The Real Money Show
The Real Money Show - February 20th 2016
And welcome to The Real Money Show. The number to start investing right now, 18778 Silver online to guildhallwealth.com. Make sure you sign up for the Precious Metal Advisor. Get the investor kit and learn, educate yourself on using your RSP or TFSA, other registered savings plans to get some Precious Metals, physical metals, into your account. And if you're over the age of 26 and never use it, you got $46,000 worth of room in that TFSA. More details later in the show. We'll get to diamonds as well. First, Darren, you're here to kick us off and you always start basically with a week that was, really. - Well, a week that was, John was pretty eventful. In my eyes, we had the Fed minutes coming out on Wednesday and there was nothing new there. Suffice it to say it looks as though they're gonna delay any new increases in the federal interest rates, which is what we expected and is really built into the market at this point in time. As we're doing the show here on Thursday again, we are looking at a price of silver and gold. Much in the same range as what it was over the course of the whole week, but certainly higher than what it was now for a few weeks. And it's been tremendous to see the amount of response that we've garnered from seeing these markets move up a little higher. You've had lots of up-down movement in the major indices over the week. The TSX and the Dow Jones being perfect examples back and forth, 100 points here, 200 points there, 300 points there, and as of the last three, four days, both have definitely moved up in pace. Now today, as I'm looking at here, I'm seeing the Dow Jones slightly in the red, but silver, as we're taping the show right now, is trading in the 1545 range and gold in the 1227 range. Both metals picked up on Wednesday afternoon after Fed Reserve Chairman, Chairperson Yellen did release a her minutes and the discussion of the Fed in general. And it was seen as more of the same of what we expect, as I said. We don't expect the interest rates to be rising any higher. And you've got a beviest stuff that we want to talk about on today's show, but really what it comes down to is understanding where we are. Market turmoil is good for gold and silver. There's no two ways about it. When you see these things and you see uncertainty, you generally see a correlating response in the metals markets. And as a result, you're seeing more uncertainty this morning in the markets after the Federal Reserve spoke yesterday, their minutes being released on Wednesday of this week. And of course, taping a show on Thursday, we're seeing the fallout from that. So we've seen a halt in terms of the gain or net gain in both the Dow Jones and the rest of the major indices that we're moving up throughout the week. And now you've seen a return to the risk on side of things with buying of gold and silver. And if you look at the broad market, the broad market is telling us also that it is halting for the moment. And again, this is used as a reasonable ammunition for why whole countries, investors at large, are looking to hold on to more gold and silver at this point in time. So very exciting to see. And of course, when investors run for cover and safe havens, they do so when you've got all of these things happening at the same time. Now that being said, we've been in this market long enough to know, John, that this is not only a momentary response day to day in gold and silver, but this is the very beginning of what we would deem as the next bull egg in this market. The first bull egg lasted from about 2001 all the way to 2011. And of course, it ended with silver touching a peak price of $49 an ounce and gold touching a peak price of $1923 an ounce. Now be it neither metal is near its high at this point in time. They both represent excellent buying opportunities and getting involved with Guildhall is really where it starts. So when we look at all these signs and we put them all together and we look at the opportunities that lie before people here, you need to know what options you have in front of you as an investor. One of these options as we talk about every week and the real money show since 2009 is the option of owning physical gold, silver, platinum and palladium in your portfolio. And the way to do that through Guildhall is only physical. We don't sell paper options. We don't sell futures. We don't sell stocks, mutual funds or other instruments that are deemed paper instruments as far as gold and silver are concerned. We only sell the physical. When you come to Guildhall, if you're an interested investor and you've been watching gold and silver and you want to own some, the first option is just to simply walk in, make an appointment and buy some precious metals, whether it's gold, silver, whether it's coin or bar form, you can walk in, make that purchase, pay for your metals and take them home with you. The second option, the safer of the two in terms of buying outside of your RSP or TFSAs is to open up a depository account. This would enable you to store your product locally, to set up appointments to view and audit your product from time to time, to add and subtract from that product holding, to have your product allocated, segregated and the option of having serial numbers with your bars where possible. What does that mean allocated, segregated? Well, number one, generally speaking, when I walk into an institution and I want to buy something, let's say like a certificate, I buy a certificate and what I'm told from the certificate is that it's backed by actual physical product. Now that product could be anybody's product. It might not be my product, it might just be product that's pooled together and sits on a skid and is unnamed other than the institution it belongs to. We don't know if it's physical, we assume it is and we hope it is, but we have no idea. In addition to that, we don't have any guarantee that it's segregated from the holdings of the regular institution. So whatever they have in there in terms of physical precious metals, it might also be just put together in one big pool. That ends up resulting sometimes in the risk of hypothecation, meaning one ounce ends up being owned by you, John, by me, by Wes, by Paul, by Jeremy, we all own