The Real Money Show
The Real Money Show - January 30th, 2016
and welcome to the real money show the number one eight seven seven eight silver online to guildhallwealth.com reminder right off the Hop that a week Saturday february six it'll be from 10 a.m. to 12 p.m. The seminar is happening at the Hilton Garden in toronto Airport that is 33 11 caroga drive in mrs. Saga you will learn whilst there about the benefits of holding silver and gold in an rsp FSA account find out how easy it is and how you get started as well again it's next saturday february six The Hilton Garden in toronto airport so go to guildhallwealth.com for more details and registers soon seats are limited You'll have some light refreshments and and parking as well daren always start with a an update say a week that was For instance, how are things going not too bad on this thirties? We tape here john gold and silver prices had a little bit of a run up during the week on wednesday gold was up 2% And on wednesday afternoon silver posted gains of nearly 3% they've both peeled back but both metals Although still very early in the year are far outperforming the dow and other major indexes so far Now gold and silver prices have both tacked on nearly 6% since the end of 2015 Well, we're looking at our counterparts and the dow nasdaq and sp 500 which all three of are in the red So this is a good start to the year. This is what we would expect to see in a year in which we would see by spring typically Prices of silver and gold rally higher and this is the good start that we needed the rally and precious metals comes Primarily right now as worries over chinese economy Which have put pressure on asian equities and stronger doubts over another interest rate hike in the march As as arising as we speak and we saw this week on wednesday that our friend yellen the federal reserve chair woman Decided not to raise rates in the us keeping them steady Which is something we predicted and talked about at length throughout the month of december once the first quarterpoint rise Came into the market. We told you don't expect anymore raises for a while They were just appeasing the people that We're putting pressure on them to start things moving forward, but we know better if you're a listener to this show You heard last week jeff jason burwick speak at length About some of the problems in the marketplace in the world right now and how easy it is for the wool to be pulled over your eyes And i'll tell you the truth is that the big worries out in the market right now i'll reflect What's happening with gdp growth and in china it's slowing again and there are concerns that capital outflows will continue to increase As china's economy cools off here and the one experiences Further devaluation and this has pushed the chinese market to its lowest level in over a year This year growth of china's gdp is expected to slow to six and a half percent And now anywhere else in the world that might be pretty enormous if we had six and a half percent growth in gdp here in canada That would be nothing short of incredible, but this is the slowest rate of growth for china since actually 1990 so we're going to spend some time today on the show talking about that We're also going to talk a little bit about the ratios and where silver and gold stand right now in relation to each other And what that means but getting back to that topic of gdp Capital outflow from china right now is nearly hit epic proportions in 2015 Estimates are now suggesting that a record one trillion dollars left the country And that's over seven times higher than what left in 2014 And of course that has given rise to fears of slowing economic growth and staggering capital outflow Which is significantly boosted the demand for gold and silver as safe havens in china across the retail Investment and official sectors so we're seeing a big boom in demand and if we co and if we correlate that To what's happening in coin sales that's definitely another I say another Reason to think this year will be a record year yet again for coin sales And our suppliers are telling us same as last year that a lot of what is being sold in total coin and bar sales is moving overseas Demand for it is very high there right now And of course that's the direction we're seeing put pressure on gold and silver And we do expect that we'll get rises from that point on and also if you look at Germany having repatriated over 366 tons Russia bought over 200 tons of gold last year So you're seeing countries saying we want gold and we want it at home And that's a lot of gold going to to these countries and this isn't to mention China purchasing as well as India purchasing So it's very much what's happening at the at the periphery here that the us dollar maintains its strength But every other country seems to be preparing for it's it's a eventual demise to give you some Direction on exactly what that means in the grand scheme of things. Let's look at china again for a moment. Jeremy You're mentioning germany. We spoke at length about the idea of repatriation and what it means that began and believe it or not In 2013 here we are in 2016 and germany still has yet to get all their gold back from new york But if you look at china, there's a more telling story that's developing In 2002 when this firm opened china was nowhere on the map in terms of its total gold holdings the world over in fact prior to 2000 I don't think individual investors were even allowed by state mandate to own physical gold and silver So this is a big epic change and if you look now the people's bank of china Uh, they've been on what the world gold council calls a buying spree for gold and back in july of last year the country announced that its gold reserves Had increased by 50 percent and it last reported its holdings in 2009 so we're not sure exactly how many that is but since then the people's bank of uh china has been adding Approximately between 14 and 19 tons of gold to its foreign reserves every month now with over 18 metric tons 1800 metric tons. It makes them the sixth largest holder of gold in the world interesting How much gold is the u.s. Reporting they have they haven't reported since when 1960s was the last time Yeah, the four knocks was audited Which is supposed to be the largest store of gold in the world Hasn't been audited since 