The Real Money Show
The Real Money Show - September 24th 2015
- And welcome to "The Real Money Show." You know the number by now to start investing very simple, 187-7/8 Silver online to guildhallwealth.com. While you're there, you can click on the E store in the top right corner to start investing from home. You can use your RRSP, TFSA, and all kinds of different secured funds to start investing. We'll have more details in that later in the show. I know Jeremy and Paul want to expand on that as well. Want to mention this, seminar coming up. There's still some room for this one happening from 7.9 p.m. on September 30th. The place is young and Finch, the Questrade headquarters. You've got to sign up for this one before the space gets full. So go to guildhallwealth.com for more details on how to sign up and get your spot locked in for that one. And guys, in just a bit, we will get to and we are thrilled to have David Morgan back on the show, a world-renowned precious metal guru. Back in "The Real Money Show," he'll be talking at length after probably a third, second, third, and fourth segment of the show today. So we're looking forward to that. But you've dug out this amazing, amazing statistic, Paul. We often talk about the $18 trillion of debt that the state's everyone's, well, how much money's out of our stack it up or look at it, how much is it? Nobody understands what $18 trillion looks like. Right. In actual fact, Obama has increased in the last, basically, six years, the debt by $12 trillion. It was at $6 trillion. Good job. But let me give you an idea what a trillion dollar really looks like. Not $18, just a trillion. Just a trillion. OK. If you were around in when Jesus was born, as an example, and you spent $1 million a day, $1 million a day. That's a lot of money back, $2,000 a year. A lot of money now. But $1 million a day, you still wouldn't have paid off that trillion dollars. That's $1 trillion. Since Jesus was born, a trillion dollars a day. No, you spent $1 million a day. A million dollars a day. You couldn't have spent the trillion. That's a lot of communion. So how in the world is the US going to pay off $18 trillion that they owe? The biggest holder of treasure is people believe it's China, it's Japan, it's the Fed. So it's the right hand given to the left hand. So you wonder why they would ever raise rates on themselves? Well, that's one of the things. I mean, last week, we recorded the show early Thursday before the Fed Chairman, Chairperson, said that there was going to be no interest rates. That affected the stock market. It affected the European stock markets. It affected definitely China's markets. Gold and silver moved up nicely on that report, because if there's no interest, gold and silver always goes up. It's a hard asset. It's been around since biblical times. And the ratio between gold and silver and biblical times was 16 pieces of silver to one piece of gold. So in fact, that's 16 ounces of silver to one ounce of gold. We're trading right now at a ratio of about 75 to 1. And Jeremy spoke about this a couple of weeks ago. We've been-- a couple of times we've been back in 1979-80. The ratio went back to 16 to 1. Silver was at $2 and went to $50. Gold was in the range and went to about $880. But silver was trading at $52. So there's the 16 to 1 ratio. We believe-- and I'm going to make a little bit of a statement here-- that I think silver by the end of this year could easily hit $20, possibly more. I am looking for $1,300 gold. I think it's very, very easy to get to these numbers. Most of the currencies round the world of every one of these currencies have depreciated against the US dollar. The US dollar is the best house on the worst street. It's as simple as that. Why should their dollar be so strong? I had a conversation with my wife yesterday and she was-- I was trying to explain about oil. Oil is $45 a barrel US. What the US government has done is may put more money in everybody's pocket by keeping the price of gasoline down. They've increased car sales. Because would you be buying an SUV or a pickup truck if oil was $100 or $150 a barrel? The answer is no. It's a false economy. So what I'm looking at is silver and gold to move up is very undervalued. One of the things I'm also looking at is the back orders of gold and silver right now. We've been back orders since July 13th on a lot of product from the Royal Men. 10-ounce bars impossible to get. One-ounce maple leaves, silver maple leaves, impossible to get. 100-ounce bars, you can go to the largest bank that sells gold and silver. They have got out of stock on 100-ounce bars. We've been able to fill our orders because of the amount of product we buy. But I've got something from an article today from the demand on gold and silver and there is premiums. Now they're charging, there's an example. This is just gold alone. Perth-mint bars, 3.75%. And there's a few in stock. General gold bars are up 4% as a premium. That's not including commissions or spreads. That's just a premium. If you're looking at buffaloes, for example, gold buffaloes are up 5%. Gold sovereigns are up 8.5%. These are premiums. This is what they're just upping the price. Silver bars generic. And this is the crazy one. This is even, it may not even be LBMA approved. That's the London bullion market exchange. 9.5% premium on average. Delivery anywhere from 4 to 8 weeks. 