The Real Money Show
The Real Money Show - April 11th, 2015
The Real Money Show from April 11th, 2015 on Talk Radio AM640.
And welcome to The Real Money Show hosted by Guildhall Wealth Management about to enlighten you on the incredible potential of owning physical gold, silver, natural, fancy colored diamonds. What they get you to protect to make you money in these turbulent times, a reminder right off the top, you go to guildhallwealth.com, check out the e-store, get an investor kit, the precious metal advisor, and be advised that RSP contributions and other secured funds now, you can make the purchase. And I might want to talk about that off the top, Jeremy, a little more about the RSP because this is brand new to you guys, yeah? This is brand new. This is a new way to invest in gold silver physically to allocate it, get your serial numbers, have it segregated, separated out from any other holdings and held outside the banking system. So you have your physical gold, it's held within your RSP and outside the banking system. So this is an RSP investment for those who are looking to invest in physical precious metals and want that absolute security of knowledge that you're buying physical bars and that these bars are yours and no one else can touch them. This is the type of investment for you and you can find that on guildhallwealth.com and get further information. And 18778, silver is the number. Paul's here, Darren's here. What's up, Paul? Yeah, when you go into an RSP or a TFSA, you're getting products like 100 ounce bars of royal mint bars. You can put 10 ounce bars in from the royal mint, one ounce maple leaf on gold, one ounce royal mint gold bars with serial numbers. If you want to put gold maple leafs, they don't have serial numbers on them. 10 ounce bars and 100 ounce and actually we can go to kilogram bars all the way up to 400 ounce bars if you really want to make a pretty good investment on your RSP. But the good thing about the RSP is it's easy to do. It's tax deductible for you. The product, as Jeremy said, is held in a safe, secure, depository. You do get the bar numbers. Anytime you want to visit your metal, you can do that. You just got to give us basically 48 hours notice with your ID so that you can get into the depository. They will bring out the bars with the numbers. And we can also do, by video, we can do video that you can actually also see your bars. But this is a great way to own gold and silver. And this time where the prices are so beaten down, I can't think of a better investment to make than owning physical gold and silver. And being able to put it in a TFSA, if you have a lift account, if you have an account for your kids in a pension plan where the government's actually matching it or whatever, put gold and silver in. You know, it's at a really low price right now. And I can see you only making nothing but money. And we get to the e-store as well, which is simple. It's purchasing online in your own home and your house code. If people even wear house codes anymore, Darren, we usually get to a market update at this point. However, things good to see you again. Good to see you, sir. All right, pal. That's bad. Why are you working so quickly? Did am I talking quick train or a bus carbox possibly? Venti sizing. The market this week held steady week over week, the price of gold hovering in the 1192,000 range right now at about 1% up on the year, still silver sitting at about 1620 as we're taping the show on Thursday and remains about 5.5% up on the year to date. Now, the silver market is once again at a crossroads for both bulls and bears. And the market appears to have found a legitimate base at around 1530. And those who have invested or own it have seen this base developing for some time. And it's tested that level several times dating back to November. With the market and silver hovering near that 16 to 17 level again, as we're taping the show on this Thursday, we're approaching a couple of last hurdles for the bull camp to break out above to confirm the recent trend. Now, if silver can convincingly close above around the 1730 range in the short term, there's a lot of green grass ahead for the longs. Now, this would signal a long term major trend reversal that has been eluding this bull camp over the last few years. Now, conversely, if the market fails to break out higher and closes above below $16 around there, then this may be a bit of a setback for the bulls and traders should expect to see the market press the old lows of the 1530 range. So right now, silver is our kind of go to metal. It's a completely undervalued at this point. And if it did drop a little further, we would be buying very heavily in this range. I know Paul this week was taking the opportunity to load up the boat. But it is both silver and gold. They are both metals, which I would be owning at this point in time. The gentleman beside me here, Jeremy and Paul, both identified ways to participate in the market. And with what's coming up news in terms of the global economic market, I would not be hesitating at all to add a little bit of protection like gold and silver to my portfolio. How about the US recession? Let's talk about that. Is it in? We touched on this last week with Jeremy in your absence. Well, again, a month ago, and looking back at the latest factory order numbers in the US, we noticed something that