The Real Money Show
The Real Money Show - February 13th 2016
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Welcome to the real money show the number to start investing off the top one eight seven seven eight silver It's guildhallwealth.com online precious metal advisor penned by daren long and the investor kit are available There as well. You should also find out and learn how to use registered funds savings plans rsp's tfs Resp lift riff lira and so many more to invest in physical metals We'll get to that a little later on the show and always the east or at the top right corner Hey guys. How are you daren looking alive? Feeling alive cold day today, but got up nice and early and If it were not for the cold weather, I would have been on the slopes today with my daughter But being that the case was a different story for this morning here. I am on the show So for thursday, we are doing this show And it is one of the first cold cold days of this winter And as we talk here price of gold trading at around just 1250 an ounce And silver around 1582 Both metals had really good weeks both metals are definitely up And if you look at the overall picture There is only but one in a sea of probably a hundred hundred and fifty different types of investments There is only one other major investment and that's the vix index, which is a measurement of gold standard That's gained more this year so far Both gold and silver are traversing higher on speculation that There's going to be a need to protect yourself further and we talk about insurance on the show So should come as no surprise that given the relative weakness in the stock markets The world over and the amount of headlines telling us the fact And the words of yelling this week the federal reserve chairperson That told us well, she was I wouldn't say bullish on the marketplace and indicated that there would be You know, certainly A need to review the idea of higher interest rates and it looks like everybody's jumping on the bandwagon Basically bank of america says to stay long gold until About 1375 and they say that 15 15 50 is a possibility right now And I don't see any reason why we will fill the gaps meaning the price could Over the course of the next two days present some different buying opportunities within a percent of where the price is on the lower side But we definitely have seen the tides turn we're looking for confirmation in the stock market in terms of the mining stocks They have started forging ahead at a very very quick pace And of course we're seeing again the dow and most of the major stock indexes around the world Continue to either stagnate or lose ground as we speak So, you know with a barrel oil at 2686 right now and down about give or take two percent on the day And not getting any better Yeah, it's going to be cheaper to drive but uh, it's certainly not correlating with the price of gold in any respect like that So I think if we look at gold in the overall picture I think it will extend much higher than the price is right now over the next 12 months And I think that we're going to talk and spend some time today in the show discussing that We look at Goldman Sachs for example They're calling also for gold to be much higher and it's it's interesting that all of a sudden the company that said That gold was going to break below $1,000 has quickly changed their tune to say that gold is going to be much much higher than Than $1,200. So I wouldn't I do wonder what is behind that motivation there Of course gold is for safe haven but The other aspect of this is that it's about a lack of counterparty risk when you own gold You don't have counterparty risk and we're talking physical gold in your hand or in a depository Where you have easy access and have that liquidity of being able to buy and sell on a phone call The fact is is that there's a lot of risk out there in the system whether it's negative interest rates bringing down Collateral on on central banks books whether it's the fact that so many Countries are are heavily heavily indebted that there are major major risks coming down the the pipe and people Specifically central bankers don't necessarily know how to deal with it You know ask anyone on the street they would have a tough time dealing with this eventually you get to a point where you can't pay off these debts And so the risks do start to come down the pipe We have to protect ourselves against that And this is an opportunity to grow wealth in the sense that once you've protected your wealth You now have the capital that you can buy other things that have become undervalued along the way We've said over the course of the last year while the Canadian dollar started to come down that Gold and silver were extremely undervalued they continue to be undervalued at this point But we do we do see down the road eventually they won't be undervalued You'll be able to sell off some of the product and be able to buy things that have become undervalued And what I mean by that is that we have a lot of people coming to guildhall saying You know the stock markets really has been really high You know, we're looking for value. We see the risk in the market and gold and silver become an obvious choice Interesting thing though Jeremy. We had a seminar on the weekend for RSPs and TFSAs And we had a you know a nice little turnout I think 50 of the people that showed up actually invested in an RSP or a TFSA Which shows you that people are listening to our show And they've been listening for a long long time and have not been you know active or you know They've kind of been in the markets or they're in real estate the markets that they know the interesting thing is that The people over the last couple of months