the same ounce on paper. Not a fan. This is what happens in the futures market. It's an ongoing problem that's been dealt with time and time again by commentators the world over and unfortunately there's never been a satisfactory outcome. So we have gone a step further in adding physical bullying to our depository for our clients by allowing them to segregate, meaning it's separate from the rest of Guildhall holdings. It's not grouped in there or pooled in with our product. It's also allocated, which means it is that person's product. It is allocated to them for them and it's their product. And of course, where possible, the bars have serial numbers and when they have serial numbers, those can be provided to the client so that when he actually physically sees his product, it's the same product every time. Meaning when he wants to sell, he could literally choose to call me up and give me the serial numbers of the bars he'd like to sell and those will be the bars that get sold. This is giving certainty beyond reasonable doubt to the ownership, the control, and really the overall security of those holdings. And that's the second option at Guildhall in holding a depository account. For the fee of storage, which is a monthly fee, which is minimal, I mean, for every thousand dollars of product you have in there, you're paying a couple of dollars per month. So I mean, it's nothing. - It's negligible. - It is, it's underwritten by Lloyds of London and that means it's safe and secure and covered in the event of any type of act by Mother Nature or vandalism or theft. It's also the next step in moving on in Guildhall to the other level of service, which is the option of having your bullion within a registered account of some sort. Can be a registered retirement savings plan. It can be a TFSA, it could be a Lyra, our ESP, the options there are all presented to you on our website. It's easy to access and anybody that's speaking here in the show today, Paul and Jeremy are beside me and they'll be speaking in a moment, can help you with getting started on an account at Guildhall. It's as little as making a phone calling with the numbers you give them every week, John, and starting that whole process. One thing that comes out of this is that we generally see people get educated and that's one of the mission parts of our mission that we've had since day one. People being educated about what they hold and what they're investing in makes for smarter investors. - Can I use, we mentioned off the top of the show, TFSA, if you're over 26, you've never used it, $46,000 worth of room. Can I lump that entire 46 towards precious metals with you if I choose to? - You can. - That's what I had to start, that would be, right? - Absolutely, not only can you do that, you could literally identify a single metal that you might like to hold and the way you wanna hold it. You wanna hold it all in coins or bars, a combination of both. It just comes down to personal preference. You could also split those metals up, meaning you put 80, 20 towards two different metals, maybe even three metals, but that entire portion must remain stored under the government and under the IROC policies that govern the mutual fund industry. You must have the asset stored. So there's a third party involved for that reason. You cannot take it out without, of course, risking getting out of the shelter. - The interesting thing is that when you own an RSP or a TFSA or any type of pension plan, you're buying gold and silver. Most of the time we are putting, well, all of the time we're putting an LBMA approved product, but we sell Rome in 100 ounce bars, 10 ounce bars, gold, the same one ounce bars, 10 ounce bars, kilo bars. - Paul, I've got a question in the week. And by the way, you wanna submit one, go to the contact page on guildhallwealth.com and the menu there will give all different ways to contact the fellows. Mike from Barry emailed it and says he owns some coins and is wondering, since he listens to the show every week, is it better to buy coins or bars, big bars, which way should you go? - Well, that's a personal choice, but when we're talking about RSPs and TFSA's, it doesn't really make sense to buy a maple leaf because you're not taking possession. It's the custodian that looks after the account, which is Questrade, we provide the buying and the selling. When you want to take your funds or when you want to close out your account with an RSP or a TFSA, you have to sell the product, then get the funds. There is a premium on buying gold maples and silver maples. We extend to our clients our knowledge and try to tell them to buy bars, whether it's 10 ounce bars, 100 ounce bars of silver or one ounce 10 ounce kilo bars of gold rather than buying the maple because you are paying a premium because you've got the maple leaf on one side and you've got the queen's head on the other side and it's a very nice coin. And if you're a collector, all well and good. But to put it into an RSP or a TFSA, it doesn't make sense you should buy the physical, one ounce, 10 ounce, 100 ounce bars in gold or in silver, either or, but try to stay away from the maples because the only way you can take your funds out, you cannot take possession of the metal when you want to close out the account. So you have to take, sell it, take the cash, take the profit, if it's in a TFSA, if it's in an RSP and you want to draw it out, you're going to pay tax on it. So those are the downsides. But at Guildhall, we specialize in the physical product of being able to hold it. As Darren said, whether you want to take it home, if you're buying small amounts, we even make it so easy to buy. We have combos where it's 22 ounces. You get a 10 ounce bar, 10 maples to one ounce bar. You know, that's a small starter kit. You can get a 50 ounce set combo set. You go to 100 ounce, which is, you know, 50 maples, five 10 ounce bars. You can go to a 200, which is a 100 ounce bar, 50 maples and five 10 ounce bars. So you've got a selection of different products to put away that you can put in a safety deposit box or maybe, you know, hide somewhere in the house. But if you're buying, you know, 5,000 ounces of silver that weighs 350 pounds, whether you buy, you know, 50 100 ounce bars or 500 10 ounce bars, that's a lot of