The Real Money Show
The Real Money Show - June 13th, 2015
And welcome to the Real Money Show, the number to start investing. You know this one one eight seven seven eight silver online to guildhallwealth.com. And you should know as well for the remainder at least the time until the the end of July of this year, we give an immediate 10% off the purchase price back to you as a buyer to be placed in either gold or silver bullion TFSA or RSP. When you purchase a diamond with Guildhall wealth management, some conditions applying all the website for more details got a busy show today. Darren, in fact, we'll have a guest in our next segment. Jason Burke, I believe it is name. Yeah. Jason Burke is a wonderful person. He's come to us via some research. We did our paths crossed and can't wait for everybody to listen to this interview. You don't want to miss it. He has a free take on what it is that's happening in the US right now. He owns and controls the website that we're going to talk about throughout the show and John you'll throw to it when we get there. But it's a wonderful website that deals with talking about Wall Street for Main Street investors really bringing it down to the layman terms and understanding how things work in the financial industry. I want to mention as well, a seminar coming up guys, it's going to be starting at seven o'clock on June 18th. The place will be the Novatel Hotel up in Vaughan Mills, RSP, TFSA precious metals investing session, going to be free parking refreshments, very informative. I got to get in early. Those seating is very limited, 905-305-8422 or to guildhallwealth.com. John, I couldn't ask for a better week in precious metals. It held its range. We have a little bit of a dip mid-week as we take the show on Thursday. We have a lot going on, a lot to say and talk about and of course the interview you just mentioned comes on the heels of something we just found out as well that also the aid and sisters are going to be coming back for another interview in the week of August the first and second. So right now we have gold trading at around the 1180 to 1200 range while silver is hovering around the 16 to 1610 range as we tape here on Thursday and we're very excited what's happening across the world in terms of the economy. We're very excited and we want to welcome all of the new buyers in this week. We had a tremendously busy week with new RSP, TFSA accounts, that side of the businesses expanding rapidly right now and we want to thank folks for being patient while we get you into the market. It's exciting times and you know welcome aboard to everybody that's listening to the show for the first time. Now this week we had a lot going on. In the US again more evidence, John, that we are hovering on yet another recession. We had business inventories jump to most in 11 months and it pushed the sales ratio into recessionary environment and this is what we don't want to see if we're a government trying to pull an economy out of recession. Business inventories to sale ratios are remaining in the flashing red recessionary environment and investors as investors surge more than expect inventory is part of me surge more than expected in April. The biggest areas, clothing, building materials and motor vehicles, motor vehicles saw 1.2% rise month over month and a 5.9% year over year surge and this is part of the whole mentality, John. If we build it credit will enable everyone to buy it economy and we looked at pictures this week, Paul and I were in the office, Jeremy was there. These are hilarious photos that are taken from Google imagery showing the stockpiles of Chinese American westernized vehicles sitting in lots everywhere all over the US just sitting there. Thousands upon tens of thousands of cars that remain unpurchased and of course are withering away doing nothing but building dust. Inventories of automobiles, I mean that is just incredible. It's the same thing as China has produced so much inventory that they're dumping it into the US because they were expecting to sell this to consumers in China. The farmers that were now going to move into big cities, it just has not happened. So when you actually see the truth, it's like going into one of these big box stores and looking at all the inventory up on the shelving but the shelving or the boxes are empty and this is the same thing. These figures are always skewed. It's the same with the unemployment numbers. They're always skewed. There were expecting 2,000 people less to be claiming unemployment. It went up 1,000. So you can't believe everything that you're reading that is coming across these news channels, everything is rararar, everything is terrific in the US. As I said, we've got an interview today and I think this chap's opinions and I've listened to him before, will probably give you a different view on what's happening out there in the economy. Guildhall, we sell precious metals and natural fantasy color diamonds. We only sell the physical product. We're not into paper products. We are not in the stock market. We don't sell stocks, equities. We don't sell ETFs. We don't sell futures. We don't sell options and futures. We don't sell certificates. We sell physical gold and silver. You can buy this product, take it home. You can go to our website, guildhallwealth.com, right hand corner is our e-commerce store. You can buy 1-ounce silver maple leaves, 10-ounce bars, 100-ounce bars, a royal mint bars, same with gold. You can buy 1-ounce bars, 10-ounce bars, kilo bars. It's important that you have physical hard assets in your portfolio. It's an insurance policy. Also, we offer a depository. We recommend not to put your gold or silver into a bank, into a vault or even keep it at home. There's home invasions and it's dangerous to keep lots of product at home. It's not insured under your insurance policy, whereas when you put it into our depository, which is safe, secure, segregated and is insured with loads of London. Right now, we do see a lot of people who are waiting right now. They're watching. They're looking at the price and they're saying, "I'm not quite ready to get involved. I want to just wait and see what's going to happen." It's very interesting because I'll say to someone who says that and I'll say, "Oh, so if the price was $24, we'd be having a different conversation." The answer is, "Yes, that would be a different conversation." The question is, "Well, why would you not want to be a value investor and buy it at the lower price? Why do you want to wait till it's higher?" We have to start considering the reasons why anyone would want to own physical precious metals. It is going beyond profit. It's about protecting