since probably December Since we've been bringing a lot of people into RSPs and TFSAs and any other type of pension plan are starting to make money By where they've purchased gold and silver for example as Darren said, you know, silver is trading around about 1580 an ounce That's the bid price. That's not the arse price which would be round about 16 20 16 30 us And round about $1,260 ask on the us price for gold Now, you know when people are in the in their RSPs, they really don't look at it too much It's a long-term thing But when you start getting those statements over the last three four months You're going to be throwing as you're probably worth throwing up on your shoes You're going to be doing it for sure because the stock market has been taking one hell of a beating Whether it's the US stock market the Canadian stock market Europe Whether it's the CAC whether it's the footsie. They're all getting beaten up And everybody seems to be going to that safe haven which is gold and silver so As we've had one of our guests on before jerel selenty He always says gold is for my golden years and we believe that and this is a great great opportunity to You know, you've got till February the 29th to get invested into an RSP TFSa you can do all year round But for every five thousand dollars us that you invest right now with guild hall With our partners in this quest trade you will receive one gram of gold free with the investment 187 7 8 silver online to guildhallwealth.com bull market has some return there I think it has, you know, if you look at the numbers across the board We had basic buy ranges that we thought were reasonable with respect to the correction that correction stem some Four to five years Given the fact that we hit these peaks in gold and silver in 2011 came down from there into the trough periods Or consolidation periods as we referred to them And of course both of those levels one in gold was set at around just over a thousand while The price in silver was a little more hard to tackle, but we said somewhere between 13 to 14 We thought that that would be an ideal buy range and of course It bottomed out to around 1380 and we've risen off of those lows and it's confirmation certainly in the first respect That we have seen those lows we've seen those bottoms and we bounced off them comfortably And i'm confident when I say that although I said earlier in the show we could see a correction of one to two percent on pricing Which is called filling the gaps between where it took off from and where it is now today I suspect that over the next week or so we will get solid confirmation that indeed we have seen a return to this bull market And with that in in mind we have to take a look at what we saw in 2015 in today's show I wanted to talk a little bit about What we're going to see in terms of trends So we'll spend a better part of the next segment in the four segment talking about gold demand trends And how gold and silver react in a bull market, but there was a lot of turbulence as you well know as listeners investors In the year 2015, but there was also a lot of demand and although i've read across the board Different types of analysis when it comes to what the world gold council put out this week in terms of gold demand trends for the full year of 2015 I've had probably 50 percent of the headlines say that gold demand was flat And i've had about 50 percent of the gold Headlines say regarding this article that gold demand Bull you know it was it was bolstering the price in other words It was maintaining its value rather than falling into the abyss or falling down to what Goldman Sachs would be Thought might be a thousand dollars an ounce or lower We'll also talk about something you brought to our attention John an article about five of six Goldman Sachs recommendations this year. So we'll do that. Yeah a little homework I don't I think you should it's a good thing Right you're talking about two assets which are making people a lot of money right now And if you look at the the overall demand trend going into 2016 The 2015 year was little changed. However, if you compare that to silver Silver experienced a record demand in terms of coinage And if you uh look at the two markets We have often said gold leads silver in terms of the bull market and then usually you see silver take over percentage wise So as we progress in this show we're going to talk a little bit about those Gold demand trends and we'll talk a little bit about that Goldman Sachs articles Then we're going to talk about Chinese buyers and central banks We'll focus a little bit on that. So encourage everybody to stick around We'll tell you how to get into this market and how to buy more gold and silver from guild hall wealth management Pretty simple. We'll get to that after a short break in the meantime You can also use your registered savings plans rsp's tfs a's rsp's and more the e-stars at the top right corner of the website That website is guildhallwell.com the phone number anytime is 1 8 7 7 8 silver real money show continues talk radio M640 and back with more of the real money show the number 1 8 7 7 8 silver guildhallwell.com the website You can use your registered funds your savings plans rsp's tfs a's rsp's lift riff lira All those things more details on the website and as you listen to show we'll get to that as well as many different ways to invest In physical metals e-store top right corner is also another option Which we'll explore in just a bit you got an article that I sent you right in front of you Darren from gocker themselves called five of six goldman sacks recommendations For this year already proven wrong good times and uh as much as I love to say that we have been right