1,000-ounce bars as a premium of 5.5%. Silver eagles, US men, 35% premium. That's what you're paying for silver eagles. And silver maple leaves as much as 25% premium. What does that tell you when paper is being traded and silver's trading as we speak today, and we're recording this show at around about 1 o'clock on Thursday, silver's trading at 15, 16. And gold is $1,153. I really, really believe that these prices are going to go because there is just no product out there. Now at Guildhall, we offer physical product. We don't sell paper. We don't sell ETFs. We're not in the equity business. We're definitely not in certificates, which is paper again. We don't sell futures or options and futures. It's just the physical product. You can go to our e-store, go to our website, guildhallwealth.com, right-hand corner. You can buy physical, gold, silver. It's available to you to take home. You can put the product in our safe, secured depository where the product is allocated to you. Again, we try to have a minimum amount where it's a 500-ounce silver account to put into the depository. And we're actually offering all new clients till the end of December, no storage fee. Now the storage fee is 1.3% a year, which is around about 1/10 of 1% a month to store and ensure your product. You can't get insurance that cheap. It's insured with Lloyd's in London. The other thing that we offer, which we've been doing dynamite business, and I got to congratulate all the clients that put their money into a TFSA or an RSP this week and last week because you bought product at a great price, that's the first thing. But it's a safe, secure, and we're partners on this. The custodian is Questrade. And we have a seminar coming up, John. Why don't you give the information out on that? - Yeah, September 30th is the date of that seminar young and Finch from seven to nine. You want to go to guildhallwealth.com to register for that before all the seats are taken, information you're going to want to need, right? - Yeah, and the seats are virtually taken. So if we do get overbooked, we are going to be putting on another seminar, but again, it's very, very hard to book the times and get everybody in. The thing that we're excited about myself and Jeremy is the Argyle tender. - Oh, yes. - Now this is from Rio Tinto. We have been invited to-- - It's our time again already. - Yeah, wow. - We've been invited to New York. It's a special invite to view the tender diamonds. There's about 55, 60 diamonds this year. There's only about 10 or 11 VS quality. We have a, Nicole has put together some information on the Argyle product and the Argyle tender. And we have some Argyle diamonds on our website that are just absolutely stunning. But we expect on this tender, the price is to go through the roof. - Yeah, I wanted to talk about this report that Nicole's put together because anyone who's been listening to this show for a while knows, we keep talking about this Argyle, Argyle. And then we talk about the tender. We talk about the tender. This report tells you about what the impact it has for investors, how connoisseurs approach this Argyle tender, what's in it this year, what the expectations are. So how this really affects the overall, not only the diamond market, but specifically the pink diamond market and how if you're looking at an alternative way to invest your funds, how this could impact your portfolio in a very positive way. - Well, the other thing is as well, there's a huge auction coming up. November the 10th at Christie's. This is in actually in Geneva. And they've got a pink vivid diamond the size of a postage stamp. - That's huge, right? - Yeah, well, they're expecting to bring, it's actually 16 carat, 16.0 carat. - So yes, it's big, especially for pink diamonds, that's massive. - For a pink. But the estimated they're gonna bring is $28 million US. The fancy vivid grading means that the hue is the purest and the strongest saturation. The color is even and shows no trace of secondary colors. Now, some pink diamonds have hues of orange and brown or gray or purple. There's nothing wrong with a purposefully pink, trust me. It's a great, great diamond. But this diamond is a pure pink. Christie's described the seller as a US client who purchased it about 10 years ago as an investment. They're gonna make a ton of money on this. A smaller 8.72 carat diamond, the same shape and fancy vivid, pink grade sold for 15 million, almost 16 million in Geneva in May. So that gives you an idea. - Sorry, how much is it as it expected to go for? - 28 million. - 28 million. - So, and they said that he bought it 10 years ago. So Paul, what do you figure he actually made, maybe paid for it 10 years ago? - He probably had about between four to five million. - Yeah. - And your anniversary's coming up, I'm just saying, Jerry. - You know, I just had a diamond reappraised for a client who bought it five years ago. This is a yellow and between what he paid for it and what it's currently going for, those type of diamonds was comfortably in the mid 70% range, which is stunning. And I actually was talking to a client who wanted an update on just a one carat fancy that they'd purchased literally a year and a half ago. And he was looking at exactly what we've said, an increase of approximately 6% a year. So he was up about 9% so far in the past. - So he's getting close to just taking care of the tax, which is nice. Then he can start really making gravy, right? - Yeah, exactly. I mean, at the end of the day, look, the way this market goes is extraordinary in terms of the increases in value. One has to appreciate, especially in Ontario, they have to pay 13% tax. So you do have to overcome that. But if you're holding it long term for the purposes of increasing your net worth and increasing value in your portfolio, it's doing its job. Sometimes within a year, it's beaten that tax. And then of course, the longer you hold it, you start to catch up on the gains every year and then eventually you're compounding it as well. So it's such a great market to be a part of. And I always feel that sense of kind of like a roller coaster without the drop of just, it's getting higher all the time. You know, that feeling of just constantly climbing? That's what this market's like. - Well, the strange thing is, it's not strange. When you go to our website, give it all diamonds.com and you look at our alcohol pinks. I really don't care whether I sell the alcohol pinks or whether it sits in my inventory 'cause I can tell you right now, the average price, and this is from the statistics on pink diamonds. In the last 10 years, they've gone up 361%. We just, as Jeremy said, he had a value to diamond, a yellow. One of my clients purchased a red diamond. It was my favorite diamond. I never ever wanted to sell it, but I did about four years ago. When we sold it, the diamond was appraised, I think for about 450,000, it's a 0.4, right? - I remember that diamond. - Red, we just had to re-appraise for the client. 