was very disturbing. The annual rate of increase or rather decrease in factory orders dropped to negative 2.3%. Now, the last two times this happened were in 2008, just after the failure of the Lehman Brothers. And in 2001, just as the US was again entering recession. In fact, if there is one reliable, I guess false negative proof indicator of key recessionary inflection points in the US economy, it is the annual change in factory orders. And the charts that we have in front of us right here that obviously the listeners can't see are proving beyond a reasonable doubt that there is a sluggish behavior developing in the factory orders in the US, which is a sure sign that things are starting to go the wrong way. Now, finally, if we're ignoring the annual rate of change on factory orders, you have just the absolute unadjusted numbers. And again, that message is very clear. It's saying that telling us even for unadjusted numbers that the US marketplace is starting to soften again. So all the money they're going to print, it doesn't matter. All of the stock market that's going to be pumped up because of that money printing, all the bank buying that's being done, all of the large 1% of the population that are doing this wealth building exercise that make it appear as though the economy is improving in the US, the world's large economy. It's just a way to pull the wall over the investor's eyes. How many people actually put their money in the stock market nowadays? It's way less than what it was even five, 10 years ago. And I wouldn't hesitate to guess that people are petrified because they have no idea where to put their money. Gold and silver are two great investment vehicles for people to own at this point in time. Well, the funny thing is that, you know, you look at the stock market, excuse me, and the stocks are trading, you know, 20 times earnings. I mean, in some case you look at Amazon, I think it's over 200 times future earnings. Would you buy a house at 200 times? What do you think it's going to be worth? I mean, you've got to be crazy. That's why gold and silver is a great, great investment right now. And we're not saying that, you know, there are pundits out there that are still calling for $10,000 gold and $100 silver, you know, it can happen. It probably will happen, but it's not going to happen tomorrow. You should have anywhere from 10 to 20% of hard assets in your portfolio, gold and silver. Why do you need it? It's just an insurance policy. While the price of prices of the stock market are moving up, and real estate, especially in Toronto, has moved up, gold and silver has not moved up. But nothing goes up in a straight line. For the stock market to come up, and you know, there are people out there, some very, very smart people that are calling for corrections of up to 40%, maybe 50% in the stock market as a correction. Well, if the stock market comes off, what do you think is going to happen to gold and silver? It's going to skyrocket. We've got $52 oil today. They were calling for oil to drop down to $20. It's $52. In US dollars, that's in Canadian dollars, basically, or $50, $51 a barrel, that's still $62, $63 a barrel Canadian. The difference, even if you look at silver, silver's trading, even if it's in the $16 range, with the US dollar trading around about $0.26 for the Canadian dollar, you're looking at over $20 for silver. Gold, you're looking at $1,500 gold. You've got to realize that once the US dollar becomes more valuable, everything else becomes more valuable, too. Though the price of gold and silver is dropped, they're keeping the price of gold and silver down. They don't want it to rise. When you're printing money, you don't want people putting your money into gold and silver. But let me tell you, gold and silver is going to move up. It's a great opportunity. If you want to buy physical product, go to our website, Guildhall Wealth. Right-hand corner is our e-commerce store. It's as easy as a click of a mouse to buy gold and silver. You can take it home. We can deliver it to you. If you want to open a depository account, we have a safe, secure depository where you can put your product, where it's secure, it's allocated, segregated, it's insured with Lloyd's in London. It's a wonderful way to own product. And the storage fee is so incredibly inexpensive. You're talking about one-tenth of one percent a month to ensure your product. You can't get that insurance on your home. So 1.2 percent, 1.3 percent to pay a year on the value of the product is very, very inexpensive. And for people out there at a little bit more risk-taking, we even offer financing on precious metals. And you all you have to do is call us to get an investor care. 18778 Silver is the number Paul was talking about, Darren. Well, to add to what I was saying before, I mean, listen, the bottom line, no matter which way you turn, is that you're going to get headlines that are spelling this myth out for us that the economy is improving in parts of the world, especially in the US. You see the US dollar strengthening, and most people don't sit there and say, I told you so, or most people don't look at you and say, hey, this is the US dollar. Of course, the economy is improving. Most people say, how is that happening? But the truth is, you can't put lipstick on a pig and hope that's going to be as cute as a panda. It just doesn't