The Real Money Show
The Real Money Show - September 12th 2015
Welcome to The Real Money Show, the numbers 18778, silver to start investing online to guildhallwealth.com, the Precious Metal Advisor, the investor kit, the e-store in the top right corner, TFSA, RSP, all kinds of different ways to get into Precious Metals. If you're new, Daren, I'm going to throw it to you first of all, an article we just talked about just before going out on the air. This is from Frank Holmes, who's a contributor to Forbes, and I'll just give you the first sentence you can comment on it. A few legendary influencers are investing, apart from me, in investing, are making huge bets right now on commodities, an area that continues to face some pretty strong headwinds. It is amazing, John, to see that people are being involved. And of course, we on week-to-week basis talk about gold, silver, color diamonds. And of course, we talk about information that's sometimes not in the mainstream. But when it comes through the mainstream, and Forbes would be considered a mainstream contributor, you do want to pay attention because it's not very often that they acknowledge how potentially explosive certain areas like gold, silver, and natural fancy color diamonds really are. And this article is talking about four investors in particular, Stanley Druckenmiller, who we talked about a few weeks ago on the show. He's a legendary hedge fund owner, billionaire in his own, and he's created a fund. And in that fund, he's now gone the largest portion of that portfolio, two gold. And that's an interesting take because there you have one of the world's foremost billionaire investors buying gold. He's on board. Yeah. And these other names people are going to know, George Soros, Carl Icahn, and Dr. Mark Faber, who we've had on this very show. So these are individuals who are now buying commodities. This is what we would call the smart money. And of course, they can withstand and weather the hits. Of course, they probably lost money in 2008, like everybody else. But in this day and age, we're looking for this type of advice, this type of insight, because this is where the astute money is. And when we got this show back in 2008, I remember on the first show talking about the importance of understanding how astute investors were back in 2002, how incredible it was that Paul would put together this firm to be involved in this market when silver was only, but in its infancy of this bull market, we were trading back then, believe it or not, below $4 an ounce. Gold was trading below 300 an ounce. And it was one of those moments where you thought to yourself, well, this could be something special, but nobody realized what it would be. And here we are in 2015. And likewise, when I see people like this, giving their time and effort, putting forth their best foot and doing it in commodities, it's telling us they expect the times to change and they expect them to change in a big way. You don't make billion dollar bets on gold unless you expect the price to go higher. And it's about following the smart money. And I think one of the biggest things that you didn't hear about this past week, unless you're really savvy on some of the alternative websites was the fact that last month China dumped almost a hundred billion in treasury bonds, but they didn't dump a single ounce of gold. They kept buying. So you have to understand that gold is the anti-play to fiat currencies. And if countries around the globe are accumulating gold as a backup to what we know is a massive experiment and we don't know how it's going to end, then you've got to say, okay, wait a minute, am I prepared the way these sovereign nations are, the way the smart money is? And so it's all about a question of being prepared. And then you can look at also what the potential is at the same time. Well, if you look at the currency market, the average country, whether it's Canada, whether it's Australia, whether it's New Zealand, if we're talking about Russia, against the US dollar, they've actually lost about 17.5% of their buying power or their currency. So, you know, Canadian dollar is basically worth 83 cents than it was, you know, over the last year. And this is only in a year. And over two years, it's actually even more. But, you know, the US went out to cripple Russia with sanctions. They crippled the ruple. China, as Jeremy said, you know, they, they were owning an awful lot of treasuries. They know they're in, they've got huge problems. They've got huge problems with a Ponzi stock market. And it is a Ponzi. It's just a crap game. That's all it is. It's a crap show. In the last couple of weeks, China has thrown so much money at their currency, at the stock market, at anything that's going to cripple their market, they've thrown money. And I think, finally, they've given up. They're just going to just say, okay, we're going to do some infrastructure. We're going to build bridges and roads to nowhere. And that's going to, you know, look good. Yesterday, we were recording this show Thursday. You know, the Nikai went up almost 8% in one day. All of a sudden today, it came up almost 3%. The stock market, the Dow yesterday was up 200 points, finished down 200 points. I mean, this is Topsy Turvy. I mean, it's a roller coaster. Do you really want to be investing in something that can lose 400 points in one day up and down? What's happening in Europe? You know, Draggy said, well, we'll keep on printing. We're going to do, you know, quantitative easing. We'll keep on printing. We'll keep on printing. You know, sooner or later, you're going to have to pay the paper. Paper is paper. Gold and silver is physical. It's been a physical product. It's been a money product. It's been a financial product for 5,000 years. And people will eventually go back to gold. Every banknote used to be backed up by physical gold and silver. Today, it's backed up by oxygen. It's a promissory note to nowhere. 