1960. There was a private members bill introduced that was a bill to audit the fed It was more recently within the last month shot down by congress in the u.s Again, you don't want to uncover what's been swept under the rug unless you're prepared for the consequences And the u.s dollar is not prepared for that right now and we're talking about tonnage of gold Let's not forget that uh a few weeks back when those hillary clinton emails got released They talked about the fact that uh They were able to score over seven billion dollars worth of gold from libya When they uh invaded that country which would equate to somewhere close to the range of about 180 tons And this is all physical metal. Right. I'm just curious how much of that ended up in germany's vault Yeah, one eight seven eight seven eight silver online to guildhallwealth.com here Well, listen, let's take that a step further and talk a little bit about uh the gold and silver ratio right now And I Want to call upon an article that I picked up this week from the bullion vault And it read it on wednesday the 27th and it says gold and silver recovered wednesday in london from an overnight dip Rising as the dollar slipped ahead of today's federal reserve decision on u.s interest rates The first since it finally raised the floor from zero to 25 0.25 after seven years last month now it goes on to talk a little bit further about what is happening In this particular a ratio between gold and silver and it says gold on tuesday broke a key technical pivot at 1110 dollars an ounce It's a very bullish development and we expect to test on 11 36 which proceeded on wednesday So we got that test silver has followed gold higher And basically it's outperforming its sister metal in the process having recaptured a 50-day moving average of 1409 Silver seems to have found a floor said the analyst from the bullion vault and the also the society Generals technical team agreed that earlier this week pointing to the down the down sloping trend line of 1380 to 1350 where it has been possibly forming a bullish inverted head and shoulder pattern So this pattern is confirmed the price of gold and silver have both gone higher The ratio which last week got as high as about 78 Is actually dropping as we speak And if we get a break above 1440 and silver and we hold that These analysts are suggesting that we can expect 15 dollars to 15 25 cents which would be A jump back into reasonable territory since we have been trading in that 14 dollar range for several months now What should the ratio be Jeremy? Well, historically it's 16 to 1 So we would be happy at 35 to 1 that would be very good for both metals ultimately It's tough to look at these Looking at the charts and trying to read them in my opinion simply because at the end of the day You're going to see the price of gold and silver in my opinion move up dramatically when the us dollar starts to show weakness And right now it's not showing weakness and of course if gold and silver were skyrocketing right now People would know intuitively that that would be a bad sign for the us dollar But if you look at gold and silver in other currencies in the last year and a half two years You'll notice that it's been quietly getting more expensive in other in other currencies Now if you look at what gold has done over the last 10 15 20 30 years in your portfolio You'll see that gold has gone essentially in the last 10 years from $600 an ounce Canadian To over $1,600 an ounce Canadian, which means it's done exactly what it's supposed to do in your portfolio And the reason i'm mentioning that is because every so often someone will say yeah, you know the price went up and You guys said it was going higher or someone said it was going higher and it didn't You know at the end of the day the price did move up And looking back it got a bit ahead of itself And if you look at the price right now compared to the amount of debt that's been created The amount of money that's been created in the last five years It's unbelievably undervalued and again if you look at the long term Not two months in 2011 But the long term you see that gold and silver do their job they hedge against dollar devaluations Which in the long term that's exactly what you have in the last year in Canadian dollars You've lost your purchasing power In in the United States in the last hundred years you've done nothing but lose purchasing power You know where groceries would have cost you $35 for a family of five For a week today is going to cost you over $300 That's just what has happened with the loss of purchasing power So you want to own gold and silver to hedge against that now You can silver is going to have a lot more potential So if you're looking for an investment that can have a lot more potential Then that's what you're going to do if you want something to really protect against dollar devaluation I think gold is where you're going to want to be it's very simple to get involved with guildhall Call the number go to the website john You're going to give those numbers out in a minute And of course understand how we do things at guildhall We want you to have the best Of bullion world that is physical product gold silver platinum palladium Color diamonds which we're going to talk about a little later in the show And of course to own it. It's as simple as coming in sitting down talking with somebody or using the phone to do the same You can make that purchase and take it home in physical form either coin or bar I mean take that a step further. We're happy to store it for you. We have a world class depository In several different countries one option is here in toronto. There are other options around the world We also can take that a step further by putting precious metals into your Registered savings plans whether it's an rsp an resp a tfsa lira All of those types of accounts can hold gold and silver They're all kinds of incredibly great and flexible options for moving your existing rsp's Into gold and silver and it's a little as a phone call or a click to the website away So when we come back let's talk more about that the silver and gold ratio We're going to touch on a couple of really interesting topics one of which is peak gold and silver and why I believe it's here now And one that I know people are very interested in we're going to talk about