your wealth. We know that cash won't protect your wealth. There's only so much profit to be had out of the stock market at this point, out of real estate at this point. You need to be looking for asset classes that offer value. Right now, we know that gold and silver are trading below the cost of production. Value doesn't get to look much better. Unless you're already holding on to $1.25 million worth of physical metal in your portfolio, you can't necessarily afford to wait for the best price possible. Of course, trading at the bottom of the market means that there's very little downside risk and more upside gains and potential to be had. If you're new to this market, if you're not quite sure if this is the place to step in for the first time, you definitely want to give us a call. Consider the fundamentals. Consider the reasons for owning precious metals. Of course, we only sell physical precious metals either direct through us through the e-store or you can also hold it in your registered accounts like an RSP or TFSA. The interesting thing, Jeremy, is that if you put your product in the depository, you're paying round about 1.25% a year storage and insurance. Now, if you take that over a four-year period, that's 5%. If you're listening to this show, if you believe gold or silver is going to go up more than 5% in the next four years, you should be investing. You should be buying at these prices, you know, to me, $16 silver right now and in Canadian dollars is $20. You know, $1,200 gold is $1,500 in Canadian dollars, which means we're really not that far off where we were in 2011, silver was at $49, gold went to $1,900 and change. That's US. The US dollar has got very, very strong and all the other currencies have got weak. Why is the US dollar got strong? It's the best house on the worst street. You are better to be in this market, whether it's one month, two months too early than one day too late because it's very hard to fish the bottom. Before we go to the next segment, because we have Jason Burke coming in, we're going to do a big interview with him, I want to remind people what your money is actually doing for you. I called my bank the other day, I said, "Look, I want to put a million dollars into the bank. Can you just explain to me with your best account what the interest return would be on that per year?" They told me if I took a million dollars, I put it into the bank without any special privileges, I could expect to earn approximately an interest per year around $3,000. If I held a million dollars worth of gold and I was completely afraid of what gold miter might not do, a million dollars in gold would have to move up $3 in order to make that same return. $3 an ounce. While we're taping the show, it went up 6. The inevitability that your money can do better things for you in other markets is becoming more and more reality. Before you spend another dollar worrying over a sleepless night about how your retirement is going to be spent, think about assets like gold and silver. Let's go to the break and we'll come back. We'll take a short break. The number is 1-877-8 Silver online to guildhallwealth.com. A reminder, the seminar is happening June 18th at 7 p.m. It'll be the Novotale Hotel at Von Mills. RRSP, TFSA, Precious Metals, Investing Session. Free parking, I asked them why, refresh them there as well, but space is limited. So 905-305-8422 is the number online to guildhallwealth.com. You mentioned it, Jason Burke is coming up, investor, entrepreneur. We'll talk to him on the Real Money Show next. And back in with more of the Real Money Show, 1-877-8 Silver online to guildhallwealth.com. Make sure you get on the investor kit and sign up for the Precious Metal Advisor and reminder June 18th, 7 o'clock. That's what time it starts in Novotale Hotel. Up in Von Mills, you'll have the RRSP, TFSA, Precious Metals, Investing Session. Got some free parking happening there, some light refreshments, limited space. So the number starts reserving your spot like now. It would be 905-305-8422. It's going to be a lot of fun. And online to guildhallwealth.com as well. Now as promised off the start of the show, we've got them with us right now, Jason Burke, an investor, entrepreneur, financial historian, Austrian school economist, and contrarian, also the co-founder of the startup financial education company Wall Street for Main Street. You can go to wallstreetformainstreet.com for more and information and more knowledge from Jason Burke. So he joins us, Darren. Well with this, and I thank you, John, for that introduction. I'm pleased to welcome him to the Real Money Show. Hi, Jason. How are you? I'm pretty good. Well, our listeners now know from that wonderful insight that John has provided, who you are and who you represent in a bit about yourself. And we'll give you a chance to talk a little more about your various business propositions there when we conclude the interview. But I wanted to get started with a question that seems to be something that we talk a lot about on the show. And we've discussed cycles on our show since 2008. And really because it relates more so to our field, which is primarily focused on gold and silver, how silver and gold have really been cyclical since the beginning of this bull market back as I guess far as 2002. In your best opinion, how would you explain the most recent correction in the bullion price since 2011? And if you can elaborate a little bit, what factors have played a role in getting us to where we are now in this world economy? Sure. Well, a little background first before we get to 2011, we had a commodity super cycle. A lot of it was driven by global expansion of the developing world, China joining the World Trade Organization and Chinese middle class moving out of extreme poverty to get things that people in the developed world in the US and Canada, like you're up there in Toronto, people kind of take for granted. So electricity, utilities, inside houses, cars, things like that. And in terms of the precious metals bull market, I would actually say it basically started before 2002, although in smaller amounts, it started basically after the technology bubble in the United States started erecting and Alan Greenspan, who was the Fed chairman, started to pump maps of them out the capital into the global economy, looking basically to create a new bubble. And basically, since then, we had a secular bull market in commodities, and the secular bull market as commodities expert Jim Rogers, who I'm sure you're familiar with and your listeners are familiar with. He wrote a book called Hot Commodities. He was one of the first big name investors. He's a billionaire