18778 silver online to guildhallwealth.com. Well, just over a month ago, when we were looking at the latest changes in registered gold held at the COMEX, it's just where the major market for bullion is in the world during at least New York hours in our trading days, we were stunned not only by the collapse in the series to a record low of just over 350,000 ounces or barely over 10 tons of gold, but also by a surge in what we call gold coverage or the amount of paper gold claims on physical gold, which exploded to a record high 124 pounds. Now, that's a month ago. That's holding true to this day, meaning that on the COMEX right now, you will find and I believe this is the highest it's ever been in history for every one ounce of physical gold. They are claiming on paper 124 ounces. So this is the highest that ratio has ever been. And this tells us that not only is the interest in owning gold starting to change tides from what it's been over the last 36 to 40 months, but this is also telling us that there's a shortage on the horizon. If you don't see this, you needn't look any further than where we are right now. It makes common sense to go out today and buy up some small portions of silver if you're a small investor, some small portions of gold, but it makes even greater sense if you're a regular investor and you can afford this within your portfolio to own a lot of silver. And again, how you buy that's up to you. We have suggestions that we've made here. We're a physical firm. We don't trade in the papers. We don't believe in the paper market and it can be further from the truth with respect to what the actual price of silver should be right now as a perfect example. But at Guildhall, you can buy physical product. You want to walk in and place an order. Let us know you're coming and we can take that order. You want to store it through our very secure world renowned vaulting facility, open up a storage account. You can do that as well. It's insured. It can be audited and there will be serial numbers that you request. If you'd like to put this in your RRSP or TFSA or RESP for the kids, it's something we're going to be talking about at length. This is an opportunity for you as well. We've partnered with another group called Questrade and this is one way you can open up an account in own physical gold, silver, platinum, palladium. If you'd like to take it a step further, there's one other way that you can approach this. If you're a credited investor, if you have the money to spend and you'd like to play with other people's money, the concept of other people's money, we have another option for you, which is called collateralized financing. Again, we're going to be looking at owning in silver as an example, 100-ounce bars, but you can get up to 80% of the position financed, which gives you an extreme amount of leverage that in a physical market is near impossible to find. These are 100-ounce bars that you can have in your account. They can be serialized and again, this is storage. Again, there is a fee including that that will be involved in storage, but this is something that you can do as well. Paul, you've put together packages too, right, for the beginner investor, really. We've started for the, we call it starter kids or combos, where for the small investor, you can buy as little as a combo one, it's 22 ounces of silver, it's just over 300 dollars. Combo two, you can buy three 10-ounce bars, 10 maple leaves, 10 one-ounce bars. If you go in a combo three, you're buying 50 maple leaves, five 10-ounce bars. If you buy a 200 of combo four, it's a 100-ounce bar, five 10-ounce Royal Mint bars and 50 maple leaves. So they're all Royal Canadian Mint product. So you can get in just over $3,000 US. You start off, as I said, for $300, or you can go for $3,000, or if you're a larger investor, you can go for whatever you want to do. But silver weighs 1,000 ounces, weighs 70 odd pound. You don't want, if you want to buy 5,000 ounces of silver, we've had lots of clients this week coming in and buying 5,000, 10,000 ounces of silver, you're not going to need a wheelbarrow to take it out of the place. So we offer storage for you in a safe, secure, depository, which is one of the best ways to go. It's very inexpensive. It costs you 1.3% a year storage on the value. That's 1/10th of 1% a month. That's cheap. You can't even insure your own home for having jewelry or anything like that for that type of low, low insurance rate. This is the time to get into the markets. The markets have been beaten up pretty bad over four years. And the reason they were beaten up pretty bad was because it was easy money with quantitative easing. The money was given to Wall Street and the banks. It didn't trickle down, but the stock market went up. You know, it's great to have stocks and you're getting 3.5%, maybe 4% return, some dividends. But we drew up for a correction. We've had about a 10% correction in the market. So if you had 100,000, now you're worth 90,000. So it's great. So you're getting 3, 4% on your 90,000. What happens if this market really corrects down to 50, 60% of the value? You're going to be throwing up on your shoes when you get your statement to show what you've got. Gold and silver were beaten up because the stock market went up. Real estate went up. Something has to go down. Oil's gone down. Commodities have gone down, but they can't be down forever. Nothing goes up in a straight line. Nothing goes up like a rocket ship. It has to correct. The smart money right now is buying gold and silver, natural fancy colored diamonds. And we advise you to do the same, whether you put a package together, buy some silver, buy some gold, buy a natural fancy colored diamond. But you need to have up to 25% in hard assets just to protect. You've got life insurance, health insurance, car insurance. Do you ensure your capital? And the best way to ensure your capital right now is to own some gold and silver. 