housing in toronto 1 8 7 7 8 silver is the number that daren was mentioning and gildhall wealth.com is a website reminder once again since he did mention using our rsp tfsa Our other accounts coming up a week saturday february 6 and mrs. Saga the hilton garden and will be the place to catch the seminar You want to get on it to do it shortly 1 8 6 6 2 7 4 95 70 or go to the website You'll learn about it the benefits of holding silver and gold in rsp and tfsa account There'll be some light refreshments and parking but the tickets the seats are limited so get on it as soon as you can lots more the real money Show coming up right here talk radio am 640 the real money show right here talk radio am 640 1 8 7 7 8 silver Guildhall wealth calm the website and a week saturday february 6 is that seminar learn and get educated about using your rsp and tfsa To hold physical silver and gold it'll be as a hilton garden in toronto the number is 1 8 6 6 2 7 4 95 70 Get your seat as soon as you can before they're all gone. Let's get back to the gold silver ratio there We were talking before we went to break john and Essentially what we were saying is that that gold and silver ratio tells us when we're going to see breaks In pricing and when we're going to see outbreaks in pricing So this is one thing that we watched very closely german mentioned in the last segment that the traditional historical ratio Between gold and silver was 16 to 1 meaning that for 16 ounces of silver you bought one ounce of gold At the peak of each bull market we've experienced in the last 100 years or so culminating right back to the last bull market in the late 70s and right in the january of 1980 that held true that price of gold was 815 ounce silver was 52 It's a 16 to 1 ratio roughly and that's where we expect the ratio to be heading back towards now Never never mind a crystal ball. It's necessary to forecast one that's going to happen We don't have that it broke a long time ago and that's not what our job is quite frankly what we're looking at Is everything around silver and gold that's telling us these signs in writing or on the wall If we look to the ratio update what it's saying is the following If you look over the last 20 years We can see patterns that have developed that have told us when silver and gold have taken off And when that ratio has shrunk down to as a little during this bull market is 32 to 1 That was back in 2011 Now if you look at the 20 month moving average it tells us the following That the ratio hits around 80 to 1 And bounces back down it did that in august of 2015 and ever since A line of resistance has ensued as the ratio drew back to the 20 month moving average And it failed to drop below it and then went back up to retest the 80 level This time of retrenchment is somewhat of a frustration of course as gold and silver inch lower in proportion Hence the tight rate range of the ratio With no resolution either way in terms of a climatic drop or a heraldic surge We kind of get caught up in the idea that gold and silver aren't going to move ahead in price But this ratio has stood the test of time 20 years of data tells us that when we hit 80 to 1 We're going to start to see a turnaround happen and that happened Just recently as I said in august that was the 80 to 1 ratio that occurred in last year And as this ratio Develops it means that gold which usually leads the way in any charge pricing wise It's done so since 2002 We'll forge ahead at some point due to something in the market that happens While silver starts to follow and eventually overtakes its Bigger brother in terms of percentage. So this is an Incredible moment in time in which you still have cheap silver on the table Which you can still see the ratio sitting there and any one of us would be happy to show you and point this out to you A student investors will take advantage of this guildhallwealth.com is the website to start the precious metal advisor You can click on the e-store and the number one eight seven seven eight silver german I think the takeaway here is that this ratio does prove time and time again When gold and silver are undervalued and it's definitely showing that right now Darren you're absolutely right This is showing that the market is ready poised to move further ahead right now We've seen we've seen gold Carve out a bottom here very strong support at these levels on both gold and silver And ultimately it's an opportunity for people to to look for a way to be defensive in their portfolio Have a hard asset in your portfolio. That's a store of value And again My my hypothesis is that the market's going to really start to move when the adult the us dollar starts to see weakness It's already moved in many currencies already So you have a chance to get involved in the market while the price is still undervalued in us dollar terms And ultimately remember this you cannot buy insurance after the fire You cannot wait until the stock market has declined by 40 To decide to get into the market and you don't want to Play a wait and see attitude because that means you're you haven't gained the knowledge yet You're you're waiting for seeing as believing mode And if you wait for seeing To to see it to believe it you've already missed a gigantic move in the market and your opportunity to protect yourself And make money the whole point about this is if you can protect your wealth through the tough times here Through the turbulent times that that we believe are ahead You're going to come out on the other side having grown your purchasing power as well And that's the that's a big takeaway for today 778 silver online to guildhallwealth.com to start investing Paul Yeah, there was an interesting article that came out this week from the cipc They were talking about 75 billion dollars. They're sitting on the sideline. That's not being invested Whether it's in sort of the stock market whether it's into buns This morning the another article came out where rsps are actually down from 63 or 64 To 61 percent, which means 39 of the people are not even buying an rsp They're not even worrying about the retirement. Maybe they don't have the money to put into an rsp which is probably the main point but If there's 75 billion and this was from the cibc that's sitting on the sidelines You're not making any money if you're leaving your money in the