The Real Money Show
The Real Money Show - May 2nd, 2015
and welcome indeed to the real money show the numbers one eight seven seven eight silver online to guildhall wealth dot com make sure you grab yourself an investor kit sign up for the precious metal advisor and there's also the east or in the top right corner and more details about how you can now use secured registered funds to start investing like RSPs lifts lira's TFSAs and all that good stuff we'll get to Paul here in a moment but Darren long is in studio. Darren we always start the show with the market updates so what do you say we do exactly that. John it was another week of sideways motion with gold and silver but on a positive note we did see during the middle of the week I guess Wednesday Thursday we saw a decided turn in the US dollar index now late here in the week we're taping on Thursday afternoon we've seen a rebound in that US dollar strength against several currencies over the last 24 hours but on the slightest pullback and it was bigger than expected of a pullback in the US dollar against a couple of currencies we saw gold take off and bounce right through 1200 we're trading right around that range now in the 1180 to 1210 range through the week silver trading above 16 again was slightly below this morning for some exceptional buying opportunities and again this all resolved all revolved around the US dollar this week I can't tell you how much and how sensitive gold is to what the US dollar does now sooner or later as we have said time and time again on the show the Ponzi scheme will be up you will see gold and silver react and respond as they have done throughout this entire bull market but what a week it was it was an excellent week we want to congratulate all of our new clients this week welcome to Guildhall it's great to have you aboard and we had a fantastic seminar on on Wednesday evening in Markham it was well attended it was capacity crowd we had no room left for seating and it was all about bullying and how to get gold and silver into your TFSAs and RRSPs and depository accounts with Guildhall and I'll tell you we had our partners there it was a fantastic evening they discussed all about the intricacies of TFSAs and RRSPs and other type of RRSPs and what we found out was that all RRSPs are eligible to have bullion in them provided there is space if you've never opened up your TFSA and you've been the age of consent since day one that means you have $41,000 worth of cap space in your TFSA at this point in time and it would be foolish not to use some of that up it's a great way to save money in your pocket and of course our government was kind enough to offer to us and they've just extended it an additional 10,000 per year that could easily be diverted towards owning some gold and silver right here and right now and it was a fantastic evening we had so many questions John there were so many people from the community out there and of course this is something that we're going to ramp up as the year progresses right into the next major RRSP season and certainly these seminars are where people can get educated now that being said I want everybody that's listening to know that if you need information about how this can be done it's as simple as using the contact numbers that are giving you that are being given out today during our show and of course at any point in time you can feel free to call the firm and ask questions about how to get gold and silver in your RRSP or TFSA or other RRSPs so it's an exciting event we had a lot of fun great food good time and we're happy that we could put that event on it's nice you can actually use in your RRSP or other registered funds room for something that's actually worth it right that you can actually see and hold and touch and have you know in your hand not vaporware or paper well that's just it and I started off that seminar John I opened it up and Jeremy actually presented the bullion portion at the seminar this week but I started that up by asking people a very simple question and that was how many of the audience of people there have RRSPs currently neutral funds RRSPs hands go up probably about 80 to 90 percent said yes and of course the next question is keep your hand up if you could name just one of the funds that you hold within your RRSP if you hold the fund and I've set a hands go down 50 percent of the hands go down and of course the last question and the most important is let's see who knows where their money is actually parked and to that end you ask a simple question of the people who know or can name one fund within your RRSP mutual fund how many could name 50 percent of the companies that are in that fund and not only one person again one person in the entire room we're talking dozens and dozens and dozens of people were in that room and only one person knew where his money was and probably advisor of an angel planner well we didn't I didn't challenge him he self-directs so he has more time he is reaching the age of retirement shortly so he devotes a lot of time to understanding and educating himself about money but it just goes to show you that we as Canadians don't take enough time to understand where our money is and on your point exactly John owning gold and silver means it's tangible it can be held you can see it we passed around a hundred ounce bar just as an example it's a very common thing in our office to see them we take them for granted they're so frequent now but when you actually hold on to almost seven pounds of silver sitting in your hand the reaction that you get in the audience is incredible and to think you know that holds value that's money in your hands it's not paper it's not a promise it's not an IOU and it's certainly not something that you have to guess at where it is you know exactly where it's parked you know where it's going to be and that's what this is all about educating people to know where their money is at any given point in time it's almost like comfortably old school you know I mean you're actually holding money it's like you know thousands of years of people doing it's almost the way it should be right I think if you ask people even from our parents generation John they will tell you that it was far more common for them to hold coins for them to walk down the street and have a couple silver dollars in their pocket it was just something that was common sense they had it within their bank accounts I'm a perfect example of it I