1.1 million dollars. - On. - The wholesale price on the diamond is $900,000 US, a cara. Wholesale, which if you can even find, this is a VS diamond. So, you know, reds, obviously, and pinks, you've got to put a little bit more money out to make money, and this is what this auction is. They're expecting 23 to 25, 28 million, or whatever it is. I think this diamond is probably going to go closer to $40 million, and the reason for it, look around the world, look at the markets, look at what's happening, how everything is collapsing. You need to be in hard assets, and a diamond, especially a vivid, or an Argo diamond, a pink diamond, a yellow diamond, if you go to our website, look at yellows. We have nothing but internally flawless yellows on our website right now. Hardest diamonds in the world to find is internally flawless. In the pinks, we have VS. Pink diamonds don't come internally flawless. They normally come SI1 and SI2, which means there's a lot of inclusions. We go for the quality, we look for investment grade, we bring these diamonds to you, we estimate, you're going to make an awful lot of money, but you're going to have to hold. It's not day trading, you don't day trade your house, so why would you need to day trade a diamond that's going to make you a ton of money? The guy that wanted to sell the, that bought the diamond, the red, he was happy to sell the diamond for $400,000 to me last month, but when it went up to a million won, all of a sudden he wanted $5.56. So we know these diamonds are going to keep on going up. It's a great investment. Call us, every appointment is private, it's confidential. We will hold your hand through the process, we will educate you. Call us for the Argyle information on the upcoming auctions. We, like I said, myself and Jeremy are going to view the Argyle tender. We're going to definitely try to buy four or five diamonds. We've already got our eye on a couple, but last year we bid on four or five diamonds and we didn't get one. The year before that we actually bid and we got three. So we know what we're looking for, we're looking for the quality, we're looking for the best, and that's what we're going to bring you, and this is one of the best investments that you're ever going to make. - Guildhalldiamonds.com is the website to check that out. We're going to take a short break and get back with David Morgan. Our interview will begin after a short break, 1-8-7-7-8, silver online to guildhallwealth.com, precious metal advisor, east or top right corner, and the seminar happening on September 30, 7-9 p.m. It'll be the quest trade building at Young and Finch. Go to the website and register for the few seats. That remained for that one. The real money show continues, talk radio, hey, I'm 640. And back into the real money show, number to start investing 1-8-7-7-8, silver online to guildhallwealth.com, the precious metal advisor, the investor kit, RSP, TFSAs, all kinds of different ways to start investing, and the east or the top right corner of the website as well. There will be a seminar, this is happening on the 30th. It'll be at the quest trade headquarters, Young and Finch. In North York, 7-9 p.m. You'll want to register online for the few remaining seats, information you're going to want to get to begin investing in precious metals as well. Got to thank and we are thrilled as well to have David Morgan back in the show, the world renowned precious metals guru to the real money show. You'll want to get ahold of David at any time during the interview or afterwards. Very simple, come to different websites, you can try triplew.silver123.net and triplew.thesilvermanifesto.com. - Well, we want to welcome back to the real money show, a friend of the show, David Morgan, these silver guru, how are you doing? - I'm doing well, thank you. - Great, David, before we start, I want, if you can, talk a little bit about the book you have, as well as getting into this video about the Argentina currency crisis. But let's first let the listeners know about the silver manifesto. - Well, silver manifesto is a book that was written by myself and Chris Marchese. And it's pretty much the Bible on silver definitely goes through not only the history of silver, but it goes into finance and economics, bullion banking, fractures, herb banking, and why the manipulation could be pretty well proven. And then we look at mining companies and how to evaluate a mining company. And then the last chapter is called Beyond Silver, where I question things about, well, on the esoteric side, I have no answers, but a lot of questions like, why are we in this death and death paradigm, why are we always boring with each other? What is the best system out there is a capitalism, which pretty much all, you know, until that point the book stresses. But I'm open to other ideas. You know, why are we acting the way we are? We are quote unquote civil lives. So I look at three gentlemen that have proposed three different types of scenarios that could be beneficial to humanity at large. And I don't want to do on that part of the book, but it's a small chapter. But like all of my work, it's really not to tell people what to do so much, although you could infer that they do do that. The real idea is to get you to think for yourself and make your own decisions based on logic and facts that are, you know, basically right there that a lot of people obfuscate in the mainstream media. In other words, you get a half truth, or a massage, or data that's this, you know, spin, they used to use the word, you know, they're spinning this information, that term isn't used much anymore. So my book, Chris's book is nine months of research. And, you know, there will be an updated version out probably in a year. I mean, the one that we're at, we have out now certainly pretty much timeless, but we are, you know, we're academics to a degree and we always want to make things better. So we're contemplating on doing a revised edition, but that's something in the back of mind. We just put out the audio book about three days ago. - I was going to ask about that. - Let's do it. Yeah, if you inclined to listen to the book, you know, we certainly want you to have that opportunity. And, you