bank, you know, people will say well It's safe at least i'm not losing anything. Of course you're losing You know governments are printing money. They are confiscating your wealth at an unbelievable rate There is a run to the bottom of currencies Every country except the us has devalued their currency Canada is up is actually devalued 40 percent in two years Last week alone they moved it up five points and down five that's huge a five point move in a currency We buy all of our product every Piece of metal whether it's silver gold platinum or plaidium every diamond we purchase is in us dollars So when we purchase and something is a hundred thousand dollars. We've got a paying Canadian. It's now 145,000 It dropped down to 141 today. Give or take a little bit Comrances are being devoted at an unbelievable rate There's another interesting point trump You know, he's probably the republican candidate. He knows he's going to be left In november of this year when a new president is elected with a whole load of debt Obama has created 19 trillion dollars of debt 13 trillion since he's been in power six and a half seven years 13 trillion dollars worth of debt. Does anybody know what a trillion dollars looks like? Well a trillion dollars is a football field with a skid of hundred dollar bills two skits higher filling up that football field So if you're looking at 19 football fields without the unfunded debt of Medicare and Social Security Which is about another 180 trillion dollars? If the us was a company the bailiff would come in and put a lock on the door It's as simple as that but there got the ability to print money. The same as europe is printing money. Canada is printing money Sooner or later. This has got to stop. The crap is going to hit the fan and when it does There's going to be a lot of problems. You need to have a hard asset gold and silver as with stood depressions inflation Wars Everything that you can possibly name, you know for five thousand years and yet it still holds its value If you're looking at silver today If the us dollar really depreciates, which we think it will by the end of the year Silver is not going to stay at fourteen dollars. Silver is going to be 18 19 20 dollars Because the currency right now is twenty dollars and fifty cents in canadian Gold is trading close to sixteen hundred dollars in canadian dollars not the eleven hundred and change As jeremy said earlier by owning gold and silver you've retained your capital It may not have gone up in value, but it hasn't gone down the same way that the currency In two years it's gone down forty percent You're going to have a slew of americans coming in and buying up everything every piece of property that they can buy Because they're getting it a lot cheaper if we go to florida or if we go to la Or if we go into arizona or an avada any of these places We're paying a dollar forty five more for everything we purchase There's talking about there's no inflation We talk about food There's been a little bit of it, you know, there was a drought in california But most of the fruit and vegetables comes from the us or if it doesn't come from the years it comes from mexico It comes from south american countries. It's paid for in us dollars There is no way As a business person that you can keep on sucking up Increases if something costs you more eventually you have to pass it on to To the end user and that's either in smaller packaging or inferior product and that's what's happening out there right now Get some gold and silver maybe even a colored diamond into your portfolio You can buy it directly from us. You can take it home. You can go to our each store go to guildhallwealth.com Right hand corner click on you can buy gold you can buy silver in any denomination If you don't want to hold it, you don't want to take it home Silver weighs for every thousand ounces. It's around about 70 pounds That's tough to put in a safety positive box or even under your mattress You need to put it somewhere safe secure where it's insured where it's there for you. It's segregated It's allocated you can go and visit it anytime or if you want to put gold and silver into an rsp Where a lot of people out there have got a lot of room to invest in an rsp today You're buying silver at $14 and change gold at just over $1,100. It's an absolute steal It's an unbelievable time to get into the market One eight seven seven eight silver and guildhallwealth.com there Well, listen, I really just want to reiterate what Paul is saying on in a nutshell sense If you've got a situation developing whereby countries are struggling to meet The needs of the growing economy in terms of what they're used to so you've got no growth in career positions So from an employment perspective, no growth in career positions You've got very little control of your housing markets and we're going to talk about that here in Canada and more specifically toronto in a moment And you've got little in the way of improving economic conditions as we've seen in commodities alone in Canada in particular What's happening the world over with oil demand and of course the drop in oil prices So you've got in a nutshell a perfect storm developing in which you do as an investor have to take heed Concentrate on diversifying your portfolio and have assets like these there These are cashable assets. They're liquid They can be turned into cash in any denomination that you wish and on top of that You can take them anywhere in the world you'd like So if you're a person who frequents two or more countries because of travel or family commitments Take some gold with you over there You'll be amazed at what that can do for you in terms of your portfolio in terms of insurance and overall And when we get back, I don't want to forget this topic We're going to go to color diamonds in a minute But when we get back I want people to stay tuned because we're going to talk about peak gold and silver and why I believe it's here And also as I promise we're also going to talk take a look at why I believe that right now The toronto housing market is very oversold and ballooning We'll take that short break one eight seven seven eight silver guild hall wealth calm online and again a week saturday Uh week this week and next week at febry six It'll be the hilton garden in toronto. You want to get educated on using