turned 18 and when I turned 18 I was left a small trust fund from my great great aunt and in that trust fund was bullion and at the time it was $35,000 worth of bullion and of course you have to come to realization that you have no idea what it was I was too young to recognize that the value of this long term but I converted to fee it because I needed to go to school put it towards debt but and it's a smart thing of course it held its value and it's something that had been that was begun on my behalf as early as the 1950s so very interesting segue into being in this particular space and time with Guildhall but to let our listeners know exactly what they can expect when you're buying with Guildhall it's not like buying paper investments it's not like investing in an ETF or a stock we don't sell those types of vehicles if you're looking for that type of vehicle Guildhall is not the place we don't give advice on what your portfolio should or shouldn't have where experts in one particular arena and that is bullion and then of course when you listen to our show you also know the other area of emphasis is color diamonds those are hard assets these are tangible items we do not want people to think that if you're going to buy gold and silver you should do it any other way than to hold it physically and with Guildhall you have the option of taking that product home and once you take it home you can always bring it back to us to sell it of course if you'd like to open up an account at Guildhall you can have it stored within our depository it's secured product it's allocated and it can be serialized so that the exact bars you put in are the exact bars you get out imagine going to your bank on a Friday depositing your check and saying could I have $10 bills and I'd like the sequential serial numbers so that they're my bills and I know they're my bills and then coming back on Tuesday of next week and saying by the way could I get those $10 bills out now actually he got three heads you know well it was a time when it wasn't always like that but this is this is exactly what you can look forward to with Guildhall it's physical product and of course when you're opening up an account it's all going to be done using a very tried and true method and it's world-renowned it's become world-renowned in our depository where we store the product world-renowned secure it's insured loids of London that means all the product is underwritten against natural occurring disasters against theft against vandalism and you got liquidity you can pick up that phone talk to one of us at the office directly and be able to put in a sell order knowing you can get your funds out quickly and efficiently 1-8-7-7-8 silver online to Guildhallwealth.com make sure you as I mentioned off the top check of the precious metal advisors sign up for that click on the e-store and start investing in the the comfort of your home own home literally it's almost like it's just a quick jump you know you got to convince people it sounds so weird to own physical metal in 2015 but there's 15 jewelry stores in every plaza where people are willing to buy jewelry made of the same stuff why not turn it around and use it for investment right that's just it we talked about it we talked about it last night the seminar and the idea of actually taking bullion you currently own which could have been passed down from grandpa and grandma and you might own a few ounces of gold that product can be bought back in brought back into Guildhall and turned into an RSP or TFSA account and people don't realize this I can tell you hands down across the entire country we will be the only firm doing it the way we're doing it and this is going to be world-renowned it's already being heard about all over the world and of course people are going to be coming to us to use this especially Canadians for that purpose alone the TFSA and the RRSP you know we talked about you know the price of silver between the relationship between that and gold because the price of silver ever well let me just say it out there can it outperform gold eventually well that's a lot of people ask that question you know we talk about the fundamentals and we talk about what drives pricing and we've always maintained that there are four basic fundamentals and throughout the rest of this segment the next we'll talk more specifically about each fundamental but the answer is yes we do believe there could come a time when silver does actually outperform and supersede gold and part of that is that in percentage terms it's had a very encouraging performance along this bull market we've seen silver from a percentage standpoint outperformed gold since day one now even know some people won't know what the relationship is as you said John when we saw silver this year alone begin the year it was starting you know to to look as though it was going to move and of course before the end of March before the end of February we had to move up to eighteen dollars and change in silver now we're back down to the 16 15 16 20 level but that just means that it's already given us a sign the inkling of where it's going and it is outperforming gold so far this year the yellow metal started around 2015 around 1189 pounds and was last that today just just below 1200 announce and at 1200 it's up around 1% whereas silver has been up around 78% now if you look back historically if we go back to the last bull market we had and I wouldn't leave people with something to think about before we go to the next segment the 70s was an interesting time because what we're seeing is a repetition of a lot of those major problems we're seeing the threat of inflation we're seeing geopolitical instability around the world we're seeing economies clash we're seeing the reserve currency get tested again which was happening with the US dollar back then which is why Nixon removed the gold standard he need flexibility to print money in order to stay ahead of these economies and that's what he did and during that during that entire decade believe or not the price of gold actually ventured up 2300% culminating with a peak of 850 in January of 1980 now if you're a listener and you want to know exactly what silver did in the 1970s stay tuned because we come back I'm going to tell you about the best performing metal you've ever seen we'll take a short break that number to start investing 1 8 7 7 8 silver online to guildhallwell.com click on the e-store learn about using RSP