product to lug around. And with these volatile markets, you want to get in and out of the market and the beauty of the depository. And we've seen it this week alone, where clients wanted to sell product. It's on a phone call. Customer wanted to sell 10 ounces, another 15 ounces of gold. All they do is call up, tell us what they want to sell. The check gets put in the mail to them or courier to them the next day. - You're not just laughing at your basement, yeah. - You know, to have it in the basement, you know, to have it somewhere secret in the house, have a small safe in the house, doesn't make sense. You're putting your family at risk. You're only insured for a very small amount on your home policy and it really doesn't make sense to keep it when all you have to pay is one tenth to one percent a month to have it stored in a secure location and have it insured. The insurance on 5,000 ounces of silver, which is 75,000, let's call it 75,000 US, what's that, about 2 million Canadian right now? But 75,000 US is gonna cost you about $25 a thousand to insure, so it doesn't make sense. Call us, look about putting your product into the depository, even if you've got product now and you want to take it and putting into the depository with us, there's no charge for us to put it in the depository. You're just gonna start paying your monthly fee to carry that. - 18778, Silver's the number Paul is talking about online to guildhallwealth.com. Make sure you check out the precious metal advisor, investor kit, and also educate yourself and get started if it's your preference and using your registered savings plans to get some physical, physical metal in there or talking RSPs, TFSAs, RESPs and the like. More details can be had by going to the website as well and calling that number to start investing today. Real Money Show continues, just getting warmed up on Talk Radio, AM640. And the Real Money Show on Talk Radio, AM640, the number is 18778, Silver online to guildhallwealth.com. Guys, let's talk RSPs, let's talk registered accounts, transfers, deadlines, how we do it, how we get on it, 'cause I know you guys are getting calls and emails every week, people, more and more interest, basically about people using their room, especially this time of the year, to fill out their registered funds with precious metals, Jeremy. - Right, so we are seeing people wanting to get their contributions in by the end of the month and that's very easy. All you have to do is add Questrade as a payee and if you've established an account, which takes 20 minutes, maybe a half an hour, depending if you're doing a spousal, RSP, et cetera. But the account can be set up within a half an hour. We do need some paperwork that we need physical signatures of, but that can just take a few days. So actually opening the account will only take a half an hour, getting everything set up and approved might take two to three days. And then funding, of course, only takes 24 hours because again, all you have to do is add Questrade as a payee to your regular financial institution. And when you deposit the funds, you're making your RSP contribution direct to that Questrade account. If the other way to go is to do a transfer, and what that means is, is whether or not you're looking to do a contribution with your current financial institution, you can transfer funds easily from one financial institution to another, just like as, for example, Questrade. And that can take two, a little over two weeks to complete a transfer. You can transfer all of your holdings, some of your holdings, some of your holdings in cash. So you really have the benefit of choosing exactly what amount and what you'd like to move over in order to start your precious metal portfolio with Guildhall and Questrade. So again, the process to open an account only takes 20, 30 minutes. To do a transfer, that form would only take five minutes, maybe 10 minutes, and then we're just waiting on things to move through. If someone wants to get started right away and they want this year to make their contribution, all they have to do is open that account, fund the account, and you'd be ready to make that purchase within three days. The point I wanna make though here is that the contribution deadline is the end of the month, but you can trade whenever you want. You don't have to make that trade in order to have it be a complete contribution. - So I could do that the day after the deadline. - Yeah, as long as you've made that cash contribution, that's the key here. - Well, you may also have some equities, some mutual funds in your account that are not doing very well, for example, and you may decide to sell a portion of those mutual funds off and then make an investment into gold or silver. We found actually we started last year in actually August and we were taking opening up RSPs and transferring and purchasing gold and silver all the way up and we're still doing it now. People have been sitting on the sideline, they're watching gold and silver and they're looking at the stock market, they see that's getting beaten up and gold and silver is starting to move. It's a question of where you feel you want to have your money with governments out there printing so much money right now. It's scary, with oil prices really, really low. With the stock market moves of the other day, the Nikai went up a thousand points, before that it dropped 500.800. In a day, it's crazy. So people are a little wary. I know when people look at their statements from RSPs and they're in the stock market, we had a case today where a customer's been in the stock market for eight years in an RSP and is down 2%. I mean, in eight years in the stock market, the stock market has gone from up, almost doubled in the last five years and yet the customer's down 2%. So that's well managed by some bank out there, I guess. - For a fee. - Yeah, but it's like, Luz Geezes, when he's talking about companies and mutual funds and how much you're paying in fees and nobody really knows. And when we do even do our seminar on precious metals, Darren is always the one who says, "How many people own mutual funds?" They put their hands up. "Who knows what's in the mutual fund? What do you own?" You know, nobody, the only person ever to put their hand up was Luz Geezes when