your rsp and tfsa accounts to hold physical silver and gold You can do that again. It's going to be from 10 am to 12 pm out by the airport You want to call one eight six six two seven four ninety five seventy register early Before all the seats are taken up lots more of the real money show coming right up on talk radio Am 640 back with more of the real money show one eight seven seven eight silver to start investing guild hall wealth calm next weekend The six it'll be the hilton garden in toronto and mrs. Saga the number is one eight six six two seven four ninety five seventy This is the seminar we've been talking about get educated on the benefits of holding silver and gold and an rsp and tfsa account Register as soon as you can before all the spots are taken up again It's going to be next weekend from 10 am to 12 pm at the hilton garden by the airport mrs Saga guys. Let's talk about pink diamonds, but first we're going to again Get everybody to hang on because you're going to get into the housing market as well. Yeah, that's right john I know it's a topic that's near and dear to everybody especially our listenership here at the real money show And it's an article that was put out by cbc news. I brought it with me and titled CMHC flags housing market risks in toronto saskatoon and regina Now I say this at the risk of losing friends because john is our listeners know I've said it many times I have dozens of close friends who are closely related to the housing industry here in particular toronto But in broad sense across the country and it's not for me to defend or not They're making and earning whether they're buying or selling so hopefully their pockets will remain deep and filled with lots of commissions But that being said this is a topic that does relate to gold and silver It's very important to understand. We've talked about diamonds as being portable wealth We've even talked that seminar about the importance of understanding that when you have a choice before you one is To speculate on housing and the other is to invest in the color diamond Why you might want to choose the color diamond? But today I want to and I will get to this article if you keep listening, I promise i'm going to bring it up I have something I want to speak about but today I wanted to mention If you haven't already ventured over to guildhalldiamonds.com I think now is the time to do it Along with that money sitting on the sidelines is a sense of uncertainty and paul mentioned 75 billion dollars just sitting on the sidelines and it's been bigger than that But 75 billion marks just what the cibc is saying there I count holders have on the sidelines and I would estimate if it went across the country The the total would be close to one trillion dollars. That's just sitting on the sidelines doing nothing in cash Here is an arena where you can take a portion of that money And expect to return a reasonable rate of return with very little risk involved So this is what I want to talk about today in color diamonds paul talks every week about the rarity and the foresees and how beautiful they are and this is there I've never met a more passionate person when it comes to color diamonds He is our fearless leader. He brought this to our clients a long long time ago He's been around them all his life. Jeremy's an expert in the area We have nicole snipman the queen of color diamond So of course you can get up to date on blogs and what's happening and keep up to date on diamonds But my favorite diamonds of all pink diamonds the rare they're expensive and they only come from one place in the world Predominantly we get some out of a couple different places But the mainstay of pink diamonds are coming out of one particular area in australia and western australia And if I was to ask did you know that the most valuable gem we've talked about reds and blues But in auction the most valuable gem the world has ever seen was a pink diamond. It's called the graph pink It's a 24.78 carat fancy and tense Not even a vivid. It's just a fancy intense pink It's sold at auction in 2010 for 46 u.s million dollars and that my friends is real well trillion dollars can i do yes That's right. That's that's one of those things that you can look back on and say wow What an amazing thing that's happened since then of course in the last six years as a firm We have gone through lots of investors holding on to these Pink diamonds and holding on to yellows and we've even sold reds and blues But the pink diamonds in particular are very special because australia boasts most of and the best pink diamonds in the world And approximately 20 times more valuable than their white diamond equivalent pink diamonds are extremely rare and in turn pretty pricey But sometimes they're reaching into the million dollars per carat This is not great news if you're a small investor But from acorns grow large oak trees So I want you to go to the website. I want you to start getting yourself educated when it comes to pink diamonds On our site right now we have a beautiful selection of pink diamonds that are perfect for investment We expect those diamonds to have a reasonable rate of return which I think nobody can touch In terms of other investments. I don't think unless you're speculating an uncle sam stock pick and you get lucky one in a million times Like playing bingo. You're going to win in the stock market these days. This is an investment Better in my opinion than buying real estate at this point in time And i'll tie it in with that article, but I want to let paul talk because color diamonds are an incredible way to invest your dollar Well, if you look at the color diamond research foundation, which is an independent uh foundation Members are the top top people from de Beers Cartier tifnas belong to this foundation And what they've actually done is gone to the auctions they've gone to the wholesale as they've gone to the cutters and polishes And they've come up with a figure on pink diamonds in the last 10 years Pinks have gone up a total of 361 That's pink diamonds because they're so rare and i'm not talking about a diamond that's a You know a quarter of a carat pink s i one i two. I'm talking about diamonds that are investment grade Like we sell at guild hall The argon mine is darren said In western australia produces 90 percent of the world's pinks