and other secured funds to to begin investing as well the precious metal advisor will be there to sign up for and get the investor kit more of the real money show coming up on talk radio name 640 and back into a more of the real money show 1 8 7 7 8 silver that is your number guildhallwell.com is the website make sure you sign up for the precious metal advisor the e-store in the top right corner easy quick way to start investing. Darren we just left off with the fact or at least the possibility of silver eventually outperforming gold in that discussion right. We did and from from what I've seen fundamentally in both markets I think that common sense dictates we're gonna take a while before we get silver up the $1,200 range but when we were talking about the seminar Jeremy made a really good point and he was talking about a couple of charts one of which was showing some of the ratios and one of them was what it would take or where the price of gold would go if it held to some of these traditionally historic ratios now if gold only went to 1200 and did nothing more throughout this bull market but silver rallied to make 16 to 1 which is historically what the ratio is between gold and silver that means right now that the price of silver would rally up to about $75 an ounce that in of itself is incentive enough to look at silver as possibly the best undervalued metal but if you relate it back to what we were saying before the segment this is what blows people away we said gold had traversed 2300% higher during the 70s in that bull market which mimicked a lot of the exact same things that are going on in the economy right now well as good as gold was silver was even better it went up 3200% from 5 to $52 an ounce and that in and of itself is nothing short of amazing but to think that we're alive in this time and space when that's actually happening again and silver is now only trading at $16 an ounce well the crazy thing is all the gold has ever been produced it's still above ground there is less silver above ground and there is gold it's about 5 to 1 ratio so in fact silver is rare rare right than gold yet it's right you know at an 84 85 to 1 ratio whatever it is you know it just really doesn't make sense I'm you know we're recording this show Thursday afternoon gold and silver got knocked down today it just doesn't make any sense and fiat currency they keep on printing out and one of the things that Jeremy said yesterday which was really interesting you know in a hundred years the US dollar is actually depreciated about 98% 98% the buying power it's purchasing power is drop 98% yeah you know an ounce of gold is approximately $1,200 US if you put that into Canadian we're almost at $1,500 and when you see the headlines silver or gold has dropped down to you know 1,200 it's $1,500 it's a dollar $24 $25 and changing it up in currency silver trading is $16 it's actually $20 and that's still not bad I've been in this business since 2002 silver was trading at $3.80 an ounce so even from $3.80 to $16 that's you know 12 300% if you take it in Canadian dollars it's 400% gold when I first went in 2002 it was trading at $250 an ounce today we're around about $1,200 an ounce if you put that into Canadian around about $1,500 an ounce that's a 500% return you know it's a great great investment you really should have heart and we're not telling prescribing our clients to have nothing but gold and silver in your portfolio you need 15 20% it's a hard asset what it actually is and is is an insurance policy you have life insurance car insurance home insurance you have all types of insurance is to protect you to protect your hard-earned wealth your capital your money you really need another insurance policy yes the stock market has done tremendously well in the last four years but if you had your money in the market in 2008 and 2009 you got absolutely slaughtered great the stock markets gone up but not every week did the seminar last night we ask the question how many people have RSPs you know probably 65 70% put their hands up many people at TFSAs the same thing Darren asked a question who knows what they own in their portfolio in their mutual funds can they name one stock that they own did we have a hand up one hand one hand up that knew what they own most people invest got no idea so when we tell people or advise people to put 15 to 20 percent the reason we're telling you is real estate's gone up it's doing terrifically well because interest rates are low stock market is doing extremely well not everybody's making money in the stock market I know lots of people that look at their portfolio every month they get their statement they throw up on their shoes they're just not doing very well because you know not everybody has that inside or information what stocks to buy and when to buy and the first option at an IPO that comes out of course you're going to make money you know if you buy something at $20 and it opens a 50 or 60 dollars you're ahead of the game you've got to be ahead of the game anyway that's another story and I don't want to get into that but stock market is up you're getting maybe if you're in you're a really high quality blue chips you're getting four five percent dividends but what happens if the stock market right now that's up retraces back 30% or 40% and that can easily happen any day that 4% that you've made every year for four years is 15 16 20% of the max and you lose 30% of your capital in the stock market basically what's happened in the market right now golden silver has been beaten up because it was easy to put your money in the stock market it was easy to put your money in real estate nothing goes up in a straight line if you're making money in the market now right now best advice I could give you is take some money off the table you know live to fight another day nobody ever loses taking some profit off the table but you need to have 15 to 20% we're not saying have a hundred percent it's an insurance policy right now silver is trading at $16 we believe over the next few years it's gonna go back to the high of where it was in May 2011 of $49 in 90 the end of the 1970 80 you know silver went to $52 it went from $2 to $52 as Darren said gold went from a hundred dollars to eight hundred and fifty eight hundred and eighty dollars it's gonna happen again when you are printing fiat currencies and one of the things Jeremy did yes in the presentation was absolutely wonderful we showed a picture we