The Real Money Show
The Real Money Show - November 7th, 2015
And welcome to the real money show, the numbers 18778 silver online to guildhallwealth.com precious metal advisor investor kit things you should have in your in your kit. I'll tell you about this as well. Free gold. Here's how it works. Receive a one gram gold maple leaf coin for every 5000 US invested into an RSP account. We'll talk about the RSPs and TFSAs and using those tools those instruments to get your your precious metals Paul want to start with you. It looks well at least the medium mix. Everything looks like it's all PG all sweetness and light out there. Have you have an opinion on that? My opinion is a little strong. Let's bring you up today. We're recording this show Thursday afternoon. Silver's trading in a range. It's 1505 an ounce. Gold is it 1108. We're in a range basically everybody's waiting for the Fed to see what they're going to do whether they're going to put interest rates up. I mean, there's too many head fakes going on. They really need to put interest rates up. But if they put interest rates up, the borrowing power of the US remember they owe $18 trillion out there. Every point that you put it up is an awful lot of money on $18 trillion. But I was looking today at the US weekly jobless claims. They actually rose, they estimated was going to be $262,000 jobless claims. It came in at $276,000, which makes out that everything is still wonderful and rosy because not another 14,000-15,000 people went on to unemployment. It's actually the largest increase in eight months, which is a kind of a telltale sign that things are not that rosy out there. People still receiving benefits that's people that are unemployed for actually, I'm not sure whether it's 99 weeks in the US right now, is 2.16 million people are receiving unemployment benefits. That's not welfare checks. That's just unemployment checks. US layoffs in the month of October was 50,504 layoffs. Now, these layoffs are not $8 and $10 jobs. These are $30, $40, $50 in our jobs. If you look at the merger between Heinz and Kraft, making it the fifth largest food company in the world, they're actually closing seven factories in North America, which includes Canada, and that's 2,600 jobs, factory jobs are going to go in the toilet. This is also a trickle-down effect because wherever there's a factory manufacturing food, producing food, somebody's got to make the packaging, somebody's got to do the shipping. I mean, there's a lot of jobs involved that get affected. Who owns the biggest portion of Kraft and Heinz? Warren Buffett, over 26% of the company, and every time he does a merger, somebody's head goes on the chopping block, just a little add on there. Also, when they merged in August, they laid off 2,500 non-factory jobs, which means you don't need two people doing the same job. If it's an accounts department, how big is the accounts department if you've now got one company? There's redundancies. Then we look at some other companies that are really always in the headlines. Let's look at Twitter, laying off 8% of their workforce. Not a lot. They've got about 4,000 employees. That's 336 jobs going by the way, and these people that are in technology don't get $10 an hour. Trust me, they don't make $10 an hour. Let's look at Canada. Tell us, just laying off 1,500 people. If you work for tellers, where are you going to get a job? It's not that easy when you're making big money. And let's look at National Geographic. They were out before Playboy and Penn House. They're laying off 9% of their staff. They've got 2,000 staff. That's around about another 180 jobs disappearing. That's down to Mr. Murdoch of the Fox, rather, news company. Now, let's look at a really interesting point that really got me thinking today. Americans borrowed a record amount to buy cars in the third quarter. $968 billion was borrowed to purchase cars in North America. Now, people are financing rather than paying cash or using their home equity to purchase cars. But let's look from a company called Experian that came up with the figures that really got me aware. According to them, 61.3% are prime or super prime credit borrowers. This means that these people will pay for their car loans. 19.3% of the loans were taken out by those subprime and deep subprime ratings who have some of the worst paying records ever. So we've got 61% that we know that are going to be able to pay their bills. They're already telling us that 19% are borrowing that probably will pay three, four payments and then renege. And then there's 20% out there who knows whether half of them are going to renege and half of them are going to pay, which is kind of scary because what it means is they're throwing money at people just because oil's down, you know, we're $45 a barrel, US, they're $60 a barrel Canadian. It's not going to stay like that. The reason that it's 45 and why there's a glut of oil, because if oil's $45 a barrel, you've got Saudi Arabia, they need $90 a barrel to pay off all the people in the country to keep them from rioting. So what they do, they produce twice as much. It's coming out of the ground. It doesn't cost them. It's $90 a barrel produced twice as much. And so does some of the other Arab countries. It can't stay like that. And I think that oil will go up and eventually all these big trucks that are on the road will be sitting by the wayside. Yeah. You know, the situation in the Middle East has changed in the last 25, 30 years. They're populations have grown. And even though the people running the country still take most of that wealth to themselves, they still have to appease the masses. And when your masses are more than double the size that they were 30 years ago, you have to figure out a way to do that. And the only way to do that is to continue to produce the one thing that you know how to produce, which is oil. And so you'll do it at a lower level. If that's what it takes to do that, unlike in Canada, where if oil prices drop, just like with fracking, it's an expensive process, so you lose out. And that's what's been happening is investment's been leaving Canada. And so we have a lot of issues now because that investment into the