The Real Money Show
The Real Money Show - September 19th, 2015
And back with another edition of the Real Money Show hosted by Guildhall Wealth Management. They show about the incredible, incredible potential of owning physical gold, silver, natural, fancy colored diamonds. God, Darren and Studio and Jeremy, guys, let's get rolling here. The number is 1-8-7-7-8, silver online to guildhallwealth.com. Make sure you pick up the investor kit, get that precious metal advisor. You can also learn on the website and through the show today how to invest in precious metals with your RSP, R-E-S-P, TFSA, and other secure ways to do that. And top right of the website, you'll get the e-store. You can start purchasing gold and silver in the comfort of your own home, as they say, Darren. How are you about what's going on? Not too bad, John. It's been a good week. And first, let's start off with a big thank you to all of the new clients at Guildhall. Whether it was RSP or TFSA bullion account that was open this week, whether it was just a straight bullion purchase, we had some new depository clients. And we also want to thank the Diamond buyers, of course, which we'll be talking about later in the show. But this week for precious metals was excellent. We've seen silver traverse back up towards the $15 range. And of course, stay above it now as we're taping the show on Thursday. And in a couple of hours from now, we're going to find out what the feds in the US have decided to do, whether interest rates are staying the same or going the other direction. So if you're hearing this show on Saturday, it may have already happened, in which case it may have impacted pricing. But at any rate, gold is holding above the 1100 range. And this is the show where we're going to start talking about how to get on this bandwagon called silver and hop on. We want to have you aboard. We're going to talk about silver going back to $50 an ounce. We believe the train has left the station. And it's about to start picking up some steam. So this is an interesting show to be listening to. We're going to be referring to a few different articles. We read this week. We had a great week. Jeremy, you were busy this week. I know. Yeah, we've been very busy. And if you've been watching the silver market and looking at the silver websites and everything, or listening to David Morgan, who we're going to have on the show in a couple of weeks, you'll know that there is a shortage of physical supply in the market. And we've picked up a lot of clients who've come to Guildhall because their regular supplier didn't have the product. And we congratulate them for coming on board. And this is a problem. This is where the rubber hits the road, where you start to see physical shortages in the silver market, where you where everyone says, I don't understand how you can have a shortage and have the price so low. And that's just exactly it. This cannot last forever. The price can't drop to zero. It's interesting when the price comes down, people always are looking for an even lower and lower price. But at the end of the day, we're under the cost of production. There's major back orders on physical product right now because the price is so low. So savvy investors are taking advantage. They're the ones who are prepared for when the price does, in fact, go to $50. And when you look at the debts that have been created over the last few years, you look at how much money printing has been created, how much larger the banks have gotten, how much more leverage is in the system. It's such a simple equation to see how silver could run much, much higher. And it's not just that. We're going to talk about all of the fundamentals that are driving the price higher and look forward to letting all of the listeners know what exactly is going to be driving this price higher. 18778 silver online to guildhallwealth.com. So what is the next move, the next big move, I guess, Darren, for silver? Well, if you look at the markets and what they're telling us, you'd certainly be staying away from silver and gold. I'm not going to deny that there has been an outcry of support for everything but commodities in the last number of months. However, silver, having had a rough year. And of course, since 2011's high of $49 an ounce, being down year over year, it's been disappointing, John, but there are plenty of signs pointing out there that this is the next big, huge moment waiting in the market where we're going to see change occur that'll be significant and take the price of silver and gold far higher. And the last time, remember that silver was down in the dumps like it has been, was during 2008's Epic Stock Panic, when silver was pummeled under $9 an ounce, you couldn't give away paper silver back then. Of course, we know that the story was different and physical, but just like today, traders were totally convinced silver was doomed to spiral lower indefinitely. Yet out of that very despair, a huge bull was being born. And over the next two and a half years, silver actually skyrocketed 442%. Now, to say that that's happened once in the market would be amazing. But how about as a listener, if I told you that silver has done that no less than four times in the last 12 years, this is an incredible moment. If I'm a silver investor to be in this market looking to spend a bit of my discretionary investment income to diversify my portfolio, silver is a great place to start. We're going to talk a little bit about the ratio today. And of course, what we expect that of both metals, but over that time span that we were just talking about, the benchmark S&P 500 stock index merely gained 80%. Now that in and of itself is amazing because 2008 brought about a significant global change and stock markets, the world over including our own TSX here at home, the biggest in Canada fell drastically down onto their heels, where most stock markets only made up the ground they lost. Silver and gold managed not only to make up the ground they lost, but as I said, to go on to a new highs within this bull market and of course gold was a great story. It broke its all time high and it went even twice higher than up to the 1900 range. So to think that it won't happen again is to suggest that fundamentally we've seen a change. Anybody that knows silver through guild hall or has listened to us speak has been a fan of this radio show knows we work on four simple fundamentals about this marketplace. One is the long-term expectation of weakness in the US dollar. The second is the threat of long-term inflation. The third is geopolitical instability around the world and why regionally around the world people flock to assets like gold and silver and