The Real Money Show
The Real Money Show - September 5th 2015
this afternoon via Skype. So if any time you sound like you're from the International Space Station, we'll know why. Jeremy's here and Paul, let's get going. Who's doing the opening salvo? Good to be you, Darren. All right. Thanks for throwing me, John, because this has been a busy week in metals and I apologize because I'm at distance, so my voice may cut in and out. But as we tape this show on Thursday, the price of silver right now is trading in the 1460 to 1470 range, while gold is sitting in the 1120, 1130. Now both metals witnessed weakness and strength during the week in accordance with what the stock markets did. And again, Paul, I'm going to throw it to you because right off the bat, we are confused about what's happening in this market right now. So if I should say, we have never been busier with physical buying. You're absolutely correct, Aaron. From our suppliers, we're actually just getting filled back orders from July. So all my orders in August and so far to September the 3rd, we've got product on order, but it's back ordered, it's allocated to us. And when the Royal Mint eventually catches up or some of the other mints, whether it's the Perth Mint, the US Mint, or the Canadian Mint, they're all in the same boat, they don't have any product. You can go to some of the biggest banks, go to their websites and look for 100 ounce bars of silver and it will say out of stock. We are still shipping and filling orders to the best of our ability. But again, we are back ordered. What's being traded every day is paper and paper is not the physical product. And with these turbulent markets, we have never, ever been as busy as we are now with people buying physical silver. It doesn't matter whether people are coming in for our small combo package, which is 100 ounces of silver, maples and 10 ounce bars or 200 ounce combo package or people buying 5,000 ounces of silver or kilos of gold and 10 ounce bars of gold. It's been just horrendous trying to get hold of merchandise. And I'm fortunate enough that we do have product and we're filling orders and even though we're back ordered from the manufacturers. At the end of the day, I've said this before on the show many times. One of my biggest concerns is that when the market starts taking off, that there'll be an unavailability of product and the market hasn't even taken off and there's an unavailability of the product. So this is a big indicator that people want physical product and when you see the price low, you want to take advantage of it as much as possible. We see our competitors in the industry in Toronto, for example, with major delays on delivery and at least right now we're able to fill our orders and I think we're going to be able to scramble through this with our suppliers because we have good relationships. And then speaking of that, there was an article that we put into the precious metal advisor this week, John, talking about looking at the charts and seeing what's been happening in terms of the paper market versus the physical market. And Darren, you can chime in whenever you feel. But basically what it's showing is that demand for ETFs and other paper investments have either gone flat or down, whereas in the last few years, physical demand for silver has done nothing but pick up. And what that's created is the media can say by just looking at the ETFs, for example, that, oh, there's not a lot happening, that sentiment is really low in the market, et cetera, et cetera. But when you look at reality, you see that there has been major demand for physical product. And what this all comes back to is if you have a low price and something's completely undervalued and trading below the cost of production in many cases, you've got to take advantage of it, especially with what we're seeing in the stock market. And Darren, why don't you pick up on what's happening in the stock market? Well, I mean, there's unprecedented fear, Jeremy. And I mean, right now it's more like a boiling tea kettle of economic uncertainty that's occurring. And what you're seeing, I believe, is the very first level of investors start to exit. And let's not kid ourselves. The majority of buyers in this stock market are all funded buyers, meaning they're absolutely part of that 1%. They're absolutely part of the big institutions, the banks, the Fed themselves, and the US propping up these stock markets. And the propaganda that's coming across the board is that the economy, albeit slow, is still in recovery mode. Yet on Tuesday of this week, we get news that the Canadian recession that has never left us has never ever gone away. We know this. We've talked about it for years. And again, we deserve a pat on the back for that because we have been telling our listeners that we've been in recession since 2008 again goes public and technically two quarters of negative GDP growth. And again, this country is in recession. Now, this does not bode well. We have a very huge resource sector, a huge real estate sector. And there's a ton, a high percentage of jobs relying on that real estate sector. And we've said time and time again, that the key to understanding how to protect yourself in this market is looking at alternative assets. And that's always spend our time talking about in gold, silver, platinum, pladium, and natural fancy colored diamonds. And if you look at what's happening right now, nowhere is this tea kettle of economic uncertainty more prevalent than the growth of alternative media, the amount of people that pick up the precious metal advisor and other commentary like that. And when we bring guys on the show, like Gerald Solente and David Morgan and the Aidan sisters, these are people who are at the forefront of understanding what alternative assets do for portfolios over the long term. And as you were saying before, Jeremy, the key fact in this switch from people going to the physical asset of gold and silver versus the paper asset is the last two quarters. It's actually flip flop. So much to the extent that it's now 23 physical ounces of silver being bought for every one paper round. So if you're a paper investor out there, we could spend a whole show talking about the negative aspects of why not to own paper and why you're not helping yourself. But if you're a physical buyer, you probably already know this, but our phone lines are swamped. We've got a lot of ranged buyers. You've got people coming in to buy 10 ounces. You've got people coming in to buy 10,000 ounces at a time. And really, as Paul