yet. It's only one tenth of one percent of their total production Told you so how rare they are every year they put out a tender where they take 55 60 Of their best diamonds that year and put it up for tender It's a private tender. You have to be invited. You just can't walk through the door This year there were 60 diamonds give or take in pinks there was 11 vs quality, which means very slightly included But there was only 11 the others were s i one s i two beautiful colors, but had inclusions At guild hall we've chosen to only sell vs quality Which is very slightly included those are the investment grades the colors we go for are the best colors They're evenly saturated Incredible now if you look at a stone for example. We have a point five three intense argyle vs two It's on for a hundred and eighty three thousand dollars and listeners can be out there saying well I don't have a hundred and eighty three thousand dollars But there are a lot of people that do have a hundred and eighty three thousand dollars That may be have only been in real estate or have been in the stock market And if they've been in the stock market they've been looking you know Their statement every month and they probably throw up on their shoes because they're not making any money When you own a natural fantasy colored like a pink for 180 thousand dollars that stone We were selling five years ago for 90 thousand dollars less than that Today it's a hundred and eighty three thousand dollars Where do we think this stone is going to be in five years and ten years? We think this is going to be our half a million dollar stone in ten years time So if you're sitting on cash, you're not sure what to do with it You're sick of the stock market. You'd really you know, maybe not that passionate about gold or silver A natural fancy colored diamond is the way to go. We do have smaller stones. I mean not everybody has that type of pocket change But i'm excited this week because i brought in a stone that is extremely rare. It's a point two six vivid green It's a radiant Unbelievable stone this stone Is round about 90 thousand dollars, but this is a type of stone that is going to double Every three to four years maybe even sooner than that and is a great great investment But you can start off and get into a stone a yellow a fancy internally flawless for 14 15 thousand dollars You can get into an intense for you know 25 28 thousand dollars, which the three grades of stones that we saw fancy intents and vivid It's just about the color saturation the stronger the color The more expensive the more rarer the stone if it's internally flawless that makes it even over the top So if you want to get into something That is as you said earlier, it's portable wealth in the palm of your hand you can literally hold millions of dollars It's easy to store whether you put it in a safety deposit box. Whether you put it into a piece of jewellery It's very very easy to store. It's something If you're looking to retire whether it's 10 15 20 years down the road, you're looking to put your kids through school It's an unbelievable investment. You can sit back and watch this investment grow Derek, why do you personally like you always say you personally love our dial diamonds? I do they're my favorite to it's in the entire world of diamonds And yes, I'd like to own a red or a blue but a pound for pound pink diamonds are for me Especially our dials the best single investment you can make I've owned classic cars. I own currently artwork Uh, I can tell you I've had a group of seven on my wall And and it's a very important piece of seven people on your wall That's it But uh in terms of of what I've seen for collectability in terms of price value Nothing that I've owned has increased Like a colored diamond and the important thing is although some things are a passion You know building cars perhaps building a house For most people it's a pain in the rear end. I go out and invest in a house and it becomes a nightmare Legally the upgrades the upkeep managing people and i'm still getting all of that done And when I talk about what my return is I quite often forget to include the amount of hours I personally put into that with a colored diamond. I get to look at it and stare at it whenever I want Otherwise, there's no work. I don't have to do anything to it. No plunger needed nothing No plunger needed. I don't have to replace any light bulbs or anything and i'm getting Way better return from it. Is it as liquid as a house? Perhaps it's not but when the market here will talk about in the next segment burst Homes will not be liquid color diamonds will be assets that in the class with gold and silver people run to as a safe haven As a way to ensure them, but there are two main reasons I love argal pink diamonds Number one as paul already said the argal mine produces 90 or more of all pink diamonds There is no other reliable source in the world other than the argal mine number two The average size of an argal pink diamond coming out of the mine And I want you to look at your wife's or if you're wearing an engagement ring right now the average size is one carrot look down at it and Divide that by 10 The average size of diamond is more than 10 times smaller than a one carrot white And that's the average diamond coming out of there So when you're looking at diamonds on our site that are over a half-karat Just around a half-karat in size Diamonds that are massive You can hold in the palm of your hand All of the pink diamonds that are a half-karat or larger that come out of the mine And that is one of the things that draws my attention in my investment dollars Two pink diamonds and this is the reason why I love them and you will find hundreds Of written documents about people referring to these as the most collectible and sought-after type of diamonds in the world 18778 silver on the online rather to guildhalldiamonds.com And we're going to be having eat and rackman off on I believe next week to discuss these topics exactly I think there's also something to be said for quality In this market, it's uh, I find I often explain I use a sports analogy, you know, we're watching the australian open right now and the difference between the top five Guys on the tour and even women like a serena williams to the rest of the rest of the group That's what natural that's