oil industry is literally picked up and gone. Well, this is, you know, we talk about the US a lot because what happens in the US really affects us in Canada. Out of the 50,000 jobs that were lost in October, a lot of them are in the oil industry in the States. I mean, that's in the drilling industry. And everything has a trickle down effect. If you lose somebody in the oil fields, it probably costs another five or 10 jobs on other things that are happening. You know, somebody, you know, has to supply goods and services to those oil companies. So obviously it affects, you know, everything. We now have a new Prime Minister, Trudeau, the 23rd Prime Minister of Canada. Is it going to make a difference to the average person? I mean, they're going to promise the world, can they give it? This is, we're in interesting times. I believe you really have to look after your own capital here. Golden Silver is really undervalued right now. The US dollar is at an all-time high. But because the US dollar is an all-time high, every currency around the world has depreciated. The Canadian currency, we're at 1.32 against the US dollar 18 months ago, we were par. You can look at Australia. You can look at Great Britain. You can look at Europe. The euro today is trading at 108. A little while ago, not such a long time ago, we're at 130. It's 108. That's another 20% depreciation of the euro against the US dollar. The US dollar can't stand up to forever being the highest valued currency. Right now, in my opinion, is the best house on the worst street. That's what I look at the US. The US is still got $18 trillion in debt. How do you pay $18 trillion? I say every week on the show, does anybody know out there what a trillion dollars looks like? Well, let me tell you and listen up. If you took a football field, that's 100 yards. If you took a pallet, stacked it with $100 bills, put another pallet on top of it. So you got two pallets of $100 bills filling up that football field and put the White House at the end zone and put a 747 on the side of it. That's a trillion dollars. Let's put it even simpler. If you were born in biblical times in Jesus' time and you spent a million dollars a day, you couldn't go through a trillion dollars. So that's what a trillion dollars looks like. So what is $18 trillion debt in the US look like? A lot of money. What about the debt that's not on the books? Social Security, Medicare. This probably comes to about another $180 trillion. How can they possibly pay that back? And the only way that they can pay it back is by depreciating currencies. 18778 silver and online to guildhallwealth.com. Jeremy. Yeah. I think what we've been discussing this segment is essentially that if the economy, especially in the US, is not doing so well and wealth isn't being created and it's not expanding, then A, how can we keep this cycle going of wondering if the Fed will ever raise rates? I mean, how can we be so enslaved by this threat of rising rates when at the end of the day if the debts keep rising and the more the debts rise, the less potential you have to raise rates because you can't pay back the debts? So you've got that. You've got the fact that when you keep creating these debts and you're not utilizing these debts in a way that are actually stimulating the economy, now you have to look at the rest of the impact of that, which is, currencies start to decline. You see that countries around the globe are protecting themselves against it. We know that since 2008, central banks have been net buyers of gold, not sellers of gold. The only ones selling gold are North America, US in particular, and the vaults are being cleared out of London. The wealth is moving and it's not as if things are so great around the world, but you can see that there's a lot more wealth being created in places like China, India, and Russia, and they are buying the gold. So the question is how long can this keep going on where the debt continues to build and rise and money keeps being created and the economy doesn't get any better. This is why it's important to start thinking defensively and maybe start to question the mass media in terms of if things are so great. Are they really great? All you have to do is turn one page and dig even just slightly under the surface and you can see that things are not okay. If you see that, then you start to say, "Okay, well, how do I position myself better?" One of the ways to do that is to go with real money, an asset that's been a store of value for thousands of years. That's why we believe it's important to own gold and silver. And it's not just us. You can see that, again, exports to China, India, and Russia have been huge. They're clearly taking advantage of these lower prices. And we'll take a short break. Jeremy, we'll talk about that when we should get in and why the prices they currently are for silver. Anyway, in the meantime, the number is 1-877-8 silver online to guildhallwealth.com. Free gold could be yours. Here we are, how it works. We're seeing a one gram gold maple leaf coin for every $5,000 US invested in an RSP account. We'll get to more of that. And that way to invest as well, the E-store is a top right of the website. Have a look during the break and we'll be back with more of the Real Money Show. Talk Radio, AM640. And back with more of the Real Money Show, 1-877-8 silver is the number online. Guildhallwealth.com. Click on the E-store on the top right corner as well. Free gold could be yours. We're seeing a one gram gold maple leaf coin for every $5,000 US invested in RSP account, which is exactly where I want to go, Jeremy. RSP, TFSA. How does that work with buying physical metal with Guildhall? Well, first of all, it's been a very popular investment vehicle for people looking to own physical precious metals. It's something that hasn't been able, that Canadians haven't been able to get involved in the way that we do it at Guildhall, which is we allow customers to purchase real physical gold and silver, maintain their ownership of that product, and even have the ability to personally audit that product. Now, it's held in an Iraq approved facility, a vault facility, which means it's under the regulatory