from time to time Made some very good predictions about the gold and silver market There have certainly been our fair share of times in which we've been incorrect about the market So when I look across the board, this is uh certainly an indication that we're all human But when it relates to goldman sacks That's something you stand up and you listen to because what happened is On uh tuesday of this week goldman sacks co loid blankfine revealed how deeply afraid he is of the current scary economic situation Bloomberg reported that of the top six trades for 2016 at goldman sacks recommended to clients Five of them have already been abandoned due to losses The first one was the dollar versus a basket of euro and yen The second was yields on italian bonds. It's quite cool. That was a great call there Yields on italian bonds versus their german counterpart Incorrect there US inflation expectations uh goldman sacks Group indicated inks was wrong and all that and more and goldman sacks was forced out of three of its top picks For the for the year last month, which is a bet on the large us banks against the standard and pours 500 index And they also made a wager on 10 year break evens And a call in the mexican peso and russian ruble strengthening versus the south african brand in chalayan peso The latter closed on january 21st for potential loss of 6.6 So what does it tell us john as the article in kates and i quote You too can be a wall street forecaster. You just need confidence and nothing else Well, it's like being a weatherman, you know, if you're a weatherman, you never get fired, right? You know, there's a 50% chance it's going to rain take an umbrella if it doesn't rain you you're right you're right You can never be wrong And these guys keep on forecasting You know, you have to look at history history tends to repeat itself gold and silver Been around since the beginning of time. It's always been real money Um, it's always been hard cash It's always held up through recessions and depressions and all types of other disasters Gold and silver has always remained true When you have paper currencies fear currencies and when there is enormous amount of paper money printing Japan is a great example the us. I mean the buying power of a us dollar in a hundred years is actually depleted depleted 98 in buying power then in Seven years since abomas been in power And i'm not knocking him. I mean, you know, he took over as a president It was you know, the country wasn't doing very well lots of unemployment, but he went from six trillion dollars of debt of debt To 19 trillion in debt. That's a 13 trillion in seven years He's doubled what it took 200 years to get to he's done it in seven years Now what does a trillion dollars look like? Well for anybody that has never even thought about it Let me try to give you an idea. We had the super bowl last sunday If you took that football field and took a pallet A skid of hundred dollar bills stacked Put another pallet on top and fill that football field then put the white house at one end And put a 747 jet at the other end. That's a trillion dollars. Nice. So 19 trillion. That's a lot of longer That's a lot of money Impossible to pay back Impossible to pay back the only way that The government can pay that back is collecting taxes And if you're spending more than you're giving out there's no way that you can do it So the only answer is to print more money and when you print more money what you do is confiscate people's wealth If you own hard assets, you know, it's very hard for the government to confiscate land It's very hard for the government to confiscate gold or silver right now. It's practically impossible If you keep that product gold and silver out of the banking system You know whether you go into an institution and you want to buy gold and silver and somebody offers you a certificate A certificate again is paper. It's fiat currency You need to own the physical product now a guild hall. That's what we offer. You can go to our east store Go to guildhallwealth.com right hand corner. You can buy Physical product whether it's one ounce bars of silver maple leaves 10 ounce hundred ounce bars of silver If you want to buy gold you can buy gold maple leaves one ounce royal mint bars 10 ounce bars And even kilo bars of gold. It's physical. You can take delivery. You can pick it up at our office the other Way to buy gold and silver is use our depository, which is safe You're segregated alligator. We give you the bar numbers if you request it It's very very easy to own and the great thing about having physical silver in the depository We've had a rate a rise in prices from silver basically from 14 20 from last week To 15 almost 16 dollars now. We've had clients that wanted to sell their product They've sold the product on a phone call and the check Was either picked up or choreared or went in the mail to them. That's how easy and quick it is to sell gold and silver So that's a second alternative. You don't really want to keep, you know product at home It's very dangerous your insurance policy will not cover more than about $1,500 on your home insurance if you go to a bank and you want to put it in a safety deposit box You know you may get a box for $35 and you're able to put in a few bars of gold Maybe maybe a brick of silver that weighs seven pound But if you buy a thousand two thousand three thousand ounces of silver that's 70 140 or 210 pounds of product You're going to need a pretty big box and it's a bit heavy to just pull it out of the drawer It's it would be silly. So the best thing to do is put it into a depository the the rates for Storing your product and ensuring ensuring the product is round about one tenth of one percent