said, the ration out there is happening. It's true that the mints do have a limited supply. But places like Guildhall, because we're actually growing in this environment, are getting more and more share of the product. So we're not running out as quickly as others. And we're getting our product deliveries a lot faster one, eight, seven, seven, eight silver online to Guildhall wealth.com. As Darren mentioned, the precious metal advisor using your RSP and TFSA to start investing as well. Can I read you a quote Jeremy? Would that be all right? I love when you read quotes. This is something actually you handed me and I'll try to paraphrase what it says here coming from noble laureate Bob Schiller, the quote is substantial decline in fair value. He's referring to the Dow being around 11,000 says there was a risk of substantial decline. He adds warning that the recent rebound, another quote, maybe someone's goodwill effort to stabilize the market. Sounds a little scary. Yeah. You know, this, this leads into the idea of QE. What you're seeing right now is the Fed has been talking about raising interest rates. And the fact is, is that we can blame a lot on China, but it's never just one factor. It's not all China. It's not all China. It's to do with the algorithm trading and how the market just gets beaten up every day by these huge banks and trading traders that the small investors got no chance. Exactly. But the thing is, is that when the Fed is threatening to raise interest rates, the big banks are going to say, well, we're going to pull our money out. Remember, when they put QE, that's when the bank say, perfect, let's jump into the stock market because we're getting access to all that money. As soon as the Fed threatens to take it away, you have big problems. And that's what they're doing. I mean, we are headed towards QE for absolutely 100% unless something comes in to stop the Fed. So I think that the fact is, is that this is all a Ponzi scheme. It's all a bunch of paper. We have to understand that the market is way overvalued and it's mostly overvalued because of all this fake created money at this point. And so people are very concerned about that. They want to be involved in something that has no counterparty risk. Do you really want to follow the Fed narrative or do you want to say, you know what, I'm not making any interest or I can take a risk in a stock market that's already had major pullbacks in the last few weeks. That's why you're seeing people moving into safe haven assets like gold and silver. And when we look at what's happened in the past, whether it be the dotcom bubble or the subprime collapse, it's not just silver and gold that have done well. It's also been natural, fancy colored diamonds. High quality diamonds like investment colored diamonds of distinction have always fared very, very well during those times because they not only protect wealth, they can help you grow and grow your wealth as well. And so whether it's natural, fancy colored diamonds or another hard asset like gold and silver, this is really the time, especially since gold and silver so undervalued right now. So how do I get ahold of it, Darren? How do I get my hands on some? Well, it's simple. With Guildhall, number one, remember, you're buying a physical, precious metal. There are a lot of people out there don't realize that you can go about buying precious metals or even transferring precious metals accounts into our storage facility through an RSP or TFSA. So number one, it's physical. Number two, the easiest and quickest way is to give us a phone call and ask what we have. We have an e-store online that you can use in peruse and we can get you set up with buying right there. So if you're a guy who likes to buy every month, a little piece here, a little piece there, that's a possibility. If you're an investor who wants to take a chunk of his investment portfolio and add it to precious metals, then you can open up an account with us. You can have your product stored at a registered vault that's protected by IROC. That's a certified vault in terms of storage. It's right here in Toronto where you can visit your product and you can do that with multiple types of bullion from one 10 hundred ounce silver bars, 1000 ounce silver bars to 110 hundred ounce one kilo bar gold. So there's a lot of options there. Another option is to simply come in and ask us about how you can extend your money a little further. This is an option we call collateralized financing and it's not for everyone, John, but I want people to know that this is one way that you can supersize and take advantage of a move in the market. If we expect the market to go from where it is today over the next two years and we expect that market to jump up to say 30, $40 an ounce, this is one way we could really hit the market and do extremely well. And I'll give you an example. If I wanted to, for an example, put down and buy as we did this week with one client, 2,500 ounces of silver right now, I would be able to lay down as little as about 40 to 45% of that investment, including my cost of commission and everything that I have for about a cost of give or take around 22,000 US. Now, what that means is I'm going to be controlling round about 35 to 40,000 dollars worth of silver, but I'm only putting up about half. That means I'm going to get in silver as an example with this one. We did 100 ounce bars. I'm going to get bar numbers so I can have them serialized and I can set up times that I can make buys and sells and I will be able to use my equity as the value of my metal increases to either withdraw funds and get back my principal or to take that a step further. And if I'm comfortable and have the money to invest by more silver with that equity. So this is a fun way to invest and it's an exciting and dynamic way. And if you're out there and you're listening and you have the money to lay down, this is another alternative. But again, physical all the way, 100% guild hall is not involved in paper investing in precious metals. And what we're seeing is a lot of people who are fresh to gold and silver for the first time, they really like those combo packages that we put together where you can have a little bit of everything. It takes sort of the questioning of what do I buy out of it? Because when you're first getting into the market and you're buying a hundred or 200 ounces, it's what you should get. You should get just a variety of products so that you've done that. And then you might move up and start to purchase hundred ounce bars. In which case, you