know, stuff is never cheap. I mean, I don't want to complain, but, you know, we do have to set the audio books to make back the cops who think about it. You've got to pay somebody to read every word you wrote. It's about a 300 page book. So, you know, there's some expense there. But I like an audio book myself, and several people asked us early on if we do the audio book and said, yes, we would, took a little longer than expected due to formatting problems and going with the interface of the Amazon Audible. It's all been accomplished, so the book is available as a ETF doubt, assuming electronic download to Kindle app or any of those type of apps. Amazon, you can get the paper back or the Kindle version and Amazon as well, but anywhere, just typed in the Silver Manifesto or, or electronic or paperback, any of those versions that you wish. And if you're confused, just go to mustsilvermanifesto.com. That's the easiest way. You have linkages everywhere. And the only issue we have, and I have to say it 'cause of this is Canada, is that to get a paperback book, Amazon does not ship to Canada. So you're gonna have to buy it from us, and we charge you what it costs us to ship it, and not even handling costs. And they're outrageous. And I apologize for that. - You know what? We just, we download it on the PDF, put it onto our iPads that have silver in it, and there we go, we get to learn all about why we should be in these markets, or at least that's what I think you walk away from, from the book, which is why I wanted to talk about it, is that what a great way to learn about this market, not just listen to, you know, the real money show or listen to your interviews, David, but to see what the research actually shows and why you might wanna have this in your portfolio. So it's great to have you back on the show. I've got a lot of questions I wanted to get to right away. So the first is that I've heard you talking about the recent cost of production on silver, and that with the low price of oil, that cost of production is now around $15 an ounce, which would put it basically at a break-even scenario for most miners. So my first question to you is, how high would silver have to rise just to be break-level, profitable, base camp level prices here for silver? - I was asked that question very recently on another interview, and of course it varies mind to mind, but we're talking in on general terms, which we shouldn't can. And in that interview, I said that $22 an ounce is probably like the minimum at current oil prices, which means if oil prices go up, then you've gotta move that number up. I mean, if you go into the bonus section of the members part of the website, we have an interview I did with Dr. McGah regarding Archie's rule. And Archie's rule gives you a script formula to determine what your profit margin should be to be a viable business as the mining entity. And that's very useful for anyone that's serious about this market, so you could actually use that metric and come out with an exact number based on whatever the spot price of any metal is, copper, tin, silver, whatever. But right now, those are the numbers. I'd say 22 is a minimum. And again, if oil prices go up, that number moves up. So keep that in mind. Well, David, you said, well, I said something specific, but I also qualified it because oil prices, as we all know, have dropped down considerably, and of course it could go back up. - Now, to add to that, of course, we know that we're experiencing shortages in the retail market, we're experiencing it ourselves, and we hear about it, and we're seeing articles discussing that all the time, is that a result of mine production being down, or could that be also a result more of the demand because the price is so low? What are your thoughts on all this? - Well, as you know, I'm pretty well connected throughout the entire industry top to bottom. In other words, small little mining concerns too, high-level mining concerns that are, you know, NYSC silver producers. And then, of course, from the commodity side, not only, you know, my brokers that I know in Chicago in a first-day basis, they have lunch with one in there, but through the European markets, through the refiners, through the Asian markets, through the Shanghai exchange. So, I mean, I don't know everybody in the industry, but I'm trying to point out that when I gather data on this, it's not like I'm taking one source and making a determination when one piece of data, I factor in a lot of different sources to come to a conclusion. Right now, the best sources that I've been able to find show this still retail demand, but I want to add on to that, that the mining industry and silver has dropped noticeably, and that's two parts. One is the part of what you asked in the previous question, the low price is silver, so mines that might have been profitable a year, two or three ago are not down, so they're on hold. Or, and the other part is the amount of silver that comes as a result of base metal mining, and the base metal minerals have been devastated as well. So, their curtailing is their product as well, which means that, you know, 65%, 70% of the market that comes from base metal production is curtailed. And the last one's recycled. When the recycled price is low, there's not as much recycling as there is when the price is high. So, recycling has dropped off, a primary silver mining has dropped off, and my product silver mining has dropped off. But, the squeeze right now is in the retail market. We have not seen it spill over into the commercial barn market yet. We'll take a quick break with David Morgan. Hang on, we'll be back in just a moment here. In the meantime, 18778 silver online to guildhallwealth.com. Remember RSPs, TFSAs, you got the precious metal advisor, the investor kit, so many ways to start educating and investigating and precious metals. The E-store on the website and the top right corner as well. And the seminar, once again, you want to get the few remaining seats for this. It is happening, your precious metal seminar. Quest trade, their headquarters in North York, 7 to 9 p.m. September 30th at Young and Finch. Go to the website to register for