a month That's on the value of the metal. So it's really really inexpensive. It's insured with loyds in london It's made so easy for you. The other opportunity that you have right now Is if you have a tfsa and you haven't invested and you're over 26 years old You've got as much as $46,000 Canadian to put into that account to buy gold and silver Or if you you know, you've got room in your rsp What a wonderful way to take product if you you know the cost of doing it. I said is about one tenth of one percent A month to store. That means if silver or gold in the next four years Do you think it's going to go up five percent because that's going to cover your cost of storage? We've already had this month alone nine ten percent increase in gold Right now savings accounts aren't aren't producing any wealth. You're looking at less than one percent return So there's not a lot of alternative there in terms of safety and growing capital in any in any ways Everyone of course is going to be concerned with costs of doing business We're we're always looking at our mutual funds and seeing that we're getting paid We're getting charged management fees, etc And a lot of the times we don't know what we're being charged and then when we find out we can be upset by that At the end of the day we have a choice to leave Leave cash or capital laying around at gaining less than one percent Or we can secure real capital real assets in a vault And yes, it will cost about what you're getting in terms of in terms of a savings account right now But what's the what's the the choice with the potential of silver and gold to rise much higher from here It becomes easy to say well, why don't I move some of that into into this type of portfolio? And we see that all the time in the rsp we see people who are looking at their portfolio saying I don't know if I want to be involved in the stock market anymore It you know, it's been going very strong for several years Looks like things are starting to change and like we said with the counterparty risk of central banks propping up the propping up the stock markets or Banks in general any any black swan event could drive the the market further lower from here So TFSAs are very easy because it only takes 24 hours to fund You can fund a TFSA very quickly And then of course you don't have to worry about the capital gains that you make So you can if you haven't used that you have up to 46,000 plus To be able to put into a TFSA to hold precious metals and not have to worry about claiming capital gains 187 7/8 silver and online to guildhallwealth.com I was looking around the world too is Amazing to see how sentiment changes very quickly and the transition from a bull market to a bear market can be a very violent one as we saw in 2011 But as i'm sitting here talking to you, we may have already transitioned from a bear To a bull market in metals and nobody's paying attention So early to the game these buyers who are seemingly going to look very astute In hindsight as soon as we see the price of gold and silver rally here Maybe part of something they don't even know is happening because the signs for a bull market Are very covert and you're usually watching things that the normal people or average investors just don't see We're watching for signs like central bank buying We're watching for what other major currency holders around the world are doing And if you look at the world gold a council report from this week You saw that central banks and chinese buyers both helped to spur gold demand in 2015 China remained the world's biggest consumer of gold last year and they were ahead of india with a lot of economic headwinds which influenced the purchasing they the wgc said in its annual gold demand trends report that the Buyers in china were were basically buying because they were looking for an insurance policy That's essential what they were saying something to provide protection against the fall in their the yuan Currency so again, that's another indication that we're seeing other parts of the world use gold and silver as an insurance policy But uh, not only that we also that sent saw that central banks Demand was increasing in 2015 as they diversify their foreign currencies as well and it reached It you know most of their purchases last year were Certainly not made public and if they were it was only through their public reports that you had to dig for these weren't headline reports yet It accelerated central bank buying accelerated sharply in the second half of last year and jump 25 in the fourth quarter from a year earlier And that's just telling us that they have a need to diversify Heavily, so that's when we're looking at these little indications. Those are the things that are telling us what's going on So this week central banks were buying the gold ETF, which is a You know a great clue that what's happening in the market Yes, the markets were closed in china because it's the year of the monkey and they take a you know a weak annual holiday Um, it could make some changes next week next monday, Tuesday when everybody gets back to work in china There may be the market may come off, but it all Things look All everything is pointing to the market moving up and this is just a great opportunity to own gold and silver We've been talking about this for the last four years how it's actually been sideways Um, the stock market did extremely well because money was cheap Uh housing market went up because mortgage rates were also very very low This will change as we can see with the stock market. It's starting to come off Nothing goes up in a straight line and this is good for gold and silver Yellen yesterday said they look like they will not raise interest rates They