The Real Money Show
The Real Money Show - October 3rd 2015
Welcome to the Real Money Show, the number to start investing 1-8-7-8. Silver online to guildhallwealth.com, TFSAs, RSPs, the E-store, the top right corner. There's all kinds of different ways to start investing. And I'll give you the heads up already. There will be, we just got off finished this seminar which you guys will expand on here in a moment. But coming up on the 24th of October, that will be a Saturday, the natural fancy colored diamond seminar from 11 a.m. to 1 p.m. It will be at the Supreme Luxury Event Venue, guildhalldiamonds.com for more info and to register for that one. Guys, how was that seminar Jeremy? It was very good. We had a lot of obviously great turnout, a lot of people interested in how to get involved in owning physical product within an RRSP. We had some great questions that came up that we often hear and I think it would be good to explore it today. Questions about premiums, questions about how to actually get started and how do you know when the price is, you know, what type of price you're going to be looking for when you make that purchase. So it was really good to get to meet people and we had people opening accounts right then and there which was obviously nice as well. And just a great time. How was the turnout? Yeah. Turnout was good and there was actually standing room only, John. We exceeded our allowable limit for the chair and we had to have some people inside the room, outside the room and walking around. But we managed to get everybody accommodated and the good news is that because where we were and where it was located, we had everybody flocking after the seminar completed to over to get accounts open. So they were getting knowledgeable advice back from our partners on how to open up the account, all the finer tools, what would be there for them at their disposal when they open up the account and basically asked every question under the, that you can imagine under the blue moon about precious metals. So that was a great night and I certainly look forward to the next one. Now the week that was, it was important to note that silver held its own despite what we're seeing in the stock markets around the world, the news that's flowing in seemingly more rapid than it's ever been in the last few quarters about the detrimental way that the economy is being handled around the world. We still saw gold and silver hold very strong. They had a couple of runs up during the week, small ones, nothing more than a percent or two. And this of all weeks being one of those particular areas of the year in which we typically see demand start to rise, we're going to talk about it now because mints are struggling, John, as we speak to keep up with silver coin and silver bar demand, government mints around the world are struggling to keep up with this unprecedented demand for silver that's been spurred by a slight drop in these prices down to that $14.15 range. And now the mainstream is waking up and saying, Hey, silver is in a spot right now where I think this is a value. There's no way based on its story and the fundamentals that it should be there. So I'm going to take advantage of it. This is an opportunity I'm not going to see in my life again. And whether it's the mints in Canada, Austria, Australia, the US, they've all told us that there is a rationing sales of silver bullion all over. And here are the following updates that I have to this day regarding each of the mints. So this is an important news. If you're a buyer, pay attention because this affects premiums and they will affect premiums in the short and medium term. The Royal Canadian Mint, they have been rationing sales of their silver maple leaf coins since July, which makes sense because we've had a tough time getting delivery of them after record monthly sales. And sales have hit records in both August and September. Demand has been very strong in North America, John, for this type of coin. In Europe also, and Asia and the US markets being the strongest. And that is directly from Chris Karkner, who is the executive managing director of sales and pneumismatics, the bullion and the refinery of the Canadian Mint. The Austrian Mint, they have been rationing sales of their Philharmonic silver coins, which is a popular coin around European areas. And it has increased production of silver blanks after higher than expected demand of both July and August, also from a spokesperson there. And they expect that normal supplies may not return until early next year. So that gives us our short term and medium term window. Silver coin sales in Austria hit 1.19 million ounces in July up from 203,000 a year ago and remain very high in August at almost a million versus 106,000 in August of 2014. Now, the UK Royal Mint, again, another perfect story. The Mint has seen a 600% increase in sales of its one ounce Britannia coin so far this year on what Chris Howard, director of the bullion at the Mint said is unprecedented demand. And it's increasing production and has significant pre-orders already for 2016 data coins. By the way, Darren, they're called Brits, those one ounce coins. We have them coming in. When they come in, we will offer them very, very quickly. I put in a significant order. And that will be something that I think clients should be paying attention to. Great coin, certainly something to have as part of the collection. Buying in bulk, we would still suggest you stick to bars. The Perth Mint, owned by the government of Western Australia, has begun rationing supply of new line of coins this month. And it's unable to keep up with the robust demand also. It's sold over two and a half million ounces of silver so far this month in September with a record of three and a half times more than usual in August and two and a half times more than they're used to in July. And the demand that's coming from the United States and Europe is huge and also increasing. We've been doing this radio show for a long time talking about the fundamentals in the market. And what we notice right now is there is a commonality amongst a lot of bullion buyers. They all basically are saying the price is very low. They're concerned about what's going on. They see things aren't making sense at all in terms of the markets, really high