talk about the US debt of 18 trillion dollars in debt people it's a number it's a figure we had a little film clip of what a trillion dollars look like you know it's three football fields of skids of bundles of money on skids two skids high three football fields that's one trillion and then we showed what 18 trillion dollars look like with a Statue of Liberty with all the buildings around it is looks like 18 trillion dollars that debt can never be paid back the only way that debt can be paid back is by printing more money and confiscating your wealth and diluting the value of the dollar and that's why we're talking about the buying power of over the US the US have gone lost 98% of their buying power in you know in 100 years gold is a safe bet it's been a safe bet for 5,000 years you know people don't dive for ships go to war you know for mutual funds you know for paper one eight seven seven eight silver is the number guildhallwealth.com is the website check on the e-store click on that to start investing directly Darren give me some I guess we call them catalyst so spark a bull market if you will in gold and silver well in the short term there are five of them and they're very important to know because alongside of the fundamentals we've always talked about the markets of gold and silver as being event driven markets now the first one and probably the most important deals with the inability or ability of the federal reserve in the US to adjust interest rates as they said they are going to now they've talked about putting these interest rates up for about three years now and they've delayed it further till end of year Janet Yellen signaled to investors to anticipate these interest rates heights from the Fed later this year and there will be expectations of a tighter monetary policy and that's helped lift the US dollar versus the euro and most other currencies and despite the much stronger dollar compared to other fiat currencies gold has still remained very firm as well as silver so if you have the other side of that coin the Fed's failing to follow through on this policy change and interest rates staying where they are even effectively getting weaker if that can happen I'm sure Ken the US dollar could tumble this would signal a jump in precious metals prices and you would see gold and silver take off they're very sensitive towards the US dollar as I said earlier in the show this week was a perfect example the US dollar index earlier in the week Tuesday Wednesday started dropping and right away gold shot up right through twenty twelve twelve hundred and in our office it's always amazing because the first thing that happens is we're watching the prices and everybody will comment to each other did you see that and of course what we mean is that the prices are jumping and ultimately what the Fed is saying is that their decision is going to hinge on whether the economic data especially pertaining to employment comes in stronger weaker in the months ahead listeners to our show know that it's just a farce to expect that the US economy is going to strengthen monetary and financial analysts the world over our skeptics about monetary policy in the US and that's why we anticipate this is being the first and most important catalyst to take and propel gold and silver higher the second one is that the debt crisis could hit home this is very important to recognize in March the federal government reached its statutory debt ceiling of more than 18.1 trillion there's little doubt that the debt limit will eventually be raised once more like it has been over the last 36 to 60 months but reckless political brinkmanship along the way could rattle the markets and we don't know what impact that'll have on the stock market of course when Congress inevitably in the US moves to raise the debt ceiling again it won't solve the problem of debt in fact it'll only exacerbate that problem since the financial crisis began at the end of 2007 total worldwide debt levels have increased by fifty seven trillion it's inconceivable you can't even imagine what that is in your head and of course what that means is that at present that leaves us with a US fiscal gap if you combine all of their debts and all of the liabilities they have long term of approximately two hundred and ten trillion dollars where they're going to get it they're going to tax people that's where they're going to get it and they're going to weaken the dollar to do it now seeing the effects of what it will have on gold and silver means they're prolonging that as long as they have to but in order for these things to occur one of the other has to occur and of course gold and silver are going to benefit so a debt crisis hitting home here either in Canada the US or altogether that would be another driver and then when we get to segment four we'll talk a little more about the other three catalysts that are going to take these markets higher but that just means you have an opportunity right now to get your hands on physical gold in silver if you get in contact with Guildhall if you want to put it into an RSP of any type we can facilitate that for you it's a very simple process if you'd like to take some product and put it in the storage facility outside of an RSP that can also be accomplished you can own coins you can own bars you can get serial numbers and go and visit your product if you'd like this can be done from anywhere in the world and you can manage it by a phone call anywhere in the entire world the other thing is as well as you know if you're going to invest in a TFSA tax-free free savings account the amount you can put in this year for 2015 raise it to ten thousand dollars if you're over the age of twenty six which means you know you've been investing in it but if you haven't invested in a TFSA you can put as much as forty one thousand dollars into a TFA and that's a tax-free account so if you were to buy silver today as sixteen dollars as an example and we believe it's going to go to forty eight dollars over the next little while whether it's six months a year eighteen months two years it's definitely going to move up you've got that opportunity for forty thousand dollars whether it's ten thousand dollars it doesn't matter you can make twenty thirty thousand dollars by investing into gold and silver especially silver because I think it is extremely undervalued in a TFSA which is secure it's allocated product it's segregated product it's insured through quest