were supposed to do it four times this this year. It may not even happen till 2017 Which is good for gold and silver 1 8 7 7 8 silver online to guildhallwealth.com as jeremy mentioned a little earlier on you can use some of your room In fact a lot of room your registers savings plans rsp's tfs a's rsp's and more you have the east or the top right karney You can invest from the click of a mouse on your own computer We'll take a quick break and we get into another thing. That's an amazing investment here We tout all the time in the show that would be natural fancy colored diamonds lots more Of the real money show coming up talk radio am 640 the real money show right here on talk radio am 640 1 8 7 7 8 silver and for this portion guildhall diamonds.com jeremy We love this part of the show where we talk about that other gem in fact It is a gem and an investment grade gem the natural fancy colored diamond. Yeah, yes And this is a market that doesn't receive as much Ongoing content as precious metals, but every so often we do we are keeping our eye on that And this just came out through rapopore Today actually where it quotes lower supply of diamond producers have led to a shortage of fancy yellow gems Quote mining companies have effectively shut down a considerable portion of their rough diamond production Especially in africa around mid 2015 resulting in market shortages across color and size categories as reflected in the index results and we're talking about the color diamond in Index of course and this comes from jim pounds advisory board member To none other than the fancy color research foundation and senior vice president for diamond management in in dominion diamond corporation Now what we're talking about here is that uh just as an example yellow diamonds In the 1 percent uh one one carat size are up over 1 percent in in the last quarter Three three carat diamonds are up over 2.7 and diamonds that are over Five carats are up over 4 percent. That's rough diamonds. Those are rough This as compared to white diamonds uh that show a very little increase for example 1.5 carat diamonds have increased 0.3 And three carats fell 1 percent and five carat diamonds declined by 2.8 Yes, so this just goes to show that as we discussed last week with eden rachmanoff Chairman of the fancy color diamond research foundation that the supply of color diamonds is a trickle and the demand continues to grow People are looking for ways to just protect their wealth One of the big takeaways last week when we were talking about the retail segment is that major retail Luxury chains are more than happy to hold on to color diamonds Because whether they sell within a year or two or three The inventory is increasing in value That's not the same as the white diamond inventory that they really have to turn over So companies want to always are concerned with their bottom line and it's nice to know you've got a product that's that's increasing in value This is also goes back to central bank buying of gold and silver and or gold rather In this respect of just having an asset that it can increase in value So For anyone who has some capital that they can put aside for a longer period of time that they're not going to be using This is a great way to increase that capital over time It's it's money in the bank as they say in the industry where you can put it in the vault and let it accrue value over time And the more you can invest the better rarity you can buy and the more rare diamond the better the return So yellow diamonds you could get involved in the market for anywhere in the $15,000 Canadian range And you might see an increase in value every year from anywhere from five to as much as 8 percent Now if you were to double that investment and move up to an an intense yellow You might even see the market go as much as 12 percent increases in value And if you move to a vivid you would see even more Move up into pinks move up into blues or reds And you're going to see the market start to move at a much more rapid pace Of course You would need a more significant investment to get involved But again, this is for someone who's looking to store capital for an extended period of time And they would be able to just know that over time It's occurring value based on the rarity of this of this commodity Well, one of the things that aden said that I don't know whether we had it in the interview or not But we were talking to him was that he would always take a diamond back for what he was sold it for Which means they hold their value You know when a dealer turns round and especially the president of the color diamond foundation turns around and research foundation And says i'm happy to take it back at the price. You know you bought it It's he knows it's going up in value When you look at Diamonds the prices they're fetching at auction they're fetching incredible amounts But the amounts that have been created are by the dealers To collectors to dealers to the retail stores or clans that are looking for very very high-end Quality product they are paying incredible prices to get Natural fancy color diamonds this morning. I got an email from one of our largest Distributors out of New York. He sent me I think about 20 GIA's, which is the gemology institute of america That's the description of the diamond. It tells you everything about it. Not one of the diamonds was internally flawless Every diamond was vs every diamond was si one. We only sell in yellow diamonds at guild hall As much as we possibly can is internally flawless, which means there's no internally flawless stones out there I think we've got more internally flawless yellows up on our website than anybody in the world That some of my collection is