18778 silver online to guildhallwells.com. seminar coming up, Paul too, as well, right? Absolutely. On September the 30th, it's actually a quest rate premises, which is a young and finch. They have a huge building there. It's at 730. The seating is going to be limited. We can sign you up at quest rate itself. There's some paperwork to do. But if you're interested in putting gold and silver into a TFSA, an RSP, this is a great way to do it right there on the premises, a quest rate. 18778 silver, guildhallwells.com. 18778 silver is the number to start investing. You've got the website, the E store at the top right corner, as Paul mentioned, and Darren mentioned during the seven TFSA RSP, RESP. We've talked a lot about how to grab. We're going to talk, Darren, I'm going to ask you about selling your gold once it's in the vault, right? We'll do that. We'll take a short break. Lots more of the Real Money Show coming up on TalkRadio, M640. And back with more of the Real Money Show, the number 18778 silver online to guildhallwells.com. Seminar, you want to learn about precious metals and investing. Good way to do it will be at the quest trade offices at Young and Fence. A date for this is Wednesday, September 30th. The time is 730, and you want to make sure you go to the website or call Guildhall to register early. The seating is limited. Darren, kick off this segment. What do you got for me? David Morgan coming up. He's a friend of the show, and we've had him on a couple of times before. That interview is coming up on the, we're doing the interview on the 24th, so it'll be the weekend of the 25th, 26th or 27th. And we're excited to have him. Again, that following week, you just said the seminar is coming up, and that's a lot happening. Don't forget if you're a listener and you want to have some information, feedback on a regular basis, the precious metals advisor. It's our free weekly newsletter. You'll get it free for 12 months. And if you're an investor, you can expect to get that free for as long as you maintain account with the firm. Now, we were talking just before the break about gold and silver. And I want to tell you right now, I'm so convinced about silver. I'm so excited about silver. And I want to let people know that all silver investors have suffered enormously in recent years. There's a key leading metric, which is suggesting that prices may soar in the near future. Silver investors who bought precious metals the last time this indicator hit, its top would have earned in and around, give or take the 400 to 430% range if you bought using this indicator. This indicator we talk about at length and it's the ratio between gold to silver. Now, I don't want anybody to think that this is a get rich quick scheme. It never ever ever is, but there could be severe turbulence along the way. But if you buy at the right time, and under the right circumstances, there is a lot of money to be made. The upside of silver right now is pro, perennially undervalued, John, and it's barely been as bad as this. An ounce of gold is currently worth about 77 times more than silver, as opposed to what it was a low of 32 to one in 2011. When you consider long term trends and the headwinds that have been against precious metals, it becomes clear that silver's present cheapness is a historical anomaly. So what's happening here, there are a combination of factors at work. And Jeremy and I were talking about it before the show. We talked about the very, very astute money, the early investors similar to what we saw in 2002, 2003 when the likes of Warren Buffett had already owned silver, the likes of Bill Gates and others that people would have known. But the uncomfortable reality is that capital has fled from commodities since 2011, up until just a few months ago, and we saw a huge stock market rally. Respectfully, the S&P and the Dow grew 120% and 98%. And the NASDAQ returned to whopping almost 200%. You can't deny those types of returns, but as Paul said earlier, you're not looking down a barrel right now at the stock market and saying, "Hey, that barrel is going to get longer and keep going before the bullet comes out." Right now, that barrel is getting shorter and shorter and shorter, and you're likely to suffer if you think that making a medium to long-term investment in the stock market is a good thing. Now, if you look at gold and silver, silver came off about 70% from its peak of $49 in change down to its low of 14 in change in March of this year. And gold only came down about 40%. So that ratio has widened. Silver is very undervalued at this time, quantitative easing fostered a very speculative bubble in equities, and it reduced the need somewhat for a lot of people to have a safe haven asset. But as Paul said, constantly, forever, this is about an insurance policy as much as it is about making money. And if you go through life, not ensuring the things you have, you're going to suffer sooner or later. One thing that's the most important that people always overlook is ensuring your wealth. And that's just one of the things that we constantly talk about, especially during the seminars. Oh, absolutely. And when we put on the seminar, the listeners come to the seminar, they understand what we're talking about. We give them a slide show and it really is educational in what happens in the markets. You know, people that have RSPs and they've got stocks in it, not a lot of people really take a lot of notice. If they're in mutual funds, they're letting a mutual fund manager or the bank or somebody or brokerage house look after their account. Most times the fees are just killing you. When you get into an RSP or a TFSA, you're paying a one time, you know, fee a commission right up from when you're purchasing the gold and silver and it's a minimal commission. And you're paying a storage, you're paying 1.25% a year on the value of the metal. If you buy $50,000 worth of silver today or silver and gold, and that product goes up in value, which we expect it to do because silver is trading just under $15. Gold's just over $1,100 US. This is an unbelievable time to buy it and to put it into an RSP or a TFSA where you're getting a tax free saving. If you don't believe it's going to cost you 1.25% a year over the next four years, that's going to cost you 5%. Do you think gold or silver is going to go up more than 5% in the next four years with what's happening out there in the world? With a refugee problem that's happening in the world. It's incredible. We've been talking about the war in Syria. Nobody even talks about it. It's on the back page. Did Greece fall off the map as well? All of a sudden they've become entrepreneurs and they're making all types of money and it's a great, great country. They're going to be banging trouble. You know, if you look at the states, if you look at Puerto Rico, you know, they're going to just default on about $12 billion. It's not getting any better in the states. When you talk to the average person, they're living paycheck to paycheck. Wall Street has done very well. The wealthy, you know, in 2011, they