the fourth is supply and demand. All of those fundamentals work in our favor, but to drive a market you must remember that these are event driven assets. We need a big event a moment in time that will drive the marketplace. But if you were to ask anyone if they saw the price of gold and silver skyrocketing right now, what would that represent about confidence in the US dollar or confident in the economy, economic situation overall, what that might mean for supply and demand, what that might mean for inflation driving the markets and everyone would say yeah absolutely it would mean that there's a problem with the US dollar that we're seeing inflation because if the US dollar is going down that means it's losing value and everyone understands that as well. Everyone I talked to and I hope I'm not just in a bubble here is that I would ask do you know what the value of the Canadian dollar is? We can't really give an answer to that but what we can say is definitively we know prices on food are rising, prices on services are climbing, prices on energy are climbing, prices on insurance are climbing and this rising price is not just an effect of natural inflation or supply and demand. This is a result of the dollar losing value, it's becoming worth less. Now you can create money as much as you want, there's no value there to get gold and silver out of the ground takes blood, sweat and tears and it's been a safe haven, it's been a way to store value for thousands of years. At Guildhall you can simply buy it and take it home. If you're buying you know over 500 ounces of silver and you have to be concerned about the risk of storing it yourself you can store it in an independent depository located in Toronto. We also offer this within an RRSPTFSA registered accounts and we're going to be having a seminar about those type of accounts to educate our listeners on that and we also do offer some financing for allocated product as well but again physical product, you can purchase it, take it home, you can put it in a depository or if you want to put it in your TFSA, your RESP, your RRSP, your Lira, etc. We can do that, it's fully allocated, fully segregated, you can have access to your product as well. I don't know any other investment in precious metals that can do that, that isn't a paper-denominated asset. We want there to be no counterparty risk, you want to know that the banking system could collapse and you still own your gold and silver. There's been no bail-in on your money, no one's coming to take it from you because you have your value stored in gold and silver. 1 8 7 7 8 silver online guildhallwealth.com, Darren. Well, as Jeremy mentioned I want to bring some shed some light on the details for that seminar John and that's that seminar is coming up and the data that seminar is September the 30th I think, right? That's right September the 30th. Young and Finch at quest trade building at the floor level and it's going to be in the evening so start time is going to be 7 p.m. It'll probably be about two hours there if you're interested you can also open up your quest trade slash guildhall RSP account and of course learn all about the ins and outs of the administration of the account what type of account it is and what else you can do with the account you can also trade other assets you don't have to just focus on precious metals quest trade is a great company and we're happy to be doing work with them but if you look at the markets as we were just saying Jeremy is mentioning the ways to own gold and silver through guildhall the problem that most buyers are making you know when it especially comes to silver today is that they are assuming these exceptionally weak conditions are normal and when you make those types of assumptions you know the old saying but the fact is that you cannot make those assumptions about these markets given what we've just been through because nothing is further from the truth back in early 2013 the u.s. fed spun up its third quantitative easing campaign to full steam unlike quantitative easing one and two q e three was completely open ended with no predetermined size or end and this fed used this ambiguity to manipulate a lot of the trader's psychology so you saw a lot of the small guys thinking that hey no matter what I do the stock market's going to go higher and they've been doing it ever since and doing a great job at it whenever the stock market started to sell off fed officials were quick to step in and declare that they could increase the size of q e if necessary and that in and of itself kept people at arm's length in terms of being sellers in this market and that unfortunately created what they consider to be normal trading psychology or normal trading behavior this created huge distortions in all kinds of markets including stocks and all of the leading alternative investments that move contrary to them like gold and with stocks magically levitating obviously gold and silver were getting punished and abandoned and naturally silver obviously followed gold and silver's average price in 2012 before that q e three debt monetization campaign greatly skewed everything was over thirty one dollars and I think most people listening to show forget how how little time has passed since that price was much higher and anyone looking at an investment you know we talk to people every day what kind of outlook oh long term what's long term five years what kind of gain in five years would you would you like to have that would make you happy versus what you currently have people's expectations in general are quite low eight percent a year would be astounding and for silver to go back up to thirty dollars and basically make a hundred percent gain you have to understand the way this market works it will go sideways for a long time and you wake up one morning and the prices moved up two bucks and then you wake up at the end of the week and it's gone up another dollar and by the end of the month you look back and it's up for five dollars and so it happens very very quickly if you're not involved before that happens then what happens is the market goes up you say well i'll buy it when it comes back down and then it goes up a little further and it's well i'll buy it when it comes back down and before you know it you're waving goodbye to a missed opportunity so it's important to understand the fundamentals the biggest obstacle i find to precious metals is advisors that deal in paper and clump silver in with all other commodities as though it was copper and it's just not you know in 1980 there was over four billion ounces of silver above ground there were three billion people on the planet only north america and europe