he was actually at one of the seminars. Most people don't know what they hold. Gold and silver is easy. The price is there every day. It's fixed, it's a London fix. Every day, you know what the price is. You wanna sell it, you can sell it on a phone call. In an RSP or a TFSA, obviously it's gonna stay in there. If you're buying it physically through Guildhall, you wanna buy or sell it, you're gonna get your money within 24 hours. So there's not a big problem. It's a great way to own gold and silver, whether you take it home physically, whether you put it in the depository or whether you put it in an RSP, TFSA, a riff, whatever, or a lift, whatever type of account you have. It's a good way to have a portion. I'm not telling people to have 100% gold or silver in their account, but you need to have, you know, in my opinion, 15 to 25% is an insurance policy. Everybody out there has life insurance, car insurance, home insurance, but do you have some type of insurance to protect your wealth? And gold and silver, I believe, is a protection, is an insurance policy for your capital. - One, eight, seven, seven, eight silver, Guildhallwealth.com. - Well, in addition to all this stuff going on, we, late last week, saw what the markets are really capable of in a very short span of time. And I brought with me the article published by, on Monday of this week by GoldSeek, by an author named David Hagith, entitled "Hell Week for the Global Economy Give Sign of Things to Come." And his first sentence is very telling, and it's, I quote, "The developing apocalypse will become the super volcano of economic history, and this week revealed cracks in the surface that give hints of the eruption to come." And really what the article is doing is essentially laying out before us all of the various things that have transpired since basically 2008, that have got us to the point where we are right now. And in the short term, the article is basically summarizing to the extent that they can, the outcome that they expect to have happened in these markets and why holding assets like gold and silver, among others, might be the best way to go. And he says in this article that, of course, it was a week of crumbling throughout global stock markets that challenged records. Thursday Hong Kong stocks suffered their worst start of a Chinese New Year since 1994 in a day of monkey business for the year of the monkey. Traders fled falling stocks and took cover in safe haven investments, including gold, bringing the Hang Seng Index down 742 points or 3.9% in one day. And the basic concern here is that not only should we be concerned with our own economy and our own economic grief and, of course, what's doing well and what's not or where our money is parked, but there's also concern overseas that China's banking problems could break out into financial upheaval eight times more devastating than the economic crisis the US experienced in the Great Recession because of the size of the problems that are potentially going to happen there. And some are estimating that Chinese bank failures are likely and could result in a further 30% drop in the value of the yuan against the US dollar, which would be just devastating for that part of the world. And, of course, if you pile that onto the problems in the Japanese stock market and central bank problems in general, you've got a snapshot which definitely explains why investors run for cover in safe havens like gold. On Thursday of last week, treasuries in the US hit their lowest yield since the end of 2012 when the treasuries' money presses were heating up their bearings. Investors are now basically fleeing to treasuries more than willing to accept lower yields. And you're getting the companies like PIMCO, the huge, the largest bondholder in the world, increasing its total return fund from 22% investment in US debt to 26 because they're seeing all of this blood in the water and they're the big shark and they're going after it. Not only that, but if you pile on top of that, what Yellen is basically seeing in back-to-back weeks regarding the Federal Reserve's outlook for the next few months. And there's no clear indication that there's going to be interest rates going higher whatsoever. So essentially what happened in January with the interest rate height was nothing more than just fodder to create the snapshot that, yes, we said the economy is getting better. It's gradually growing and, of course, it results in higher interest rates. So we boosted it up 25 basis points and we left it at that. I don't foresee the rest of the year or at least not until late in the year, any move in interest rates whatsoever occurring. And if you look at what the other banks are saying, I mean, basically they're admitting themselves. JP Morgan said last Thursday, it's hard to imagine an uglier morning and bankers hate to see mornings where gold rises and silver rises because it's the biggest threat to their own proprietary product on which they have basic national monopolies and that is fiat money. So when we see gold and silver rise up, remember, its impact that's being felt across the entire board of all economies worldwide is tremendous because there is such an impactful correlation between what the stock markets in the US dollar do and what gold and silver do. 18778 silver and online to guildhallwealth.com Jeremy. - Yeah, there was a really good article put out by Charles Hughes Smith of twomines.com and basically the title, I think says it all, if zero interest rates fixed what's broken, we'd be in paradise. And basically what he's saying in the article and I'll just read a couple of the quotes, the fundamental premise of global central bank policy is simple, whatever is broken in the economy can be fixed with zero interest rates. And if that doesn't work, then it'll be fixed with negative interest rates. Unfortunately, as he goes on, the simplistic policy has run aground and against the shoals of reality. And what he kind of ends up saying in this article is essentially talks about when submarines get to a certain depth, they get crushed and that's what's happening right now of just how it all works because with zero interest rates or low interest rates, no savings accounts can get going. That means that banks have to put out a lot more