were smashed down. So if you had 30 million, today you're back up to 50 million. Does it really matter if you've got 30 or 50 million dollars? But if you've got 30, 40, 50 thousand dollars in the stock market and that's your savings and that's what you're going to put your kids through score. That's what you're looking at retirement. You better, you know, get into something that's going to be in sure you're against tumultuous times because the markets will collapse. They've already started, you know, in one day, you know, you saw in China the markets fall 8%, 10%. In the Dow, you've seen that come off four or five percent in one day. It's going to happen. The markets can come off between 20 to 40 percent and people are sitting on the sidelines or they're putting their money into gold and silver. It's better to be one week, one month too early than one day too late. If you're looking at your stock portfolio and you've got some real dogs there that you bought at $10 and it's down to a dollar and you're going to hope it's going to go back to $10, get rid of it, put it into something that's going to get you a return and that's going to be gold and silver. 18778 silver online to guildhallwealth.com. Jeremy, we talked about using the storage facility. It's safe. How about when I want to turn around and take that precious metal be a gold or silver from the facility? I got to sell it. I want to sell it. What do we do? Well, one of the good, one of the reasons and advantages of being in a depository is that you can sell it right away, that you have that ease of liquidity. Whereas if you bury it in the backyard as we like to say or just put it where you have decided it's safe for you, it becomes a little more difficult to then get it back to the marketplace to be able to sell it. We sell it right back to our dealer so it's not an issue of liquidity. It's an automatic process. It happens very, very quickly and then the client would have their funds available the next day. We don't unlike some institutions where you have to wait a week or 10 days to get your money back. So that's one of the key advantages of having it in having your product in an independent vault and of course not to mention the insurance and the security of that. There was a news story last week or the week before about a whole bunch of silver being stolen in Montreal that was sitting on a dock somewhere with strange, strange story, but apparently they've caught the perpetrators. We'll see what happens. But it's all about securing your wealth and you want to secure it somewhere where you have easy access to it. All clients who purchase product and hold it in the depository, again an independent vault, they have access to their product independently, audit their product as well. Can I actually, I know you said it, of course it's always been precious, but can I actually go physically see it? Can I touch it in the vault? Absolutely. How does that work? You would make an appointment and then we would schedule a time and then we would make sure that every bar that you have on your inventory list with the bar numbers on it, you would see that in real life and get to audit it in person and take photos for yourself, kiss, hug, touch your metal, whatever you want to do, it's yours. If you want to decide you want to take delivery that day to let us know so that we can arrange that for you. And we make it very, very easy, we're incredibly transparent. And I think that's what's made for a very successful business in terms of having clients trust that, okay, so yeah, I know where to store my product. I'm not going to store it in a safety deposit box where I don't have, I don't have complete access to that necessarily. Or enough room. Yeah, or enough room for sure. And as well, you know, the ease of liquidity isn't there. Well, the thing is when our wholesaler, we deal with one of the largest wholesalers, metal dealers in the world, they deal with the Royal Mint, the Royal Mint puts their product in the same depository. So we have a chain of integrity. When we buy the product from the wholesaler, it's from the Mint. It goes into the account, we know what it is. I either, if somebody wants to sell it, we may buy it through back through good old holdings or we sell it back to the wholesaler. Most times I buy it back myself because, you know, it makes sense to do that because we're selling silver all day long. But when it comes to, for the customer to get their money, it's, in some cases, a customer needs it. They can desperate, they can have it the same day or the next day. Try doing that with a bank or a brokerage house, getting your money. You know, you get a story, you know, it's going to be a week, seven days, 10 days, you know, we've got to put a hold on this, a hold on that. It's a load of nonsense, you know, banks don't like letting money go. And we had an example this week where a customer, you know, wanted to buy some gold and silver and a bank was trying to talk them out of taking their money out of the account because they didn't want that money to leave that branch. You know, gold and silver is the way to go. Paper money, fiat currency, equities, ETFs, certificates, they're mythical. It's paper and paper is easy to print. To, you know, right now in South Africa, they're closing half the gold mines for the simple reason the price of gold is undervalued and they can't pay. They've trimmed so much. If you look at the mining stocks in gold and silver, just generally, they don't even correlate with the price of gold and silver. They've cut the prices and they've cut the cost of doing business. They, you know, laying off staff, doing all types of things just to keep their prices down. You can only cut so much. If you've got a length of cloth, you can only make a suit from the length you've got, right? I mean, otherwise, if you don't have enough cloth, you're going to have a jacket with short pants. You know, something has to give. And what's happening in the market right now is the mines have given up. A lot of them are not producing because it's better to close your doors or cut back on production than to sell below cost. One of the largest banks, you know, that sell gold and silver. On their website, they've got out of stock, 100-ounce bars. They're a lot bigger than Guildhall and they don't have