invested in silver and it went to fifty dollars today russia china india all the brick nations are involved in this market there's over seven billion people on the planet less than one billion ounces of silver five hundred million ounces gets mined every year gone vanished it's in your computer it's in your car it's in your cell phone it's in your plasma screen tv it's being used it's being used it's in water purification it's in solar power it's in medical usages used to absorb bacteria naturally so it's in lots of bandages and and and things like this so with all of these uses more and more we're dependent on this turn on a light switch there's silver in it these industrial usages say that we need this more than ever before and there's less of it than ever before and the price is lower historically than ever before if that's not an opportunity to look at to start to understand the fundamentals then stick with what you have and hopefully your your content and hopefully you're making your six to eight percent a year if those reasons aren't enough to jump on this bandwagon we're calling silver wait till we come back and i'm going to tell you about a stunning development in the u.s. silver market one eight seven seven eight silver is the number online to guildhallwealth.com check out the website sign up for the seminar it is happening it's September 30th seven to nine p.m. young at finch at the quest trade office uh you can also call this number as well one eight six six two seven four ninety five seventy to get on that as soon as you can the real money show continues talk radio am 640 back into the real money show one eight seven seven eight silver online guildhallwealth.com the precious metal advisor learn on the website as well how to use your rsp tfsa rsp to invest in silver and gold the esaures in the top right you can start literally buying silver online in the comfort of your own home and there's a seminar coming up you want to learn more about precious metal investing it's going to be September 30th seven to nine p.m. young and finch uh the quest trade building there are more details when you sign up for that one space is limited so make sure you you get on it there for sure john there is limited space for this one we are doing it with our partner quest trade in their building and it is going to be a significant night again i want to remind people that if you're interested in coming to learn about how to have an rsp some type of registered savings plan uh associated with the ownership of bullion in the form of gold silver platinum or palladium this could be an rsp it could be an rsp it could be a tfsa rsp any of the various types of rsps are fine and of course you can use existing rsps or tfsas and migrate them over so really easy to do and again a one great way you can uh sort of diversify your portfolio and before the market uh before we went to break we're talking about a stunning development in the u.s market so i don't want to keep people waiting uh but this is one of those things that makes you shake your head and wonder where we're heading in the short term it's exciting the price is up slightly this week just over 15 as we're taping the show we don't know what the Fed announcements gonna be like today and if you're watching the NFL we're only in week two but already i sense that there is a ton of interest in what's going to be the outcome same with us for silver so we're sitting here but i don't understand this this whole narrative that's out there with the Fed and rates and how it all gets so focused it's like i was watching i was watching the debates yesterday and everyone whatever they say they're right because whatever they say it's in such a narrow context within its own place that they can't be wrong and it's the same thing with the with this with this thing about the rates you know the rates have been low for seven years that is an indication that whatever the Fed's decision was was wrong that whatever they did they had an inability from their side to correct the economic situation because at the end of the day it's not their job they interfered with the markets there's no doubt about that and it has not worked so this debate about interest rates is ridiculous they're not what kind of rate would hike would we be talking about everyone says a quarter point at most if that if they did that and it damages the market in six months they're no better off than where they are today if they left it so it's a it's a it's a ridiculous narrative in my opinion and i think it just it just side swipes the whole thing that we should be looking at which is the debts in the US have grown exponentially they continue to build that the debts continue to build the the money printing continues to build there's no impetus to try to actually fix the situation and so what you're going to be left with is a very volatile market and that's what you have and people think that silver and gold are volatile silver hasn't done a whole lot in the last year to to really be told really be threatened with volatility you know it's low enough below the cost of production that one has to say well how much lower could it go pennies how much higher could it go dollars big dollars so again this comes down to understanding the fundamentals and if you if you are a fundamental investor a value investor you want to look at gold and silver even if it means buying some some bars and coins to take home you can do that we do combos through our e-store and you just log on pick out your product you can take it home or if you're getting up to a point where you say no i i need to have 15 20 percent of my my portfolio in gold and silver then you could look to store it at at a depository where you have an ease of liquidity meaning you can buy and sell on a phone call because the market will rise rapidly when it does and you're going to want to a way to get out of the market quick you don't want to lug these you know 70 70 pounds worth of bullion or 300 pounds worth of bullion around in your car to to sell your product so we make it easy for clients to buy and sell we're competitive in pricing and of course the rsp is a new investment people are really excited about it i spoke to someone yesterday that said how long have you been offering this because this is brand new to me and i'm very excited about it and so we're excited to offer it but again look at the fundamentals and see if this is the right market the market will only stay low for so long governments have been buying gold since 2008 there's shortages of physical silver in the market right now and when you look at these factors in the market you definitely get excited for the potential and