any money but we can use it to pay off a bill or do something else ridiculous um i just believe gold and silver is a real good hard asset everybody should own it everybody should have some sort of protection to protect your capital have something go to our website go to guildhall wealth go to our e-commerce store you can buy as small as you know we call it a combo pack it's 22 ounces of silver it's a 10 ounce bar 10 maples and two one ounce bars of silver it's you know 22 ounces if you want to go to a 50 ounce combo we provide that a hundred ounce combo a two hundred ounce combo you can get started you can take that home if you're looking to buy larger amounts you don't want to be putting you know a thousand ounces of silver weighs 70 pound if you're thinking of putting that in a safety-positive box you can't even pull the drawer out it you're going to need a pretty big box if you've got five ten thousand ounces of silver you need to have it somewhere safe you can't have it in the basement you can't bear it in the garden you can't keep it under the mattress it's too bloody lumpy so what you need to do is put it in the depository it's very inexpensive the insurance and the fees are a total of one tenth of one percent a month of the value of the metal it makes a ton of sense to do that we it's allocated segregated we give you the bar numbers if if that's what you want to do you can visit your product it's very very simple the other thing that we still offer is the rsp tfsa any other type of pension plan whether it's a lift or any of those others if you want to put gold and silver in it all you have to do is cool us and we'll get you started with quest trade they are the people that look after your account they are the custodians we just do the purchasing and make it so easy and keep you informed of what's going on in the market this is a i think it's a great time to get into the market silver's trading right now around about fifteen fifteen an ounce gold is trading at 1257 on the day we're recording this on thursday gold's up sixteen dollars and fifty cents silver's up twenty cents i can only see it moving higher from here this is a great great opportunity and what we're offering in actual fact if you put a thousand ounces in the depository that's ten one hundred ounce bars we will give you a ten ounce bar of silver free complimentary that you can take home you can give it to your kids your grandkids you want to buy a couple of thousand ounces give them a bar each you know it's a start to get them saving you know i started my son you know even when he was a kid he used to take his you know coins his lunas and his tunas and as soon as he got it up to a hundred or two hundred dollars you know he went out and bought silver or gold it's the smartest thing you can do get a kid started every year on my grandkids birthday i've there i got a nine-year-old and a seven-year-old i give them an ounce of gold you know i've been doing this since gold was five hundred dollars we saw nineteen hundred dollars you know right now we're twelve hundred and four fifty dollars it doesn't matter that five hundred dollars if i you know would have been worth eight thousand dollars instead of that sixteen ounces of gold is worth twenty thousand dollars us in canadian that's about four million it's not about thirty thousand dollars canadian so again from sixteen to thirty thousand would i've got that interest or would they have got that interest over eight nine years in the bank and the answer is no so you know put something away for your kids listen when we come back on we're going to touch base on a couple of topics after we talk about natural fancy colored diamonds we're going to hit russia and we're going to tell you why they become the world's largest buyer of gold and oddly enough we're going to discuss storage gold storage silver storage and uh what to look out for if you're considering doing any type of storage for your bullion you might have some education beyond what you hear here in the show but you might know anything nothing at all about natural fancy colored diamonds amazing investment opportunity we'll go into it hardcore in uh just a minute here in the meantime the numbers one eight seven seven eight silver online to guildhallwealth.com the real money show talk radio am six forty real money show talk radio am six forty for this portion here's the website you want to use guildhalldiamonds.com you can go right on there see the entire collection in high res photography and as we talk about some of them here you can look at them on the website as well paul what he got this week for diamond of the week as we get into it i have got a diamond this week which um i love to death it's a one fourteen that's a one carrot fourteen fancy vivid internally flawless the stone is absolutely magnificent um this is a stone that just is incredible talking yellow here yes yellow yeah i mean the the fire the color that comes off of this stone the scintillation it's just it's just marvelous it's it's a piece of art it's a stone um you know last week i saw the week before i saw about 70 stones i bought four somebody else may have bought the other 66 good luck to them um they didn't meet my classification every stone that we buy a guildhall diamonds has to meet our classification and certification the first thing that we look at is the color the color is very important the hue of the diamond it has to be evenly saturated the next thing we look at is the cut of the diamond the cut of the diamond brings out the in in the trade it's called the fire and you see the colors just flying off the diamond so the cut is really important so for example in yellows most of the time you're going to see diamonds that are cushion radiant pear shape um very rare diamonds um our brilliant cut which is