product. They don't want to sell the product because they know it's too cheap. They know the market's going to go back up. There is a shortage of gold and silver right now. The Royal Mint is back-ordered. We're back-ordered from July 13th on silver. I place orders every single day. We are back-ordered. The Perth Mint is back-ordered. The US Mint is back-ordered. Why are they back-ordered? They're running at full production. The reason is the small investor is buying gold and silver. All of a sudden, they've realized, you know, this is starting to sink in. The Emperor's got no clothes. It's paper. It's paper. It's paper. And paper, a house of cards, there's no foundation. It's sooner or later going to collapse. You can only go so high before it comes tumbling down. It's a juggler with all the balls in the air. Once one ball drops, they all drop. Remember the magicians with the plate spinners? Yeah. That's what the system is. And fiat currency will collapse. The stock market's going to come off. You need to be in hard assets, gold and silver. 1-8-7-7-8 Silver and online to guildhallwells.com, the E-Star, RSP, TFSAs. Those are ways you can invest as well. And a reminder, these seminars are coming up to get more educated. Even further, the offices of Questray are going to be happening at Young and Finch. The date is Wednesday, September 30th, 730 at night. You want to give that number a call and register early conceding is limited. Real Money Show continues to talk radio. M640. And welcome to The Real Money Show. The number to start investing. You know this one. 1-8-7-7-8 Silver or online to guildhallwells.com, your RSP or TFSAs. And the E-Star in the right top corner of the website to start investing the easy way. Guys, let's talk about natural fancy colored diamonds, our favorite part of the show. Paul, go ahead. Yeah, John, this has been an exciting wig for us in natural fancy colored diamonds. We're just actually getting into, we've always sold blue, green, natural fancy colored diamond and green blues. They're very, very rare, very hard to get it hold of. But we've just made a connection. We actually sold a blue green this week, which I was kind of excited about. And we've made a new connection to be buying blue greens on a steady basis. These are the type of diamonds that are increasing in value, basically doubling every three years, as much as two years. Yellows are extremely popular. Pinks, we've always spoken about the Argile Pinks, the mines closing in 2018. But the rarity of blue greens, it's about, what that means is about 80% blue the diamond, but 20% green, they look like aqua. They're just unbelievable colors. And I got to tell you, men love this color. I'm even thinking of getting a pinky ring made myself with a blue green because it's just absolutely stunning. They are expensive, but they will go up in value at a tremendous, tremendous rate. We've only got one left actually right now on our website. It's a 0.44. It's a fancy blue green VS2. It's a cushion. Now the stone is appraised at $80,000. It's on for $62,000. Now we spoke about holding, last week and the previous weeks, we've spoken about holding diamonds for an extensive time. Between five to 10 years, 15 years, it all depends what you want to make on a diamond. But if you're looking to retire, if you're looking to put your kids through university, this is an ideal investment. Now what we decided to do for the month of September, because it's actually eat the tax. If this diamond is on, for example, as I said, $62,000, that's tax in. When you go to sell a diamond, you've got to realize that the government is taking 13% of your money right off the get-go because this is a taxable product. For example, if you paid $60,000 for a diamond and you're paying 13% tax, you've got about $8,000 there in taxes. So if you tried to sell that diamond in two years and that diamond went up, 7%, 8% a year, which is a great return. Anyway, the first two years, you're paying the tax on the diamond. So we decided for the month of September, we're going to eat the tax, give you the price of the diamond. Whether you take a yellow, a pink, a blue, a green or red, it's going to be tax in. We're always talking about how long you should hold the diamond. One of the reasons we talk about that important five-year start is because we believe that at the five-year mark is where you really see the gains and what the true possibilities of this market are. Now, keep in mind that this market, the more you invest, the more rarity you're buying and the more valuable you're buying and so the better the gains. But we're talking in general, let's say anywhere between a 15 to $30,000 investment, you're going to want that first five years to just really see what this market is capable of. And at the end of the day, this is about preserving wealth and growing wealth. We're talking about building a net worth here. And when you own a diamond for 15, 20 years, it really builds your net worth. And what we've discovered by procuring and helping clients to get involved in natural fancy colored diamonds is we don't necessarily even think about, and we're talking personally here about how long we've held the diamond. Is it time to sell it? Yes, we're in the business of selling, but at the same time, if we've held a diamond for over four, five years, we're actually in no rush to get rid of it at all because we see what that diamond has done in the market. We know what we paid for it, and it starts to become more exciting. You almost get to a point where you don't want to let it go. But I'll give you an example of that. We've gone on many trips to New York to talk to dealers and talk with our partners. And there's always a special diamond out there that a dealer or one of our partners will want to sell. And they put a massive premium on it because they don't want to let it go. You know, I'm talking, I remember one time we were looking at a diamond. I forget how large it was, but it was an internally flawless orange diamond. And what the person wanted was just ridiculous. And we said that's ridiculous. Come on, we know what it's what we're probably looking at here. But he didn't want to let it go because if he did sell it, what's he going to replace it with? Never get it back. Never get it back. And that's the same with all of the diamonds