with each invested in trade with George Soros. He normally finds markets years in advance before others. And he says it's unusual for normal commodity markets to tend to go up almost every year. And that's what we had in the precious metal space, really, from around 1999 to 2011. We had a long secular bull market with very limited corrections. We didn't have massive amounts of corrections where there was 40% drops for many, many years, as has normally occurred in past commodity cycles. So now back to 2011, which was the main part of your question. Sorry, I'm a financial historian, but I like for a lot. Not at all. So it's fine, Jason. Keep going. Yeah. So back to your main part of your question there in 2011. We had a lot of Johnny Kong lately, especially the American Wall Street trend trader crowd. These guys, most of them, they don't care about fundamentals. They don't care that fiat currencies could potentially be destroyed in the next 10, 15 years and not just the US dollar, so many different fiat currencies. They just see the chart. And the chart on the precious metals by 2010 was starting to look really nice. It was a beautiful upward momentum chart. So these guys who are trend traders, their algorithms, there's a lot of pressure on them to produce results each month, each quarter. Otherwise, they lose massive amounts of investor money in their hedge fund. They all piled in to the paper contract and things like that in the precious metal space. And that tended to increase the precious metals price a lot faster than most people expected, except for Eric Sprott, because Eric Sprott did one of the best commodities experts, and he did make an amazing call. But I think in 2011, as precious metals were starting to increase, it looked like the people in power, the central bankers, the people on Wall Street, the politicians, were really starting to worry, because when gold goes very high rapidly, it starts to send off an alarm bell. If you read past comments from past central bankers, you see that they do monitor the gold price, whether they like to admit that in public or not. There's a lot of evidence out there that they do. So when Silver went from the team to around $50 an ounce in only about two years and gold went from, I think, it bottomed around $800 something in 2008, 2009. And it went to 1900. They started to really worry. And what happened then in 2011 is we saw massive amounts of margin increases in a very short amount of time. So all those people who were on the long side in the futures market who didn't understand the fundamental story, really, for gold and silver, what was going on with supply demand, potential rapid devaluation, fiat currencies, potentially bad inflation, that's increasing. They didn't care about that. They just started to care that, oh, margin increases. I don't want to put any more capital up. The chart started to look bad. And the people that had piled on, they started to jump off. And then I think a lot of manipulation also played into that. There's high frequency trading algorithms that attack the chart price on the paper's futures market. You'll lift with time. They blow up, stop. They attack key support levels. And all these combination of things, it wasn't just one thing, like what most people think. I think it was a combination of these different factors. And that's what led to the 2011 cyclical bear market started. And we also had Wall Street investment banks come out with, and they're still coming out with very negative research reports on precious metals that I don't think, frankly, are accurate at all. But most people on Wall Street just kind of believe all their numbers, whether it's the Wall Gold Council or Jeff or Christian at CPM Group. They just believe the numbers without doing much due diligence into them. So these combination of factors and the fact that the chart's bad, most Western investors, Darren, are not long-term value investors anymore. Long-term now to a United States/Western investor, most people now, is a year to, at most, most people are not contrarian long-term value investors. And the sentiment levels for Gold and Silver really since 2011, they've just gotten worse and worse and worse. But I think we've gone to the point now where sentiment's starting to finally improve. Well, I mean, that's a lot that's been said about the marketplace. And I think you touched on a number of points. But when I hear words like Greenspan and manipulation and China and central banks, it leads me to my next question, because we also discuss on the real money show the art of misdirection, especially when it comes to Fed policies in the US government. And for us, it feels as though the US into a great extent to global economy is actually, at this point in time, becoming increasingly unstable. What's your take on the real situation of the US economy and what, if any, impact will it have on long-term Gold and Silver? I mean, our investors waking up at this point and will they, in your opinion, turn more so to assets that protect them like physical metals or other assets that you might suggest? Or is this really the art of misdirection? This is the line that we can expect to continue. I completely agree with you that things beneath the surface are unstable. Most of the economic data that's put out, whether it's the United States or Japan or China or Europe, it's just not accurate. So that's GDP, CPI for inflation rates, the jobs numbers. I just don't have much faith in any of the data from any of these governments. What I can tell you, Darren, is as an Austrian school economist, someone who looks through a lens that is not Keynesian, that doesn't tap the government on the back for spending more money and increasing taxes and things like that, is that there's massively more government intervention all over the globe. And that's in so many different markets. It's an interest rate manipulation through financial repression in the United States and Japan, which these guys, they manipulate the bond market to increase the principle of the bond and drive yields down so the governments can continue to borrow money, more and more money at cheaper and cheaper interest rates and some more bonds. The manipulation is also in the real state market with housing programs to get people to be able to afford houses here in the United States. And many people don't even have to put down down payments again. There's manipulation, in my opinion, in the general stock market industries, where at weird times, at the end of a market, where the support levels on the S&P 500 are about to be broken, a big $10 million order will just come in randomly from S&P 500 futures contracts. And there's