what color diamonds are like and even diamonds in general a white diamond Decolor which has no color internally flawless over a carrot. It's something that's very rare and very hard to find once you add that on to colored diamonds, which are even Just phenomenally more rare than than white diamonds You're coming up with something that is not only Incredibly rare and it's hard to appreciate that rarity because of course, you know We're talking about it all the time and we encourage people to come to the website and they look at the website and they see 40 50 Diamonds, you know, 2030 internally flawless yellows. They think oh, okay Well, there must be a ton of these out there, but they're not and so learning to appreciate that is a lot like daren You're talking about group of seven. It's appreciating how rare that is There's only so many group of seven paintings out there and that's why they keep going up in price Color diamonds are exactly no different The reason they keep moving up in value is simply because there is just not enough around And it's not as though. There's a flood of the market coming in even if you look at the At the argal mine, which is producing 90 percent of the world's pinks. It's still a trickle 50 60 diamonds And not all of those are vs quality and I can tell you just from our own experience We don't see anything more than maybe 15 20 vs quality diamonds Under half a carrot throughout the year So we know how rare they are and and one thing I can say is I watch paul all the time He is relentless in the fact that he continues to jump on on on product if he sees something out there that He does not pass up an opportunity when it comes to diamonds And all it takes is watching one or two diamonds slip away from through your fingers to make you say, okay I have to make sure I get those diamonds when I can and so we go to to amazing lengths to buy quality and what you get out of quality is return and what you also get is The the the more substantial an investment the greater the return So it's great that you can get involved in a very high quality diamond for 15 to even 25 000 And you will get a very good return Now if you can put him a substantial investment like 250 000 You are going to get a substantial return and that is our experience in the market And again, Eden rachnoff will will attest to that when when we speak to him next week So if we want to start thinking about that comparison to real estate, you know, there's downsides here You're not going to be doing any labor. You're not going to be renovating You're not going to be paying land transfer fees You're not going to be paying For lawyers and you're not going to have to do pay a mortgage or insurance and you're not going to have to fill out A ton of documents. It's not something you're going to actively make money with It's just something you literally sit on and make money and and that can sometimes be A paradigm shift to understand that there's nothing that has to be done here Just you just have to put your hand in your pocket pull out the cash and buy something because these prices are going up Just in currency alone, you know two years ago You know a diamond was a hundred thousand today in canadian Because of the difference is a hundred and forty five thousand. That's just on the currency So you need to you know to get by a diamond if you've got a couple of kids, you know, by a couple of yellows You know they're going to go to university in 15 10 15 years by two diamonds put them aside But the time they go to university it's paid for One eight seven seven eight silver online to guildhalldiamonds.com. Yeah, daren mics hot there. Yeah, hot little feedback Well, anyways, let's go to break But before we do as I promised cmhc Flags housing market risks in toronto saskatoon regina coming right up after this break One eight seven seven eight silver online to guildhalldiamonds.com or guildhallwealth.com reminder next weekend this six It'll be the seminar. How do you use your rsp and tfa say to uh in invest in physical silver and gold That will be in missus soggy. You want to register at one eight six six two seven four Ninety five seventy real money show talk radio am six forty real money show right here on talk radio am six forty one eight seven seven Eight silver guildhallwealth.com is the website next weekend It is the seminar about holding gold and silver in your rsp or tfsa can it'll be the hilton garden in toronto 10 am till 12 p.m Next weekend it is one eight six six two seven four ninety five seventy to register as soon as you can while there's still A little bit of space left. Let's get back to what we were talking about to before the break daren That is the the bubble or uh the housing update. Anyway, well as I said earlier in the show I have a lot of people around me in my life And i'm sure jeremy does and paul so that are involved in real estate and this by no means is a slant on them It's just we're seeing this being reported more frequently more frequently and like 2008 we sat on this very show prior to it happening and said hey Guess what we're waking up every morning to increasing number of reports in the stock market is likely to blow apart At least for a couple of years. It happened These are the signs in the writing on the wall and i'm sure jason burrick last week jeremy you were here He was talking extensively about what he had reported on which had come true had come become reality And that's very important thing but getting back to this report cbc put out an article midweek Post to january 27th titled cm hc flags housing market risks and toronto saskatoon and regina And I quote from the article the federal housing agency says there is a risk of correction in canadian housing markets in several cities Especially toronto saskatoon and regina because of overvaluation and overbuilding of real estate Now does that mean that this can't continue on Does that mean that we can't see yet another 10 12 percent increase overall in toronto home prices? Not at all what i'm saying is they measure 15 canadian cities every quarter in an effort to detect housing bubbles And they've been saying this for a while, but this is the first time i've seen him mention it this way They say and I quote cities such as calgary saskatoon and regina Suffer from both overvaluation and overbuilding as prices