that we sell at Guildhall. Once you've held on to a diamond for five, 10 years, what are you going to replace it with? And that's why we talk about that five year mark. It's the idea of creating that paradigm shift of making money can be very easy. It doesn't have to be a swipe in, swipe out, hot money type of business in order to get a good return. It means you buy, you be savvy, you buy something today that you know in five years, 10 years, 20 years is going to be ridiculously higher in price. Exercise and patience, right? Well, the funny thing is, you know, I sold yesterday a blue, green diamond. Now, two years ago, when we bought that diamond, the actual just under two years ago, the currency was 104. Today, we're looking at 133. So just on the diamond alone on the currency, this 30% profit, that's without the increase of what's happened on that diamond. And we actually kept the price for what we paid on the website. We didn't increase the price. But what we're trying to show you is that this is such a great investment. Now, for example, white diamonds, you know, there is an abundance of white diamonds out there. Now, this year alone, or since last year, since last August, an actual fact, white diamonds have dropped in price as much as 29%. Even the D's the top or no, not even close. Oh, the white diamond just basically have dropped 29%. The reason for that is the global stock market slump, in discretionary spending as well, that has affected the jewellery demand in China. Now, as well, you know, they in China, they cut back on giving bribes. And that's what they were doing in all businesses. It was part of the way to do business was give a bribe, give jewellery away, give Louis Vuitton bags, Chanel bags, all this type of thing to get business. They really cut back on that. So it's called luxury gift giving. There's a better word than bribery. And you know, there's a slowdown in the world's second biggest economy. So when we look at natural fancy colour diamonds, and there's a big diamond show next week in Hong Kong, which starts, the white diamond trade has really been hit up. The gold and jewellery trade has been hit up. But natural fancy colour diamonds, whether you're going into a yellow, whether you're going into a pink, a blue, blue, green, orange, red, they've all gone up tremendously because there is not a lot of this product around. We're talking investment grade diamonds. We're not talking, you know, the milk here, we're talking the cream on top of the milk. So this is what we're talking about. There's only a limited amount of top, top quality product. And at Guildhall, we go out of our way to purchase the best of the best. We bring to you, we take the hard work out of buying a diamond because we only buy the best for the simple reason. We know you're going to hold that diamond for five years, 10 years. You're going to want to send it back. You're going to want to resell it. And as you're putting it into a piece of jewellery and you're passing it down as an heirloom, but you want it to get a return on your investment. You know, you can't take it with you. You know, if you own a house, eventually you want to sell it. You can't put that in a coffin. You know, someone's going to have to liquidate it. It's going to have to be worth something. So we're happy to take back product that we sell. Now we get two, three, four calls a day from clients, not our clients, other people's clients, that are bought diamonds and where they purchase the diamonds from, they are not interested in taking back the diamond or they've disappeared off the face for resell. That's not a good sign. Well, there's quite a few companies out there, you know, where people have bought product. And the first thing they say is, well, we sell diamonds. We don't buy diamonds, but we're happy to take back our own. It's really important for us to, for anyone who might be thinking about this market to help get them educated. And we have a 10-step guide. This is just a really easy way to start to see, okay, here are some pitfalls in the general marketplace to make sure that if you're going to buy something, make sure you're buying the best because that's going to give you the best leg up to making money, to having a pure investment. So you can certainly contact us. We have that 10-step guide. It just tells you things like which colors to look out for, what clarity is to look out for, make sure that the company you're dealing with, you know, that they're providing the GIA certificates that they're providing appraisals, things like this. So it's really important to have, if you want to see the type of diamonds that we have at Guildhall, of course, you can go to guildhalldiamonds.com. We're also on Instagram. You can see some of our our diamonds on Instagram. We're also on Pinterest. You can go to Pinterest and see some of the color diamonds that we have and Google Plus, of course. So you can, you can find us all over the web in terms of seeing the type of quality that we have. We do go to a great length to take the photos of our of our diamonds. We own all of the diamonds. That's why we're able to take our photos and get them edited nicely. And they all look really great. So we encourage you to do that. And again, learn about natural fancy colored diamonds. Learn as much as you can because once you know a little bit about diamonds and what to look for, especially the four Cs, that's going to be the key. Once you're educated to that extent, we know that you're going to be able to appreciate what Guildhall has to offer and the quality that we have, as well as the reasonable pricing that you have to purchase those diamonds. And we also go out of our way to educate our clients. So when a client buys a diamond, we educate them. It's not just buy the diamond. Thank you very much. Three bags, four serum, you know, you're on your way. You know, we keep in touch with the clients. We give them updated appraisals. And you know, it's amazing how many clients start off with one diamond and make money on that diamond and come back and purchase other diamonds and become collectors. They may start off with a fancy yellow, you know, right now for a 13, 14,000 dollars. They may go to an intense yellow internally flawless for, you know, 25,000. They may get into a vivid and then they get into pinks