round cut um and i'm going to talk about a a round cut that we've just also brought it back into our inventory but these are the stones that really show off the you know the fire and of the stone the other thing we look at is the inclusions of the stone we tend to go for yellows in internally flawless we have probably got the largest selection of internally flawless diamonds whether you buy a fancy for round about fourteen thousand to an intense for round about twenty five thousand per carat or whether you buy a vivid which is top of the line unbelievable color for round about fifty fifty five thousand dollars a carrot we have more internally flawless stones as i said than probably anybody out there every stone that we sell comes with a gia which is a gemology institute of america classification certification of that stone that will tell you every single thing about the diamond there is a lot of companies out there that sell diamonds and never ever want to take a diamond back we tell our clients that you should hold a diamond if you're buying a quality investment diamond for maybe five ten fifteen years that's when you're going to get the best returns this is not like buying a house or real estate and you're trying to flip it in a year um you've got sales tax of thirteen percent so that's in the first year you've got to you know get back that sales tax there is some commission built into that diamond for example we have pinks we sell a lot of argyle pinks we only carry VS quality which means very slightly included pinks do not normally come in internally flawless though we do have up on the websites going up this week an internally flawless pink it's one of the first only ones i've seen probably in the last seven ten years it's not nature's way um it no it's a recart so you know to get an internal and it's a small stone a point two eight to get it from to an internally flawless it could have been a half a cara and someone's lost forty percent of that diamond to turn it into an internally flawless and they're happy to do that because they can get a return on their investment as a cutter and a polisher so we have a great selection of VS quality go again to our website and you're going to see incredible incredible pink diamonds but i want to talk about a diamond we've just made a deal with a client who purchased from us a 1.51 fancy vivid internally flawless brilliant cut he bought a couple of yellow diamonds and he wanted another argyle pink so we took that diamond back and we've got him into an argyle pink actually two argyle pinks at an you know an incredible price because pinks are going up about 35 to 36 percent a year on average when you buy a quality pink and argyle pink and especially on the argyles the argyle mine is closing in 2018 they produce 90 percent of the world's pinks yet the total pink production is one tenth of one percent of their total production they produce whites and browns industrial diamonds even though they produce 90 of the world's pinks it doesn't mean every pink diamond is a VS quality or a great color it's a light pink it could be an orangey pink it could be a brownishy pink but to get a pink a fancier and intense or a purposefully pink diamond you've got to go through millions of carrots of mine diamonds to come up with one of these spectacular investment diamonds that can only increase in value these are the diamonds that people buy and hold on to the smart money has known about this for quite some time they are savvy buyers they buy it and put it away we are seeing at auction's incredible prices but you have to remember deals are made between dealers wholesalers retailers that fetch incredible prices the last resort is putting something into auction because you couldn't get the price that you wanted yet they're fetching incredible prices at auction so this is a a great great investment you can get into an investment even if you buy a yellow you know we're doing a lot of engagement rings now you know people are coming to us and saying well you know we're looking for a wider carrot care and a half my fiance really wants some wine and they come to the office and we show them some diamonds and we show them some settings and guess what done 90 percent of the people are walking out with a colored diamond and saying thank you thank you Paul thank you Jeremy thank you Darren for showing us this diamond that is not going to lose its value if you buy a white diamond i don't care if you buy a d flawless which is the top of the line you're going to pay 27 30 thousand dollars a cara us also for that type of diamond and that's a triple x diamond to buy a white diamond g quality in a vs two or an si one you're better off buying a one cara fancy internally flawless because even at the worst that diamond is going to increase in value six to eight percent a year i listen to a lot of people when they're talking to us about their experience with diamonds especially in whites because those are the most average purchase made and the number one thing that comes across our desk is how when they're buying it they're cognizant that they're spending a great deal of money on something they're buying for sentimental reasons how about if i told you there is a way to be in the colored diamond market give the same type of sentimental value in a piece that you make for a loved one an engagement an anniversary of some sort but down the road look at that piece is not only something that was of sentimental value but that could potentially put your kids through college how about buy that new car when your daughter has her sweet 16 boom you sell the rock you bought her new car not only did it have sentimental value for 16 years but it has a life story to be told this is what the promise of colored diamonds has long-term not only as an investor can