that. More of The Real Money Show coming up, talk radio, AM640. And back into The Real Money Show, 18778 silver is the number. If you're interested, if you're wondering how you can use funds to start investing in precious metals, RSPs, TFSAs, a good way to start. Go to the website guildhallwealth.com. For more details on that and the E-store as well in the top right corner. Back to our interview with David Morgan here on The Real Money Show. David, I wanted to talk to you, but we've talked a little bit about the supply side here and why we're seeing shortages in the supply side. Given that there's a current low price in silver, we see that as undervalued. But it also comes across as quote unquote, low sentiment. And with that said, we are seeing a lot of savvy investors continuing to build their positions. But we're also seeing a new breed of investor that in my opinion are really just plain scared of the markets and want financial protection. Would you agree that we're in a stealth bull market? Somewhat, it's hard to quantify as you outlined. First of all, there's a lot of people that have issues around money in general. Let alone buying gold coins or silver coins or both because one, it's the only real money that's existed for thousands of years. There's not one paper currency that's lasted nearly that long. And secondly, it's a situation a lot of people just do it and keep their mouths shut. In other words, they don't, and that's, you know, I'm kind of in that camp. I'm very vocal because of, you know, my position in the markets. But, you know, if I was just your average Joe out there that didn't have a website devoted to, you know, resources, money, metals, mining, I certainly would probably not tell anybody I was buying gold or silver, or we knew where I acquired it for that. We do know from what we talked about in the previous question about the retail demand being so high. Certainly, there's not only believers that continue to buy on a dollar-cost average basis, but there's people that are coming into the market that are new that see it as an opportunity to exit part of their wealth from the mainstream, which means they don't have to have a counterpartie, which is a very, very important thing to do in today's world. And speaking on that note, for your subscribers to your newsletter, you've been talking about a video, talking about the Argentinian currency collapse and what can happen. The 2001 currency crisis in Argentina was a fact and there was a documentary made about it. And I think that is the best thing that I can give to people to show them what it would be like because it's real life, the documentary that spans quite a bit of time to make this film. And it shows everyday people and how they cope with the currency crisis. One of the things is a lot of anger in the speech over the bankers and protests about the bankers, and they didn't take their money, they devalued their money, and they also, like in Greece right now, put limits on the amount of cash you could take out of the bank any given day or week. And so this really is almost as if they're taking your money from you. It's secure in the bank, quote unquote, but you can restrict it. And of course, then who's the owner of it? If, you know, big brother tells you you can only get out X amount and you've got 1,000 X and you need it, or your business to pay your mortgage or some other need, and they have the control, you know, how much you can get. I mean, this is ridiculous. This is exactly what took place. And to say that it won't happen is ridiculous because it's happening again in Greece. And will it happen at some point in North America or some other part of the world? The answer is I believe it will, but belief doesn't make it a fact. But that was my best effort. It's like, well, don't take, you know, David Morgan's opinion or his ideas. Look at this documentary. So if you want to look at the documentary, there's two ways to do it. You can go to the website, silver-investor.com, scroll all the way down the bottom. We asked for a first name and an email. And we're putting this out as a public service to our weekend three email list. And we'll just give you the link. And if you're pretty good at searching Google, if you look for the empty ATM, you could probably find it. It was taken off of the PBS website. We found it on another site. We downloaded it and put it on our server so that we haven't flipped austerity. And that's why, you know, the safest way is to build our website and get on our free list. But if you don't want to do that and you're good with the search engine, which most everyone is, you can find it yourself. - Now, David, you do have over 40 years experience in the market and you touched upon it before in the last question that you get asked this all the time, but I'm going to ask you it anyway, which is how do you see it all playing out? What do you think is going to happen? Are investors going to have an opportunity to get into the market? I kind of fear personally that we could wake up one day within you either own it or you don't scenario when it comes to silver and the price of multiple hires, but multiple is higher. But how do you see it unfolding? - Well, I'm going to contradict myself and say both. I do see a day where you'd call either going to have it or you don't. But all markets move according to price. The problem is in the current situation is that when there's no faith in the paper currency of the day and if that happens to US dollar, I believe it will, then what are you going to take? Are you going to take dollars that you don't trust? No, but that doesn't mean you couldn't do an exchange. So you could use silver or gold to exchange for something else. That going back to the Argentina model, a lot of people, they don't show this in the movie, but I read a huge paper about that crisis. And what this gentleman pointed out was that a lot of jewelry was used as barter items. So like a gold chain or a gold ring or a silver chain or silver goblet or whatever. So it doesn't necessarily have to be silver coin, which obviously is really good because you know exactly how much it weighs, et cetera. Not in the last, anything of value