debts, the currencies that are moving all over the place, just everything just doesn't seem to make sense. And there's a sense of, okay, there's safety in this product. And also the price happens to be low enough that, okay, I'm willing to jump into this market for the first time. And of course, there is also the 10 ounce bars, the Royal Canadian Mint, that I'm not sure if they're they're longer going to be put into witness protections. We can't find them. They're just Jimmy Hoffa. They're out of there. They have to meet the first line of demand, which is a priority for the mint in every mint around the world, which is their coin programs there. In most cases, like the Canadian Mint and the US Mint, it's part of the paperwork of the constitution for our country to print that coin. Same with the US part of the currency act. They have to print the Silver American Eagle as legal tender as well as here the Silver Mate belief. But the US Mint, speaking of them, they're in the same in the same boat. The US Mint has been issuing a weekly sales quota for its flagship American Eagle Silver coin since the end of July. And we talked to a spokesperson this week, and they are telling us that West Point production facility is operating three shifts and they're paying staff overtime to meet this demand. The mint was forced to stop selling its popular silver coins for three weeks in July after they completely sold out of inventory due to this demand. And now the US Mint has sold get this 14.26 million ounces of American Eagle Silver coins in the third third quarter, which is the highest on record dating back to 1986, a time when we still all knew about silver. We all still loved it. And the world was a better reality in terms of fiat currency. But since that time, it's changed. And what we're telling you, and the reason we're telling you this is because as a listener, wouldn't it be nice to know if something is on sale and about to rise? Wouldn't it be nice to know that you can take advantage of it now before that happens? Because it's going to happen. 18778 silver online to guildhallwealth.com The interesting thing is that the price of silver as we're taping the show on Thursday afternoon is $14.55 US bid. There's a premium on silver eagles of about $4.50. Now, if people are prepared to pay $19 US and the spot price on silver is $14.50, what does that tell you? The average person thinks that silver, as well as gold, gold is trading at $1,115 as we're taping the show, is also very undervalued. And people are terrified of the stock market. I'm looking, and you know, you should be scared of the stock market. If you look at the claims that the US government make as an example of creating 200,000 jobs every month, wonderful. But let's look at the reality. In August, there was layoffs in the states of around about 40,000 jobs. These weren't $8 and $10 paying jobs. Last month, in September, companies like Hewlett Packard, not a small company, Caterpillar, they laid off a total of around about 57,000 people. Now, when you work for Caterpillar or Hewlett Packard, you're getting a really good salary. You've got a pension plan. You've got health care. You think you've got stability. You're not working for $8,000 an hour. Let's look at Walmart, pretty big company, laying off 500 people at head office. That's not the welcome is outside that get $8,000 an hour. These are people that make $30,000, $40 an hour, make reasonable salaries. They'd be in laid off. This year alone in the states have handed out 493,000 pinks lips. That's well-paying jobs. Now, what this actually means that you're seeing the end of a period of expansion. But before it really turns, you'll see major layoffs occurring in these mega mega companies. What you're going to see right now is more companies laying off people at salaries of $20, $30, $40 an hour, and they're replacing them for $8, $10 an hour. That is not a recovery. That is the start of a recession. That's why you're seeing, even in the stock market, companies are buying back their own stock. It's Voodoo. It's a Ponzi scheme. We've had on Gerald Solentin. He spoke about this. The companies that are buying back their stocks, it's actually financial engineering. What you need to do is to get into a hard asset and protect your capital. You have life insurance, you have health insurance, car insurance. You never want to claim on your life insurance. You don't want to claim on your car insurance. I mean, you're happy to pay it and get away. But you need to protect your capital. You need as much as 15% to 20% hard assets in your portfolio. This could be gold. It can be silver. It could be real estate. It can also be natural fancy gala diamonds. These are the investments that you need to have to protect you against these turbulent times. 18778 silver online to guildhallwealth.com. There. Listen, Johnny, I know we're at the end of the segment here, but this is easy to do through Guildhall. If you give us a call, touch base with anybody at the firm, we can help you to buy some physical product. Whether you're starting with coins or bars, a combination of both, if you'd like some storage because you don't want to take that product home with you risk having it in the home, we can help you with that as well. If you'd like to further that by having an RSP or TFSA or Lira or risk count or maybe an RESP for the kids using bullion, that's also something that we can do a guildhall wealth with our partner quest trade. Now, that being said, an important topic, John, we've been talking about the economy. Right now, one of the worst things that could happen in the middle of this meltdown would be to experience inflation. But when we come back, I want to tell our listeners a little bit more about what's really happening in the world of inflation. We'll take a short break number to start investing. That Darren talked about 18778 silver online to guildhallwealth.com. Plus, we'll talk about natural fancy colored diamonds. In just a bit here, we'll give you the heads up, but a natural fancy colored diamond seminar is happening with Guildhall Saturday, October 24th, 11 a.m. to 1 p.m. It'll be the supreme luxury event venue, guildhalldiamonds.com to qualify for that one. More of the real money show coming up, talk radio, name 640. Back with more of the real money show, 