body for RSPs and TFSAs, Lyra's, Rifts, lifts, et cetera. Clients receive serial numbers for their product. Their product is separated out from any other holding in that vault. And again, they receive their serial numbers and can go and visit and look at their product and pick it up and touch it. They can't take it home because otherwise it's no longer within the RSP, but they have that access to it. And this was really important. And to take it to the next level, what was also very important for us when we started offering this vehicle was to be able to do it in a way that, how do I say this nicely? Didn't rip people off. We wanted to offer the value and say, look, you can pretty much buy this product at the same price you would buy it over the counter anywhere else for the same type of product and store it in some cases a lot cheaper than other types of investments. For example, the storage on on the RSP is if I'm not mistaken cheaper than it is on the ETF for product that you can't take delivery of and you can't go and see that product either. So to be able to purchase it at the same rate that you would to just simply buy it and take it home, I think is a great value. I think the ability to store it at a very low cost is also a great value. And to know that it's in your RSP or TFSA for that matter. Now we have had some clients who have asked, can I put my own precious metals into the account? Well, we can't do that quite yet. There's just too many moving parts to really be able to offer it. However, we have done several times now is convert some some people's product so that it matches what we're offering. So for example, we have clients who have various types of coins and bars that they've purchased over the years, which is great. We were able to give them a really good price on on the exchange of that metal into yeah, we gave them spot price. And then we're able to basically just incur a small fee to then purchase the 100 ounce bars, 10 ounce bars or maples in in the actual account. And they found it very easy. It was actually a very simple process. And it's something to consider. So it's really great to be able to offer a hard asset within the RSP. And let me tell you, when I talk to my friends in the financial community, they're all saying the same thing. People are very concerned about the volatility. They're very worried about the stock market. They're starting to pull out. They're moving to cash. The next question is, where do we go for value? And that's where gold and silver are starting to play a big role. Well, especially if you've got an RSP, I mean, you're not day trading. I mean, it's there for your retirement. What Jeremy was talking about, which is really interesting is where people want to bring this product. We have to have that chain of integrity of the product. The product that we sell, everything that we sell is LBMA approved, which means it's on the London bullion market. It has to be the best of the best product. So for example, if you're buying 100 ounce bars, you're getting Royal Mint, 100 ounce bars. Every Royal Mint bar has the year and has a serial number. If you buy 10 ounce bars, you will have a serial number. We don't recommend putting maples, though we do have clients that want to put maples into an RSP or a TFSA, because you can't take the maples home. And maples tend to have a premium anywhere from 7% to 10% more than the actual cost of a 10 ounce bar or 100 ounce bar or silver. So it doesn't make sense. I know people want to be loyal to the Canadians, to the Queen on the front and the maples leave on the back of the coin. But you're paying 8%, 7% to 10% too much for the coin to put into an RSP or a TFSA. You are paying for that. But the idea that the reason why people are willing to pay that premium and why we offer it is because ultimately, the client in this investment, unlike any other investment, actually has the propensity to take delivery of that product. Obviously, they'd have to break their RSP, pay the penalties, et cetera, et cetera. We would have to earmark that product for them to take delivery of. There's a lot of logistics involved, but ultimately, the customer does have that propensity, and that's the key here. Yeah, but we also do like to give serial numbers. And with maples, there's no serial numbers. Unless you take a coin and you put a scratch in X on each coin, and then you're defacing the coin, and you're really ruining the value of the coin, which doesn't make any sense whatsoever. But to put money in a TFSA, if you've got physical product at home and you want to change it up, put it into a TFSA, which means it's a tax-free savings account. Silver's trading at a very, very low premium to this, undervalued. Trading at just over $15 an ounce US, there's almost $19 Canadian an ounce. Four years ago, May the first 2011, silver was trading at $49 US an ounce. Do we believe and do we think silver is going to go above $15 or anywhere near $49 in the very near future? Yes, we do. The same with gold. I mean, gold is trading just over $1,100. Some of the gurus, some of the people out there that write blogs have been in this business a long time. I think gold's going to go to $2,000, $2,500, $5,000 some people. People that are really knowledgeable, and they believe that silver is so undervalued and it could easily reach $100. Now, we're trading at $15. So whether you want to put your money into an RSP, a TFSA, a Lyft, any other type of registered plan that you have, or you just want to buy, get started. You haven't got any gold or silver. You've got to remember, I think it's about just under 3% of the world owns gold or silver as an investment. That's 97% of the people out there haven't got a clue. It's the same thing. We did a seminar last night and you talk to people and you say, "Yeah, you got some YouTube funds in your RSP. What do you own?" They don't even know what they own. When you own gold and silver, you can visit it, you can see it, you can touch it. It doesn't pay you a dividend. But in the long run, it's going to do extremely well for you. We had a client coming yesterday to pick up some product and he showed me a couple of dimes from 1967 that he had. And Darren