want to worry about the storage of that or be concerned about it rather, you'll want to look at something like the depository. And then of course, if you've moved beyond that, you might say, you know what, I already have a good amount of my initial silver position or gold position. Let's look to finance that. And then of course, we have the RRSPs. For clients who are looking to invest in gold and silver, they don't want to be in the stock market, but their invested funds are within their RSP. We absolutely offer that at Guildhall where your product is allocated and segregated and you can personally audit your product. Or we can also do that within the TFSA, which is brilliant because we expect big, big moves in gold and silver over the next few years. Why should you have to claim the capital gains on that? Take a short pause, guys. The number is 18778 silver online to guildhallwell.com. As Jeremy mentioned online, you can see all those tools to start investing, including the e-store in the top right corner. Have a look at that as well. This is a real money show and talk radio, AM640. And back with more of the real money show, 1-877-8 silver. The number is simple online as well. Guildhallwell.com, the precious metal advisor and investor kit, the e-store, RRSPs, TFSA's. There's all different kinds of ways to invest Paul. You get it started, yeah? Absolutely. But every week we have that the radio show, we talk about what's happening in the markets. We've been saying the stock market is really pumped up on steroids right now, and it's come off. And there's going to be a retracement and some of the people that we have on the show, and they're not all gold crazies, people like Mark Farber, David Morgan, Solente, the Aidan Sisters. These are people that understand the markets, been in the markets, call markets, and understand it very, very well. The stock market has had a really great run up, but in the last two weeks they've lost almost $2 trillion off the value of the stock market. This stock market is a house of cards. It's waiting to collapse. There could be a correction, up to 40%. I don't have a nickel in the stock market. My money is in physical gold, silver, and natural fancy colored diamonds, and so is my staff at the office. We believe very, very strongly in this investment. In 40 years of holding natural fancy colored diamonds, they have never, ever dropped in price. These are investment grade diamonds, not diamonds that have lots of inclusions that are bad, browns and blacks. We're talking about yellows, pinks and blues and greens and reds, investment diamonds of internally flawless quality. These are diamonds that increase in value. The smallest investment for $13,000, $14,000, for example, on a diamond increases maybe 6%, 8%. This year alone, natural fancy colored diamonds on the currency is up 30%. So if you would have bought a diamond for $50,000 as an example, never mind it's already increased in value. You've already made 30% on the price because everything we buy is in US dollars. Today, I paid a bill in US dollars, cost me $1.33 difference on the dollar. I mean, when I ordered some product, it was about $1.20, so I'm paying 13% more in US dollars back into Canadian dollars. If I may, that's an interesting point because we get a lot of people who are buying precious metals, who will, let's say, be irked at the exchange rate and say, oh my God, I might not even want to buy precious metals right now because of the exchange rate. Maybe I'll wait till it comes back down. However, in actual fact, last year, this time we were, the exchange rate was around $1.06, but you were buying silver at a higher price than you are today. So even with the exchange rate at 1.33, 1.34 in some cases, it's still cheaper today than it was a year ago. So it's such a good opportunity to take advantage. And also speaking of the exchange rate, because of that big exchange, John, we actually added the US currency to our diamond website because what happened is most diamond companies are selling their diamonds in US dollars. And of course, we were selling ours in Canadian and it made it look as though our prices were, were absolutely inflated, which isn't the case. So for people who want to do their research, they can simply log on and see proper price comparisons. And actually in the next segment, I do want to talk about how one would go about researching natural fancy color diamonds. 18778 silver online to guildhallwealth.com, Jeremy, I want to bounce over to you in a second here, talk about history repeating itself. But Jeremy, you know, Paul mentioned a short time ago, Mark Fauber, and I got a quote from him here as well. I like to comment on this. He's a huge fan of precious metals. And he says with QE quantitative easing all around the world by central banks, there's no safe asset anymore. It says I would rather focus on precious metals, gold, silver, platinum, because they do not depend on industrial demand as much as base metals as industrial commodities. You know, every country is looking to print money and devalue their currencies at the same time. This is absolutely unprecedented. It's a dark path as Jim Rickards has said about the currency wars. And we don't know how this experimental ends. So it makes sense. And this is my opinion, why you would want to get out of the way of countries devaluing their currencies and trying to play around with this experiment and pull off what's absolutely impossible. Something at some point is going to crash. And I don't know if you want to follow the Shemita or whatever it is, but this is leading to something that could be absolutely catastrophic. And you want to be involved in something that has zero counterparty risk. So with Mark, when he's talking about precious metals versus industrial metals, you know, we're not, we're not depending on China's demand for copper here. This is about following the path of some of the biggest hedge funds and following the path of central banks and saying, we're going to buy gold here. And we're going to protect our sovereignty. We're going to protect our wealth. And there could be a major upside, which could be incredible side point to this whole thing is not only did you protect it, but you know, you mentioned before that that gentleman said that the Dow could drop to 11,000 points. Well, you know, in the last bull markets of precious metals, gold hit one to one with the Dow. So that could mean that gold could go to eleven hundred, eleven, sorry, eleven thousand dollars. And when gold hit 850 in 1980, that that was