some of the product that we've been collecting over the last three years We don't put up everything on the website straight away as soon as we get it because you know We don't want to appear that you know, there's an abundance of natural fancy color diamonds There's not the quality is there I keep my product back because I can make 10 12 15 percent a year by just putting it in a safe secure You know vault and I'm only going to make money and this is what we're passing on to our customers Even in the rsps and tfss I don't know how many people have come to the oven says can we put a diamond? And in our I wish we could but gold and silver you can because there's a price every day quoted for buying and selling And unfortunately on natural fancy color diamonds is between the buyer and the seller of the price that you strike But it's still one of the best kept secrets and the prices keep on going up There's less mines coming on there's no mines coming on. So what better investment, you know, you have a great piece of art That artist dies it can only go up in value because there is no more to produce the only thing you can produce Produce is reproductions when you buy a natural fancy color diamond. You're buying an an original piece of art I can remember back in 2011. I had a customer who purchased An intense pink diamond. It was under half a carrot and it was in the low 20 range including taxes Wow And today that same diamond would be well over $40,000 Canadian including taxes probably getting close to the $50,000 ranger at least the mid 40s range and that's a five-year Investment now that doesn't mean that the customers looking to sell tomorrow Excuse me But we can certainly now look at it and say where is it going to be in five years And so this gives an indication of the type of growth that can happen in this market The only downside is There's nothing to do There's no Roofs to fix There's no heaters to change good get it. Forget it. There's no toilets to plunge or dealing with dealing with tenants. There's no mortgage There's there's there's no expenses year-in-year out in terms of Exactly, there's no there's no there's none of this cost yet. There's there's no multiple things to sign You just hold it and that's it and and that's probably A paradigm shift that someone has to make in terms of okay So I just put this in the safe and I just let it let it be Yet there's a lot of people that don't want to look at the stock market or don't want to have to look at their investments That's that makes color diamonds perfect for them If you do not want to look at an investment and not have to worry about it for 10 15 20 years Consider a natural fancy color diamond or consider learning about a natural fancy color diamond And what that could potentially do for your overall portfolio The the important thing is as well is if you're looking to retire whether it's in 10 years 15 20 years down the road Whether you're looking to put your kids through university Natural fancy color diamond is is the investment to make because it's going to increase in value for example. We have right now Um, it's no it hasn't gone on the website, but it will be going up on the website a 0.41 Fancy deep pink it's almost a vivid in a vs quality. It's an emerald cup, which makes it even rarer You're looking at round about $95,000 Canadian now that sounds like an awful lot of money $95,000 for a 0.41 diamond, but that's the type of diamond that could easily be worth in five years 170 75,000 in 10 years $350,000 if that's the type of money you're looking to make and are happy to put it aside Be able to sell it down the road for incredible incredible profits a natural fancy color diamond Especially pinks, you know from the fancy from the natural fancy color diamond research foundation Pinks have gone up in the last 10 years. This is dealing with wholesalers cutters, polishers, auction houses and average at 361% have gone up in 10 years Wouldn't you like to have a hundred thousand dollar stone that you know is going to be worth $360,000 in 10 years time. This is what we can give you a guild hall. We have stones right now some Argyll Argyll stones that are almost impossible to get in VS quality. The mine is closing in 2018 You know you're looking at a 0.54 carat for round about $160,000 That's the type of stone that's going to be worth a million dollars in 10 12 years time That's the way the prices have gone up. Jeremy said before, you know four five years ago You sold a stone for $20,000. It's worth $40,000. I've sold argyll pinks today Which I sold for a hundred thousand. I can't buy for 300,000 And I only sold them maybe six seven years ago. They are tremendous value As long as you buy the right product and I always say something and Jeremy always says Why'd you keep saying that but would you go and buy a Rolls Royce with a scratch and den a brand new one? The answer is no you want something that's pristine it's beautiful And you can show off and it's going to hold its value And that's what's going to happen with a natural fantasy color diamond Give us a call as Jeremy said before you can get in as low as 14 $15,000 It's a starter stone if you want to bring that back to us in three four years time You know, you've done a little better in in life or even the value of the stones got up And you want to increase it or upgrade to something different a little bit more expensive We're happy to do that for you. We're never going to downgrade you. We're always going to upgrade you to make you money One eight seven seven eight silver and guild hall diamonds dot com in this case to take advantage and learn more But all what was said in this past same we got lots more coming up here We'll take a short break