plenty of evidence, Darren, and we're seeing it now where five large investment banks, and these are some of the largest ones in the world, you know, they've been charged with the United States with felonies for manipulating the currency markets. And yet, they're not putting people in jail. They're just getting funds. So there's all these markets being manipulated. The governments are admitting that they're doing interest rate manipulation on people pay attention way too much to central bankers and things like that. So, you know, the asset prices, I think the goal of all this has to just be to keep most of the meaning asset prices that people own. And most people don't own gold and silver is to keep those real estate prices high, those bond prices high for a number of reasons, and the general stock market price is high for a number of reasons. But in terms of the real economy, what's really going on, I can't speak for Canada that much, although I've been there once I was up in Toronto in September to meet our spot. He's an amazing person. But here in the United States, I live right outside of Washington, DC, in one of the three -- there's three other five richest counties here for average median family income in the whole country. I'm 32 years old, and I know a lot of 20 and 30 somethings my age. They have one or two college degrees. Some of them have master's degrees, and they are really struggling just to pay all of their bills. So, you know, student loan bill, their health care costs are going up, their food -- my food bill for -- since I graduated college in 2006 has basically doubled. And I don't eat, you know, all organic food. I don't eat a lot more food than I used to. I actually eat less. So, there's a lot of science for me, and the government data is not confirming this, that I see tax relations in the real economy in the United States because of the massive intervention of politicians, of central bankers all over the globe. You know, they've heard the labor market. They've made it now in the United States, where a lot of small businessmen and entrepreneurs -- and we have a lot of them that listen to our podcast -- they're scared to add a lot of full-time employees because of the taxes and being sued if they fire them and Obamacare, rules and regulations and things like that. They're hiring a lot of people part-time. And for people, young adults who just graduated college or people who were just fired from corporate jobs, you cannot start a family. You cannot -- you cannot keep yourself and have discretionary income on two or three part-time jobs. And yet, that is what I see in the real economy. So, I see tax relations, worsening tax relations because of government intervention throughout the global economy. That is, you know, forcing wages essentially down. And there's other reasons why wages are dropping, but cops are going up. And, you know, it's just -- it's taking away discretionary income from people, and it's hurting their everyday lives. In terms of golden silver, I think eventually people on the street, on Main Street, whether it's in Canada or the United States, you know, they're going to see the government numbers that say, oh, you know, the economy is doing good, consumer spending, blah, blah, blah. There's no inflation. They're going to see that their bills are going up, you know, every couple of years, and they're going to start to question the numbers. We don't have a lot of high percentage of people doing that yet, but we are starting to see a small amount of people waking up, and I think that's going to spread as, you know, people struggle to survive because they can't find that most people in the United States can't find that really good, high-paying, full-time job, so they can have discretionary income and start a family and do things like that. Jason, we'll just stop right there as we've got to take a quick break. We'll return with more of Jason Berwick here of Wall Street from Main Street dot com. Continue our discussion. In the meantime, before we go to break, I want to tell you about this, that June 18th, 7 o'clock, Novotale Hotel and Von Mills, there will be the RRSP, TFSA Precious Metals Investing Session with Guildhall Free Parking, refreshments going on, but you've got to get your space soon because it is limited, 905-305-8422 and to guildhallwealth.com to register. More of The Real Money Show coming up on Talk Radio, name 640. Back in with more of The Real Money Show, the number 1-877-8 Silver. Get the investor kit, the Precious Metal Advisor. Go to guildhallwealth.com as well. And I want to remind you, for all diamond purchases, as we'll get to diamonds here in just a little bit on the show, that 10% back of the purchase price to you as a buyer to be placed into either gold or silver bullion TFSA or RRSP account with Guildhall Wealth Management. You'll have till the end of July to take advantage of that. Back now with Jason Berwick, he's an investor, as you know, and co-founder of Wall Street from Main Street. Go online to wallstreetformainstreet.com. Darren, you have another question for Jason now. How many fines and billions of dollars have been levied the world over to bankers and institutions without a single charge being laid? And of course, I read a statistic this week and was shown a chart and a number of American institutions obviously lead the way between American Bank of America and JP Morgan at Al and all the friends. And again, you mentioned the secondary point, which was very interesting on the point of stagflation. And yet today we get news in LA that minimum wage has now risen to $15. So I think there is a lot to suggest that there's so much important data being swept under the rug and that the average consumer and investor for that matter is going to get hit big time. And I mean, we're hearing so much of these days and we've discussed it here in the real money show ad nausea about the demand for physical bullion in other parts of the world. And you touched on what might become the fallback position of some investors, certainly a percentage to protect themselves if this does happen. But in other parts of the world, such as China and other countries, do you have an opinion about how long it might take for this story to really hit home here in the west and essentially for any kind of shortage of metal to develop? I know we talk so much about investment happening on the paper side of things, but do you feel that there might come a day and time in which we do declare, hey, there's really not as much metal out there as we thought. And as a result, prices have to go higher. Yeah, I think eventually there's going to be shortages. What I would tell