18778 silver online to guildhallwealth.com. If you're using your RSP, you can also go to guildhallrsp.ca. There will be a natural fancy colored diamond seminar in the near future. Saturday, October 24th, 11 a.m. to 1 p.m. Supreme Luxury Event venue. That's in VON. Guildhalldiamonds.com to register for that. Darren, you left off saying we're going to talk about inflation. It's a scary topic. Take it. It's the one thing that John, I think most people take for granted. They know very little about, as Jeremy said, it's often the silent killer of wealth. It takes your purchasing power away. And it's something in Canada that we have a very difficult time seeing because we don't get the same type of measurement statistics as they do in the US. But we know something very clear about the US. When they sneeze, we often get a cold. So let me tell you a little bit about what's happening behind the scenes. Our order takers, the big banks, all of the financial planners around the world that offer analysis on a daily basis throughout the media, the majority of them are touting that there's very little or no inflation right now. However, if I look at what the statistics are telling me, I'm seeing a deadly storm coming, one which would benefit tremendously from the ownership of gold and silver. So let me tell you, one in four Americans now spend over 50% of their income on rent. And nationwide rents have increased since 2006 by an average of 24.81% far more than the CPI. Darren, that's no different in England. It's the same. You should see how spectacular the rents are. There's no way it's at least half their income to pay for rent. Well, over just the last four years alone, rents have increased by about 11 and a half, 11.6% or more than double what the posted CPI is, which is only increased since 2011 by 5.6%. The average US family health insurance premium just rose another 4.22% this year to 17 and a half thousand. Now, be so thankful as a Canadian listener here or if you live in a country where your health care is part of your tax system, that you live in that country. Because can you imagine having to come up with an extra 17 and a half thousand dollars to cover your family with probably what is considered to be mediocre or less than average, marginal health care, health care. One of the interesting things though, Darren, as an employer, we pay the health tax. There's a health tax of 2% of over $400,000 if your employees pay. So, you know, companies are paying double the Canada pension, 1.4 of the unemployment, 2% of health care. It's very hard to be an owner in business in Canada and be successful. That's an interesting point because what we find, especially with precious metals investors, a lot of them are individual workers, entrepreneurs, people who feel that encroachment from the government. I think in the United States, you get a lot more, let's say, libertarian type people who feel that the government is encroaching. So, I think overall, people want that security, that no counterparty risk that comes along with owning a physical precious metal. When you own gold or silver, it's not in the banking system. The banks can't come and take it, the government can't come and confiscate it. It's just something that is outside no counterparty risk. And I think that's why people like the safety of gold and silver. Well, this is what I was talking about in the first segment, where these companies, there's a lot of layoffs of high-end jobs. And the reason that they're doing and they're pairing down is because of fees, whether it's unemployment, Canada pension, pension plans, health care, which the company is paying. Now, if they get rid of some of those costs, they can start showing better profits with less employees. And that's what they're doing. So, when you look at gold and silver, you look at inflation, I won't mention the person's name, but there was a lady that came to one of us to the seminar last night, and she's got an RSP, over $400,000 in an RSP. It's in a fixed RSP plan. She's getting less than $300 a month interest on $400,000. That's three-quarters of a percent a year. The bank is probably taking two points, and she's getting three-quarters of a point for having $400,000. It doesn't make any sense. And now we say this, she's not keeping up with inflation. The government say there's maybe one percent, two percent inflation. These people don't go shopping. They don't put guests in their car. They don't pay insurance. They're all freeloaders. Anybody that works for the government gets a pension plan. You become an MP. You work four years. You've got a pension for life. What do they know about reality? It doesn't make sense. It does make sense because really high debts, you get to a point where you can't pay them down anymore. And all you can do is service them. So, the best way to service them is to have low interest rates. So, which means anyone who's a saver is losing. That makes perfect sense. And the only way that you can avoid that is to say, "Okay, I'm either going to take a risk, which is what they want you to do, put it into the stock market and hopefully get the wealth effect," or you've got to put it somewhere where we've seen this trend change right there and over the last five years. People are not, "Well, how much money can I make? How am I going to protect what I have?" Yeah, I want to make money. But my first priority is I don't want to buy this and tomorrow it goes down to nothing. And I think with silver specifically, you've got this commodity that is already at a low in the market. You've got production down. We're just looking at a chart here in between Australia and Canada down over 30%. I think the first half of this year, you've got shortages in the market. You know that the market's got to change so that the mining can start coming in and actually produce some product here. So it couldn't be a better point to buy in, in my opinion. And of course, there's shortages in the market. But if we want to complain that we're paying a premium or there's an exchange rate, that's all well and good. But if you don't have it, it's tough to complain. So I think the idea here is that you want to get some in your portfolio because I'll tell you another thing. I could do a, I could cross section a whole bunch of people who've purchased