rate that we use that is is actually looking after the account and it's insured for up to a million dollars for each account so it's really in a safe secure situation but you've got the opportunity to make some money tax-free and be able to use that money enjoy the money and be in a very very strong investment most people don't know how to invest in gold and silver especially into any type of savings plan that is registered it could be a TFSA it could be an RSP it could be a lift it can be any one of the accounts from a pension that you've got you want to put into gold and silver so give us a call we'll be happy to you know get you started in this and as Darren said you can have it's segregated it's allocated it's we will give you the bar numbers so that you know if you get three bars of silver we'll give you those bar numbers you can come and visit it you can't do that with any other institution so this is a great way to own physical product not ETFs not certificates not stocks not futures not options on futures the real thing and that's gold and silver and you can have that in your portfolio in your RSP in your TFSA or any other type of registers pension so give us a call John 1 8 7 7 8 silver is that number online the guildhallwealth.com do all those things sign up for the precious metal advisor and have a look at the e-store as well if you want to start getting some precious metal online we'll take a short break and get back into the other half the wonderful investments they offer that would be natural fancy color diamonds this is the real money show on talk radio name 640 1 8 7 7 8 silver is the number to start investing guildhallwealth.com or in this case guildhall diamonds.com is a good place precious metal advisor sign up for that Darren is the author write some good stuff in there and the e-store at the top right to start investing in precious metals in the comfort of your own home as they as they say in the infomercials but this is much better it's an investment that will actually grow as well natural fancy colored diamonds I love these one and just before we get into the diamond segment I just wanted to say anybody that opens up a TFSA or an RSP account with with funding it with $5,000 US will give you as a little bonus five ounces of five ounce bar of silver that's an awesome bonus you know it's a little bit extra you can give it to your kids grand kids or whatever but it's a bonus for just opening an account let's do let's talk about some diamonds boys well I want to talk first about how awesome the interview that Nicole the queen of colored diamonds sir had last week with Michelle you and from Luxify that was she's in Hong Kong so there was a time difference and Nicole did a fantastic job was outstanding a few minutes to listen to and really what the takeaway from that was is that you are seeing an angle that you only hear about from our show but now from other people and the point to be made is that there is a growing demand for colored diamonds that's happening all over the world and sometimes we get a little bit sheltered here because the salespeople that work very large institutions would rather you focus on their financial products and that's understandable but the reality is people want that tangible asset and not always will it be gold and silver sometimes it can be colored diamonds but we wanted to say what a fantastic opportunity this was to hear from somebody like Michelle and to find out what the demand variances are over there and really what it's telling us is that demand is jumping tenfold oh they're snapping them up right and they are and that's going to continue to be the same case a lot of our diamonds do make it overseas and that's just a fact of life and competition is fierce Paul has a very difficult time securing the type of diamond that we're used to getting and the price continues to rise so as an investor these are the things I love to hear this is what I want I want to prove and track record I want to put money in my pocket and I want something that's safe and secure this is you know what Darren's saying you know we've always spoken about is that you know when we for example we sell internally flawless vivid yellow diamonds you can't find any I bought a parcel this week I always say that some of the the cutters and polishes and some of the dealers what they're doing is they have the diamonds and they put them to the back of the safe this week I bought some three vivid IF diamonds each and it come obviously comes with a GIA GIA which is a Gemology Institute of America but they were from 2007 they were still in the packaging from GIA has it come back so what somebody had done you know is a car to do it they had it and they put it in the back of the safe and today I'm paying 150 to 200 percent more for that product from seven eight years ago but guess what I don't care if the GIA's is 2007 the prices have gone up one of the diamonds that I bought and I have to tell everybody about it which I you know I very very rarely see it's a 1.16 vivid yellow internally flawless emerald cut it's absolutely stunning the color is golden yellow I mean golden and the fire and the scintillation that comes off of this diamond is just amazing I just I'm just so excited to put it into appraisal to see what this is an actual fact it's gonna come back at a praise but it's just an unbelievable stone I also picked up 108 fancy vivid I F which was in the parcel and a 111 fancy vivid I F both cushions stones just incredibly amazing and we've got a parcel of pinks coming in which is also all alcohol pinks all VS quality we are so excited about these diamonds because they're round they're brilliant cut so we've got different sizes point two three point two four point two five just amazing amazing investments and with the all-girl mind closing in 2018 2020 these diamonds they're not gonna be around not in VS quality I was at one of my suppliers I had a meeting with them and they pulled me out I don't know maybe 60 70 pink diamonds a lot of pink diamonds but there was only one VS diamond that they had and I bought it everything else was I one I - not interested not interested it's not investment grade for me this morning I get to the office I was out early this morning I get to the other got three emails one from Israel one from India and one from Australia all trying to sell me pink diamonds not one of the suppliers from these three people had a VS diamond they're all SI one I one I