your listeners, the ones who own metal or plants that continue adding is to watch the financials of the primary gold and silver miners. These guys are not wind or solar companies. They cannot continue to produce at a loss because they're not being subsidized by the government. You're up there in Toronto. I have contacts in Toronto and Vancouver to provide finance for mining companies. And there's really just no capital available. The miners, they didn't see the gold and silver price correcting since 2011. And they were really caught off guard. Since 2009, they brought a lot of mines online that were much higher cost than the current spot prices for metal. And yes, they, some miners have been able to cut costs 30 or 40 percent on some of their mines in the last 18 to 24 months. But they're running out of ways, in my opinion, to cut costs. And I spend a lot of time researching this. So despite the fact that many of these miners have been able to cut some costs, some of them a sizable amount, they're still not generating a profit. So I think at some point, we have to get back to reality of supply and demand, which supply and demand fundamentals are reality where the miners have to be able to make a profit or they're going to shut down their mines or they're going to go bankrupt or they're going to put the mines on carrot and maintenance. And then we're going to have shortages from that. I think what has happened is the miners have been able to cut their expenses a little bit and still produce some metal, even at a lot, in a lot of cases, to generate cash wealth. But a lot of the metals that was above ground in western central banks, I think it's been moved from West East. So I think it's ending up in the refineries of Switzerland and Hong Kong and China. And it's ending up there. And once it ends up there, there's not a lot of metal left for the people that do manipulate the gold and silver market. And it's not just gold and silver market being manipulated. We already talked about it. I think a lot of the major markets are being manipulated and I think there's clear evidence of this. So I think the miners are most important here, that your listeners, one of the signs we're going to have shortages is either the primary gold and silver miners start to shut off large mines or the gold and silver byproduct, which is the majority of global annual gold and silver supply is a byproduct of copper or other base metals. The base metal prices have gotten destroyed in the last couple of years. And there are a wall through investment banks saying that base metals are going to go higher. I don't believe it. I think there's been a massive amount of oversupply global overcapacity thanks to central planning from China to the point where they don't need as many base metals. So a lot of that gold and silver that was produced as a byproduct or the byproduct, the base metal miner produced the metal, the precious metal, they don't really care about the price because it was just an added and additional revenue source for them. So I think we're nearing a point here, a tipping point for the miners where in less than 12 months they're going to have some very difficult decisions to make. We haven't seen a lot of miners go bankrupt yet and we haven't seen a lot of large mines being put on care and maintenance. But when I look at the financials of different size mining companies, they just have really bad financials. And I don't trust the fact that they can hold on and survive much lower metal prices for much longer going forward without either going bankrupt or shutting down their mines. Hi, folks. This is Darren Long from The Real Money Show inviting you to join us, the precious metals experts from Guildhall Wealth Management for a wonderful seminar on how to get gold and silver bullion into your RRSPs or TFSAs. It'll be held on June the 18th at Hotel Novotel in Vaughan. It's going to be an informative evening, learning again how to hold silver and gold in an RRSP and TFSA account. You have to go to the website now to get signed up for this or give us a call directly. Listening to the show is another great way that you can get informed on this incredible seminar coming up very soon from your friends at Guildhall Wealth Management. Fortunately, that's something that's shared by many analysts in the industry. Ones that are very good to especially to sprouts and others such as him. But the other problem I have, and you mentioned it, is that part of this misleading data is sometimes not finding its way to the public. I mean, again, even today, as I prepared for the show, we were looking at business inventories in the US and some of those inventories jump the most they ever have in 11 months. So I mean, if you look at motor vehicle sales, there was a 1.2% rise month over month in inventories and 5.9% year over year. And I think zero hedge did a ran a quick spread on photos that were gathered from Google Images showing just tens of thousands of autos sitting in parking lots, sitting there as inventories and essentially just rusting away. They're not being started. They're not going anywhere. They're not being shipped. They're just being stored as excess inventory. So it is misleading and it's unfortunate. But it's not just the West that's experiencing it. I mean, if you look from a geopolitical perspective, we're witnessing countries move away from the US dollar as a whole. And it's a very scary situation, as I'm sure you know, because as much as we look at the US dollar as being the reserve currency and they have the printing press and they've just papered over their problems up to this point, nobody really has a roadmap for what would happen if the US dollar were to fall. And other countries, you know, other than, you know, just China or Russia, even smaller countries, are trying to make packs and move away from in a business sense, paying especially attention to the oil industries. Is this a sign of things to come and would this lead to any type of price fluctuation in commodities such as gold and silver if major countries really did start to refuse the US dollar? I expect gold and silver to benefit from all this. We see a lot of data points out Russia, China, many other countries are, instead of putting as much of the reserves in the past in dollars or US treasuries, they're diverting those reserves into physical gold. So right now that hasn't affected the gold price yet, maybe it's put a floor in the gold price to prevent the gold price from crashing to 1100 or 1000 or below, like some of the people who only looked at charts say, but I think all of this system, the current system we have now, the status quo, I don't think it's