loans. They've got to work on volume just like those oil companies have to work on volume. So now there's a lot more loans out there. There's a lot more risk. It's sort of like betting the winner. You have to put out a whole bunch more money to get a very low return. That's what low interest rates policy create. And so the whole thing is starting to come to a head and most people, regular people, you don't have to have an economics degree from Harvard to see that this is going nowhere, that everyone could, I would find it tough for anyone to disagree with Charles Hughes Smith at this point that zero interest rates are not fixing problems. We're not in paradise. We're in complete opposite right now in terms of the financial system. And the question is, is how are you going to protect against that? Gold and silver have that safety mechanism because they are a store of value. And if you can't go after yield, forget it. Forget going after yield, go after protection and wait till the system has worked its way out because most analysts in this market will say that this market needs a collapse for it to be fixed. It needs to all come to a head. And do you want to be in the middle of the road when that Mac truck of collapse comes running down the road? The answer is no, I want to be safe. I want to be on the sidelines. I mean, we're talking, we're not even talking about the other fundamentals in the market. We're not talking about supply demand. We're not talking about the fact that mining operations and precious metals are shutting down. And at these low prices, more people are picking it up. So supplies are being tightened all the time. We're not talking about the collapse of currencies, although we touch upon it. We're talking just simply about safe haven right now. And that's what we're seeing is one of the biggest reasons why people are getting involved in this market right now is they do not feel safe in the other markets. And once every once the coast has cleared, once the markets have settled, gold and silver in our opinion is going to be much, much higher, multiples higher than it is today. And that's going to give you the purchasing power to move back into other markets and say, yeah, I did get my yield. You know what, I got my inflation rebate check. It was silver. One eight seven seven eight silver online, the guildhallwealth.com, Paul. We had an interest in recording this show on Thursday. I had a client come in this morning. The book gold two years ago, $1,200 an ounce and sold it back to us. You know, the difference was he made 40% just on currency because the currency Canadian dollar was par two years ago. And today there's a difference of almost 40%. So even at $1,200, it was a great, great insurance policy. You know, so when you sell 15 ounces of gold, you know, you've made $12,000. It's not a bad thing just on currency alone. I mean, that's what I look at. Sorry. Yeah, so essentially gold protected against the devaluation of the Canadian dollar. Now, the next step is going to be, we're watching for the deterioration of the US dollar. So what will happen is if, for example, silver is trading today, it's moved up around about 15 cents, gold's up almost $20 today to 12, 26. What's going to happen if the US dollar falls down, gold and silver is going to increase by that amount? So if silver is trading, let's just call it for round figures, $15, it will, I'm looking maybe $30, $35 silver in a very, very short time. I think it can happen. And gold is again trading over $1,200. I think it could easily go to $1,500, $1,600. In 2011, silver was at $49, gold was at $1,930. When I started in this business in 2012, I was selling silver at $3.80 and gold at $250. Now, if you bought gold at $250 and today we're trading at almost 1250, you've still made a 400% profit. And silver at $380, you've still made that almost the same 400% profit. You know, real estate's done pretty well. The stock market has not produced 400% in 12 years. My rest of my case. - It's true. What you're talking about in my view is definitely about having a foundation of your portfolio in precious metals. And if you'd held gold or silver for the long term, it's done its job. The thing is, is that when the US dollar starts to go down, gold and silver is a much smaller market and it's not gonna be the US dollar came down by 1% against the basket of currencies and therefore gold went up by 1%. It's more like the US dollar comes down by 1% and gold goes up by 8% or 10%. So what you see is the difference of a large market and people moving out of a much larger market and into a much smaller market, which then pushes that market significantly. What's really gonna push the market, of course, is the physical supply. And we've seen that even as recently as this summer. The market didn't even move up, but all of a sudden there was a major supply crunch and prices on the premium side, on the wholesale side, just skyrocketed. The year to date, we're in the middle of February, gold's up 9%. To put your money, whether you put in an RSP, a TFSA, whether you put it in the depository, you're gonna pay an average of about 1/10 to 1% storage. Now, if you look over the next-- - A month, yeah. - A month. If you look over the next four years, if you think silver or gold cannot go up 5%, because that's what you're investing in. You're investing in the fact that we think, you know, fiat currencies are gonna start to collapse. Whether the US dollar is so strong right now, it's the best house on the worst street. In my opinion, I think, and I'm invested in gold and silver. I think gold and silver is a strong, strong investment to protect your capital. It's one of the best insurance policies you can have. And the other thing that we love to death is natural fancy colored diamonds that have really have proven one of the best investments. Over the last 30, 40 years, but over the last 10 years, have done remarkably well and will do even better going forward. - And that's where we're going next. 18778 silver online to guildhallwealth.com. We'll get into our diamond conversation when the real money returns. Right here on Talk Radio, AM640. The Real Money Show, Talk Radio, AM640. And the number is 18778 silver on online to guildhalldiamonds.com. You know, Jeremy, there was an