precious metals in the last couple of years. And I would have a tough time finding anyone that could remember the specific price they purchased. Because once you've, once you own it, you don't really care what you bought it at. Yeah, there's price ranges, et cetera. But you think about how much you have. Not did I get it at this price or that price, it's I've acquired it. And that's what matters. I mean, I can't tell you my last little point here. Every single time I've ever purchased gold at dropped every single time. But I can tell you, I know I'm well ahead on it. 18778 silver online to guildhallwealth.com, dare to expand. Well, what I was going to say is just touching on Jeremy's point, this is the identification of of a trend. And if you know something is trending, we've talked to several analysts, one of which is Gerald Solente on a regular basis. And of course, trends are important. Trends make money, John. We're not here advocating as financial planners or advisors. That's not our thing. We don't do that. What we're saying is that if you want to fine tune your investments, then look for ways to take advantage of trends. One trend that Jeremy's identifying clearly is that there's going to be continued shortages based on the lack of mining that's happening because mining stock prices have plummeted so low over the last three, four years that companies cannot afford to keep going on. No, we don't need to look any further than Glencore this week. It's a massive huge problem. And it dragged the world markets down because we're acknowledging that these companies have big debt. And what do we see? We see a resurgence of what happened prior to 2008, which is the company publicly announced that they're going to forward hedge their mining. Selling product that's in the ground. Absolutely. And what's going to happen? They'll sell it at, let's say, you know, fourteen, fifteen hundred bucks an ounce or thirteen hundred bucks an ounce or close to what? Spot prices on gold now. And then three years from now when the price is double that, they're going to be losing the shirt. It makes you wonder if that's kind of what the banks were looking for. Well, you never know, right? That they could start to get that forward selling happening again, where they can acquire that product at a much cheaper price. Well, that's what happened with Barrick. I mean, Barrick was hedging their gold for the longest time. And, you know, they were hedging while it was going up to 1900. They had hedged at five and six hundred dollars. They were getting killed. When they stopped hedging, all of a sudden the price came back off again. You know, we sometimes believe that this market is manipulated. It's hard to prove yet, you know, we watch the markets, we watch the paper market being traded. We see that there is no, you know, silver right now should be trading twenty-five to thirty dollars. Gold should be thirteen hundred dollars. And yet we're trading, you know, fourteen, fifty and eleven, fifteen, eleven, twenty-five. What's been traded every day is paper, paper and paper. At Guildhall, we only sell physical product and this is going to save you. It's going to save your capital. We don't sell any securities whatsoever. We're not in the stock market. We don't sell equities. We don't sell ETFs, which is another equity, which you always look at it and the price of an ETF is much lower than the cost of physical silver. Why? Because it's a paper trade again. You look at certificates, paper. You look at futures, paper, options on futures, paper. At Guildhall, we sell you the physical product. You can buy it directly from us from our e-store, take it home, bury it in the back garden, put it under the bed, under the mattress, a little lumpy, if that's what you want to do. You can put it into our depository, which is safe, secure, allocated. We can even give you the bar numbers. If you want to go one step further and use your pension plan or a registered plan, whether it's an RSP, a TFSA, et cetera, et cetera, you can put gold and silver. We are teamed up with Questrade. They are the custodian of the product. We do all the buying and selling on your behalf. The product is kept safe in a safe, secure depository in Ontario. You get bar numbers with every purchase. It's secure. It's allocated. It's segregated. It's insured with Lloyd to London. It's out of the banking system. How smart you need to be to understand that this is a great, great investment. You can put gold and silver. We buy basically all the product we sell is LBMA approved. It's Royal Mint product. It's not phony bars or bars that come from China or anywhere else. We have the integrity of the bar. It comes directly from the manufacture of the fabricator, like Royal Mint. It's in the depository. It's then transferred into your account. You want to sell it. It can be sold on a phone call. It's very, very easy. Give us a call. Get into the market. This is a great time to be thinking of your future, to be thinking February and February is not that far away now, to be able to put some money into your RSP. Once a year, you can put into the TFSA as well. Do it now. The prices are really, really incredibly low. My prediction, I think you're going to see $18 to $20 by the end of the year on silver. Maybe more, because when there is no product, paper is being traded. Sooner or later, there's going to be a short squeeze. What that means is that people that are trading futures will say to their contract, "I want to take delivery." Well, once you take delivery out of the market, there's less for them to hypothecate. They're trading about 130 times product of the comic trade now. It's dangerous, very dangerous. You need to have that physical product in your hand, not promises, not vaporware, not metalware. You need to have the physical product. Tell me about the new website, Jeremy. We have a new website dedicated to the registered accounts. It's guildhallrsp.ca. You can go and learn all about the registered account products, how it works, what's involved, and get more details on that. So, again, it's guildhallrsp.ca. If you'd like to learn more about that, you can just click on the link there and give us your name and your phone number, and we'll get back to you and teach you even more about how this would work. How you'd go