the opportunity here so hey look i'm on the bandwagon okay i love the bandwagon i think it's a smart place to be german i'll tell you if you're a new investor or an investor who's been watching this market for a number of years this is the point in time where you become a fan you become interested in owning something that's going to make money long-term and again silver is a very interesting portion of this marketplace and precious metals and it's one that i like i consider myself to be certainly biased towards ownership of silver versus the other precious metals but i love gold too but as i was saying earlier there has been a stunning development in the u.s. silver market and one thing that people are probably well aware of through this show is that we pay attention to certain parts in the year where we are giving high demand the indian wedding season and festival season during the months while the festival season runs from august to october and then again the wedding seasons through usually the end of october through to december and of course that is usually on a scale of one to ten at ten for buying demand for gold and it has traditionally been that way the tides are changing john what we're seeing over the short term is a stunning development over the last couple of months in exports out of the u.s. for silver bullion being moved to india and how stunning do i mean i mean literally off the charts we went from having if i go back even to 2014 month over month we had in metric tons being exported to india from u.s. probably in the neighborhood of maybe point one point two some month none under a ton metric ton and all of a sudden in the month of may and june in may we had 39 metric tons and in june 75 metric tons and normally i've been focusing on u.s. silver bullion imports as they increase significantly this year and we would overlook this data because it's just not it usually doesn't have an impact but this is an incredible moment in time in which if you're opening up your eyes and seeing what's happening there's another country that's starting to buy silver and we have talked about this at length john and one of the reasons i'm on this bandwagon is because i believe long term central banks like gold will want to start holding assets like silver it happened a long time ago we used to have lots of bullion above ground and silver was included in that number and of course when we used it up at the low prices during the 1980s and 90s all of it basically went to waste we don't recycle it if you own a cell phone it's not like you're pulling it apart before you get rid of it to take the silver out of those they go in a junk pile and we're lucky here in north america if they get touched after that but the fact is that that has silver in it like kermi was saying earlier that's part of the equation industrial demand now what this silver is going to be used for i have no idea could be so many things but i would assume it's a part of everything it's going to be used in jewellery it'll be used in industrial demand but the fact that we went from having literally no metric tons being exported through the u.s to india for years upon years to all of a sudden over month having uh almost 110 or over 110 metric tons that's a huge chunk of ounces that are no longer in the market and all of this stuff whether people know it or not is being made to order and we put our orders through what people don't realize is that you can't just call up and go and get your coin or bar this stuff has to be ordered and majority of it is being made to order it's coming from the supplier i.e the mine and it's going right to the fabricators and like oil refinery there's very little uh very few places around north america you can take product to be refined we used to have a place here in ontario in brampton at johnson mathy that was a big huge refiner of bullion basically falling off the face of the earth and again we don't see too many johnson mathy bars coming through here especially not new ones ingle heart another refiner that was popular up until the late eighties they closed their doors in late eighties and anything in circulation is going to be post or pre-1990 so we go to royal canadian mint and the majority of our product at guildhall is all royal canadian mint except for we have of course the eagle coins coming out of the u.s and a bit of product from the u.s but our suppliers even there we're getting massive delays and this is adding to a story that's developing right now behind the scenes i'm excited it's bullish people don't know it in the mainstream unless you're following the story of gold or silver and you have a real shot here to take an acorn and turn it into an oak tree in the u.s we're waiting for one of our suppliers they're going to take over a month to take delivery so we're selling product that we currently have and uh hoping that the orders come in as as that uh as that uh inventory that we have is depleted down to nothing so we're we're riding a razor's edge in terms of having product available for clients but at this point we're still able to provide and we're happy to do so what it has meant though for the for the industry as a whole is that premiums have risen so the the paper price might say one thing but your ability to buy that physical product is more expensive than it used to be unless you decide okay i'm going to place my order and i'm willing to wait six weeks most people aren't willing to wait to get their product they want it right then and there so you know yeah if you want to wait for your product you can place the order get a bit of a lower price because you're you're in line 1 8 7 7 8 silver online to guildhallwealth.com rsp's rsp's tfs a's ways you can invest in precious metals the east or in the top right corner and the seminar is coming up very shortly it'll be september 30th of the quest trade building that will be young and finch precious metal investing seminar from seven to nine p.m make sure you contact guildhall go to the website register early before the places and the seats are all taken more of the real money show coming up talk radio name 640 back to the real money show 1 8 7 7 8 silver online to guildhallwealth.com and for the length of this segment check out guildhalldiamonds.com as well make sure you pick up the precious metal advice for tfs a's rsp's rsp's all different ways you can invest in precious metals the east or is there and a reminder reminder rather before we get to our diamond talk that is the seminar coming up the precious metal investing seminar september 30th 7 and 9 p.m young and finch at the quest trade building and you want to get on the website and register on that one before