article a bit of a news break this week about some 400 ounce plus chunk big, white diamond was discovered into mine, but you know, we don't care. We want the common ones. We're the real value, right? - I thought it was in my back, yeah. - I know, it was like a chunk of ice. - Well, it'd be great to see what they can make out of that. I remember a few years ago, Lawrence Graff discovered one in a mine that he owned, and when he revealed it in this suitcase, you know, velvet lined briefcase that they'd made some, just a remarkable array of diamonds out of one. So it will be amazing to see, of course. You know, look, unfortunately, white diamonds have not really performed that well. It wouldn't be something that I always look at these movies when they're pouring out diamonds to pay for things. And even if they were all internally flawless D, you're looking at that going, I think that might be 300,000, maybe half a million, whereas, you know, I've put together, actually, you can see, if you request our investor kit, we send out this email that shows a cluster of color diamonds, and I took that photo, and if you add up what all those diamonds were, it was a million dollars or more. It was just, and it was just a few diamonds. So this just goes to show that, you know-- - When the rubber meets the road. - Hollywood needs to catch up a little bit, although they did show it in Wolf of Wall Street. So you start to see it moving in, but ultimately, color diamonds have performed so well in the last five years, the last 10 years. It's been really tough to not see gains in this market, and we're really happy with what we're seeing. And of course, part of the reason for that success is sticking with very, very high quality. We're not just satisfied with a yellow diamond. For us, it's got to be internally flawless. So it has that, not only is it rare, it's incredibly rare. And one of the diamonds we want to talk today about is a 0.53 intense pink Argyle diamond. - Argyle, haven't heard that name in a while. - That's right. - Wow. - It's an emerald cut as well. - Now, let's just start off by saying, Paul, how much would that sell for today? - Today, in actual fact, I'm going on last year's prices because we haven't changed that price on this. But right now, it's about $183,000. It's a price at a quarter of a million. 10 years ago, five years ago, you could have bought this diamond for around about $70,000. - $70,000, and this isn't what it would take to replace this diamond with the current exchange. So 180 add another 20% to that easily, and we're probably in the ballpark of what it would take to replace this diamond. Now, that sounds like a lot of money to some, but at the same time, if you can put that aside, this is by far better than real estate. This is, as long as you can have the patience, the slow and steady growth that a diamond like this is gonna give you, that's security. That's what you're looking for. We talked earlier about the fact that you could be in the stock market for the last eight years as the market ran up and be broken even. You could have your money in a GIC and have gotten less than 2% or maybe 2% a year for the last five, 10 years. - And taxed on it too. - And taxed on it. You know, you could have been in real estate and done very well, but you also had to deal with land transfers and commissions. - Double land transfer if you want to come up. - Double land transfers and insurances and mortgages and all the costs of doing business associated with that. - I'd say lawyers right away. - So at the end of the day, what makes this complicated is just how simple it is. You simply purchase it, you put it in the safe and you let it accrue value. And savvy investors only have to learn how to appreciate the rarity of the diamond to be able to say, yeah, I can get behind this. - The thing as well as we had a guest on Jeremy interviewed, Edem Rachmanov, a couple of weeks ago, their fam has been in the business of diamonds for over 100 years cutting and polishing. He wrote the book on Natural Fantasy Color Diamonds. And when we talk about prices in auction, when we talk about a 30 carat or 40 carat pink, fetching $50 million, you know, those are prices that are, you know, getting silly. But people with high net worth realize they have to put their money into hard assets when there is fiat currencies. They know that fiat currencies will eventually collapse. Real estate has always done exceptionally well. You know, it's a hard asset, antique cars. You know, even baseball cards, people that collect stamps. You know, they're rare and they will always hold their value. And in some cases, you know, increase tremendously because, you know, who uses postage stamps today with email? So, you know, you got 100-year-old stamp. It's going to be worth something. You know, the other thing about this market that's different from real estate, for example, is real estate has so much to do with the fact that there's low interest rate and you can borrow more at a low cost, which can really fuel the demand in the market. Whereas with diamonds, there is no financing. There's no interest. There's no margin on this. This is people buying an asset outright and holding onto it. This market has no loans associated with it. Completely outside the banking system, there's zero counterparty risk with this, which makes it the ultimate safe haven. Portable wealth. How many items do you know is portable wealth? You know, in the palm of your hand, you can hold millions and millions of dollars worth of product. And the reason we talk about our girls and, you know, a stone for $180,000, it sounds like a lot of money, but it really isn't when you come to see that this stone, you could have bought for $70, $75,000. I had somebody offer me last week, a .48 red diamond, a point VS, VS 2.48 for 850,000 US, which is, you know, about 530, $40,000 wholesale Canadian. That's what the price was for a .48. You know, we sold this stone, you know, a quarter of that price, you know, three years ago. So the prices have gone, and this is wholesale. That's without anybody putting any mark up on or whatever it is. These prices are getting, they're increasing at a tremendous amount. Even if you wanted to start, you know, we have, we have the, I think, the biggest collection