one trillion. So why don't you take 850 times 18 and you're sitting somewhere around 18 trillion dollars in 18. Yeah, exactly. So now you're going to be looking at something like 16,000. So, you know, is it possible? Absolutely. Look, when gold was trading at 300, and we were looking at gold going to a thousand, people said we were absolutely nuts. And when the price came from 19 down to 11, people were jumping out of windows. It's amazing to see the reversal in terms of what was once crazy is now the norm. And buckle your seat, buckle your gold and silver seat belts. Well, because this could get really strong really quick. The interesting thing is that there's only certain places you can put your money and protect yourself. When this, you know, I watch all these talking heads and all the business shows and a lot of them are saying, oh, we're going to cash because the market looks a little turbulent. Of course, the market is turbulent. I mean, they've pumped it up tremendously in four or five years and in, you know, one week they knocked off an incredible amount of profit and it's only going to get worse. Gold and silver over that four year period went in reverse. Gold in May 2011 was $1,930 and we've dropped down as low as, you know, maybe just under $1,100. Silver went up to $49 and we've been as low as $14. There's more upside than there is downside. So there is a certain amount of places where you can put your money. You can put your money in the bank and get, you know, a ham sandwich and interest because that's all about you're going to get and a GIC. You can put your money in real estate and I think we're a little frothy at the moment where it's really in the bubble and that's another bubble that's going to pop because there's just too much and there's too many people have overpaid. Last one in, first one to get hurt and that's going to happen especially if interest rates do happen to climb, you know, those very low-look mortgage rates are going to suffer. People will not be able to pay their mortgages and if they can't pay their mortgages, they've got to sell their homes. You can go into the stock market. Great. You put your capital in so you may get a dividend of, you know, 3% to 6% but if you get killed at a 40% drop in the market, what good is that 3% or 6% dividend to you? It's absolutely not. I talk to people every day that are sick and tired of the stock market. The small players, the big players, they're in mutual funds, they're in stocks. They're getting hammered. They don't know what's going on in the inside market. You know, there's trading done every day. It's electronic trading. It's algorithms. You haven't got a shot in hell on the outside. Big boys that, you know, on Wall Street, they have got the buttons and they're pushing them. The other place you can put money is in hard assets. The smart money is going into hard assets. If you look at auction prices right now of diamonds at Sotheby's and Christie's, they're fetching incredible, incredible amounts, 60 million, 80 million. These are big diamonds. I mean, I'm not everybody's got that type of pocket change but it means people, smart money is going to hard assets. They're buying paintings. They're buying art. They're buying, you know, the antique car industry as well, you know, collectors. The price of antique cars have gone through the roof. You know, the $25,000 share, that's not going to make any money. But when you buy an absolute morning, you know, or something that was due in James Bond movie, all of a sudden those are going through the roof. Hard assets are going to protect you in these turbulent times. The stock market could come off. And if you're sitting there, not everybody's got a million dollars in, you know, sitting in a portfolio, you may have 60,000, 70,000 and you're seeing it shrink. You've got to get out of it. You've got to put some money in hard assets. You need up to 25% in gold, silver and a natural fancy color diamond to protect yourself. In 40 years of keeping records, natural fancy color diamonds of investment grade have never ever dropped in value. The smallest increase, for example, you know, on a fancy internally flawless yellow, you're going to make 6 to 8% a year. You buy a pink, you're going to make maybe 25, 30% on an Argyle. By a blue, you may make 50%. By a red, you're going to make 100%. But you're talking about a million, three, a million, five to buy one carrot red. Not everybody's got that pocket change again. But look at the hard assets. If you go to Guildhall wealth, our right hand corner is our e-commerce site. We're not challenging anybody's pocketbook. You can buy a combo pack. We start off with 22 ounces for just over 300 bucks. You can go to a combo for this 200 ounces, a 100 ounce bar, 50 maple leaves, 5, 10 ounce bars. You're looking at about 3500 dollars. Great, great start a kit. As Jeremy said in the previous segment, if you want to put that into the depository, because it's dangerous to keep product at home, home invasion. You're not uncovered for insurance. If you do get stolen or robbed, you don't want to do that. You don't want to put your family in jeopardy. So you want to go into the depository. And we always have some ongoing promotions for new clients. So please give us a call. We're more than happy to assist you. And you can find that through guildhallwealth.com and just ask us about the storage facility that we have available for all clients. And we have an exciting promotion coming up on diamonds for the month of September. And we'll talk about that in the next segment. 1-8-7-7-8 silver online to guildhallwealth.com. West, we have any time left in the segment every day. I've been in half. I'll get one go a little long. Darren, I want to bounce over to you. I mentioned a short time ago about history repeating itself. Please expand. Well, I think it is true. And I think that there's a big fundamental difference. We learned this week, as I said earlier in the show, that this is recession territory here in Canada. And what was the best asset class to buy for the recovery that followed 2008 and '09 in global financial markets? Well, it was gold. And the only thing gold was exceeded by was silver. Precious metals not only delivered the fastest recovery from that huge shell off, but it offered increases that were way above the pre-crash levels. Gold actually tripled. It's low in the crash while silver went on to record an eightfold increase, which is still just shy of its 1980 all-time high. And it's not hard to see why this is going to happen. Look just last week, a Chinese central bank cut their interest rates again, just like the Fed had it do in '08/'09. Back then, that did light a fire under precious metals because of the inflation that was likely to follow. And inflation certainly did follow. And if you think about house prices and stock market prices, but they were slower to deliver returns to investors than gold and silver, up until 2011 when precious metals prices peaked. Back then, we saw the cycle end. And of course, we've been waiting for the next cycle to start. And cost averaging has been a fantastic thing. When we come back in the next segment, we'll touch base on a couple more issues, but this warrants repeating. 