is not on the show today, but he always comes up with a story. In the 60s, for that 30 cents, you could have got a gallon of gas for that three dimes. Well, the amount of silver that's in those three dimes worth 30 cents, well, today still gets you a gallon of gas, which is about four and a half liters. So, gold and silver really stand the test of time. If you want to buy physical, you can go to our website, go to our e-commerce site. You can buy maples, you can buy 10-ounce bars, 100-ounce bars. We even have put together what we call combos, where you can buy a number one combo. It's a 10-ounce bar, 10 maples, and two 1-ounce bars. You can buy a number two combo. It gives you three 10-ounce bars and 20 maples. And we go up to 100-ounce bars, 50 maples, and five 10-ounce bars. So, you can get in for $300 or $3,000 if you just want to get started. And you know what really impressed me there? Is Paul knew that the exchange between gallons and liters, and without using Google. That was very impressive right there. Jamie, let's talk about this. And Paul kind of touched on it, but the price being around 15 bucks. Why would someone want to get in when they're, you know, it's not doing much, it's not moving. Why is it a good time to buy now? Yeah, we get asked this question all the time. More in the sense of someone will say, "Well, it's not doing much, so why should I, you know, why today?" And the fact is, is on the surface, it might look like silver hasn't done much. But if you look a little deeper, you can actually see that a lot has happened. So, for example, let's look at what's occurred because of the sustained low prices. Well, it's wreaked havoc on production for one. Silver production in Australia and Canada is definitely down about 30%. And this has caused shortages. We've talked about this a lot on the show. They're saying that they're starting to catch up on the eagles in the States. But we're still seeing shortages. Maple's have caught up. Yeah, maple's have caught up, but we're seeing the shortages still in the 100 ounce bars, 10 ounce bars. And it's been a while since we've been able to get a good amount of one ounce bars available. So, shortages is going to be one part of that, which means you're going to get premium hikes. It's going to end up being a little more expensive than it was a year ago to buy that. And that's what we've seen. The other thing is that in Canadian dollars, and this is something no one seems to notice, that year over year, this time last year to today, silver's up 9% in Canadian dollars, which means it costs 9% more to buy it from the spot price. And there's slightly larger premiums. So, it is more expensive this year, even though the price range may have been the same last year, when you combine those two factors of shortages, meaning increased premiums and the decline of the dollar, you're seeing that the price is actually higher. So, and I can tell you that China, India, Russia are taking complete utter full advantage of the lower prices. They don't look at that and say, well, you know what, I'm going to buy it when it moves a little higher, I think. They say, no way. I know what that's worth. I'm going to take advantage today. So, yes, silver is definitely overdue for a major increase in pricing, but the timing is very important. And if you're waiting for something in particular, it can be dangerous to try to time the market. Well, I've always said, it's better to be one week too early than one day too late. It's better to be a month too early or two months too early, because we just don't know where the bottom is so hard to fish the bottom. Silver last week was over $16. It came off a dollar. You know, somebody made an awful lot of money trading paper, not the physical product paper, where, you know, silver was at $16.30 and all of a sudden we're down to $15. I am back-ordered for over two months on 100-ounce bars and 10-ounce bars. That tells me there's no physical product out there. So, when you trade paper, it doesn't matter. It's a Ponzi scheme. It's an absolute Ponzi scheme. And sooner or later, the paper trading has to come to an end when there's going to have to be some short covering. When you buy physical silver from us at Guildhall, you're taking the physical product out of the market. You're taking it out of the banking system, whether you're taking it home or you're putting it in a safe, secure, depository, where your product is segregated, allocated, where you get the bar numbers, where you get to visit your product. You know, go and buy a certificate at the bank or a medal. And then go back a month later and say, "I'd like to go visit my medal that I bought. I bought 50,000 ounces of silver from you. I'd like to visit it." Plus, when you buy certificates, you can't sell off in small increments. You have to go one big block at a time. Either you buy that big block or you sell that big block. You don't get that divisibility. And the thing is, we only sell physical product at Guildhall. We're not in the paper business. We don't sell equities. We don't sell ETFs. We don't sell certs. That's certificates. We don't sell futures or options on futures. What you get is the physical product. You get delivery, whether you want to pick it up, pick it up, take it home, whether you want to put it in the depository, whether you want to set up a certain type of an account. Now, in a depository, you know, basically the type of people that put product into the account of people that are holding say 500 ounces of silver. That weighs 35 pound. Even if you have a safety deposit box, to put 35 pound in a safety deposit box is heavy. When you want to sell product off, whether you buy 1,000 ounces, 5,000 ounces, whatever increments you buy, whether it's 10 ounce bars, 100 ounce bars, when the market is moving and you've bought silver at $15 and it goes to 20 and you decide you want to sell 20% of your position. It's a phone call. You don't have to take that physical product, run it somewhere and not everybody's going to take it back. They may want to get it assayed and this is why it's so important with us that when you buy the product, we know the integrity of the product. It's basically gone from the left side of the depository to the right side of the depository and we know where the products come from and we don't have to worry about a saying. We don't have to hold you up. When you want to sell it, you can sell it on a phone call and most times you can have your check that day. Try doing that with some other institutions. 