of internally flawless yellow stones in the world today. Our prices, you can get one carrot, fancy internally flawless and magnificent stone for around about $14, $15,000. Now, that's the start of stone, but that stone is still going to increase in value anywhere from 6 to 8% a year. And there's a no brainer. Yeah, this, that type of diamond would be great for anyone who's between the ages of, let's say, 35 to 45, can afford to put that away for 20 years, for it to really get the maximum value. Because what we've seen at Guildhall when it comes to diamonds, especially in the starter diamond category, it's what we're calling it. The first five years you see that it works, but it's not necessarily going to be the time to sell. You're going to say, yeah, I can see it's moved in the right direction. After 10 years, you can say, yeah, this has really worked. I am making money. If I had to sell, I could look in and I could look back and say, I've done okay. But at that point, you're still looking at it going, I've put 10 years into this. I could do a lot more if I can put another five or even another 10. So this is where if you're in your mid to late 30s, early 40s, you're thinking ahead to retirement, you can afford to put some funds away to not think about for the next 15, 20 years. That one carrot internally flawless, fancy yellow is going to be what you're looking for. Now, this 0.53 intense pink that we're talking about. Again, less than five years ago, you could have purchased it for 80. Today, it's more than doubled within the last five years. Where is it going to be in another five, another 10? - Another 20. - Another 20. - Especially with the alcohol mine closing in 2018. Rio Tinto owns the alcohol mine. There are a lot of other mines and commodities right now have been hit up pretty badly. So, the alcohol mine produces 90% of the world's pinks. It's only 1/10th of 1% of their total production. Just because they produce 90% of the world's pinks, it doesn't mean every pink is an unbelievable stone. There's just a small, small selection that we call investment grade that we would want to hold and we would want to sell. And this is the type of stone that you're going to make money on. If you want to be in this market for 10, 15, 20 years, as Jeremy said, you're looking to retire, you're going to put your kids through university. Or you've built up, you know, a bit of a nest egg, you're trying to protect your capital and you're saying, where can I go? You know, do I put my money in real estate? Are we in a bubble? You know, is this bubble going to burst? Is the stock market the place for me to put my money? Am I going to put my money in the bank which is going to be zero interest or negative interest if they get their way? If they do what they did in Cyprus, where they confiscated anybody that had more than 100,000 euros in the bank and decided, we're going to trim you down to 30% off of that. What a load of nonsense. But it can happen. You know, banks lend money, countries lend money, governments lend money, these central banks. We don't know what they're doing. If we just look at the Ontario government, there's an example. How many billions of dollars get wasted and how many billions of dollars get wasted throughout the world and how much things are up for last night? The best investment you can make right now is a natural fancy colour diamond. Put it away five, 10, 15 years, watch it grow. It's something, you know, in our industry, you know, we deal with cutters and polishes. We can't even find right now vivid internally flawless yellow diamonds. Whoever's got them is sitting on them. They're putting them at the back of the safe because they're saying, why should I sell them this year when I can get 20%, 25% more next year and 25% of the year after that? Vivid yellows are going up on an average of about 25% a year. Pinks are going up an average of 361% in the last 10 years alone. Not a bad return, 36% a year. Even if you go with a yellow, as I said, the worst result you're gonna get is 68% on a yellow, intense or fancy, internally flawless. You wanna go to an intense, you're gonna do even better, you wanna go to a vivid, you're gonna do extremely well. But we're not challenging anybody's pocketbook when we talk about a diamond for $183,000. You know, we have clients and we have people calling us for a lot larger amounts. That's one of the reasons that we've opened an office in New York because we have the ability to provide stones, 10, 12, 15, 20 carat yellows, internally flawless. If you're looking for a three carat pink or a three carat blue, we can get the stone for you. These are stones that are gonna go for a million, million and a half, two million dollars. $183,000 for a stone that could double in five years, triple in 10 years, what a great investment. Or go to something smaller, maybe go to a $50,000 stone, you're gonna get $100,000 in five, six years. You know, you wanna go to something for 30, 40,000. It's the same thing. We can fit you to any type of your pocketbook and you will make money buying natural fancy caledimas, especially of the quality that we have at Guildhall. - Darren, you know, Paul just said there, you can watch it grow, you can literally do that wealth to wear, right? You can wear this, it is, it's a jewel. You know, it's a stone. - It's an option for many and it's becoming increasingly something that we're seeing more often at the firm and people come in and they want to buy a diamond for investment purposes and they're gonna sit it in the back of their shavity deposit box, but they take it one step further and add it into a setting. And when you put it into a setting, you are essentially treating the diamond with another level of respect and you're getting, in some cases, depending on how the setting is laid out and put together with the diamond that you've chosen, a better overall investment return on your dollar. And of course it's wearable. That's right, John, you can take it out. I mean, you can be at the talk of the town. You can be jacked the lad with a lady under your arm having the diamond in the setting. And that's another part of ownership. And one of the things that we talk about when you come in for a custom consult to discuss what it would be like to own a colored diamond. - We'll take a quick break. We'll do recap of diamonds and the investment opportunities you can have with precious metals as well. 18778 silver online to guildhallwealth.com. The Real Money Show Talk Radio. AM640. The Real Money Show Talk Radio AM640. 