sustainable for very much longer. I think there's a lot of people there who are very unhappy with the status quo, whether that's Russia or China or Brazil, they just don't trust the US anymore for so many reasons. And the dollar as the world's reserve currency, the sole reserve currency, the initial reason was after Britain was, it was tied to gold. And then, you know, the system after 1971 when President Richard Nixon, and obviously he was pressured by this when the petrodollar was created and the dollar was essentially backed by, you know, Saudi, you know, pack oil. That system is breaking down very, very rapidly. I think since 2008, there was a lot of people calling for collapse for many, many years prior to 2008, but there wasn't the other systems in place to transition to another system where the dollar is not the sole world reserve currency. So there wasn't another swift payment system, there wasn't currency, massive amounts of currency swaps set up. There wasn't all these trade bilateral trade agreements that a massive amount of them that were set up prior to 2008. I think 2008 was the real wake-up call for most of these other countries when maybe they have started accumulating massive amounts of gold prior to them, but it accelerated across the board for many of the US trading partners after that. And I can't give you an exact date on when the next system is going to occur, but I would be very surprised if it lasted another 10 years. I would be extremely, I would be pretty surprised if it lasted another five to seven years. I think a lot of these other countries, the big BRICS countries, have been setting up alternative financial systems in place to reduce the dollar's impact of a potential dollar collapse on the system. Well, I mean, it's something that we're watching very closely, and I do think it relates heavily to alternative methods of currency, and of course, we talk about it here in the show all the time, and it's important to understand. So your feedback is warranted. The one last thing I wanted to ask Jason, because we're running a little bit short on time, but the one thing I wanted to ask you there is, what are your thoughts about potential bail-ins in the future? Do you think that this becomes more of the norm, especially in the Western culture? Or do you think we escape or get away from this trend here in the West and remain outside of that particular end result? I think the economic and political elites in power are going to try anything to accomplish their goal. What we saw with Edward Snowden, whistleblowers like that in Julian Assange, is when they were rebel rousers and they pushed the envelope too much, all their digital money, their bank accounts, their ability to use credit cards and stuff like that, it was just turned off with a couple button clicks. So I think that people in power would love to be able to have the power, where if your me says something that locked the apple cart too much, that threatened their power and controlled the economy or their political system, they could turn that off. So bail-ins, bail-outs, they kind of all fit into there. I think there's a lot of white papers there and behind the scenes, these are Keynesian central planning economists. They're coming up with a lot of ideas behind the scenes. They're coming up with negative interest rates, where there's going to be, and we've already seen small sample sizes of this, where there's a small tax if you leave money in your bank account to incentivize you not to keep your money at the bank. I think, you know, other governments and other countries will start experimenting with that going forward. So they're coming up with all different types of really dystopian, at least in my opinion, they're dystopian views of what they want to do with the world to try to maintain control. But I think after 2008, when the banks were collapsing, when here in the United States, there was a possibility within a week of potentially, there was at least mentioning here in DC of martial law and money not coming out of EPMs or at least that's what the bankers told the politicians. And people started to wake up, you know, when they can't get their money, when they can't live their life normally, that's when the pitchwork started to get out. So I think there are plans being made in these billings and bailout plans. You know, they kind of differ in that respect, but because the billing is different than a bailout. But I think they're all kind of from the same goal, where the people in power want to kind of limit the people's ability to to protest, and they want to, they view it as maintaining control and protecting the banks at all costs. Because look at the stupid moves a lot of these bankers have made. A lot of these guys, you know, in the 70s and 80s in the United States, were doing the same type of things. They were in jail for a long time. And yet now, you know, they're barely even prosecuted. Maybe a mid-level guy gets prosecuted. Otherwise, they just get fined. So I think all of these measures that are being put in place, they're to protect the politicians in a status quo, they're to protect the banks. I don't know why exactly all the reasons they're protecting the banks, because I think we need to drastically reform banking across the globe. But the bankers just seem to have a get out of jail free, monopoly card, to be able to do basically whatever they want, carte blanche. I mean, it's, and on that point, it is, it is imperative. I think that listeners, especially the shows like this, people who follow your site, your blogs and things of that nature, get this information, get it in front of them so they can ascertain for themselves what the true realities are out there. I mean, it's a mouthful to listen to these things. And for some people who are new to the show, this really does require further investigation. And you should educate yourself when it comes to this. But the last thing I want to ask before I give you the opportunity to tell our listeners all about how they get in contact with you, Jason, is what are your thoughts about between now, let's say June and the end of this year? What are some of the major things we can expect to see in the economy in your opinion? I won't hold you to it. Hopefully, we'll have another chance to speak later in the year and we'll revisit these topics. But what do you think we see between now and the end of this year of 2015? It's looking like China is planning their own version of a quantitative easing program. Their municipalities, because they did so much central planning, really the largest amount of central planning in the history of the world so they could grow so