18778 silver online to guildhallwealth.com. Precious metal advisor, room your TFSA and RSP. You can now use that as well. And E-store in the top right corner of the website. More of the Real Money Show just ahead on talk radio, AM640. Back with more of the Real Money Show, 1-877-8 silver online to guildhallwealth.com. Or for a little later in this segment, guildhalldiamonds.com. Paul, what a bounce over to you, first of all. Yeah, there was an interesting thing from the European Central Bank, from Mario Draghi. I mean, he made a comment this morning that the European Central Bank lowered his forecast for inflation and economic growth, citing a slowdown in emerging markets and weaker oil prices. You know, oil prices already gone up today, wrap up a dollar. It's $47. A couple of, you know, last week, we're at $38. That's like 25% increase. You know, these gurus don't know whether they're coming or going. I mean, there's more head fakes going on than the whole of an NHL all year wrong. It's incredible that what's happening with all the paper printing, you know, the money printing that's going on around the world, whether it's in Europe. I mean, Europe wants to blame China. The US are printing money like crazy. You know, Jeremy said before $18 trillion in debt, do you know what $18 trillion looks like? If you take an American football field, take a pallet, two pallets high with $100 bills that will fill up a football field at the White House and at a 747 jet, that's a trillion dollars. $18 trillion is unthinkable almost. Since Obama's been president, he's gone from $6 trillion to $18 trillion. This is a Ponzi game. It's a Ponzi scheme. They keep on printing and printing. The only people that have done well in the stock market, and I talk to people all the time, is Wall Street. The average person on the street hasn't made any money. I don't know how many people own, you know, 1,000 shares of Apple or 500 shares of Google at $600, you know, they're in penny stocks or in stocks. Excuse me, or if they're in oil stocks, you know, which we tend to be in, you've probably got killed in Canada in the stock market. One of the best and safest bets that you can get into right now is a natural, fancy-colored diamond. A Guildhall Diamonds and Guildhall Wealth, we go out of our way to purchase the best investment grade that's going to show you a return. Whether it's a small investment stone, whether it's a one carrot, yellow, fancy, internally flawless, for $13,000, $14,000 is going to give you a return of anywhere from 6 to 8 percent. If you look at an intense diamond, which is a little bit of grade, you know, you're in the $25,000 to $30,000 range for a one carrot, you're looking at maybe 14 to 18 percent. You can go to a vivid, which is even the top grade, an internally flawless yellow of a carrot. You could be looking at anywhere from 18 to 30 percent, according to the, you know, the color of that diamond as an investment diamond. You're going to get 20 to 30 percent return. Now, it may sound like crazy because, you know, you're getting nothing at the bank on your GIC, you know, if you're in the stock market, you're getting maybe three to five percent dividend. But if you just took a pounding and you could probably take another 30 to 40 percent downside on your stock market right now, you're going to be in trouble. You need to have something that's going to protect you against these turbulent times. And when the markets crash and they're going to crash and it's going to crashing down against you, you're going to say, why didn't I get into a natural fancy color diamond? Why didn't I listen? My friends listened. I've been listening to the radio show for six, seven, eight years. And they've been telling me to buy natural fancy color diamonds. But, you know, I got into the stock market or I got into real estate. You can't stay in the same thing forever. You've got to look at hard assets. You've got to look at silver. You've got to look at gold. And you've got to look at a natural fancy color diamond. Go to our website, guildholddiamonds.com. Look at the array of yellows. We start off at a carrot, in fancy, intense and vivid. The pinks, for example, arghal pinks. Now, the arghal mine in western Australia is due to close in 2018. There is no new mines. This is not a turnkey operation where you turn a key and all of a sudden, you know, diamonds are pouring out of the mine. It doesn't happen. It takes millions and millions and billions of dollars to try to find these mines. And there is no new mines coming online. So therefore, it's an asset which is declining in quantity. But in quality, you know, there's still some great, great diamonds out there. And they are one of the best kept secrets, the best investment. And you're going to make money. You're going to actually protect. You have life insurance. You have health insurance, car insurance. Do you have insurance on your capital? And one of the best ways to do this is to own a natural fancy coloured diamond. Every diamond that Guildhall brings to the market comes with a GIA, which is a Gemology Institute of America. This is the certification of the stone. We don't give you a half certification. It's a full certification that tells you everything from the colour, to the size, to the grading, to the symmetry of the diamond, tells you all about the diamond. We give you an independent appraisal that gives you an idea of what the market price is out there for natural fancy coloured diamonds. We're only one of the only companies in Canada that has a qualified GIA, great natural diamond grading expert on our staff. It's my daughter. I'm very, very proud of her. We're a family business. We're a Canadian company dealing with Canadians. We look after our customers. We take them through the whole process. If you want to learn about buying a natural fancy coloured diamond, get our 10-step guide in how