all the seats are gonzo out of there let's talk diamonds daren german love this part john i'm excited about color diamonds this is an incredible moment in time we're working on some significant things here in the office and this is an area which is becoming mainstream and like silver and light gold and the amazing moves that they had over very short periods of time i have no doubt that in the near future you're going to get a situation that develops where the u.s dollar starts to crash inflation starts to set in and assets like colored diamonds are going to have such astronomical moves in a single span of time that if you're an owner of this type of asset you'll be extremely blown away at what this potentially does and i'll tell you we saw this in 1979 john when colored diamonds went through the moon 500 increase across the board in 1979 through 1980 because of the threat of inflation again you saw silver and gold improved dramatically over that decade themselves and when i think back to that time and having studied that period i'm seeing the exact same thing develop here so from a numbers perspective it's the area where i excel i like bringing it to our listeners we develop something called the diamond comparison chart and what it does is it takes a look at a snapshot of some similar diamonds and some exactly the same diamonds through a period of time from 2012 to 2015 Jeremy and i put this together and i want to get this circulated out there i want people to really see what's been happening at guild hall and what you'll find out very quickly is that yellows pinks and uh in every type of color from fancy fancy intense to fancy vivids have increased across the boards but this chart shows it in number form undeniable the prices are there and of course if you owned one of these diamonds you partook in this so you've already seen it this is not the type of asset john colored diamonds that we look at the same way as gold and silver we don't wake up on a monday morning and if week over week the price improves in the marketplace decide we're just going to up and sell hit a button i'll put john hold in two minutes later have a price this is an asset you wear it's an asset that you can have hold on to enjoy pass through the family through generations but at the same time know that the money you put in will never be lost we've never knocked on wood had an investor in a colored diamond at guild hall lose a single penny of their investment in fact it's quite the contrary but the reality is these aren't liquid assets you can't wake up tomorrow and sell them however i've never come across anything that's given the type of potential consistent return as colored diamonds have and from my experiences in this market this is one of those type of investments you purchase you get involved you put it away and whenever you check in on the market every year or every other year you're surprised at where prices have moved to and this is a case of always having difficulty finding these diamonds because they're extremely rare and when we're talking to people who are looking at getting involved in this market one of the things that they want to do is start to get knowledgeable they want to get educated and they want to do their quote-unquote research and this is really actually something difficult in the colored diamond business because there's not a whole lot of information online it really is a best kept secret five six years ago there are really only a small handful of dealers who who dealt exclusively in natural fancy colored diamonds now there's a plethora of them because businesses are trying to get involved but the first place to understand and to start to do the research is to really understand and appreciate quality it's to go out there go to jewelry stores try to find a colored diamond see what the ratio between colored diamond and white diamonds are in say the retail sector what's the quality of that of that color diamond that is available and once you start to understand that and then come back to guildhall to see the quality that guildhall has and what the premiums of of that quality represent we notice that the that clients start to get a lot more excited about the markets you know to find a one carat vivid internally flawless yellow diamond is a very tough task it is a tall order and once you have it in your possession you know what you have and you don't want to let it go because if you do let it go what are you going to do to replace it how are you going to replace that rise in value year over year that you have we currently have a couple one carat vivid yellows that are selling just over 50,000 us it's surprising but there was one point in time not too long ago within the last five years where that could have been purchased for 35,000 or even slightly less so this is a market you want to be a part of now as Darren was mentioning it is not a liquid market but the the trade off of that quote-unquote lack of instantaneous liquidity that you would get with stocks and and the like is the potential for that much more money you know when you look at being able to buy what what's nice about color diamonds is the more you invest the higher the quality and the higher the quality the more rare that diamond is and so you're buying rarity you know to be able to buy a half carat pink diamond is incredibly rare if it's in turn if it's very slightly included you don't really see internally flawless pinks and these are really difficult to find and as a result the prices are constantly moving up now if you were making over 20 percent a year on a diamond like that or even more would it bother you if the diamond didn't find a buyer in a week or six weeks or half a year or even a year if all you have to do is continue to rise the price with the market and when it sells it sells it finds a home it finds a home they always do it's an interesting market that way because people are always talking about demand well no one asks what the demand for a Picasso is or for an Andy Warhol but it doesn't mean that someone who owns it an Andy Warhol is going to be able to sell it tomorrow right you lose that liquidity when you own an Andy Warhol but on the other side of that the type of potential for income that that can provide for you down the line is massive so for anyone who has patience and wants the ability to make a lot of money in markets you want to look at quality you want to look at rarity you want to look at the diamonds that we have at Guildhall you can do that you can go to our Instagram account and see some of our diamonds you can go to our Pinterest account and look at diamonds you can go straight to the website at Guildhall diamonds.com and