and then they want other colors because they realize they become students of this game. And they understand how hard it is to find these spectacular diamonds. And at Guildhall, we go out of our way to bring this merchandise to our customers. The diamonds we bring to you are diamonds that are going to increase in value. This is not a quick flip where you say I'm going to buy it, you know, for a hold it for a year. That's not the type of business because as I explained, the government in Ontario is going to take 13% of sales tax. So it's a taxable item. Let's take, for example, a diamond that we have a fancy yellow that may go up 68% a year. If you hold on to that for two years, all you've done is covered the sales tax. Never mind the currency where the currency could go up as much as 10% a year, but you're looking at 68%. So you need to hold it for five years if you can hold it for 10 years. So what we're offering every customer for the month of September, any diamond that you see on Guildhall diamonds.com, we will, if the diamond is $100,000 as an example, you're not going to pay $13,000 on top of it. You're paying $100,000 total. We're going to include the tax into that purchase of $100,000, or $25,000 or $415,000. So it's a great time to buy. There is a scarcity out there of quality, quality diamonds, and Guildhall has the best of the best and brings it to you. 18778 silver online to guildhalldiamonds.com. Last few moments here are the segment, Darren, what are you going to say? Well, when I think of investing, I always think of the numbers, John. And when I'm thinking about colored diamonds, one of the reasons that I was drawn to owning colored diamonds was simply because of the return on investment. I do know the importance of thinking about all aspects of owning something as beautiful and gorgeous and as unique as a colored diamond. But when it comes to the pure dollars and cents, that's what gets me so worked up, gets me so excited. It's why when you have people coming off the street and Paul is talking about a blue diamond, blueish green diamond this week. That's my client at that diamond that bought that diamond. And when he bought that diamond, this is not an individual who would typically have walked off the street and said, yeah, color diamonds is for me. This is an individual who came to us to buy gold to start with. This is a blue collar entrepreneur. This is a gentleman that has been with us now for just about a year and gone from knowing very little or nothing about colored diamonds to owning a few diamonds. So he's excited. He's made some money on his original investments. And he's now looking at the big term picture. Now that he's added these diamonds to his portfolio, he's saying, look, I've got some diamonds that I think were starter stones for me. I'm looking to migrate into different colors, better ranges, larger stones. And that's what he's done. He's gone to this bluish green. It's a beautiful addition. But numbers for me make all the sense in the world when I can see them visually. I've prepared with Jeremy a chart called the diamond comparison chart. And it takes approximately 20 diamonds from 2012 to 2015 in the comparison. And now all the diamonds are the same. Some are the exact same diamond, but others are very close. And what it does is it examines the value of fancy intense yellows through to fancy vivid and fancy pinks through to fancy intense pinks. And what we found was that on average, fancy intense yellows increased in game per year, about 13, just a little over 13% in these particular diamonds. Average fancy vivid yellow increase was around 19 and a half percent. And the average yearly gain in fancy intense pink diamonds was about 28%. Now these are just prices that we ask on our site. It's a very quick way to compare the difference between what was being asked back then, what was being asked back now, what's being asked now. And again, it just serves to show you what type of earning potential is there. I know of nothing in this day and age that I could put my money into. That's is available. That's as publicly available. That can be consumed by the public at large, that can be held. It's tangible that has that type of track record. There's nothing. I can't put my money in the stock marketing, expect that because we don't know from day to day what will happen. I love silver. It's my number one pick of all. But again, I know that silver and gold are part of a larger complex, which can be very volatile. I love them both. Silver is very undervalued. But when it comes to consistent earning potential and understanding what the confines of liquidity are when I want to sell a colored diamond, there's nothing on earth that comes even remotely close. I would say collectible art is the only thing that comes even close to that. But it's also portable wealth. And it's an insurable product. You can't ensure your stock portfolio and what's happening out there. And right now, the markets are going absolutely crazy. Every time I turn on one of these business shows, yeah, sure, you've got the gurus or the pumping up, pumping up, you've got to buy, you've got to buy, it's a dip, it's a dip. But I've got to tell you, most of the smart money is pulling out of the stock market and they're going into commodities. GuildhallDiamonds.com is where you want to go online in 187-78 Silver over the phone to start investing and remind you the east door for precious metals is on the website guildhallwell.com. We'll take a short break, summarize in the fourth segment more about diamonds, more about investing and precious metals on the real money show, talk radio AM 640. Back with more of the real money show 187-78 Silver online guildhallwell.com precious metal advisor. Investigate the east door in the top right corner of the website. And a seminar is coming up. It's going to be happening on Wednesday, September 30th at the offices of Quest Trade. That's Young and Finch 730 at night. It's when it's going to be. I want to go to the website and register early for your seat. Darren, last few minutes of the show here. Yeah, John, this is important. We were talking in the last segment about understanding how truly undervalued is one of the two metals that we sell right now are in silver in a balanced portfolio. We're going to have silver. We're going