18778 silver guildhallwealth.com is the website. Use your RSP, TFSA, RESP, and other registered savings plans to invest in precious metals. And you'll have to the end of this month, that would be the 29th tesolepier. And for every $5,000 US invest, you'll receive one gram of gold courtesy of guildhall. Guys, let's do a bit of a recap. We, you know, during we put a lot of money, effort, time, sweat, grit into this economy. Is it paying off? Is it going down, up? - When you look at it from a pure playing perspective and you apply a little bit of common sense, these are the things you see that aren't happening. You see that nations that were struggling with bankruptcy after the last recession, are still struggling. Even more with it now. You look at nations like Greece and others among them and there's no real inclination that they're coming out of their problems. There's no real headlines to tell us that employment's improving or there's a flow of new dollars going into the country or any of that happening. So swap, sweep it under the rug, don't talk about it. Media is controlled by the central bankers. Don't talk about it. Well, you can see the banks that were too big to fail. They're much bigger than they were last time and they're starting to show signs of stress again. You're seeing stress test headlines come into the fold slowly but surely. And of course, it's my guess that under all of that, what we swept is the truth that if we decrease the standards required for the stress tests, we'll be able to pass them. But the reality is that we're not seeing that happen. You can see that growing bankruptcies in the oil industry will increase in number. There's been a 380% spike year over year in oil bankruptcies in companies that have just called it quits and walked away. And you can see that zero interest, it didn't solve the world's economic problems. I mean, the new negative interest is worsening the pressure on banks while still not solving problems. Not only all of this, but you can see that the only way banks can rid themselves of that pressure is to pass it on to the individual that's you and me. And this will require going cashless in order to be assured of your cooperation. That means take gold out of the system, buy it themselves because they know something you don't. Why are they buying it and telling you not to? That means take away what little bit of cash value we have in our pockets and convert completely to paper and plastic, out of sight, out of mind. You can see that quantitative easing didn't solve the last crisis. So how will it solve a greater crisis when recession happens everywhere at once, not in just one place around the world? You can see from a geopolitical perspective that the Middle East is in greater conflict, not less than that than the time before. And you can see that stock markets all over the world are crashing at the same time. And that the US was the last of nations this time to start down that hole. I mean, I can go on and on, John. The fact is if you don't own a quality asset like gold, silver, colored diamonds in your portfolio, now's the time. I'm challenging the people listening to this to prove me wrong, write in and tell me I'm wrong and tell me why I'm wrong. Tell me what you're holding that's making a ton of return for you right now 'cause I'd love to know. If you're confident enough to be in the stock market, tell me where and what you're doing and how it's doing for you. I can tell you right now that if the world comes back full circle to what happened in 2008, we're not going to survive it, John, without quality assets in our portfolio. - An interesting article this week, Larry Summers, a former economist with the US government, Harvard professor, put out a statement and there would be a good idea to stop printing the 500 euro note and to take away the $100 US currency. - The Ben Franklin? - It means that what they're trying, what he's saying, and he's got a lot of influence this guy, what they're trying to say is we want to confiscate your wealth and by taking away all the $100 bills out there and all the 500 euro notes out there, you're going to walk around with $20 bills. A $20 bill is really not a lot of money today. It's the same thing, you know, when you go across the border and they said you have $10,000 or more, you know, maybe 10 years ago they sounded like a lot of money. It's not a lot of money in Canadian, it's 6,000, 7,000 US today. It's the same thing when you're coming across the border and if you've purchased anything in the US, I mean, what's $600, $700 today? It's not a lot of money, but to turn around and say, let's get rid of the 500 euro and $100 bill, to me it starts smelling already that they're trying to confiscate people's wealth and start to use electronic currency 'cause you don't have to do anything. You just have to press buttons. Gold and silver is going to be a hedge. Natural fancy color diamonds is going to be a hedge against anything that's going to happen. Whether you go into an RSP, a TFSA with us, whether you go into the depository, whether you want to buy the product, come pick it up, take it home, make sure you get into some gold and silver in a natural fancy color diamond. Great advice, my friend, 18778 Silver Online, the Guildhall Wealth.com. Get the precious metal advisor, the investor kit, and remind you how till the end of this month, the 29th to invest $5,000 US and you'll receive one gram of gold courtesy of the fellas here at Guildhall. Till next time, this has been The Real Money Show, talk radio, AM640. - Hey, Merry Christmas, man! - The Countdown to Christmas celebration continues on W Network. - That is where I thrive. - It's the time to shine. - It's the time to shine. - All new movies every Thursday to Sunday. - We deployed Christmas joy with three brand new holiday series. - Thanks so much, have a great holiday. - Back-to-back movies every day will have you jumping for joy. Hallmark channels Countdown to Christmas, all season long, only on W Stream on Stack TV.