see the diamonds that are currently available and look at the type of quality and understand that every diamond that we have on that site is available right now we own those diamonds. Derek what if I want to I just want to start it's my first diamond I just want to get in what am I looking at well John it's an easy place to start it would be a fancy yellow and you'd be looking at the $14,000 range and that's the entry level and again it's funny I'll point back to a situation where just about a month ago Nicole wrote a blog maybe a little over a month ago and in that blog she was reciting a story from which she was invited to a dinner party with an old friend and that friend had bought a diamond and of course she was introduced at that party to speak with some other women there and the friend introduced her and said color diamonds are a wonderful investment they make for a long-term gain that's second to none and told them a little bit about Nicole and said these diamonds started as little as $9,999, $10,000 and Nicole had to politely interrupt and say unfortunately when you bought your diamond a couple of years ago they started at $9,999 but now they're starting at around $14,000 and it doesn't take long to see that consistent gain that has come across all of the diamonds we've had at Guildhall wealth management and I don't think that it's important just to look at that from the perspective of gain only as I said earlier this is something that can be worn if you have a wife or you are a woman who likes her jewelry and you want a piece that would be able to show off or showcase your ability to make a great decision this is the all-in-one piece we can have a custom designed it can be worn it could be an appended or necklace it could be in a ring and it can be in the ears I mean there's so many options available to you and because we're not a retail store we don't have that overhead we've been able to provide clients the ability to buy investment grade color diamonds put them into handcrafted jewelry and at over a third less the price than you would pay in the retail sector to have a better diamond and to have it handcrafted and yet the diamond is the the purchase is still that much less than if you were to buy it in retail so that can be exciting too for anyone who's looking to get engaged or get married or perhaps an anniversary coming up and that's where we see a lot of people buying colored diamonds you know 10 15th anniversary they want to do something different and colored diamonds really do express individuality that's why you're seeing all of the celebrities who are getting engaged are getting colored diamonds because they do express that much more individuality and of course they have these celebrities have the funds to overspend and get these really massive behemoth colored diamonds but you know a one-carat one and a half carat fancy is not doesn't have to to ruin someone's bank account it and can be very beautiful so why is a lot of these places they'll sell you a diamond but they won't take them back or buy them back why oh put me on the spot here john well look the the the to me the biggest factor is quality when it's really difficult to find for example we were talking about one carat internally flawless vivid yellows those are incredibly difficult to find and so to partner with the with the investor down the road to help them sell that diamond is a pleasure now we're not talking about turning around and selling it after a year because there's taxes involved and you might not have surpassed that as of yet but at some point that diamond will have doubled comfortably doubled in price and there'll be so much increase on the value that that we're more than happy to to assist the client i think when people aren't looking to take back the diamonds it might be a question of quality if the the diamond is an si pink and maybe they overcharged for it then there's no reason to take it back because those diamonds are having a tough time seeing those value increases every year so i think for us it's a question of quality it's a question of rarity and it doesn't get easier every year i'll tell you that it gets harder every year to find diamonds i mean there was a time where fancy pink diamonds in the point two five to point three zero carat and that sounds really small but yeah those were really popular investment entry level diamonds where you could buy one for twenty two to twenty five thousand and today they're comfortably close to if not over forty thousand now if you want that similar investment you have to move down to the fancy so to be able to get back those diamonds is is a pleasure at the right time of course you want to have everyone making doing well on the investment and also not missing the opportunity it's why we tell people to hold the diamond for five years we want you to hold it for five years so we can show you what the market can do for the diamond and you can see what the opportunity is so that you ask yourself do i really want to sell it after five why wouldn't i want to sell it after 10 or 15 or why wouldn't i hold on to it for the maximum amount of time possible and then give myself you know a year or two to to to sell it make it liquid and have all that cash it's no different than when someone starts off in a studio apartment and they move up to the two-bedroom and then they move up to the house and then they move up to the three-car garage and then at some point they become empty nesters and they say well if i do sell this property which won't sell tomorrow it might take some time you make some good scratch and and you've taken care of yourself so the the diamond comparison just over a three-year period to me would get anyone excited so definitely give us a call about that you can contact us through guildhalldiamonds.com and ask us about the comparison chart because people want numbers right and these are pure numbers we'll get to the number right now one eight seven seven eight silver online to guildhalldiamonds.com or guildhallwealth.com as well when speaking about precious metals rsps rsps tfss you can invest that way you can click on the east or in the top right corner and there is a seminar coming up at the equestrade building on september 37 to 9 p.m that's a young adventure on a register online before all the seats are taken in your left out in the cold so to speak well it won't be cold it'll be the end of september but it'll be a little cooler anyway the real money show continues talk radio am 640 real money show right here talk radio am 640 187 7 8 silver guildhallwealth.com you want to check out the precious metal advisor click on the east door in the top right to start investing