like that. So I'm going to say, yes, there'll probably be a time and we'll see the retail market right now where the owner or you don't own it. I mean, just because someone puts an order in to buy extra amount of silver coins four weeks out doesn't mean he's necessarily going to get it. And I'm not trying to scare you, but say you won't. I'm 99.999% sure you will. But the point I'm making is the delivery date is pushed off into the future. And if this demand level continues on the retail side, there's nothing to say that that wouldn't be extended. So you put up your money today and you have to wait five weeks for a silver delivery or six weeks for a silver toy. And you can see where I'm going. Now that makes a presupposition that there's a robust demand that continues for silver at these low, low prices. And I think that's a valid assumption, but the market knows more than anyone. So certainly that could be the case or it may not be the case. The market knows I don't. However, once there's this congestion in the market, there will be an adjustment in price. And so there will be people that will want to take, you know, something for their silver or gold. So I'd hopefully answer that to the best of my ability where people understand what I'm saying. But until the price gets to a level where somebody's willing to exchange it for something else, well, the price squeeze will come in and there may be people at low levels that are unwilling to part with it at any price until it gets to a much higher price. For example, let me just post this a little bit better perhaps. And that would be everybody that's bought silver, let's say for the last few years at 25 or under, is extremely strong hands. And so let's say 90, you know, most people, if not all, are unwilling to sell their silver until it gets to at least that level. Well, you can see where that would go. That would put a lot of price pressure up so that it would move higher until it finally breached that zone, that level. And then you would see some of it come back on the market. So, you know, when you play with fire, sometimes you get burned. I mean, when these paper markets control the paper price and you're willing just to settle for fiat, you can do a lot. But when people are unwilling to settle for fiat and break the paper paradigm and buy real and get real, then reality shines through. And I think we're closer to that today than we've ever been. - Excellent. We're gonna take a very quick break and we'll be back with David Morgan, the silver guru. - And we will take that short break, Jeremy. One, eight, seven, seven, eight silver online to guildhallwealth.com, the precious metal advisor, the investor kit, the e-store in the top right corner, all things available to you. And reminder as well, the seminar is happening September 30th. That is from seven to nine p.m. Young and Finch is the area for the quest rate head office. Go online to grab one of the few seats remaining for that. Stand by more, David Morgan coming up right here on The Real Money Show. And back into The Real Money Show. If you're interested in beginning investing in precious metals, physical metals, it's very simple, guildhallwealth.com or the number one, eight, seven, seven, eight silver. That is the number to start investing. You can also use your RSP and TFSA as well and the e-store in the top right corner of the website. We continue our interview right here with David Morgan back in The Real Money Show. - We discuss fundamentals on the Real Money Show all the time. I think our listeners might be bored or sick of us talking about it, but I am curious to know from your perspective, what do you feel is the number one reason why, maybe perhaps you're investing in precious metals or why you think people should own precious metals at this time? - Because governments do fail. It's not simple. I mean, silver and gold are really an anti-government investment. I'm not anti-government, what I mean by that statement is that the Roman Empire fell. The great empires fall. They get overextended. They borrow too much. They spend too much. The main thing coming back again to the Argentina PBS documentary is that they are very, very accurate on what caused the problem. Two words, overspending. Does that ring a bell? So because of that, you need to protect yourself. Does that mean like everything goes away in its anarchy and assists everyone for themselves? I doubt that highly. But what it does mean is there's going to be a very big reset and there'll be changes throughout the marketplace. Not only in the political side, but on the economic side, the fiscal side, the monetary side, all over the place. So what I think we're gonna see in the next three to five years is going to be, you know, reset sort of a cop-out word that it explains and there's going to be a lot of changes in a lot of areas. I think I understand what you mean because I do feel one of the things I really like about your work is you're not necessarily a doom and gloom kind of guy. And when you look at websites that are focused on precious metals, you do get a lot of doom and gloom. And you end up almost the pendulum swinging too far where there's this dystopia feel that you either own silver or you're going to be stuck with the zombies or something. And that's not necessarily the case. But I do think that, you know, in 2008 when everything got swept under the rug, it was easy for people to say, yeah, we'll trust the government. They know what they're doing. But, you know, moving on seven years later, you feel like, wait a minute, it's starting to hit my pocketbook. And I don't know if I'm going to trust them this time round. Is that sort of the feeling here? - No, I think it's actually stated and that's the case. I mean, more people are waking up that, you know, the founding principles of the US was basically to be more self-reliant, to not rely on government very much. It was the idea that, you know, you were free to succeed or fail. Remember, freedom gives you the freedom to succeed, but also gives you the freedom to fail. And that's the free market. If you invent something that the market loves, you can build some wealth for yourself and the company