quickly. It's even larger than Soviet Union or any central planning the US has done. It looks like they're going to start forcing their state-run banks, which is a Chinese government control, to buy up the bonds of the municipalities because the municipalities can't pay off any of the debt. So China's going to print up a whole bunch of R&B to soak up the debt, the Chinese municipality debt, to extend the maturity of the bonds and drive down the interest rate there. So China's joining the financial repression game. I think the Japanese yen is probably of all the developed world. People talk about the dollar collapse, but all these fiat currencies are in trouble. I think the Japanese yen has the worst math problem of all of them. They can keep their bond market from collapsing, but they have to print more and more yen because there's just no demand whatsoever for their bonds. So what all of this means is there's and there's also a lot of developing world countries that owe a lot of debt in denominated in dollars. So even though some of these countries want to get out of the dollar, they borrowed a lot of debt in dollars because it was cheaper for them to do so in the last few years. And now they're in financial trouble and they need more dollars. So it's kind of ironic like that, but I think a too strong of a dollar. No one really wants too strong of a dollar. No one wants the dollar to collapse and no one wants too strong of a dollar. They're trying to engineer kind of a light path landing, which is why I say they want to control worsening circulation, which is using financial repression. But I think precious metals at bottom, in my opinion, I think a lot of it is because the demand, the real demand of the metal is so growing. And I think the miners are in so much trouble that we could have mines coming offline in less than 12 months, maybe even less than six very large mines. So I think all these asset prices, they've gone up so much since 2009, most of them, that I think precious metal bull market, the cyclical bear market basically has ended. And I think we're going to start another bull market again in the near future. Well, even the great leader Obama himself says that the dollar is valued too high. So there you have it, folks. It's Jason Berack and we're going to take a break and cut the commercial. But before we do, Jason, could you let us know how can our listeners get in touch with Jason with everything that you offer? And don't hold back. Let us know how we can get in contact with you at this time. Sure. We have a very popular podcast on our YouTube channel and also on iTunes, they can go to our main website, which is Walter from Main Street, W-A-L-L-F-T-F-R in the I-N-S-T.com. We teach people about investing. I'm a value investor, so I look for undervalued assets. I think precious metals are one of the most undervalued assets because they're hated. And a lot of them are selling for way below production costs. And you can't really say that about many other asset classes right now across the board in any country, really. And the goal, what I want to do with Walter from Main Street and we're working on this is we're almost at a million views on our channel on YouTube. And the goal is to raise, you know, $300,000 on our Angel List crowdfunding page. And we want to build a new type of investor education and social media company where people can learn all these valuable skills to improve themselves in business and investing in entrepreneurship, learn how to invest in different asset classes, learn options through economics, learn all these valuable skills from successful people through virtual classrooms instead of going into massive student loan debt and, you know, learning that series from a business school professor and being bored. So the goal is to transform from a successful investor education and consulting company to a new type of educational technology company and social media company where people can actually learn all the skills they need to be a good business person and learn real economics at an affordable price. Well, there you go, folks. It's no joke. Wall Street for Main Street.com is the site. And Jason, we want to thank you very much for sitting with us today, talking on the real money show. And we hope to have you again very soon. Thanks again. My pleasure. This was enjoyable. That is Jason Berwick of Wall Street for Main Street. Go online to Wall Street for Main Street.com. We'll take a quick break, guys. Get into some diamonds in the meantime. You want to write this down and keep this number aside. June 18th, seven o'clock, Novotel Hotel, Von Mills, the RRSP, TFSA, precious metals investing session is going to be free parking, some white refreshments, but space is limited. So get on this as soon as you can. Again, the number 905-305-8422 and online to register at guildhallwealth.com. More the real money show coming up on talk radio, MAM 640. And back into the real money show, 187-7/8 silver online to guildhallwealth.com. Or for this segment, guildhalldiamonds.com as well. A reminder that June 18th is the night, seven o'clock, Novotel, and Von. Von Mills to put a finer point on. RRSP, TFSA, precious metals investing session, free parking and has some light refreshments there. Limited space, so say I want to call this number to register as soon as you can. 905-305-8422 online to guildhallwealth.com. Good interview, great interview. Jeremy, very cool. Jason Berwick. Yeah, that was a great interview. I was just impressed listening and getting excited about everything that he was saying. So it's always good to have another opinion. Great to hear from also an American who's giving us. I particularly liked when he was talking about friends who have master's degrees who are having a tough time getting by. I think it does give an indication of the economy over there. And of course, we were also talking earlier about savings accounts. And we do know that Americans are starting to save a little bit more, which is a good thing. But on the backside, it also means they're not buying as much good. So it's not good for China in that regard. So we do live in a global world that way. And the economy is not looking good in the US. They keep playing with the numbers. And of course, we need ways to protect ourselves against all this sort of subterfuge and manipulation. So when it comes to making money, of course, with guildhall, we've always sought out a very, very high criteria, natural fancy colored diamonds. And those are considered investment grade natural fancy colored diamonds. And I have to tell you, I mean, we say it every week, but it happens every single week, we get a phone call from