about transferring from one RRSP to another. One of the biggest questions we got yesterday is, "I'm holding an RSP with an institution, not with who we've teamed up with in Questrade. Can I move what I currently have?" Absolutely. You can move an RRSP from CIBC to TD. You have to fill out some forms, and you can transfer your own holdings, or the cash, whichever you prefer. You can do the same thing here. Your funds or whatever investments you're currently holding in an RRSP with another institution can be simply transferred over without having to take it out of the RRSP or the registered account and inflict any penalties that would be there. So, whether you're depositing funds directly into a registered account, like a TFSA or an RRSP, or whether you want to move them from a current institution, we can help you with that. And that's probably one of the FAQs on the new website, which, again, is guildhallrsp.ca. 1 8 7 7 8 Silver Online to guildhallwealth.com. Check out all the options. Plus, you've got the East door in the top right corner as well. Natural fancy-colored diamonds is where we're going to go in the next segment. So, hang on, Real Money Show Talk Radio, AM640. Back with more of the Real Money Show, 1 8 7 7 8 Silver Online to guildhalldiamonds.com. I want to remind you off the top that there will be a natural fancy-colored diamond seminar. Saturday, October 24th with Guildhall Supreme Luxury Event Center will be in Vaughan. And you want to go to guildhalldiamonds.com to register from that goes from 11 a.m. to 1 p.m. So, get on that as soon as you can. Let's talk diamonds, Paul. Yes, let's talk diamonds. We had a lot of people show up last night for the seminar, and it was just for the RRSP and basically the TFSA accounts. But it's amazing how many people are now asking us about diamonds. Jeremy and I will be going on Monday to New York. We are going to the Argyle tender, which we're really, really excited about. The last one we went to was two years ago when we went to Hong Kong, actually to Kowloon. If you need someone to carry your bags, I'm right there, my friend. Well, we're in and out on Monday, but we're actually got two visitations to the tender. We've got one in the morning and one in the afternoon, and we're going to bid on a couple of stones. We've already done our homework, and we expect that we're going to have to pay maybe 30, 40% over what the prices were last year. But we're excited because there's 10, 11 stones that are VS quality in this tender that we're going to bid on a couple of stones, and we've got a couple of clients already that want to partner with us to buy one or two of these stones. On a whole, if you look at the pink diamonds, they have gone up in the last 10 years, and this is from auctions. This is from wholesalers. This is from dealers. They've gone up a price of 361% in 10 years. Now, that sounds absolutely ridiculous. 361% in 10 years. How many investments do you have out there that have gone up 361%? I know in the stock market and some of the penny stocks and some of the mining stocks, you've lost 361%. In the last four years or five years, investment diamonds, natural fancy colored diamonds are probably the best kept secret of investors that know what they're doing. Investors that are really, really savvy. 10 years ago, you could have bought a one-carrot fancy vivid internally flawless stone for around about $12,000, $14,000 max. Today, you're paying anywhere from 40,000 to $45,000 upwards for one of these stones. A guild hall, we sell the finest of the finest investment grade colored diamonds, and the reason that we go for the best is because the best is will always go up. It's like real estate. It's location, location, location. With natural fancy colored diamonds, it's the color. It's the clarity. It's the carrot weight, which is more important. And finally, the cut, which brings out the fire and the magnificent colors that fly off the diamonds. You can get into an investment of a natural fancy colored diamond for $12,000, $13,000 for a one-carrot fancy intense yellow of unbelievable quality, even saturation. Now, when we talk about saturation, even saturation, it means the diamond is saturated fully throughout the diamond. It's not patches. It's a fully saturated diamond. The cut is very important. So the table, that's the top of the diamond, has to have a certain dimension. The depth of the diamond has to have a certain dimension. If those dimensions are not in order, the diamond, even though it could be internally flawless, does not have the same value as something that has the real true dimensions. Carrot weight, when you're buying a yellow diamond, you need to buy a carrot or more. That is investment grade. If someone talks you into a half a carrot in a yellow, that's not an investment. It will go up maybe three, four percent, but a carrot or more will tend to go up minimum, even in a fancy, eight to 10 percent a year. In intent, you're looking at 14 to 18 percent a year and a vivid, which is the highest class of a diamond of saturation. That could go up anywhere from 20 to 35 percent a year, according to the size of the diamond. Pinks are another story. If we look at the Argyll mine in Western Australia, that mine produces 90 percent of the world's pinks, yet it's only one tenth of one percent of their total production. Most of the diamonds that come out of that Argyll mine are small. Less than 18.18 is really melee. It's not an investment. 