choose great prices but it's not an investment you know we try to educate our clients into what to buy what is an investment stone you know for every 10,000 white stones mind only one carrot or at a 10,000 carrots one carrot would be colored doesn't mean it's investment grade you know a colored stone can be a brownstone a chocolate they called a cognac champagne a black stone they've got no value it's okay for costume jewelry but not as an investment when you start getting into yellows for example there's fact there's light fancy there's fancy there's intense there's vivid those are the three categories we carry we don't carry light fancy light fancy is just an off color yellow or off color white I should say in the last 12 months alone white diamonds have dropped 15% dropped whereas colored diamonds are appreciated anywhere it all depends what diamond you've got whether it's a yellow pink blue red on average is appreciated between 18 it's between 18 to about 30 percent on if you've got a vivid one and a half carrot internally flawless that's up 30 percent this year so out of 10,000 carrots a white stone stones mind one carrots colored so to find a fancy vivid internally flawless you've got a mine about a million carrots this is how rare it is we go out of our way to buy the best of best diamonds everything that I buy has first of all I'm looking at the color the color has to be evenly saturated it has to be a good-looking stone then I look at the cut whether it's a you know a radio in a cushion whether it's round a brilliant a pear shape that is very important because that gives off the fire and the color in the diamond especially in an emerald cut which is very very rare you know they just went into auction last week a hundred carrot white diamond D internally flawless it was an emerald cut whenever you see a high high quality diamond cut it's an emerald cut so you know it's important that you get the right stone the next thing we look at is a clarity when we buy yellow stone for example it has to be over a carrot we don't sell stones that are half a carrot 0.65 point they're not investment grade because if you buy anything under a carrot I'll give you a tip if anybody's out there and is looking to buy an engagement ring you know if you buy a stone it's 0.98 it's 40% cheaper than a carrot because we grade at one carrot to 124 125 to 149 anything less than a carrot is 40% cheaper than that when you get into half carrot for example if you're going to buy half carrot stone if you buy a point four eight four four nine that's going to be 30 40% cheaper than a half carrot so when you go and look at people's websites and you see half carrot yellows or 0.65 in VS quality or SI quality they are not investment grades they are chump jewelry it's for to put in a piece of jewelry not as it is not an investment stone when you buy a diamond make sure that you get a full GIA because what a GIA gives you is everything all the information about the diamond if it's a full GIA it's going to tell you the color is the grade of the diamond the clarity of the diamond it's going to give you a plot of the diamond to show you how the diamond is cut if there's any extra facets if it's a VS quality for example it will show you what the clarity is and what the inclusion is when you buy a half third it doesn't show you anything buy it beware because what you buy is what you get and you're going to have a real real tough time ever selling that diamond back to anybody the GIA is like the diamond DNA you need it absolutely but again every diamond we sell comes with an appraisal we deal with a company that's been in business for the longest time with a great great reputation so when you buy a diamond you really it's who you're dealing with you know a question you should ask your supplier or what your dealer will you buy back the diamond we don't buy back anybody else's diamonds if they bought it from somebody else because most times it's diamonds that we would have turned down we only buy the finest quality as an investment grade and we know that it's going to increase in value why would I buy a piece of garbage that I've got to sell once take it back and sell it twice am I insane you know nobody does that you know nobody does that so every diamond that we pick first of all you know Nicole my daughter is a GIA diamond graduate you know she goes through all the GIA's before I even look at the diamond because if a diamond doesn't meet our criteria and the criteria can be not only GIA is not going to tell you or show you the color but it's going to show you the size of the diamond it's going to show you the table that's the top of the diamond it's going to show you the depth of the diamond if a diamond is too deep it's not going to get any reflection it's not going to get any color if it's if it's too shallow it's the same thing it's good for jewelry it makes it look big but it's not an investment grade the diamond has to be perfectly graded to be a great great diamond also an inclusion a diamond can have an inclusion but it all depends where the conclusion is is the inclusion right on the table or is it on the side of the diamond if you're going to put it into a piece of jewelry it's never going to show these are the things that you need to know so when you're dealing with a company like Guildhall Diamonds we have probably the best selection right now of internally flawless yellows Argyle pinks we only carry VS quality in pinks and you've got to take into consideration the Argyle mine is going to be closing probably in the next three years four years what happens when that mine closes right now they're pulling out smaller and smaller stones because they have to dig dig dig dig deeper and deeper and deeper and as you go deeper the stones get smaller you know when you first go into a mine it's like you're taking the lowest growing fruit it's easy but now you're going deeper it becomes more and more expensive and there's not much more to come out of that mine there is no new mines coming on and if you look at the Argyle mine they produce 90% of the world's pinks 90% and yet it's only one tenth or one percent of their production so their production is white diamonds and brown diamonds and those are most of the diamonds that come out of that mine one tenth or one percent is pink now it doesn't mean I can hold in the palm of my hand they have a tender every year they put 55 of their best diamonds of that year that they've cut and polished