to buy a diamond. Back into the Real Money Show 18778 Silver and a Guildhall Diamonds.com this time round. If you're looking for natural fancy coloured diamonds, Jeremy, the 10-step buying guy. Paul mentioned it. Give me some details on it. Yeah. So this is a really great place to start research in natural fancy coloured diamonds. It at least gives you an idea of some of the pitfalls that others have seen in the past when it comes to making a purchase for natural fancy coloured diamond. We understand that this is going to be a very new investment to a lot of people. There was once a point where real estate was a brand new investment to our listeners as well. Or gold and silver was a brand new investment to a lot of our listeners as well. And we want our clients to be able to look back and say Guildhall not only helped me to purchase a diamond, but they helped me get my own education so that I was able to procure the right diamond for me. We often have clients who will or people that we're speaking to that are interested in coloured diamonds and they'll say, "I'm going to go do my own research." But they don't really know where to start. So you could start with the 10-step guide, of course. One of the things I recommend for anyone looking to get involved in a natural fancy coloured diamond or just looking to gain some insights or just get some some info, a word of warning, you're not going to find numbers. There's no chart on the internet that's going to tell you what a pink bot was bought for in 2002 and what it's selling for today. They're all so different. But I'll tell you where is a great place to start. Go to your local mall and start going into jewelry stores. I know they can be scary, but go into some jewelry stores and just take a look around. Well, first of all, Jeremy, 98% of jewelers in North America have never seen a coloured diamond. So you need to go into a main store like Cartier Tiffany's, that type of store to look at product. The point is, is that you're going to go into some jewelry stores and you're going to look to see if they A, even have a natural fancy coloured diamond. And then B, if they do, ask, what is the what is this centre stone that you have with this diamond? And maybe start to look through some magazines or websites of these of some of the larger jewelry brands. And just to get a sense of even the ratio between white diamond jewelry and maybe coloured diamonds, you'll see that there is a growing trend for natural fancy coloured diamonds. But it's not about is there a demand for natural fancy coloured diamonds. There's just not enough around. We don't ask, oh, what's the demand for Picasso these days? No one asks that. It's about, well, you either are interested in owning a Picasso or you're not. And it's not for everyone. And that's okay, because there's not enough Picassos to go around. It's the same thing in coloured diamonds. The other thing you're going to want to look at, and again, this is just my opinion, but this is how I find people get their best sense of what this is all about. Not only going into jewelry stores and seeing what's available and then trying to find out what the quality is, but now you want to look at those four C's. It's what Paul's always talking about on this radio show where you're just looking at the colour and the clarity and the cut and the size of the diamond as well. And you want to get a sense of what kind of quality coloured diamonds might be out there as well. And let me give you a hint when it comes to buying coloured diamonds. The best is always going to be the best. And the best is always going to be the money maker. That's where we started in coloured diamonds. We said, what's the best? We went to a diamond dealer for coloured diamonds. When we were first getting in and we said, just give me the best. That's all I want. I just want the best. And that sense of only going with the highest quality has paid dividends over and over. And I can tell you, we just put something together, as Darren will tell you, about comparing some of the prices and what happens when you look for the best. So if you're going to go do some research, A, try to find them, B, try to find quality. And you'll start to get a sense of how rare these are and why Guildhall only deals with the best. Well, the other thing is as well Jeremy, is that every diamond that we have on the website we have, we own and it's available to you. We don't do bait and switch and you're going to get bait and switch with a lot of the companies out there. They may show a website and it looks, wow, they've got a million different diamonds. They have nothing. They have what's called, you know, the photocopies of GIA's from dealers and they're selling on memo. They don't have one diamond in stock. And you need to deal with a company that, you know, has credibility. We're a Canadian company. We're a family business. My son's in the business. My daughter's in the business. My son-in-law's in the business. Darren is my adopted son-in-law. You know, we are a family business. And if you ask my granddaughter, she's nine years old, what she wants to be. She wants to be a diamond expert. So we will carry on the business, you know, for a long, long time. Give out the numbers, John, I'll let people call. If they want to have an appointment, we can set up an appointment where they can come and see the diamonds and we will educate you how to buy and how to make money in these markets. One eight seven seven eight, Silver Guildhall Diamonds.com. Jeremy mentioned as well, comparisons, comparisons, comparisons, right? Well, it's important, John, because when you look at diamonds, you're not only looking at all of the aspects that Paul talks about in the beauty of the diamond, the scintillation, the fire, and what's intriguing about the look of the diamond or how you might set it. You're also looking about the pure numbers. What am I going to make on an investment? And to that extent, Jeremy and I took some time to identify a random list of about 13, 14 diamonds. We looked at 2012 pricing in 2015, a three year window. And as everybody knows, we generally suggest that you hold on to a diamond for five years or more as a minimum. Doesn't matter the color that you own, five years is a minimum hold. Otherwise, we're not going to see the type of returns we're discussing here. But we looked at this window just to compare a few diamonds. This is readily available to diamond investors only. And of course, what it talked about was what happened in fancy intense yellows, fancy vivid yellows, fancy