from home there's a seminar coming up as well the precious metal seminar at the equestrade building around the young and finch area september 30th from 7 to 9 p.m register online before all the seats are taken out from underneath you Darren let's continue with our last segment here about precious metals yeah well let's summarize where we've been john we've talked about fundamentals in the silver marketplace being as good as ever we've talked about sentiment being low and a contrarian opportunity for investors who are smart enough to jump on the bandwagon we've talked about india imports of silver which are exciting and happening below the radar biggest they've been i've seen since i've been here and that's saying a lot of been here since 2004 and of course we've talked about where we're heading in terms of the marketplace so we're thinking that silver is going to go back to 50 and we want to tell you why we also talked about the industrial demand and all of the usages and we're we just touched upon the usages of silver but one thing we haven't discussed yet Darren which you mentioned that we would is the ratios we did and the ratios are important to understand Jeremy because historically there has been a ratio between gold and silver based on what historical people thought were the differences between the amount of gold and silver in the ground that ratio had sat at 16 to 1 for hundreds even thousands of years even back to roman times and this is a ratio which stood the test of time and even when that ratio got distorted it has reverted back to its normal mean if you look back and take for example 1979 the price of silver and gold going into january of 1980 hit all-time highs gold hit 850 pounds and silver hit 52 pounds that ratio just happens to be 16 to 1 and of course it relates to other ratios we've discussed but during this bull market that began back in 2002 that ratio has fluctuated dramatically and has often given us key indicators is to when to buy and sell that ratio right now is nearing 76 to 1 that's crazy it was as high as 90 to 1 and as low as 32 to 1 and that ratio tells us everything we need to know silver is undervalued at present moment and when we're we're talking about highest price for example back in 79 and also in 2011 when you're talking about a high price for gold and silver i like to talk about about maximum purchasing power see right now your purchasing power with gold and silver is really low you need a lot more gold and silver to buy what what you should be able to buy what that means essentially is that you can take your your fiat currency which is being printed like crazy and overvalued and be able to buy a real asset that will eventually become itself of a strong value where you'll need a lot less silver to buy the same amount of goods you know for example you really shouldn't have to buy a house for 35 000 ounces of silver i think anyone listening right now would have a tough time even visualizing how much silver that that actually is to purchase a plot of land you shouldn't need 600 over 600 ounces of silver to buy a piece of property you know in 1980 when gold hit its maximum purchasing power you only needed 125 to 150 ounces of gold to buy a house in rosdale think about that think about that we're not talking we're not talking 300 ounces for your average home in toronto right now we're talking over 600 ounces for an average home not 125 so if you want to think about how undervalue gold is right now to property now look at the Dow the historic ratio when you hit your maximum purchasing power should be one to one with the Dow meaning in in 2011 gold hit i think three to one we didn't quite get there but that was pretty good in 1980 it hit one to one if gold were to hit one to one to the Dow right now that's a massive move so either the Dow is overvalued or gold is gold is undervalued if you're looking at the ratios i think it's important to acknowledge that and as an investor you should be having that knowledge in your back pocket is the key to diving in moments like this and snapping up undervalued assets like silver gold is also in my opinion very undervalued but not as much as silver and both of these assets can be held through guild hall if you're a buyer it's very simple to get on board you can buy physical product just by creating an order either through our e-store online through our website or calling directly to one of the brokers and putting in a trade you can obviously open up a storage facility we've talked about it this is a storage account a depository account is what we refer to it as and you can put hundred ounce bars in there ten ounce bars you can put thousand ounce silver bars in there any denomination of gold silver and of course you also have the option to extend this a bit further to put this in your rsp tfs a's re sp's riffs lifts this is an opportunity of a lifetime as far as i'm concerned to have such an undervalued asset be covered under one of those types of registered saving plans and because silver and gold haven't done a whole lot in the last couple years what you get is anyone who's purchased in the last few years is not looking to sell any time right now and the people who've capitulated through in the towel because they might have bought silver at higher prices we're not seeing a lot of those people either otherwise you'd have a flood of supply in the market which you don't have right now so if we're looking at a three to five-year outlook on precious metals you have to ask yourself if i put ten fifteen twenty percent of my portfolio into gold and silver at these low prices below the cost of production what are the chances and we're talking about not even doing any research okay what are the chances that silver could double in the next five years or just go to thirty just go to twenty five dollars in the next five years and compare that to what you've seen in your own portfolio over the last few years and i think you might at worst see an opportunity a small opportunity to say you know what let me put a let me put a toe in the water because again the worst thing that happens is you don't put that toe in the water the market goes up and you still don't put the toe and it goes up further and you say goodbye to an opportunity well i've seen it happen anytime sorry john interrupt you but that's just the regular occurrence in the marketplace if you're not a student up you're not paying attention you don't have the balls to jump out there and take advantage of something that's undervalued like this then that's going to represent an opportunity loss first opportunity make that call one eight seven seven eight silver online to guildhallwealth.com silver