to have gold. We're going to have natural fancy colored diamonds. But right now, I love silver. We said 77-1 is the ratio between gold and silver. The last time that ratio got that high, buyers were buying and making up to 4, 430 percent return as the ratio came back down to 32 to 1 by 2011. So this stands to reason that this will happen. Again, we are in a big long-term bull market for precious metals. We haven't left it yet. And the number one question we get asked is when or is silver going back to $50 an ounce? And I'm here to say that the prospect of $50 silver is exciting and it's exciting for many reasons. But it could happen sooner than anyone expects, John. Remember that 70 was the magic number for that silver to gold ratio. The last time we talked about this in 2011, we're talking about that ratio. And we're seeing how far it had come down and it was time to take profit off the table. And a lot of people did. But the last time gold was so expensive relative to silver, that smart investor stood to gain as much as 400 to 420 percent return if they took that ratio to heat and bought the- That's not even the true ratio is actually 16 to one. Going back to- Historically, right? Biblical times 16 ounces of silver, 16 pieces of silver to one piece of gold. So when you're talking about 77 to one ratio, it's crazy. It's absolutely crazy. Silver is being treated as a base metal, not as a precious metal right now. And it's used in every type of manufacturing, as well as being a precious metal. And whether it's the Indian Indians or Chinese, they're also switching from gold to silver in jewelry. It's happening because it's so relatively cheap. But if you look at the price when we mentioned in the previous segments, we started this business. Silver was trading at $3.80. Today we're trading at 15, 60, 15, 70. That's still over 400 percent. Gold was trading at $250. You know, we sold gold and silver to people. They snuck home, never told anything, never said a word to their families, their kids, anybody, all of a sudden when it started to go up and we've hit a high of $49 silver and $1,900 gold, how smart they really were. If you look at the price of silver and it's trading, you know, 14, 60, but you look at it in Canadian dollars, we haven't dropped in price. That's over 18, nearly $19 an ounce. If you paid $3.80 and you're at $19, you haven't done bad in 10, 12 years. We believe that silver is going to break out and Darren's talking about $50 silver. You know, people are still talking about $2,000 and $5,000 and $10,000 gold. If the markets collapse, guess what? People will be running for gold and silver and we are limited. You know, the royal men is producing three shifts and they can't produce the profits. No, not enough product to fill the orders. The US men with silver eagles can't fill the orders. The Perth men can't fill the orders. Where else can you do? You know, like in Montreal, they stole $10 million worth of silver sitting on a dock, but I guess it's been recovered. But people are smart, even thieves are figuring out that silver is going to go up in price. So it's a great time to get in. Go to our east door. You can buy physical product. You can take it home. You can you can buy maple leaves. You can buy 10 ounce bars, 100 ounce bars, the silver, one ounce, 10 ounce kilo bars of gold, gold maple leaves. If you want to put your account into a depository account, which is safe, secure, segregated, allocated, insured with Lloyd's in London, we can put that in there for you. The other thing is putting it into a TFSA or an RSP and you're sick of the stock market and you realize the stock market is going to come off. You know, if the stock market comes down, something else is going to go up and gold and silver is ready to go up. It's a cold spring waiting to happen. Here's the thing. I'll talk to people every day and we have discussions on the US dollar and the current price of gold and silver, which looks to be doing nothing. If the price of gold and silver was skyrocketing right now to all the listeners out there, what do you think that could mean to the economic situation and the and particular the US dollar? And when I talk to people, most will say, well, it would probably reflect very poorly on the US dollar. And that's exactly the point. Can't you now see and understand why it's possible that central planners would not want to see the price of gold and silver skyrocketing right now? Because it is the canary in the coal mine. And if gold and silver were skyrocketing right now, that's it game over end game. The music stopped. You do not have a chair. This is why people who are savvy are taking advantage of the lower prices here. Now, what's going to happen is the rubber hits the road, which is what we're at right now where there's a lack of physical supply now. And at some point, the market's going to have to adjust. We don't actually know how high it could adjust to, but we do know that it is so supremely undervalued that if you can see that, like we talked earlier in the first segment about savvy investors who are very wealthy and follow the smart money, they're getting involved in the market now. You look at sovereign nations who are getting involved in the market and you say, look, you can be involved in all paper assets like the US dollar. Fiat currencies have a very bad history of survival, or you can take the other side of that trade, which is put your put your hard earned dollar and your value into a storage unit like gold, like silver. And that's where we're at. And we feel, at least I do, that I don't know if you're going to see a gentle rise up that you're going to have an opportunity to buy into silver at $22, $23, $24. It might just go from 16 to snap $30 an ounce. This is why it's important to be in early. You want to do it right now. The numbers one eight seven seven eight silver online to guildhallwealth.com. Pick up the precious metal advisor, the investor kit, the e-stores in the top right corner of the website. Start investing that way as well. TFSAs, RSPs, RSPs, and a seminar is on the way at the quest trade building at Young and Finch. That's going to be happening on Wednesday, September 30th, 730. You want to get in early. Go to the website and register there as well. 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