pinks and fancy intense pinks. Now, we don't get many fancy vivid pinks. So that's hard to compare. But we looked at the diamonds. What were the 2012 prices and what are the 2015 comparables? So where possible, we used the same two diamonds. And there are a number of examples where we did that. But when not possible, we used the diamond that we could best say was the closest in category in all four C's. So what we determined was that during that period of time, the average fancy intense yellow increase was about 47% overall or a gain per year of around 13 to 13 and a half percent, which is nothing short of amazing. Likewise, on the fancy vivid yellows, we looked at those. And in that category, a total gain of just short of 70% average gain each year, that's just under 19 and a half percent gain. And then we looked at the fancy intense pink. And again, a huge gain, just over 103% gain total. And again, the gain per year on average is around 28 to 29%. Now, if you look at what you've done in other investments, we understand there are different dynamics and colored diamonds. You can't just call up like a stock and sell it tomorrow. But I think that that's outweighed by these incredible opportunities for return. And really, at the end of the day, is it not better to sleep at night than to worry about whether or not your investment is affected by recession, by embezzlement, by a company, fraudulently printing different numbers. Any of those things can happen. Or buying back your own stock to push the price up. A hundred percent. So we want to focus on what is real, tangible as we have always done as a firm and Paul's right in a family environment. These are the types of things that we stick together and bind on. And this is what we're trying to bring to our clients. So we're happy to share that with our clients. And also, we're members of different groups that specialize and look after the diamond industry, the NCDIA, which is the National Colored Diamond Association of America. Also, the Fancy Colored Research Foundation, which is a new organization, but you have members like Cartier, Tiffany, Van Cleave, Arpels, or the biggest diamond dealers. And how they come up, for example, natural fancy colored diamonds in pinks over the last 10 years. And this is from auction houses, from wholesaling and from retailing. Believe it or not, I've gone up 361 percent in 10 years. That's on pinks. They are so rare. They are so beautiful. Very hard to get hold of. And if you go to our website, you're going to see some of the finest algal pinks in VS quality. We only sell VS, which means it's very slightly included. Pinks tend to have a lot of inclusions, but we've sold out the best of the best. And Jeremy, as I said earlier, the best is always a little bit more. But guess what? You always get a better return. It's like real estate, location, location, location. You know, are you going to make more money on a small townhouse in nowhere or in a brownstone in New York? They never go down in value. They always go up. They're desirable. This is a great opportunity, a great time. And what I'm going to do for the month of September is that we're going to pay the sales tax on every natural fancy color diamond. So if you're looking at a natural fancy colored diamond and it's $100,000, you're going to save $13,000 on that diamond. This is a great time to get into it. And you're going to be rewarded. If you're looking to retire, you're looking to put your kids through university, this is no better hold for 10, 15 years. You're going to make nothing but money. You buy an Argo Pink for $100,000. In 10 years, this diamond could easily be worth four to $500,000. Based on the last 10 years, figures, it could only get better. It's not going to get worse because there is less diamonds out there on the market. 1 8 7 7 8 silver online to guildhalldiamonds.com. For more information to start investing, guys, we'll take a short break and get back and do a recap. In our last segment here on the Real Money Show on talk radio, AM640. Real Money Show continues the number 1 8 7 7 8 silver online to guildhallwealth.com. Paul, let's get back into our diamond discussions, shall we? Yeah. Well, one of the interesting things is if you look at a stock market and you're invested in the stock market and you've got $50,000, $100,000 in the market, and we could easily retrace back 30, 40%. You've got $50,000. You could go down to $30,000. For you to get it back to the $50,000, it could take four or five years. Take the same amount of money, take $50,000 or $25,000 by $25,000 in gold and silver, $25,000 diamond. Hold on to it for five, six years. You are going to get an unbelievable return. The thing about colored diamonds, I know we've been talking about this five-year hold. And the reason we talk about holding the diamond for five years is because it is a long-term hold, but at the five-year mark is where you see the growth. And it gives you the idea and the sense that what would happen if I held for another five years, where you can see extraordinary growth. And then it can get you to that 15-year mark where you look back at what you once paid. And it's the equivalent, and a lot of our listeners know this, of it's the equivalent of saying, "Yeah, I paid $180,000 for the house, and I sold it for $800,000." It's that sort of feeling. And you can do that quicker with a diamond than you can with real estate. And so there's a lot of people who want to become landlords, and that's great, and maybe you already are a landlord, but you're looking for a different opportunity. And colored diamonds really offer that opportunity for long-term growth. And the reason, again, we say hold for five years is because we want you to be able to see the type of money that can be made. And also, it's very difficult to put an investment into something and know that you're just going to hold it for 20 years if you've never really been involved. For example, it's very easy to get involved in real estate for 20 years if you've already purchased real estate in the past. Or if you're involved in art, you might be able to say, "Yeah, I'm more than happy to buy this piece and hold onto it for 20 years because I've purchased in the past." That's why buying something like a fancy yellow diamond for $13,000 to $15,000, or even an intense yellow for $24,000 to $25,000 can be really helpful as a way to get in the market. So that over a two-three-year period, you can start to see what this market really can do for you. And then, of course, you can always move up. And that's