seek silver seek dot com is a website daren and you have an article silver en route to fifty dollars plus right that's right it's part of the bandwagon this week it's called silver's route to fifty dollars and beyond and it's a article by Hubert Mulman it was posted on tuesday of this week it's a great article i suggest anybody grab it we might have put it in the precious metals advisor which is our free newsletter by the way so if you want that please contact us but it does touch base on some of the topics we were discussing today's show and the first sentences is just gets right into it the dao has been the biggest obstacle to arise in precious metals due to it sucking up a lot of the available value on global markets there will be no significant silver and gold rally while we have a rallying or a close to its high dao and again we agree when all things are functioning equal and the stock markets are being artificially propped up with quantitative easing and every form of financing out there imaginable and banks are being pressured to buy into this and to tell their customers which is the average joe public to also buy into this uh falsity then of course it makes it very difficult for other assets to explode and that's in case for silver and gold so this is an article which certainly shed some light on that and it says and i quote for silver to rise significantly from here value will have to be diverted away from those other competing instruments like the dao the dao's price movement during the last two weeks of august might be signaling the beginning of value diverting from depth fueled assets like the dao to silver and this article goes on to further discuss that relationship we were just talking about ratios and the importance of understanding that brother that brotherhood between silver and gold that's been shared for thousands of years likewise jeremy touched on the ratio between the dao and gold this is an equal partnership and you have to look at these types of things in order to understand where the value is going to be found and if people like this like Hubert moment who have written extensively on this topic uh for years are calling fifty dollar silver i mean what's it to stop from going fifty to sixty or maybe sixty to eighty or even eighty to one fifty i mean at a point in time there was investors who were skeptical about buying five dollar silver and when we told them we thought that based on the fundamentals we're seeing now in the marketplace that silver could become twenty they looked us and said happy happy if it went to nine you know and at nine an investor would say i'm i hear you say in twenty five or thirty but i'd be happy if it went to fourteen and at twenty an investor said hey if this went to thirty i'd be ecstatic and it went to forty nine so these are cyclical markets these are historically cyclical markets and they take time to develop so we are seeing the very front entrance signs of this both metals gold and silver happened to be at very precarious moments they are definitely sitting there right on the perch of amazing moment in time where both could easily rise very quickly and i'm not going to sit here as a hypocrite and suggest that i don't think that there's still weakness in the market there well could be i just think like jerry was mentioning before that the downside is very limited at this point in time david morgan will have some information coming up on that when we do an interview with him at the end of the month but again definitely think there's limited downside here i think the scary part jerry's usage you talked about in the first segment i was reading the other day that i mean we all know about tesla and how much you know the electric car is taken off and they're huge now i read that Porsche is also going to be getting into the business with a four-door electric carbon the next year and have to compete with tesla and elon musk's other half is the spacex program now he wants to along with virgin put about four thousand satellites around the globe so you can get wifi in places like the the most remote part of the outback they want to cover the earth and wifi and you said all these things are going to take silver right it's all going to take silver it's silver is so important to any sort of technology batteries there's a lot of silver in batteries and solar power i think to me the big one's going to be water purification it's used a lot in water purification because it does absorb bacteria naturally so even when you look at new technologies like transition lenses and sports clothing silvers used in all of these things so yeah absolutely new technologies all the time silver is the number one element that's in most patents it has the number one patents with with that element in it so you know yeah technology gets smaller but at the same time the the amount of technologies constantly growing so yeah i do think silver will be integral to all of those things and and as i mentioned earlier the demand on silver is is at a highest point in history when we have the least amount available and the most amount of people so when you start to look at the fundamentals for the market it really does start to look exciting now for anyone that wants to get involved they can simply log on to guildhallwealth.com go to the e-store it's really easy to log in choose the type of product that you'd like to buy press the button and we'll book the order for you and you can just make an appointment to come pick up your product if you are really looking to get involved in the market you can store that product at our depository or again just take it home whichever you prefer and if you want to use funds that are currently in an rsp or tfsa we can absolutely accommodate you with allocated product segregated product that means it's separated out from all other holdings it's allocated to you you get your serial numbers and you get your own account number for that product you can go and visit your product and take your own auditing of it it's insured by loyds of london it doesn't get any better there is no counterparty risk here simple to get on board you can go online to guildhallwealth.com or call the pick up your salon call 18778 silver both those technologies by the way have silver call the number and make sure you get in on the seminar there's going to be a natural or pardon me a precious metal seminar happening with quest trade at their offices a young and finch get online and register before the date of the show which is september 30th from 7 to 9 p.m. because seating is limited this has been the real money show on talk radio am 640 what if you 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