on the real money show talk radio ham 640 the real money shell One eight seven seven eight silver guild hall wealth dot com learn how to use some Funds to uh fill up with gold as well. We're talking about registered savings plans rsp's tfsa rsp lift riff leera All that can be had by listening to this show getting more information when the show is over at that phone number You also have the east or the top right corner of the website to start investing from the comfort of your own home talking about precious metals now daren Well, john, let me tell you I was listening to that segment on colored diamonds I get excited every time I hear it And it is important to remember it's only part of one piece of the puzzle The other part of what we talk about is gold and silver and as we mentioned in the first segment This is potentially the last time we see these lower price ranges We feel fairly confident that this is certainly indication of what we're going to see coming in the near future You've got a lot of technical indicators telling us that this is a near bottom Range and that we are certainly turning a new Page over into a bull market that could sustain itself and of course we do start to throw technicals out the window We've seen markets stay overbought, especially in silver and gold for months on end And it would not surprise me as it's as we saw in 2011 2008 2006 2004 during this This larger secular bull market A rally up towards whatever part of the end of this year or into spring of this year or into next year That would conclude with a new all-time historical high in the price of silver We've been waiting patiently for a number of years since the last peak in 2011 And at that time we were lucky enough to be invested in a market Which took the price of silver to $49 an ounce and the price of gold to $1923 an ounce So while we talk to Well, we talk to each individual investor coming to our firm using the options that we have available to them The overall picture is the same You're seeing weakness in other markets around the world. You're seeing uncertainty about where to place your money And we should spend a few minutes talking about the difference between gold and silver during a bull market And again, I'll use an article from a colleague of my name steven seville Written on seeking alpha and of course he quotes in this article or I quote him in this article saying A popular view is that silver outperforms gold during bull markets for these metals But that's only true if the entire bull market is considered That is it's true that silver has in the past achieved a greater percentage gain than gold from bull market start to bull market and However, since the birth of the current monetary system The early stages of gold silver bull markets have always been characterized by relative weakness in silver And as we said earlier in the show gold leads the way on any bull movement forward you typically see gold stocks Followed by gold price and then you start to see silver plate catch up and in most regards are in most cases It surpasses gold on a percentage basis. And if you look back at the silver gold ratio When we were doing the show about a month ago that ratio was touching Close to around give or take 80 to one and right now that ratio is closer to 79 so that means that despite this early move in the market as we said Silver remains relatively weak against gold. So even though you've seen silver travel up from 14 dollars up into the 15 range This is still the moment where you can start a good at a good buying range I want to add to that daren because just talking about the fact that gold silver is more undervalued against gold And gold is undervalued against the currencies and the debt You can see that gold in Canadian dollars over the last five years. So going back to 2011 is up 22 In the last year, it's up 7 percent six months 15 percent and in the last 30 days. It's up just under 7 percent now if we move to silver on that same Same example you see that in the last 30 days. Yes, silver is up about 7 percent as well as gold, but when we move out to a five-year example we see that silver is actually down down in Canadian dollars Just under 30 percent. So what that means is when when both of the metals came down off of their highs in 2011 When we were trading at par or very close to par on the exchange rates Silver fell further than gold did if you held gold through that period. You're still doing quite well Moving forward of course precious metals are going to move in my opinion a lot against there's going to be multiple factors But a lot of it's going to have to do with the weakness in the US dollar and as the US dollar starts to weaken Gold is going to start to move and then silver is going to start to play catch up And one of the reasons for that is that it is a much smaller market And so you've got as many people buying silver as you have gold That means you're buying 80 ounces for every or 79 ounces today for every ounce of gold You're buying that much more silver up all the time. It's going to it's going to help drive the market further So we see that on down swings silver will will fall further, but on the up swings it will climb further So if you're looking for a steady investment as we were talking about gold for your golden years You can see that over the last five years in Canadian dollars regardless of the exchange rate gold has done its job It's up 22 percent in five years. That's pretty good But we're at the bottom of the market. So it's got a lot further to go here and silver right now being undervalued If you're looking for something that's really undervalued $23 Canadian is very much in my opinion very much undervalued And if we look at the