18.18 is the start of a size of a diamond to invest. We normally sell a quarter of a carrot and above. To us, that's a little better investment. But most of the diamonds that come out of the Argyll mine are small diamonds, a third of a carrot, half a carrot. When you start getting into larger sizes, you're going to pay huge premiums. We only sell V.S. quality, which means it's very slightly included. Pink diamonds naturally have inclusions, but they have multi-inclusions. We don't sell S.I.1, S.I.2, I.1s. They have lots of inclusions. For us, they are not investments. What we do at Guildhall, we go out and do the hard work for you of going and picking out these diamonds that we think and know will go up in price and will make you a great, great return of investment. If you're looking to retire, whether it's 10, 15 years down the road, whether it's looking to put your kids through university, what a great way to be able to put something aside that you know that's going to go up in value. If you put $50,000 right now into a pink Argyll and you're looking over 10 years, a 360% increase based on the last 10 years and the mines closing up in 2018 and there's less pinks out there today than it was 10 years ago, it could go up 500%. So a $50,000 investment could easily be worth $175,000, maybe a quarter of a million dollars. If this is the investment that you're looking to make, if this is the type of money you're looking forward to, to put your kids through school, to ease that burden, to retire, having to know that you've put in, bought a couple of diamonds for $100,000 that are worth easily a half a million dollars. What a nice way to go. 18778 Silver and online to guildhalldiamonds.com. Jeremy, speak a little more to the rarity of Paul Mitch and the tender. How many diamonds are you looking to have a look at while you're down there? The tender is always less than 60 diamonds. Out of that, you might have between five and 10 that are maybe a carrot or higher, which are very, very expensive and could even include a red diamond. So diamonds that have VS quality are better, so very slightly included or better. You might have in the range of maybe 12 or give or take. We're talking like a teaspoon of diamonds here, right? Yeah, that's right. Yeah, it's a shot at at between give or take 12 diamonds a year to of that quality. And of that VS quality, again, which ones are maybe over a carrot out of most people's budget, only the fortunate few can really get that. And then there'll be a couple, maybe the shape isn't so great. So we won't notice won't necessarily go for that. So you for us, we tend to bid on three or four of all of those diamonds. That's it. That's it. And then you can you can comfortably start 30% higher than you did last year, but you don't know if that's going to be enough. And the reason why it's always 30% over year over year is because anyone who's bidding on a tender diamond knows they're going to get their money back. They know that it might take a year or it could take six months. It doesn't really matter if that's money in the bank for them. So everyone's willing to start at a higher level every year and knowing that the mine, you know, I know they've kind of moved the date of the clothes because mines can, you know, they can try to squeeze a little more juice out of out of that. But at the end of the day, the the mine's been in production since I believe the earlier mid 80s. And it only has a couple years left. They're saying maybe 2018, 2020. The cost of production goes up. So you're getting less return. So you're only looking at a few more tenders. And if you take the number of tenders that they've already had and you consider the 50 diamonds a year, you're at a very, very low number. And the people who can own a tender diamond are any tender diamond, sure, you're fortunate for us. We want to stick in the VS range to sort of really keep that quote unquote investment grade criteria. And so this is extremely rare. And outside the tender, we might get a shot at maybe what another, let's say 15 to 20 of those diamonds a year that maybe are outside the tender that they recut into VS quality that they can try. Well, the concern is where the ones that say four out of 60 diamonds are Guildhall quality. Should I be concerned where the other 46 are going and running into them? Not because the what happens of the our goal tender, they put in the best of their color. First, when you're buying an actual fancy color diamond, the first thing that you're looking for is color. These are the top color diamonds that are produced out of that mine. So whether they're VS or whether they're SI1, SI2 or I1, there is nothing wrong with a diamond because that you're buying purely on color. The inclusions are natural. You know, you don't go out and put all these inclusions in, you know, they're natural. They happen. It's a factor life. The reason that we have to bid 30, 35%, 40%, more on the diamond, as I said to you previously, pink diamonds over the last 10 years have gone up 361%. You know, we spoke last week about a stone that was going into auction in Geneva at a ridiculous price. It was a 16 or 18 carat pink diamond. We expect to pay 30 to 40% more for the diamond where we are right now handicapped is on the currency because a diamond that we would have paid last year, say for example, $300,000 and the US dollar was par with Canadian, today we're paying $400,000 for that same diamond. So that 33, 34, 35%, you know, we came down one and a half points or whatever it was on the dollar since yesterday. Let me just double check while I'm talking. Yeah, we're at 1.26, 1.326. So, you know, it's still, you know, you pay the difference by 1.34 on that, on that diamond. So, and then for someone to buy that diamond from us right now in Ontario, not only do we have to put a little bit of profit on, then there's 13% tax. So, for somebody in Canada to buy a tender diamond, they normally know that it's going to, they're going to hold that diamond for five, 10 years. They're going to make a ton of money. So, whatever they're paying right now on currency and whatever they're paying on sales tax is going to be a pittance when you look at a diamond that you buy for 300,000 is easily going to be worth a million dollars in 10 years time based on that. We have a client that bought a red diamond from us, which was my diamond, which I hated to let go three, four years ago. It was a 0.48 red pear shape. When we sold that diamond, it was appraised three years ago at 475,000. I spoke on the show last week. We just had it reappraised for the client, 1.1 million in three, less than three years, that that diamond has gone up and it's a 0.48. Now, the client can virtually double his money, which I spoke to him this morning in actual fact. He's interested in selling it, but he wants $500,000 for the diamond and he's paid nowhere near that for the diamond, but because it's 1.1 million, that's what he's looking for. This is the type of returns that you can expect on natural fancy color diamonds. If you're interested in a diamond call us, we can set up an appointment, you can view some diamonds, we can look at your budget, we don't test anybody's pocket, or come to our seminar. It's on October the 24th, between 11 and 1 o'clock. It's in Woodbridge. It's entertaining. You'll learn something about the investment. Again, this is a great opportunity for you to make an investment for your retirement, for your kids' education, sit back, not worry about it, put it in the safety deposit box. I put it in somewhere safe. I'll put it into a piece of jewelry, get the pleasure of wearing it, but you're going to make nothing but money over the next few years. 