it doesn't even fill a teaspoon that's what you know the 55 diamonds yet you know they go into tender and people I've been into the tender in Hong Kong and you know we bid on on diamonds and we've been very fortunate in the past that we've able to get diamonds in 2012 we got three diamonds 2013 we got nothing we bid 30 percent more than we did the year before last year we bid over 30 percent and we didn't win a diamond last year but there was only 10 or 11 VS diamonds out of 55 diamonds in the whole collection last year so it just shows you the tenders been going for 30 years if you look at the tender 50 55 diamonds every year for 30 years as 1500 diamonds that are of spectacular quality out of those 1500 diamonds only about 20% of VS quality so that means there's only 300 diamonds out there worldwide in VS quality and a lot you know a couple of years ago I said we had three all VS so even though we sell all-girl pinks we still go for the VS quality on regular diamonds because these are the diamonds that are gonna go increase in value if you're looking to retire you're gonna put your kids through school you know if you've got a couple of kids what a great investment buy a couple of pinks put them away you know a diamond today that's 50 thousand dollars can easily be worth a quarter of a million dollars you know in 10 15 20 years sure because I know what's happened in the prices we had an all-girl pink that we had was from the tender we had it originally on for 145,000 and we sold that diamond for 390,000 three years after the two years after the fact because that was the replacement value because you can't find find them and people won would you go I'm gonna give you a really simple question would you buy a Ferrari brand new scratch and dent absolutely not so why would you buy a diamond you know you know you buy a house do you go in and have somebody come in and check it out before you buy it to make sure that you know it's the real thing and you're not gonna have problems the same thing with the diamond we are experts in this we spend a lot of time going through the to find the quality to bring to our clients and yes we do have a resale application that we can sell the diamonds for you but I don't take anybody else's diamonds back because it's not a diamond that I would have picked in the first place and that's the diamond is a such unbelievable quality but most people don't bring that bag because if they bought it somewhere else they've already tried to sell it's back to the supplier and the supplier didn't want it the numbers 18778 silver online to guildhalldiamonds.com check out the collection and the other half of a wonderful piece of investing will be natural fancy colored diamonds will I get Darren back in here in just a few minutes get back into our well the five catalyst I will spark a bull market and golden silver we'll get back into that and update and wrap up the show as well the real money show right here on the talk radio m6 40 and back with more of the real money show one eight seven seven eight silver you should know that number by now online to guildhall wealth.com check out the e-stars sign up for the precious metal advisor get the investor kit all these wonderful tools you can get in your arsenal and learn how you can use your RSP your TFSA and other secured registered funds to start investing in tangible heavy assets of precious metals gold and silver we're talking about the catalyst that may spark a bull market you got the number two I think we got three left right D we do have three left and the next one I wanted to touch on was geopolitical turmoil we've talked about this as a driving fundamental but it's also an event that can drive a market we've seen this happen from time to time as regional conflicts or economic upheaval does definitely drive countries to buy gold now when we're doing the seminar this week Jeremy pointed out a very interesting statistic that up until 2008 end of 2008 central banks around the world have been engaged in the process of selling or liquidating gold holdings and each year in accordance with the IMF the international monetary fund they had set rules for how much gold could be sold by each central bank this is just a guidance to give people the ability at those banks to have some type of rule in place to liquidate their products or their holdings now they were doing that to drive business doing that to make money and also of course I'm sure to a certain extent doing that because they're part of the whole act of cronyism that exists within that particular industry where all friends get together and this friend does the same thing as the other and of course that's one way to keep the price suppressed now 2009 came and this changes so we see lots of political turmoil we see lots of economic turmoil we see lots of geopolitical unrest and like the 1970s as we've been doing throughout this entire show there are certain similarities back then we might have pointed towards Russia Afghanistan in the 20-year war we might have talked about things like the Iran hostage situation there were certain events that sparked interest in owning gold and silver which along with the bull market that it was already in drove more buying since 2009 it's interesting to note that central banks around the world have actually become net buyers of gold which means despite what they're telling the people of their economies that the stock market is healthy that the housing market is healthy that employment is strengthening you are seeing a progressive move towards the ownership of gold now ask yourself why would they do this and the answer is very simple they don't want you to know that they're owning gold they don't want you to think about them holding gold because if you knew that they were buying gold you would not have as much faith in the currency and since currency is backed by nothing more than the confidence of the people the world over anything that would hamper that confidence would drive currency lower if the economy is not prepared to have that happen then of course they don't want their currencies to drop so you are seeing that happen right now and of course more recently we've have you know a period of sharply rising international tensions the recent controversy over Iran's nuclear ambitions and the Obama administration's deal to lift sanctions on them is just one of the many simmering geopolitical threats I mean from unrest and Yemen to the terrifying