18778 silver online to guildhallwealth.com. We'll take a short break. In the meantime, check this out. It's getyourfreegold.ca and the website you will discover that when you make a purchase of $5,000 US and an RSP account for gold and silver, you will receive a 1 gram gold maple leaf coin. We're going to talk diamonds and guys, we're going to come back in the last segment, lots more to talk about when it comes to silver as well. The real money show continues talk radio AM640 and back with more of the real money show 18778 silver online to guildhallwealth.com or guildhalldiamonds.com for the duration of this particular segment or otherwise. Jeremy, let's hand it over to you as we get into our diamond discussion for this part of the show, yeah? Yeah, so diamonds are where do I start here? One of the things that we're starting to really consider more and we're finding investors are appreciating more is that with color diamonds, it's very difficult to commoditize them. Every single diamond is such an individual unique product that it's not even like the white diamond market where there's so many of them that you can say, okay, well, there's a certain amount of one carat at VS quality of this type of cut that you can end up creating a price system for it. With color diamonds, they're so individual and so it's a lot more like an art market in that regard and what we see is a lot of parallels between those two types of markets. Now, keep in mind that the art market is a huge market and a lot of investors move to that market, especially in these type of times where volatility is a major consideration, crisis protection. These are hard assets that are so rare that they defy gravity in many respects because look, there's no more vangus coming to market and there's no more Picasso's and Jackson Pollock's coming to market or Andy Warhol's for that matter and a lot of new artists. I don't want to not discuss those and it's the same thing with color diamonds. This year, for example, pink diamonds will move up significantly in price because I'll tell you one of the big trends that we've seen in color diamonds over the last 10 years. It's moved from a real best kept secret to a lot more people trying to get involved in the market and we're talking from the selling side of things where they're selling inadequate color diamonds, but they want to get into the action because there's money to be had in these markets because at the end of the day, all around the globe, people are starting to understand this asset and why it's so important or why it's such a great asset to be a part of, but now you're starting to see the real big money come into the markets. It's one of the things that we saw at the tender this year where one of the major dealers that were able to capture a lot of the diamonds had major, major backing. We're starting to see the smart money moving into these markets and you see that all the time at auction where these massive color diamonds, which are unbelievably unique, are breaking records all the time. That's because big money is more than happy to put their money into color diamonds because it's as safe as money in the bank and gives you a lot better return. The reason for that is simple. The smart money is looking at the market and saying, okay, I can invest in real estate. I'm getting definitely less than 6%. Bonds not getting a lot unless I go real risky in some other countries. Can't put cash in the bank. That's not getting anywhere. So where is some really good return where you're using funds where you're not necessarily developing a project or developing a business? We're talking about funds that we're putting towards investment. There's very little out there that's going to give you the type of return that we see with the type of color diamonds that we offer at Guildhall. And we've never seen a color diamond at Guildhall go down. We've seen prices fluctuate slightly in color diamonds as a whole, but very stable market overall. Diamond prices for really high quality investment grade. We've never seen drops in those prices. And in fact, the supply is consistently getting more limited all the time. I just saw a few weeks ago, I had a client come in who bought a fancy sorry, a fancy intense yellow, one carrot, just over a carrot, $19,000, taxes included. Today, that diamond wouldn't go for anything less than 23, 24,000 pre-tax in two years. Now, you're not going to turn around and sell that diamond right now, but it demonstrates how well these markets are moving. And that's that's a $20,000 investment, right? Are you getting that kind of return on $20,000 right now? And imagine what you would do if you could put in 100 or $200,000. Well, if you look at, I was in New York for the Argyle tender. You know, this is the most beautiful diamonds of the Argyle puts out every year about 55 diamonds. 10 or 11 of the diamonds were VS quality. And out of the diamonds, we bid on six diamonds. And I bid between 20 to 40 percent more than I did last year on the advice of the people that run the tender, which is Rio Tinto, that owns Argyle. And we never won one diamond. Now, the one company that won a lot of diamonds was partnering with people from China that obviously was selling to the new wealth in China, these investments. It's portable wealth. It's wealth that these diamonds are only going to increase in value, you know, from the fancy colored diamond research foundation, which we belong to in some of the largest diamond retailers and wholesalers belong to natural fancy colored diamonds in pinks, for example, whether from wholesalers, whether from the cutters and polishers, from auctions, from sales, resales, on average, have gone up 361 percent in 10 years. So we know, for example, in the Argyle, you know, I bid between 20 to 40 percent more than I did last year, they're going up 36 percent a year