remain high and building continues in face of low oil prices So that one's easy. You can see why in the western states in a western country part of the country They have problem due to low oil prices. However, the level of housing prices in these cities is not supported by the economic conditions That's what the cm hc says prices remain high despite rising vacancies and falling demand for housing So what you get is in essence a flush of people that have invested in there now I have a number of colleagues that have gone up north of edminton into the for mcmarie area Unemployment rates have skyrocketed in the last few months there in the last year because of falling oil prices Good folk have lost their jobs, but they're sitting on savings that they built and acquired during their hard work time there in the oil fields What a great way to opportunity for them to invest in either gold silver colored diamonds And as we get further into this article what it says here that we're seeing is that In toronto there's been rapid price acceleration in the past number of years Which has led to prices that are just too high for the detached homes But cm hc is also monitoring the city for the potential emergence of over building Especially in the condo market now the report says and I quote It was released wednesday the toronto real estate board estimated the number of resale condo listings in the city rose 3.3 in the fourth quarter of 2015 But sales were close to 5600 an increase of 12.6 That tightening of the market has pushed up condo prices which rose 4.1 To an average of $382,070 But what the cm hc says here is something that was not in any previous report up until this last wednesday and I quote Their concern is about the acceleration in building of toronto condos in the final quarter of the year Saying developers need to monitor inventories to prevent further over building And I still quote the rise in housing prices in toronto has not been matched by a rise in disposable incomes The rise in values has not been matched by disposable incomes What has this entire panel said for four years about disposable income has it risen gentlemen? Not at all now we're not seeing wealth increase, but we're seeing people pay more and more and more for things We talked about inflation earlier. These are reasons why you own quality assets such as gold silver and colored diamonds The interesting thing though about the real estate is that though real estate values are dropping in out west in Saskatchewan and alberta The americans are buying up oceanfront property in places like nova skosha a million dollar house in nova skosha Is only seven hundred thousand dollars us or a five hundred is three hundred and fifty thousand us The americans are going to come in and they're going to buy everything up at these low prices with fiat currency paper paper and paper Well, that's just what we did in 2009 when when canadians bought up floridian real estate, but look the the thing is is you know, you taught everyone everyone is is an expert on real estate at the end of the day in toronto and In my opinion, you've got it It's obviously fueled by low interest rates, which means your ability to service your own debt is very low So you can take on a lot more debt So you you can see that you can go on and see a chart anywhere that that canadians are taking on more debt than ever But their ability to service it is that at one of the lowest points ever as well So there's a there's a trade off there and then a lot of people will also say that the real estate markets being fueled by by as paul's just mentioning by By foreign investment. Well, it's not going to take a lot for foreign investment to go away either if if things get into big trouble Whether it's in china or or the us or anywhere else for that matter So, you know, there's certain factors that that can change the market very very quickly And ultimately it's not about making a choice between gold And real estate or diamonds and real estate the point is and this is exactly what I do This is my own personal opinion. This is how I invest I am more than happy to have Gold on the sidelines and keep my gold because if god forbid interest rates started to skyrocket Which we don't control interest rates The government does and if they have to raise the rates, which they're at all time lows They can only go up from here Well, we never know it could go could go negative for a while But ultimately rates can go up and if that were the case, I want the purchasing power of gold as my hedge So it's important in my opinion to have gold in your portfolio to hedge against these things You don't know if the real estate market's going to go down any day now or in a month or in a year from now But you know that holding gold and silver in your portfolio is a great way to store value Now we talked about the ratio We talked about the ratio between gold and silver But we didn't talk about the ratio of gold to housing If you look at the ratio of gold to housing and how many ounces of gold it takes to buy an average size home in toronto You would you would not believe how many ounces of gold you need to buy it today Versus when gold is at a strong purchasing power And and I think that if you saw those charts and you can call us and we can we can walk you through that I think you'll you'll see a compelling reason to have some gold in silver in your portfolio because they're so undervalued and when they revalue you're going to grow your purchasing power and Hopefully if all goes well, you'll be able to pay off your mortgage with some with a little bit of gold you've been holding It's a valuable opinion and I think people would be Uh, we approved and to listen to this part of the show again because that advice has made people money hand over fist The numbers 1 8 7 7 8 silver online to guildhallwealth.com I'll tell you something else next weekend want to see the guys at the seminars happening from 10 a.m to 12 p.m The hilton garden in toronto That's in missus soggy. We'll learn about the benefits of holding silver and gold and rsp and tfsa account that number 666-274-9570 there'll be some light refreshments and free parking as well get on it before all the seats are completely taken out This has been the real money show on talk radio am 640 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