you put it into your portfolio and hold it like a hard asset but john we've been doing this show with you now for what three years give or take prior to that we've been with other hosts and we've been on this station since 2008 we did our pilot episode back then when we started talking about colored diamonds paul how many people were really talking about colored diamonds back then a handful in the world at the radio station level nobody it was articles written pieces or you had to go to a wholesaler show to find out more about colored stones i just there's only three books ever been written on natural fancy colored diamonds yeah let's go go into uh one of the bookstores and look up stocks look up commodities and look at trading look at you know there's racks and racks but there's only three books that are actually a natural fancy colored diamond that's how rare they are well we've got i'll tell you something it's never been said before on the real money show but i think it bears being told here today for those of you that like to follow the market like to look into colored diamonds like to look into gold and silver buying and want more in terms of what's happening behind the scenes there is a website called financial repression authority.com financial repression authority.com it's a couple of very smart blokes one of which is a very well-educated individual named Gordon T. Long we were listed on their website as being one of the solutions for long-term wealth hard asset management and of course we're right up there with the likes of none of the modern horn were there with wealth terra which is a name some people might know they list bit gold up there which is another name people might have heard and not only that they list spot now these are all asset classes and categories that are different for each particular company that's being listed there but we're listed as guild hall diamonds and of course they are touting guild hall diamonds as being the place to go to get an asset in colored diamonds that is falling under the hard asset category just like gold and silver and we are happy to be given that type of good positive feedback by companies like this and it bears repeating financial repression authority it just it just makes me think of when we started doing this and how long go and now on top of that i mentioned the word sprout for those that invest you may know sprout asset management they're also in the business i don't want to knock another firm that i believe highly and i do believe in them however i want to make it clear that everybody is now starting to talk about colored diamonds i just read an article in which an asset manager in precious metals at sprout management is talking about colored diamonds saying yeah that's part of that 20 percent of your portfolio that should be in gold silver colored diamonds diamonds and we've been saying that how long Paul since 2008 the funny thing is i had a phone call yesterday from somebody that was is in the business of colored diamonds and they didn't have the best of reputations but they would come to me and said we just have kind of formed a fund where all the people that bought diamonds we're taking back those diamonds and we're going to give them stock i don't know oh my god it took me two seconds to put the phone down on them because it's another scam you know when you buy a natural fancy colored diamond you want to buy a diamond that you pay a hundred thousand dollars for and ten years down the time road in a pink you're going to get a quarter of a million three hundred thousand you don't want to pay a hundred thousand dollars for a stone and ten years down the road you can only get twenty thousand dollars for it we stand behind our product we're only we're only probably the only company out there that will the diamonds that we sell we're happy to take back you know we tell our clients right up front this is not something that you're going to hold for a year it's not day trading no you're not going to hold on to it for a year or two years and flip it it's not like being in Hong Kong where there's no taxes so you know you buy something for a hundred and it's moved up 20,000 and you're happy to make the 20,000 you've got 13% sales tax right up front you've got to cover that you've got to cover some of the profit that we put into that stone so within a year or two years it doesn't make sense to try to sell it so when we come back we're going to do the four segment i want people to call in between here now this is the time to pick up the phone go to the internet to look up the website john's going to give you the information we're going to touch on who's holding gold who's the world's largest buyer of gold right now i think i alluded to the fact that it's Russia and we're going to talk about storage how to get good storage for your gold and silver it's not a myth it's a truth it's a reality guild hall is doing it so we'll talk about that when we come back that number that daren just mentioned one eight seven seven eight silver again one eight seven seven eight silver and online to guildhallwealth.com real money show more of it coming up talk radio am 640 you know the number by now to get started on investing one eight seven seven eight silver and guildhallwealth.com let's do it daren listen i promised we would take the four segment to talk a little bit about the world's largest gold buyer now what surprises me is that number one not a lot of people know this i think a lot of people as we alluded to earlier in the show still think that fort Knox holds the largest store pile of gold well we don't know and because we don't know i'm tempted to think that the reason they've delayed auditing the federal reserve is because that gold doesn't exist and i allude to a number of different variables that we