anyway. I'm going to have to pay 40, 50, 60 percent every year more for an Argyle tender stone. Now, what happens at the Argyle tender? This sets the standard now for pinks because if somebody, instead of paying 150 a carat, which is where the stone should be in price, somebody is now paying 200 or 220 a carat, this is going to put all the prices up in the Argyle, in the pink side, in all pinks. I mean, Argyle producers, Jeremy, you've got some figures there of what the Argyle mine produces, but it's, you know, out of their total production, they produce 90 percent of the world's pinks, yet it's only about one tenth or one percent of their total production. So there's not a lot of pink diamonds. Whether a pink diamond comes from South Africa, whether it comes from Brazil, or whether it comes from, you know, Western Australia, from the Argyle mine, there are different color shades of pinks. The Argyle pinks are purposely pink, they're fruity flavors of colors, I should say, raspberry, that type of color. And when you get into diamond from Brazil, it can be like a bubblegum pink, which is a completely different pink, but again, evenly saturated, they're magnificent, and they fetch the same prices. Which, when the diamond mine of Argyle eventually closes, it'll make the, whatever comes out of the ground anywhere else in the world, that much more valuable. And I think that's something that's underestimated in the market. Paul, you brought back this wonderful book from Argyle that they put together in terms of just talking to market industry. Yeah, right? Industry experts. Exactly. But there's some good information here that we show to our clients when they do come into the office. And I want to, for example, this quote here for every 25 million carats of rough diamonds unearthed from the Argyle diamond mine, just a single polished blue or violet tender stone is produced. 25 million. Now, in 30 years that the Argyle pink diamond tender, they've had 42 diamonds that have held a blue or violet GIA certificate. So you can start to imagine the numbers here. And if this is one of the major diamond mine, color diamond mines, in terms of the pink, you can start to imagine how many are actually out there. And when we do our own sort of estimates on that, we can see that there's probably been about 1400 diamonds have gone into auction, sorry, gone into the tender. You're looking at less than 600 or so that would have been a VS quality. And you could say maybe double or triple that in terms of maybe what came out beyond the tender that maybe got recut or whatnot. So you're still looking at a very small number of people who are able to procure and hold these diamonds. It's just, you know, it's like an artist. An artist produces so much work, whether they go into lithos, and then they can do, you know, a hundred of this or 200 or whatever it is. But when that artist dies, there is no more work. The values always go up. And this mine is going to close very, very shortly. It's just not producing. They're spending too much money to go deeper and deeper and deeper. And the product that's coming out is smaller and smaller and smaller. It just doesn't pay. So they're going to sell this or close this mine off. We know, you know, most of them, the stones that come out of that mine are brownish stones. And at one time, they did some pretty good marketing. They were worth about $15 a carat in rough. Then they decided to call the diamonds cognac champagne chocolate. And, you know, people went for it. But it's like black diamonds. People say to me, Oh, I need a black dice, a piece of coal. It's not got any value. It's got no value. When you buy a natural fancy color diamond from Geord Hall, we've already done the work. We only deal with the best the finest cutters and polishes and the finest dealers around the world. And we bring our clients the best. You know, if I see 50 stones, we may only buy seven or eight, because they don't, the other 43 don't meet our criteria. It has to be perfect. The color is the first thing when we sell, you know, I was with somebody in last one on five. Yeah, but I'm going to talk about it. But when we were in Las Vegas in June and we were with some people, they've been in the business a hundred years. And he said to me, Paul, you're in the natural colored fancy diamond business. It's about color. You know, clarity is very important. Cut's very important, but it's about the color. Color comes first. When you buy a diamond and you buy that diamond and it diamonds is even saturated with color, the cutting becomes easier. Everything becomes easier and the quality is there. We have a diamond on the nickel. My daughter wrote a piece about. I fell in love with this diamond. It's a 105 carat. Fancy vivid yellow. The color is unbelievable. It's a cushion cut cushion radiance. Give off the, you know, the sparkle and the fire come off of these diamonds. This diamond is actually appraised at 78,000. We've got it on just under 40, 50,000, 49,000 and change. But when you purchase a diamond from Guildhall up to December 31st, we're giving a beautiful set of white diamond studs about a caratine size with every purchase of $25,000 of with every diamond above $25,000. But this diamond is absolute magnificent. It's one of these diamonds that you can hold if you're paying $50,000 for it, you know, within five years, that stone's going to be worth $100,000. In 10 years, it's going to be worth $200,000 to $250,000. And an example of that, I had a client bought back a diamond. It was a 1.56. It was a vivid. The diamond was appraised six years ago for $80,000. The diamond, we just had it reappraised for $160,000. This is a type of diamond that you can put away for your retirement, the 105 for your kids' education. It's a wonderful, wonderful investment. But if you don't have that type of money, you can get into the market with an internally flawless, a 101, you know, for around about $14,000. You can get into, you know, 106 for $16,000, $17,000. We will be happy to sit down with you. We don't challenge anybody's pocketbook, but we will give you the advice when it comes to a diamond what to own. Because every diamond that we pick, that we bring