or whatever. And if the market says, you know, we really don't like that idea, you're going to fail. But, you know, all things considered, a lot of failures turn into successes, meaning they come up with a better idea or a different idea or they're modified or whatever. So that's the real process at work. But in the system as it exists now, there's no such thing as failure. And people are allowed to come up with, you know, allows the ideas that are supported for lots of reasons and it's across the board. It's not only subsidies with crops and, you know, certain advantages for energy producing companies and on and on, it's just ridiculous how far it's gone. So yes, we were very accurate in saying that the overall feeling from 2008 till now that most people, whether they admit it or not, feel it. And they feel the fact that things are not right. And I don't know that all those people in charge are one, know what they're doing and they absolutely do not. And secondly, that you should rely on them. And maybe I should rely on myself 'cause once you step over that boundary where you actually call up somebody and you buy, you know, physical silver or gold or both for somebody, you've actually committed to your innermost self, your knowledge that, you know, something could go wrong. Not that it would go wrong. And even if things go quote unquote law, it doesn't mean it's absolutely what you referred to, you know, zombulae, and I didn't think we're gonna see that. But I do think we're gonna see a huge leaf think from the population, from the ground level up on what are we doing here, again, I go kind of into that in the book, you know, in the chapter, Beyond Silver, because here are questions that really should be asked in the political debates in Canada and in the United States, and they're really not. You know, it's all about, you know, mainstream stuff that's kind of me, Hearst, and me down over and over again, but the real core issues that affect most people are money. And no one ever talks about that. Now, Ron Paul did in the last election, but, you know, he's been marginalized and of course, he's out of politics now. But it's a topic that affects everyone, but it's very seldom, it's ever addressed. - Yeah, I think it's easy to just let things go by, but I personally do think that people can wake up very quickly and decide, well, wait a minute, I'm not getting enough information. And once they become a little more self-reliant, I think, you know, I notice personally that a lot of people who will invest in precious metals, we see a lot of entrepreneurs, for instance, who deal with the government and deal with taxes and healthcare and things like this. So they sort of see that encroachment of government and they say, well, wait, I wanna control my own destiny here. And one of the great things, of course, that we think on the show is that there is that no counterparty risk. You're not beholden to a bank or beholden to a company when you're investing in this, but it is a store of value at the end of the day. David, I'd like to indulge looking into the crystal ball if I may. You know, it's something you always have to do when you get a good expert on the show. So given the debts and the flood of fiat currency created in recent years, how high do you think silver could potentially go? And maybe we'll divide that into sort of a base camp level and a given where things could go, you know, if we look at a 1980 scenario of where perhaps silver's true value could be in the future. - Well, there's several ways to answer it. So I'll answer one with what I've written in nearly 2000s in my first book at Skimman Silver Investment in that book. I said $100 US. The gentleman, Chris Weber, who's a great thinker and he writes a newsletter, it's not very well known, but he's actually wrote for Jerome Smith, who was the previous silver guru. And I use that terminology kind of in cheek pretty much, but you know, it's okay to call me that. I don't mind at all. And he wrote an article about it being $200 silver and that's available for our members on the special bonus report section of the protected part of the website. But if you look at, let's say we had a stable currency and that, you know, there was a real, honestly, back monetary system. Well, in that case, you can make an argument for, you know, a good profit margin for most miners at let's say 30 or 35 an ounce. And, you know, that would be a fair price. But that's not what we have. We have a very distorted system that was talked about the whole time on this interview. And because of that fact, it's almost impossible for the vehicle price on it because in theory, it could go to infinity. Now, I got it. Most currency crises don't go to the point where the currency is failing at absolute zero. What happens is there is a psychological shift that happens in one or 2% of the population that doesn't trust the currency and refuses to accept it. And that psychology shifts very, very quickly, usually. And so it takes places that you have the inability to clear a transaction, which is actually what happened in 2008 for a very, very brief time. But we don't have time to go into the mechanics for that right now. So I think, you know, hundreds of good level, but I think people are more important, are more, it's more important for people to understand the idea than what the price is as a paper price took very a great deal depending on how the currency crisis manifests. What's more important, I think, is maybe look at it in historic means. If you look at the 1800s and are up to some of the 1900s, early 1900s, a dollar a day was a good wage. Really good wage. So a dollar is a silver dollar. And that's three quarters of an ounce. So if you look at three quarters of an ounce of silver being worth what you work for as a middle class person, a being your wage, then you could extrapolate that number and find out what it is in value, not necessarily in paper terms. Well, to wish you could use paper terms. If you go back into like the Roman era, it would be about a tenth of that amount. Basically a silver de néris is what you were paid as a soldier in a Roman army. And that's roughly a tenth of an ounce of silver. And