18778 Silver, and as Paul mentioned, guildhalldiamonds.com. That seminar is Saturday, October 24th, 11 a.m. to 1 p.m. The Supreme Luxury Event venue in Woodbridge Natural Fancy Color Diamond Seminar. Go to Guildhall Diamonds to register and get more information, but you got to register early, so do that at guildhalldiamonds.com. And back into the Real Money Show, 18778 Silver, online to guildhallwells.com, the Investor Kit, the Precious Metal Advisor, your RRSP, RESP, TFSAs, all these things, these tools you can use to start investing. You got the East Store in the top right corner, and I'll remind you once again with the Natural Fancy Color Diamond Seminar. It's happening Saturday, October 24th, 11 a.m. to 1 p.m. The Supreme Luxury Event venue. That'll be in Woodbridge, Guildhalldiamonds.com. Get on there early. Seats are going quickly. You want to make sure you register as soon as you can. Let's take it home for this week. Darren, give us an update. Well, like we said right off top of the show, John, this week has been a bit of an up-down week for silver and gold. Nothing really major to talk about in terms of price, although as we record today, buyers are getting a little bit of an opportunity as the price dips slightly. On what news? One can only guess. I mean, with respect to the fundamentals, they all stand there in check. They all make sense to me. We do expect the US dollar to continue to weaken the long term. We do expect inflation. We touched on it in the second segment today's show to continue to creep its way into the marketplace, despite what people say in the mainstream media about there being very little or no inflation. I look at things that are really simple, and I want to touch on that again in a minute. We expect there to continue to be geopolitical instability around the world. And last but not least, we spend a great deal of time today talking about the rationing that's happening around the world. Now, let's not mix words. By rationing, we mean shortage. There is an outright shortage of gold and silver. In some respects, gold not so much as silver, but if you look at the mints from the Royal Canadian Mint to the Austrian Mint to the UK Royal Mint, the Perth Mint and the US Mint, they all have rationing happening now in their coin programs. This has been going on since July, and part in parcel with that is what Jeremy was talking about in the second segment with respect to what's happening in the mining sector. In the mining sector, we've seen a full blown attack on all mining companies. They've been for the last short while, give or take about the last year, the easy or low-lying fruit for the trading industry, and boy, oh boy, whether you have cash in the bank or whether you're highly leveraged and in complete debt, it seems that traders out there just take advantage of it. This week, we heard, as we mentioned earlier, Glencore in the European sector having some real big major concerns. The British company is not looking so good this week. They had about 20 billion pounds worth of debt. They've had to refinance their forward hedging, and they're going to be selling some property in the agricultural sector that will hopefully generate some return on there. So, they've seen a bit of a rebound during the week's end. But again, the fact that mints are struggling to keep up with silver coin demand, that's giving us a trend. A trend is in place. We've been talking about it on the show for a number of weeks. And these are all reasons why as an investor, I like it buying up what is trending towards being higher in price. And we're talking about silver, gold, platinum, palladium, the precious metal sector. This will not last much longer. You will not see, in my opinion, a marketplace, which continues to be depressed in price, despite what we're seeing happening behind the scenes. Because eventually, and Paul talked about this as well today, too, you must understand the difference between paper and physical. What we do at Guildhall revolves around the physical asset. When we store the product for the client, it's product that can be touched, held, seen, picture, photograph, whatever you will, it's product that can be sent home. You can take it and put it in your own safety deposit box or your own vault. It's product that can be put into an RSP or an RSP registered saving plan of any type. And this is product that can be touched, held, felt. And the other thing that we did not touch on today's show is the importance of understanding that you as a client have a role to play in helping the price go higher. You as a client are being challenged every day when you're thinking about buying silver and gold in the ways you can do it to find something that actually assures you're taking that ounce out of the marketplace, John, so that myself or Jeremy or Paul or you can no longer get that ounce. When I invest in paper, the problem becomes is it hypothecated? Paul said earlier in the show, the comics inventories prove to us beyond a reasonable doubt that at times during this month, we've seen as much as 200 ounces on paper for gold to every one physical ounce that's available. Now, that condition tells me there is a way huge leverage position there on paper versus physical. At some point in time, common sense will prevail. We will see a reversion back to regular supply demand fundamentals. And that dictates that if you see something that's undervalued, such as silver right now, flock to it, own it, buy it. And these are all reasons why we want to get involved in the marketplace. Well, when they announce, you know, on the radio that such and such gas is going to drop down two cents and then you see lineups. You see, like people, you know, lining up to save a dollar or two dollars on a tank of gas. You know, we're