in for my collection, it's mine. We own it. And we want to, you know, people come to us and say, "Will you buy our diamond?" I bought it from such and such. They don't want to take it back. Well, if we sell a diamond to you, we will take it back and help you sell it. At the same token, it's got to be a win-win situation. So these aren't fast flips. You wouldn't buy a studio apartment and then hope to flip that next year and make a ton of money. The only person that's going to make money in that situation is your real estate broker. When it comes to color diamonds, it's a, yeah, exactly. It's a long term, it's a long term hold. Most people are buying these because they are connoisseurs. They want to own them for a very long time because no one else has them, right? But in this case, if you are looking to benefit over a long period of time, 10, 15, 20 years, then at that point, it does become a situation where we would be more than happy to be involved in the resell of that. We know what it took to find that diamond. Of course, we're going to help you resell it because there's a benefit to both parties there. And I'm saying that because sometimes people don't look at that long-term advantage and don't necessarily see the appreciation that is going on. We have never seen anyone lose money in the market, in color diamonds, and most clients who purchase color diamonds end up being collectors. They buy more than one. They see that connoisseurship. So we're more than happy to assist clients when the time is right to help sell that particular diamond. And I don't think there's another company out there that's willing to make that claim. I think it's very similar to I'll use real estate as that analogy of a real estate company that focuses on one neighborhood. We're here to help sell in this particular neighborhood natural fancy colored diamonds that are investment grade quality that you're going to own and hold for 10, 15 years when the time comes. We're more than happy to help you sell that because we know exactly what that diamond is. You've got to go see them though. We run into competition and they say, oh, we can do this for less price. Diamonds are not the same. It's not cookie cutter. You know, when it's all about the first thing is the color. The next thing is the cut of the diamond, the table of the diamond, that's the top of the diamond, the depth of the diamond. Somebody showed me a diamond on Monday. It was an internally flawless diamond. The table was 65, but the depth was 79. So it looks like a balloon. I mean, it's it's narrow. It's it's just not it's a sagging balloon. That's what I'm putting it. It's just not a diamond that is an investment grade. And if you put it into a piece of jewelry, it would look awful because there would be no. It wouldn't sparkle. It wouldn't sparkle because the shape of the diamond is wrong. They kept it internally flawless because they thought they can get more money for it. I'd rather take a VS with a with the right dimensions in in a colored stone than take an internally flawless that doesn't have the right characteristics. And it's all about the characteristics of that stone. And when we buy, you know, we deal with the, as I said, we deal with the cutters and polishes, the dealers that have been in this business for a hundred years, not two minutes that know their business. It's really important. It's like understanding what you're getting. The cutters are artisans. You know, you can't become a diamond cotter in two minutes. It takes years and years and years of training. And those are the people that we work with. And we bring you this type of diamond, which is going to be a great asset for your portfolio. The numbers one, eight, seven, seven, eight silver online to guildhallwealth.com or guildhalldiamonds.com. The education is there. You need it before you make your choice. So make sure you go see them. We'll take a short break and get back into our discussion with Boyan and to recap of the entire show as well on Talk Radio AM640 and back with more of the real money show one, eight, seven, seven, eight silver online to guildhallwealth.com. That's the website. As you mentioned before, the last, the, at the end of the last segment, rather Paul, for diamond buyers that they're looking for investment. Great. Of course, when you spend $25,000 or more on a single diamond, you will receive a beautiful, wonderful pair of white diamond earrings. Yeah, one current set of beautiful white diamonds, FG quality, VSSI, you know, worth probably retail level, seven or eight thousand dollars. But I bought up a complete package of half-carat diamonds that we put into the earrings. And obviously, when you're dealing with the right manufacturers, you get the right price. And we're offering this and they're just beautiful. We've sent out a couple of sets already from last week where we sold some diamonds, but they are magnificent and they will make some lady very, very happy and nice gift to go under the tree. Let's pick it up where we left off in segment three, Jeremy. That was better to be a month early than a day late when it comes to timing, right? Yeah. Well, when we're talking to potential investors, they might, you know, they're looking at a few factors. They're saying, wow, I don't like the Canadian dollar right now or the price hasn't done anything. I'm going to wait a month or two and I'm just going to, you know, wait and watch and see what's going on in the market. And again, they take issue with the idea of having to pay to store the precious metals as well because they don't want to pay extra and then the market doesn't do anything. But at the end of the day, we are talking about it being better to be a month early than a day late because here's the thing. Right now, you're getting less than 2% interest in the bank. Yeah, less than 2% interest in the bank. I'm being nice. And real, and if real inflation is north of 2%, then you're actually losing money for the privilege of holding cash. This never used to be, but this is how it is now. And I've always said there is a war on savers in this regard. And all you have to do is take a look at the undervalue of how undervalued gold and silver are