what we help our clients do. One of the things as well is that if you're buying a diamond for $50,000 as an example, you're going to pay $6,500 tax. That's built into when you're trying to make profit on something. The government's already getting 13% from you. So to try to sell it in a year or two years, even if it's gone up 8% a year, you're going to wind up with 3% because 13% has gone to the government. So that's one of the reasons that you really need to hold it for five years. So by giving you that, we're going to eat the sales tax on the diamond. You're going to save that 13% straight away. So that's a great, great move. The beauty about buying gold and silver, there's no tax. So let's look at the upside. Let's look at where you can put gold and silver. If you have an RSP or a TFSA right now, you can transfer in. We deal with Questrade. Questrade is a custodian. They use the storage facility. We do the buying and selling of gold and silver for them. If you put it into a TFSA, it's tax-free. There is more upside than downside. You're looking at 1.25% a year's storage. So let's look at four years. That's going to cost you 5% to store that product. Do you think gold or silver is going to go up 5% in the next four years? You're looking at me. Yes, I'm looking at you. Yes, I do. Do you think the stock market is going to take a beating in the next little while? I'm looking today at the Dow. We're recording the show Thursday afternoon. It was up 200 points. I think it's up 30 points now. They don't know whether they're coming or going in the stock market. Every talking head on every business show is talking up the stock market, the stock market, the stock market. How many of these people sell gold or silver? The answer is zip, zero, not a. None of them sell gold and silver, so they're not interested because they say to you, there is no dividend on gold or silver. Guess what? For 5,000 years, it's been an insurance policy against paper. It's been insurance policy against coins. They used to cut coins. They used to be a big gold coin. They used to cut it to make it smaller. That's how they paid for wars in Europe for years and years, trimming coins. It was a criminal offense. It's no different today. They're printing paper. It's the same criminal offense. What they're doing is confiscating your wealth on a daily basis. Buy gold and silver. You can buy it. Go to our website, give it a wealth.com. Go to our e-store. You can buy physical product. We've started a combo packet. It starts off at 22 ounces for just over $300. You can go to a 50 ounce package. You can go to 100 and a 200. That's just a starter kit. If you want to go into a TFSA on RSP, you can do that. Coolest for information. If you want to put and store your product in a safe, secure, segregated, allocated, insured, depository, we can do that for you as well. There's one final thing that we can do. If you want collateralized financing, not for everybody where you can finance your product by putting up, instead of buying $100,000 worth of gold or silver, you're putting up maybe 50,000 and you're actually using $100,000 worth of product. You're keeping back 50,000. If the market drops, you cost average. If it doesn't drop, it goes up. You're going to be taking money off the table real quick. What you could do with 100,000 is essentially, you've got 100,000, put 50 into collateral financing. Now you're holding back 50, maybe take 25,000 and buy some product that you either put in the depository or take home, and then take the other 25,000 and put it into a diamond. You have this much more product taking real advantage of these hard assets at these lower prices. Absolutely, especially these prices. There's a great time, great opportunity to do this. We're on the air Saturday and Sunday every week, week in, week out, saying the same boring thing. It's very hard. We like the Seinfeld show. It's a show about nothing because there's nothing to talk about when gold and silver has actually done nothing in four years, but it's waiting to bounce. It's like a cold spring. You can't keep a good thing down forever and where there's been quantitative easing that's cheap money at no interest given to Wall Street, where it's been given to the banks. Guess what? The small player hasn't had a chance. This is your chance to take and buy physical gold, silver, a diamond. When you're buying that physical gold and silver, you're taking away the paper product. Darren, what do you think on that? Well, I think the only reason that investors are hesitating the pile into precious metals is that they recalled the 2008 collapse poll in their prices during the global financial crisis and hope that this will again provide them with an even better entry point. But what markets are really telling us right now, the prudent investor, it tries to start buying gold and silver now in case it doesn't go downtown. If it does go down a little bit, well, that's just a bit of movement in the markets. It's normal. I think at this point, you've got a great entry point and those Wall Street commentators dancing on the grave of gold have perhaps got the wrong funeral here. I'll tell you, ask not for whom the bell tolls because it tolls for thee. I'm telling you, the stock market's going to break apart and the benefits of owning gold and silver will be astronomical. Well, the other thing is, well, I've always said it's better to be one week, one month too early than one day too late. And this morning, we saw a silver jump up to 1497. It retrates back to, you know, around about 1475. I think silver is going to break out next week after Labor Day. Everybody gets back to work. I think you're going to see gold and silver. And next week, I'm going to make a prediction of where gold and silver is going to be. And I think it's going to absolutely explode. In the meantime, one, eight, seven, seven, eight silver online to Guildhall wealth.com, starting investing RSPs, TFSAs, the Easter and natural fancy colored diamonds as well. This has been the real money show on talk radio AM 640. What if you could have a streaming service that added new shows and movies every day? 365 days a year. Tune in on Monday and watch traumas like Fight Night, The Million Dollar Heist. Tuesday, watch reality shows like Top Chef Canada. And Wednesday, enjoy comedies like Ted. And it just keeps going and going every single day. No matter when you tune in, there's always new entertainment for you to discover. Stack TV, new shows streaming every day. Try it free, afflicable membership required. Restrictions apply.