followed along the way from repatriation of gold to places like venezuela and germany and switzerland that have taken seemingly years to get back to their own countries where their product should have been stored in the first place we've got other types of things that have telling us this by the fact that the feds are delaying and they've shot down in the senate in the senate a number of times request to audit the feds and again the list keep piles keeps piling on and on and on and getting bigger and bigger and the reality is i just don't think that that gold's there if you want to prove me wrong then of course audit the federal reserve and let's find out if it is but in the meantime when we talk about who's buying gold we often say look to the central banks you don't still in this day and age bet against the banks they are apparently correct on their assumptions the problem is they never tell us what they are until it's too late for us so when you see central banks adding gold to the reserves always got to be a reason why now if you look at what just came out of his report from proveda.ru which is a russian website talking about russia becoming the world's largest buyer of gold and it says that the international monetary fund experts said that the bank of russia acquired six hundred and eighty eight thousand more ounces of gold that's the headline of the picture in the article and essentially it says that much today six hundred and eighty eight a thousand ounces of gold additional in their latest purchase we got seventy seven ounces yeah we're doing pretty good we're doing pretty good um it turned out that the bank of russia became the world's largest buyer of gold among all central banks of the planet as of january two thousand in sixteen now my colleague jeremy is not with us today he brought this article to my attention before i came out of the show he said tell the people about this i want to share with you two of the things that we think are happening now russia alone as of january has and owns twenty one tons of gold against our seventy seven ounces that's embarrassing we're rocking but we've got really good protein john yeah of course you know it's hockey and hockey yes you know not in this city it's true and now if you look again uh just across a hop skip and a jump from russia is china as of january they have sixteen tons the chinese central bank last month reported buying five hundred and twenty thousand ounces of gold in january now if you look at the reasons why they're doing this one of them is obviously that they have anti-dollar anti-us dollar intentions they want to get away and have been trying to get away in that part of the world from using the us dollar for a long time we've had a number of different things crop up economically that have tried to make sense of what could be used to establish a new type of currency you've heard of petro ruble and other types of things like that but the truth is the us dollar has such a strong hold on the world economy that nothing uh that has been able to stabilize itself well enough we thought the euro might at one point in time of course they sold them subprime mortgages and we know where that ended up but the ultimate reality is nothing has become good enough yet to balance against the us dollar is he saying the article what india how much india well india's had a significant increase because gold for the average buyer is becoming very expensive in indian terms because of the ref relative tariffs and all the things that they do to cost gold higher that's paul cell phone going off it's lovely it's india they're calling it for the seventy seven ounces they want it all they want it all but uh they are buying india in particular is buying more silver so that is an interesting story to follow too with one which i want to deal with on a later show but leading publications the world started the buzz about anti-dollar intentions of russian china and they say that it appears that russian china have indeed decided to create a counterweight to the supremacy of the dollar now that's one point the other point is you're creating a counterweight to the us dollar but you're actually bulking up and protecting your own reserves you're so heavily weighted in your foreign currencies in the us dollar because you've bought and bought and bought and bought and taken so much of that of course in china's case that's you know certainly uh evident because we've allowed so much of the chinese uh product to come into north america that they've bought in response to that uh treasuries in us dollars but again it looks as though they're there know something that the rest of the world doesn't they're they're preparing for a problem and i hate thinking about it because i hate the idea that geopolitics which is one of the fundamental reasons we buy gold and silver would take over the economy uh it would take over the economical complex around the world and that ultimately is something that we have to be paying attention to so this is a very significant change and mentality fifty sixty years ago there's no way that russia or china or india become large gold buyers or silver buyers it's us the us so countries that thing long term uh we don't seem to think uh in north america long term it's it's quick quick quick quick quick but they must have a plan otherwise they wouldn't be buying all this gold you know india buys an awful lot of gold you know even another emerging uh countries vietnama buying gold they're all buying gold i mean what is the reason that they're doing this i mean they just don't trust fiat currencies and you know the u_s sells its treasure is um they have to have buyers and one of the biggest buyers of the treasure is most people don't know is the fed so the right hand is buying from the left hand again this