and just look at, go online, put gold silver versus debt 2015 gold silver versus money supply 2015. And you'll see just how undervalued gold and silver are and how there was always a correlation between the two. And you can start to get a sense of where the price is going. So, you know, there's no doubt that gold and silver is undervalued, but what you pay to store it is an absolute pittance. And then there's a gigantic upside where the downside at this point in the market is tiny. Paul mentioned it in the first segment. We were as high as $48 an ounce. Now we're trading below $20 an ounce and people might not be happy about the sale. And those clients, I feel for it because they're making it a bit about price. But the Chinese don't feel it's about price and the Russians don't feel that there's a price issue there. And they're buying it like crazy. And as a result, as we said before, Australia, in North America, production's down over 30%. You've got an article right there, John, that we can talk about in a moment about the sales of mints and silver in the U.S. One eight seven seven eight silver online to guildhallwealth.com. Since you mentioned it, I will bring it up. Jeremy, you talked about this. In fact, you handed me this beginning of the show. And this is from October 30. So the end of last month, Ed Moy is the the author is Newsmax.com. If you want to look for the article yourself, and he says, basically, 2015 sales year to date have exceeded the same period in 2014. Sales through the third week in October are just shy of 39 million ounces compared to last year's just over 38 million ounces. The sale trend continues a total number of ounces sold in 2015 will exceed last year's record of 44 million ounces. The the interesting thing on that, obviously, product is being sold, whether people are taking mass in mass, whether they're taking it home, putting in safety, positive box, whether they're using depository facilities. And our depository facility, the rate of storage is 1.3% a year. That's less than let's just round about one tenth of 1% a year to store your product. Let's just say it's 1.3. You held that product for four years. That's 5.2%. You're going to pay in storage. Do you believe that gold or silver in the next four years can go up more than 5.2%? You know, last week, we were at $16.30 and silver today is $15. You know, 5% of $15 is 75 cents. So we went up about 8%. So but we've come off. Everybody's waiting for the Fed on Friday. Everybody's waiting for the jobs report on Friday. Everybody is just waiting and waiting. The smart money is already pulling out of the stock market in in great amounts. This is an opportunity to buy physical gold and silver at a great price. Get the jump at $15 silver and $1,107 gold. I think this is a great opportunity for you to make money, whether you put it in an RSP, a TFSA, any type of pension plan or buy the physical product, take it home or buy physical and put it in the depository. 18778 silver online to guildhallwealth.com. Let me throw this out to you then, Jeremy. Hear you talk about all this and I think, you know, I still want to wait possibly or watch and I don't like the cost involved. I'm looking for an excuse here. Yeah. So you just heard everything that Paul said and you're saying, I still want to wait and see. Look, I understand waiting for ideal market conditions and but I don't think it's even about price because we do get a lot of people who are price conscious. We all want to buy at the cheapest price possible, but here's the thing. Silver's up 9% since last November. Premiums have creeped up. Any price conscious buyer should easily be able to recognize and appreciate an undervalued commodity. If you're price conscious, right, you're going to recognize value. So I don't think it's exactly about price. I think it's about waiting for the right moment. And I think a lot of people say, you know, I relate this to the idea of someone thinking, well, you know, maybe, maybe today's the day I'll get insurance because I think, yeah, I think maybe tomorrow my house will burn down. You can't, you logically, you can wait for better rates and logically, you can, you can try to get better pricing or try to time things so that you can save some money. But that's not rational. You either have insurance or you don't. The perfect time to buy is the moment when you're willing to pay, when you're willing to convert your worthless fiat money into a commodity that's stored value for thousands of years. So if you don't want to buy it today, even though the price is nine percent higher in Canadian dollars because our fiat currency is losing value, if you want to wait till the price is higher, where you might feel, okay, now is the time to do that, then that's okay. But let's not make it about price here because the price is clearly at its cheapest and people are clearly taking advantage. China, India, the US Mint, et cetera. It's a herd mentality. You know, we sold more silver. We've been in the business since silver was $3.80 gold was $2.50. You know, we sold more silver at $10 than we did at $5. We sold more at $20 than it was at $10. And I can tell you right now when silver goes to $50, we'll sell more silver at $50 than we ever sold at $15. So this is the time to get in. Don't wait. Give us a call whether you want to put it into an RSP TFSA, whether you want to put it in the depository or whether you want to just want to take it home or be a monthly buyer and cost average. Best way to buy it. Buy it monthly. Doesn't matter whether you pay $15 this month, $18 next month and $100 in three years time. That's what you got to do. You got to buy it now. 18778 silver online to guildhallwealth.com. Just before we wrap again, get your free gold.ca. We'll receive a one gram gold meat belief coin for every $5,000 US invested in RSP accountant. For the diamond shopper out there, you purchase a diamond over $25,000. You will receive a one-carat pair of beautiful white diamond earrings to go along with. This has been the real money show on talk radio and 640. Hey Merry Christmas, man. 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. 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