spread of ISIS to the dangerous provocations of Russia you know a breakout of international conflict would definitely drive massive demand for safe haven buying and this is one of the major catalysts that we could point to as being part of the reasons why we would see gold in silver jump in price now the next one and probably one of the most important that we talk about relates to supply and demand there has been a declining mining production in the gold market and in particular other various metals markets and if you know as a listener or not I'm gonna tell you silver comes out of the ground primarily as a byproduct of these types of metals so we don't see primary mining for silver there are not tons of new mines opening up you're not seeing blue chip mines established themselves and essentially about 80% of what comes out of the ground every year is coming because some of their company is mining gold copper zinc or lead or other metals and of all the potential catalysts for an up move in precious metals prices probably this is the most direct factor which would be a shortfall of supply relative to demand and I mean that's just pure economics 101 the silver market saw three million ounce surplus in 2014 which isn't a lot but after several months of silver prices falling below all in production costs that many mines silver production stands to decline in the face of strong demand now unprofitable mining operations or they're scaling back and even shutting down HSBC analysts just this past week projecting 11 million ounce silver supply deficit in 2015 and as Jeremy pointed out this week in the seminar the last 20 years has been a net deficit in terms of the available silver we've had so what we've done is we've taken all that above ground product that we used to have and even back in the 70s when the price of silver went to fifty two dollars an ounce three and a half billion ounces above the ground and it's all been used up and of course the largest and fastest growing segment of demand is industrial so when we talk about usages on the program it's important to note if you've owned a cell phone if you've owned a you know a cordless phone if you own a fridge a microwave if you've own laptop laptop TVs that's another reason Darren why there's pressure on silver to be low on governments to keep the price down because they need it for industrial use they need it for manufacturing you know whether it's cell phone flat screen TVs solar panels whether it's missiles you know warheads I mean you need silver for that product everything basically has silver in it you know they're bringing out silver for bandages because of the healing process but there is obviously pressure from these manufacturers to the government to keep prices down because you know if you pull all of a sudden put silver at seventy five dollars everyone's jumping in would a cell phone be be more expensive would a flat screen be TV be more expensive of course it would everything this manufacturers got silver and would go up so this is pressure from the lobbyists from companies to say you better keep this down because we can't afford to manufacture you know you're gonna have third world nations picking silver out of old cell phones that's what's gonna happen when it gets to a hundred hundred and fifty dollars an ounce so you can't you can't obviously be overly cautious there is no way shape or form that one should be to think that silver is gonna stay in this price range is it silly in my opinion and of course as it relates to mine production we're seeing a dwindling supply and of course what the mine operators are going after is very simple there's desperate to stay in business so what they're doing is they're resorting to going after high high grade and they're mining only the richest lowest cost deposits and this means we're you know we're left over lower grade deposits and we're not getting the type of quality product we need to go to market that's another huge problem for the market and the last and you know one of the catalysts that could be interesting to see going forward is real interest rates turning deeply negative we're seeing other parts the world the financial media can be counted on to heavily cover every rhetorical nuance regarding the Fed's coming decisions about interest rates but there's typically very scant or very little coverage about the most important rate of interest and that's the real after inflation rates on bent benchmarks such as the federal funds rate in the tenure treasury note real interest rates are positive when nominal rates exceed the inflation rate when nominal rates are running below the inflation rate the negative real interest rates are in force so holding interest bearing instruments that sport negative real rates is unappealing to savvy investors and many will choose the whole precious metals instead and we're seeing in other parts of the world where banks are literally asking you to pay money in order to you know store your money so no longer are you getting a percent of return on it they're actually negative which means you put ten bucks in there it's actually going to become zero sooner or later even if there's no fees associated with the account because they're charging an interest rate now when it comes to owning bullion at Guildhall I want to make clear before we end this show this week it couldn't be any easier it's physical you can open it up you can use an RSP to do so any type and we can show you how to do that but the other side of that coin is selling you have to know that it's easy to do it you have the ability to go on to our website you have the ability to buy the product to our e-commerce site you can simply go to Guildhall wealth and hit that button right up in the top right hand corner you can add product to the depository visit your product as we said I'll show long and hold on to that product put it in your RSP TFSA's and when it comes time to push that button to sell it's as easy as giving us a phone call so all around gold and silver ownership from Guildhall is the easiest way I know to get into the market today and think about topping all off with a natural fancy colored diamond while you're at it the numbers 18778 silver online to Guildhall wealth dot com get the precious precious metal advisor and the investor kid as well this has been the real money show talk radio name 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 applicable membership required restrictions apply