looking at gold and we're looking at silver and we're telling you it is undervalued. We're telling you that there is no inventory physical product available from the mint. We're telling you from the, from the Perth Mint, from the US Mint, people, the public, Joe public, are buying the coins. I mean, there was a rumor out there that even JP Morgan and HSBC last month bought a ton, a truckload of US eagles, silver eagles and took it out of the market. Why are they taking it out of the market? Because they know the prices are going to go up and then they release them down the road at a much higher price. And I believe that they would have got the first delivery of the product rather than some of the dealers that sell to us or anybody else. This is a great opportunity to own physical gold and silver. You know, in the earlier segment, I spoke about layoffs in the US, pink slips that are being handed out. Again, there was over this year alone, there was 493,000 pink slips and we're only up to the end of September, three quarters of the year, 493,000 pink slips. Last year alone, total, there was only 205,000. So we've gone over 100% more in nine months of job layoffs, yet the US say we created 200,000 jobs this month, last month, but what type of jobs are they creating? Jobs for $8, $10 an hour, part-time jobs, jobs that don't give benefits, jobs that don't give pensions, they are poor, poor jobs where people have to have two of these jobs to make a living. It's the same thing when we talk about the price of oil, always trading at $45 a barrel. You know, what the consensus is, is that at $45 a barrel, it's so cheap. Why is there a glut? Because you've got people like Saudi Arabia, if it's $45 a barrel, they're going to produce twice as much because they need the money. So twice as much is like getting $90 a barrel. And so are all the other Arab countries producing twice as much. You've had a ride, a cheap oil for about a year, year and a half. That is going to go away. When reality kicks in, and inflation kicks in, I can easily see oil going back to $80, $90 a barrel, permanent. Because once the price gets up there, the production is going to get cut off. 1 8 7 7 8, silver online to guildhallwealth.com. Talked about inflation, Dan, why is this? Why is such a big deal? Well, it's an important deal, John, because inflation is the silent killer of wealth. It takes and robs us of our purchasing power, and what we could buy today will not be the case tomorrow, even when interest rates are this low. And I'm not talking about what the media heads and all the press the tutes, as Gerald Slenthey refers to them so affectionately, are talking about. I'm talking about things that we buy every day, John. Look at a big Mac. If you look back to 2006 prices, do you realize a big Mac has gone up 54%, right? I mean, that's that's simple. That's what people eat every day. And we're looking at other things, you know, look at expanded basic cable TV rates. Since 2006, up 55%. Who doesn't complain about their TV bill being too high? That's above and beyond what is normal or average, because they say it's better, or there's a HD service, or there's something added on a value. These are the little things that my people that invest with our firm that they care about. I want to tell you something. I watched, you know, not an avid follower of too much in the way of social media, but I saw a posting the other day and I thought, I'm going to do my homework on it. A friend of mine posted this picture and on it was a little bit about inflation in particular. And it said in 78, 1978, I made $10 an hour installing air conditioning. I had a brand new four wheel drive truck that cost 6800. I rented a two bedroom house for 300 a month. Gas was 60 cents a gallon in the US and food and insurance was fairly cheap back then. Now, if I fast forward to today, that $10 an hour installing air conditioning job, do you know what it pays? $17 to $20 an hour. The truck that cost 6800 back in 1978, a same comparable truck today cost between 30 and 40,000. Okay, that's five to six times more than what it was back then. That house that was $300 a month is now on average 1400 a month, which is six times more and gas four to five times more expensive than it was back in there. Food and insurance are almost seven times higher. And you're telling me there's no inflation. You're trying to pull the wall over my eyes. Forget about it. That's why we own gold and silver. That's why Guildhall is in the business of owning physical gold and silver. And that's why we will remain in that business. If you are a listener and you want insurance for your wealth, come to our firm, call us get the physical gold and silver. And one of the big questions we got at the seminar, of course, was about premiums in the market. Premiums are rising, but the price of silver and gold is still very, very low. And even with premiums in the market, to be able to purchase gold and silver within your RRSP, we've made it available to investors to be able to buy it for the same price as they would outside the RRSP. And we can tell you more details about that if you give us a call. But please check out the website as well Guildhall RRSP.ca to find out more information about holding physical metal in your RRSP. And on a sad note, somewhat somber note, I just wanted to pass along our condolences to the Snippman family this week. He's one of our own at Guildhall, a good dear friend of ours. And unfortunately, he lost somebody very close to him. So we want to send out our condolences to him and his family and entire family service was held this week. And again, we're very sorry for his loss. We'll wrap it for another week, guys. The numbers one eight seven seven eight silver online to Guildhall wealth calm final reminder that they're well final for this week. Anyway, a natural fancy color diamond seminar is on the way Saturday October 24th from 11 to 1 p.m. It'll be the supreme luxury event venue that's in Vaughn Woodbridge. You want to go to Guildhall diamonds.com to register do it quickly because space is rapidly depleting for that particular seminar. That'll do it for another week here on the Real Money Show on talk radio, AM 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. 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