is just something that's been ongoing for a long time and and we view this as nothing more than just banter between countries you're looking at very deep problems that exist economically that they're trying to pave over especially in the us and here at home in canada and ultimately to be selling an asset like gold right now is a clear indication that again our politicians are very very short-sighted when it comes to understanding what's happening in the world yes we have lots of reserves we are one of the most natural resource rich countries in the world but at what cost we're selling a tremendous amount of them to other countries and ultimately i think our people need to have an insurance policy and one of those possibilities is gold, silver, and natural fancy color diamonds the other thing that i wanted to touch base on before today's shows ends is storage and we get a ton of questions every week on a weekly basis about storage and how storage really works what it is what it costs and uh how do i know it's real and all those questions and ultimately what i would say is first that this is on the feet or the heels of what some people in our industry are trying to uh to do and promote and ultimately we are fans of physical first and foremost if you can't see it and touch it it doesn't exist whether the firm you're working with has the ability to make certain the gold exists for you on your behalf if you trust them that's one thing if you can go and see it yourself and audit it that's another at guild hall our depository accounts and all of the product that we put into our registered accounts all of it every ounce of it is product that can be viewed and seen and stored and is accessible by the client the extent to which the client wants to get access to their product depends only on what the client's appetite for that kind of safety safety and security is if you want your serial numbers that option is available if you want to choose a specific bar to sell that option is available if you want to go to the depository and view your product that option is available if you want to pull it out take it home with you if it's in the depository that option is available if it's in a registered account you can't do that it's against the law it's like taking home a stock certificate in a rsp you can't do it but ultimately you can still sell it and you can do it on a phone call very quickly recently we saw in the news a few of our competitors starting to challenge these norms starting to get creative and what i would personally deem as a strategy of hypothetation so that one ounce can be shared by many uh and we're seeing that a few of the competitors in this particular arena are now advertising that they will pay you a percentage of funds to store your product so you bring your gold to me john and i give you a payout so the value of the gold is yours and if it increases the whole value is yours right but while it's being stored at my depository even though the depository costs money to store yes cost us money right that we pass on to the client because they have to pay for storage i'm willing to give you up to three and a half percent back on a yearly basis of the value of your metal sounds fishy sounds fishy right how do you do it who in the right mind we know dividends aren't paid out of gold you can't eat gold you can't build a house with it while you could if you're really rich but i mean that's besides point but you know ultimately it's not there for those purposes and sometimes the mainstream analysts are right you can't get the same kind of productivity out of gold that you do out of stocks but where in the world could you go and somebody's going to pay you to hold your gold i'll tell you where where they're leasing it you know so that somebody else can use the physical so that it's not in your possession there are no serial numbers you don't ever see it you don't touch it that's the terrible way to look after your product and furthermore how do you know it's being bought and taken out of the marketplace if you never get to touch it if you don't get serial numbers if you don't get to see it if there's no proof that it's there how do you know that it's being bought how do you actually know that that ounce of gold you just bought is actually being purchased and i guess that company as well turns around and says you may not get the same gold or silver that you've purchased right huh sounds like a big bull run right there well sounds like a big sort of fat certificate to me at a bank you know the same thing same idea hypothesized product right one ounce for ten you know ten people sharing the same ounce but of course on paper not all ten people call for delivery of the same ounce so hey no worries we can keep the scheme going don't be fooled by situations like that when we put product in our depository it's physically sitting on a shelf that costs money there are people working there there's full-time security there's all kinds of London and sure people have to pay for those things you don't get money back on that don't fall for these things and when it comes to buying your gold and silver always take it physically always always always guild hall is here to help you colored diamonds are an excellent thing to learn about try to get to our website do a combination of both do a combination of both and we look forward to coming next week and speaking with people yeah and if you have room for an rsp tfsa and you want to put some gold and silver you can still invest we do it all year round returns tax returns coming think about what you want to do with those returns time to put it in some gold and silver till next week one eight seven seven eight silver and online to guildhallwealth.com get on it that has been the real money show right here on talk radio am 640