someone who purchased a diamond somewhere else that just didn't meet those type of qualities. And we have to deliver, we have to be the bearer of bad news that they just that it that diamond is not an investment grade diamond. So before you go out and make a purchase of any natural fancy colored diamond, come to Guildhall, learn what to look for in a natural fancy colored diamond, learn what to appreciate about the natural fancy colored diamond so that you can get yourself an investment that you're going to see continued growing valuations on year over year. And that's what we see at Guildhall. You know, we've seen intense yellows, for example, that five years ago, you could have bought for $13,000 today. You couldn't buy for less than 22,000 Canadian. That's a great return in five years. Imagine what it's going to be like in another five years or another 10 years. This is a long term market. And while it's not quite as liquid as gold and silver, the gains are absolutely wonderful. And it's so easy. And I've said this before on the show, what I really like about natural fancy colored diamonds is, unlike a stock where it doesn't matter if you invest 20,000 or 100,000, your gain is based on what that stock can do. Whereas with the natural fancy colored diamond, the more you can invest, the more rarity you can invest in and the rarer that diamond, the larger the gains. So for example, if you can buy a two carat vivid, you might be looking at gains over 25% a year because that diamond is so, so rare. You correct, Jeremy. It is location, location, location. That's what we do. The type of quality of diamond that we sell are fancy, intense and vivid. Those are the three grades. We have probably the most largest collection of internally flawless yellows up on the website against anybody that's out there. But of quality, you know, diamonds that we look at, that we leave somebody else is buying. The first thing that we look at when we buy a natural fancy colored diamond is the color. Color is the most important thing when we're buying an even saturation. The next thing is the cut. The cut gives that diamond the scintillation and the fire and all the different colors that come off of the diamond. The third thing we look at is the clarity. Though we sell internally flawless in yellows, on the vivid, we have now gone to vivid in VS quality, which means it's very slightly included, but it's color first. And these diamonds that we're bringing in now in VVS and VS quality, the reason that we're doing it, even though they're 5% cheaper at cost, it is a great investment. They're still increasing at that 20 and 25% a year when you buy a 2, 3, 4-carat vivid yellow, these are diamonds that are so precious and so rare that they go up, as I said, between 20 to 30% virtually every year. So it is important. The first thing we look at is color. The second thing we look at is cut. Third thing we look at is clarity. And finally, we look at the carat weight. A guild hall example of yellows. We only sell yellows of one carat or more. We just had a call yesterday of somebody asking us questions about a half carat stone. A half carat stone in a yellow is not an investment grade. If it's not IF in a half a carat, the stone is not very, very what I would call an investment. So you need to buy a carat or more. This is how you're going to get a return. If you're looking at pink diamonds, we only sell VS quality, which means it's very slightly included. We sell diamonds that are basically from the Argyle mine and which produces 90% of the world's pinks, which is only one tenth of their total production. So 10% of the other diamonds manufactured come out from South Africa, Congo, Brazil. There is nothing wrong with those pink diamonds. They're just a slightly different color. I just purchased a diamond last week actually in Vegas. It was a bubblegum pink, absolutely stunning, 0.54, the most beautiful diamond color I've seen in a long, long time. That will be up on the website next week. Getting back to yellows, we have got on our website a yellow stone. It's a 101 yellow vivid, internally flawless heart shape and it's an incredible, incredible cut stone. It was appraised at $75,000. It's actually our price. We're going to be putting up on the website. It's $45,000. It hasn't gone up as of yet, but we have sent out to our clients a little bit of a jump list so that they can see the diamond before it actually goes on to the website. Now, all of the diamonds are of impeccable quality, but even within that, we're looking for items that could really shine within a collection and to have a heart shape, vivid, internally flawless, is really going to be the centerpiece of a collection in many regards. Another diamond that we had like that was the vivid yellow emerald that we talked about a few weeks ago that we procured. Currently, it's on hold. Someone is looking very interested in that particular diamond and these type of diamonds do not last long because they are so unique. They're so incredibly rare that diamond collectors just have to have them. Other than that, yes, all the diamonds meet an incredible criteria. We encourage you to go to the website and take a look at some of the diamonds, set up an appointment where you can look at the diamonds in person and also review the diamonds, see which ones that stand out to you and then you can look more closely at the GIA reports and the appraisals. We do also have a promotion going on where for every color diamond that you purchase, you can get a 10% rebate to be put into your RSP or TFSA to purchase precious metals, physical precious metals, and it's a segregated and allocated product within a registered account. And we're seeing it being a very popular promotion. A lot of people taking advantage of it, which is why you can see that we've had a few pinks sell in the past week. And of course, this emerald as well that's been sold. So take a look at the inventory, the collection, give us a call. We'd be more than happy to set up an appointment where you can look at these diamonds in person. That'll do it for another week, guys. A reminder of the seminar coming up that will be June 18 starting at seven o'clock, the Novotel Hotel up in Vaughan Mills, RSP, TFSA, precious metals, investing sessions. It's going to be free parking, some light refreshments, but the space is limited. So you want to get on this right away and reserve your spot 905-305-8422, go to guildhallwealth.com as well. This has been the Real Money Show on Talk Radio, MAM 640. What if you could have a streaming service that added new shows and movies every day, 365 days a year? 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