ratio of 79 to 1 that gives us that indication even further Again, this comes on the heels of what has been of tremendously busy week so far for guildhall And we would be remissed if we didn't welcome all the new investors to the marketplace because this has been something where you slowly start to see the tides turn measured by Sentiment and sentiment is as simple as you going to the next 10 houses closest to you and saying hey guys, how's your gold doing? And right now if you did that and walked up to 10 of your neighbors, they probably say we know about gold We've heard about gold, but we don't own any gold and that's completely indicative of a market Which has never hit a top Which has low sentiment and which is presenting excellent value right now And let's remind our listeners that there are four major fundamentals at work in the behind the scenes Part of this macro market one is the us dollar value relative to the rest of the world and as it weakens gold strengthens as it increases in strength gold weakens so it has a correlated value to gold and silver number two is the threat of inflation If we fear that there could be an oncoming storm of inflation Anywhere in the major developed world then you're going to see gold prices at least regionally if not throughout the world Start to rise against that fear in order to protect purchase value The third thing that we look at in terms of major fundamentals Are the geopolitical instabilities around the world? You have numerous regions that are at war right now You have numerous regions that economically are fighting back and forth or have sanctions against them These present reasons Locally for whole countries to invest in gold and as I reported in the last segment the world gold council released their 2015 Gold update and what it told us was essentially that you are seeing central banks Become heavy buyers once again in the gold market So that is the third thing that's driving this market higher and the fourth is supply and demand And jeremy we were talking just a short while ago about how Supply and demand has changed and it's done so in a relatively quick period of time If we just look at silver alone the last time we saw a major bull market in the 70s There were about three and a half to four billion ounces of silver above the ground In 2015 that three and a half to four billion has not become five or six like gold it's become Less than one billion in fact some analysts will say it's less than 500 million ounces Available at any one given time. We're bringing new product to market But 80 percent of that is coming as a result of what we mine out of the ground in the form of gold or copper zed Link a zinc or lead. I'll get that right one of those minerals. Yes zed and link But the other thing is is just like oil Because the prices have been consolidating over the last three four years at lower prices production has started to fall It started to hit the mining sector and we've seen that gold and silver production is down Especially in north america over 20 percent in 2015 and so what that means is moving forward Prices are going to have to rise before the mining operations start to kick into gear It's going to take some time so you're looking at the potential of shortages and we've already seen shortages in silver while the prices have been lower But I want to get back to gold for a second if I may because i'm a very strong proponent I'm not a financial advisor, but i'm a very strong proponent of gold for the long term If you look at gold and canadian dollars over the last 15 years You've seen gold go from $400 an ounce to right now trading over $1,600 an ounce Canadian if you move to for example the us dollar you've seen it go from below $500 an ounce to as much as $1,200 an ounce today and that's over a 15 year period What if you're living in in europe? You would have been able to buy gold for less than $400 an ounce 15 years ago and today it's trading over $1,100 an ounce This is just going to show that all around the globe It's important to have gold as part of your portfolio as the foundation of your portfolio. Look at brazil 15 years ago you would have been buying it for for less than a thousand A thousand brazil dollars today. It's close to 5,000 brazil dollars, which I believe is the real is that right? Thank you. Thank you So the point i'm making is look at all currencies the fact is as gold is a protection against the devaluation of currencies It's one of the the pivot points here. It's the fundamental you want to protect yourself against declining currencies And that's what gold does for your portfolio Listen, we have only a few minutes left in today's show I want to remind everybody that as the weather gets colder It's important to think of those who have or are less fortunate Take some time out of your day to get to your local food banks supply them with the food they need Take some blanketing Whatever you can afford to give to those less fortunate It's an important time of year to take care of those that are in need and on these cold nights as we come into this weekend Please think of those that are a little more in need And we'll take it from there guys until next week The number is always 1-877-8 silver online to guildhallwealth.com learn how you can use the e store to invest from home And use your registered funds as well rsps tfs a's rv sp's lift riff leera And so many more as the guys can Educate you in any regard when it comes to that as well. This has been another edition of the real money show right here on talk radio am 640 Hey merry christmas way the countdown to christmas celebration continues on w network that is where I thrive 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