that was a day's wage. So if you use that metric, you would find out what the value was in those days. So you have those two metrics to use and to think about. Again, my purpose usually is to get people to think. So I think as a question that I'll leave open that people can think about, but if you think about it in those ways and how valuable silver is today, not only as protection or wealth enhancer or potentially increasing your wealth, but also what it is technologically. It is the most important metal because it conducts cheap better than any metal. It reflects light better than any metal. And because of those properties and how valuable it is economically and low priced, that it is the essential metal or being dispensable metal. - You know, you're talking about getting people to think and I'm starting to think right now that one of the problems with a base camp level of 35 is that if silver were to rise to 35, even just to 35, I think it would be an indicator of perhaps what kind of trouble the currencies might be in and propel it to those $100 or higher levels, which has put us in the situation we're in right now. So a bit cyclical or circular, if you will, on that point. - David, how can people get in touch with you and get more information on precious metals? Again, the silver manifesto as well as the newsletter. - Great, well, look for silver manifesto. We have a website set up. It's called bus, silvermanifesto.com, or you can just click Amazon, type it in, or you can just Google it. So just Google the silver manifesto. As far as the website, again, if you wanna get the free sale on the empty ATM, you can go to the website, just scroll to the bottom, put it in your name and an email, and we're gonna send that out to everybody over the next couple of weeks. We do that once a week. We update everybody for free. And then on the serious investors, there are three levels of service. I mean, there's the consultation level, which is the mastermind program, which is pretty pricey, but that's really what people are deep into this sector. Then there's the premium service, where we take a camera out to all of our mind visits and let people, they should be follow along with us since we trudged through the deserts in general, smoking at some of these mining projects. And then there's the basic service, which is just the monthly email letter, which comes out, and we haven't missed one yet every month, and there's free updates on that service as well. So there's a basic service, there's a premium service, and there's a mastermind level. That's all available at silver-dasher.com. - Excellent, David Morgan, always a pleasure, great to have you on the show. So great to talk to you, and we look forward to speaking with you real soon. - Well, my pleasure, thank you for having me. - Bye-bye. - Bye-bye. - That was David Morgan, great interview, as always. What did you think? - I think very well interviewed, very well done. I think that comes across to me, that he says, but you really don't get the point. You know, if you have a map, and the map really says, this is the route you take, this is where the river is, this is where the mountains are, you really can't trust the map until you're on the terrain. The terrain tells you that the mountain is steep, it's muddy, it's this, it's that, and you have to work accordingly. - You mean until you get on that gravel road, and you realize, oh my God, this, this-- - And you're wearing hot-- - It should be a two-hour drive, but it's going to be-- - With the wire when you've got high hills, and you're in, you know, up to your knees in mud. The terrain tells you what's happening, and the market's right now is a terrain. - If you look at today, Caterpillar announced 5,000 layoffs. Last week, week before Hewlett Packard, 30,000 layoffs. They're saying right now that the Dow for the 2015 and 2016, the earnings are not going to be there. We've had a lot of free money. The Fed produced free money, gave it to Wall Street. Didn't give it to the individual. It gave it to Wall Street. It gave it to the banks. The average person has not done well in the stock market. I don't care whether it's the Canadian stock market or the US stock market. You have to look after your own portfolio and your own capital. Everybody has life insurance, I hope. Car insurance, home insurance. Why not ensure your wealth? And one of the ways to do that is own hard assets. You should have 15 to 20% of hard assets in your portfolio, whether it's gold, whether it's silver, whether it's natural fancy colored diamond, because this is going to help you along the way. Because if these markets do happen to collapse, or as David says, the fiat currencies collapse, you need to have these hard assets in your portfolio. And of course, you can buy allocated, segregated physical silver with Guildhall, whether you're buying it directly through the E-store, or you can do that within an RSP or registered account, or you can just simply call us, purchase it, and take it home. So feel free to touch base with us, and we look forward to meeting you soon. - Got to thank David Morgan for his time here. The Real Money Show. You'll want to get ahold of him. His website's www.silver123.net, or you can try www.thesilvermanifesto.com. That'll pretty much wrap it up for us too. Fellows in the meantime, until you join us next week, the number to start investing is 1-877-8 Silver. Online to Guildhallwealth.com. Make sure, make sure you get the precious metal advisor, the investor kit. You can start investing as well at the top right corner of the website with the E-store, and there's also ways to use your RSP room, and your TFSA as well. You can call or go to the website for more details. And finally, I'll give you one last time for this week. That seminar is happening. It's filling up quickly. It is the precious metal seminar with Questrade. They're a headquarters of Young and Finch. It does September 30th, 7 to 9 p.m. You got to register online to get the last few remaining seats for that one. Take it for another week. This has been The Real Money Show on Talk Radio, AM 640. Hey, Merry Christmas, man. 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