work. And the reality is, in this day and age, if you're not smart enough to open up your eyes and see what's about to happen, you're going to get walked on. And that could mean that your portfolio loses a tremendous amount of value in a very short period of time, because you've placed your money in the wrong place and you haven't been diligent enough in understanding the need to diversify. So when I look at the numbers, and not only am I looking at the numbers I just talked about in fact, we're also looking at an abysmal wholesale sales number in the US for the last month. And again, this type of data is the stuff that tells us we're about to be at a critical point where the economy in the US could break down and we could see 2008 all over again, except for this time, the debt is larger than it's ever been. In fact, in 2008, it was controllable. We could look at the debt total of the US and say, hey, we can see that with a small drop in the US dollar, we could devalue their currency slightly and see them paying back their debt. We're getting it manageable. Now at this point, there are reports out there saying that since 2008, the Federal Reserve in the US has actually lent upwards of $16 trillion. And if the Federal Reserve went belly up or the economy went belly up, who's on the hook for that? The taxpayer. And they're going to pay through their teeth. So owning assets like this that are separate from the bank system that do not in any way, shape or form, conform to the traditional standards of the stock market is one of the smartest things you can do. And if you don't do this, then shame on you for not at least picking up that phone and calling experts to find out why people are owning gold and silver, even when we look at the prices compared to where they are. Now, when we come back in the second segment, John, I want to talk about four of the biggest myths right now about precious metals. I want our listeners to know what's the actual truth about why to own gold and silver. 18778 silver is the number. Go to guildhallwealth.com to start investing. Use your RSPs. Use the E store at the top corner. And a reminder that giving you the opportunity to accumulate silver at a rapid rate for the month of, well, the end of April 30th. Anyway, whenever you purchase 100 ounces of silver, you will receive a free one ounce bar of silver on Guildhall. More of the real money show coming up, talk radio name 640. And back with more of the real money show, the number to start investing is 18778 silver. Go online to guildhallwealth.com and get more information when you call the number about using your RSP contributions to buy precious metals, real metals, physical metals as well, the E store in the top corner of the page as well. I want to remind you as well, for the month of April till April 30th, when you purchase 100 ounces of silver, you will receive a free one ounce bar of silver on Guildhall. The giving just keeps on, keeps on giving. Darren, we were talking about before the break, you're going to get into the four biggest myths for precious metals right now. We touched on that. So at least we were thinking about doing this last week, but we're going to do it right now. Yeah, we are. And it's important. The myth number one, and probably one of the biggest myths out there right now is that rising interest rates are bad for precious metals. If the US starts raising their interest rates, gold and silver are going to suffer tremendously. It's surprising how persistent this myth is, John, given the fact that gold and silver experienced their largest and single fastest run during a period of incredibly fast rising rates. And that was back in the late '70s, when bond yields surged into the double digits. And if people recall, mortgage rates in Canada, in some cases were over 20%, you could actually put your money in a bank and actually live off of that savings because they were making good interest because there's not any real at this point. It's not going to happen. Now, today, some analysts are invoking the threat of the Federal Reserve rate hikes as a reason to avoid buying gold and silver. And of course, it remains to be seen whether the Fed follows through on its rhetoric about higher rates, even during this year. It doesn't look so to be the case right now. But nominal interest rates do not determine whether precious metals are more or less attractive than interest bearing debt instruments. So what matters is whether real estate rates are positive or negative, negative real interest rates, which occur when rates are running below the inflation rate, are favorable for precious metals. So interest rates could skyrocket at the same time as precious metals prices rising, as long as the rate hikes are behind the curve, gold and silver are going to have a really good tailwind, don't you? I remember in 2006 through '07, I believe, when Greenspan was the chairman of the Federal Reserve, basically every time they got together, they were raising interest rates by a quarter point. And we used to sit around the office and wonder, okay, what's going to happen? And he'd raise it, the market could go up or could go down that day. But overall, it was actually moving upwards, both gold and silver. And so whatever the reasons were on the particular day, at the end of the day, what people realized was if the Fed is raising interest rates, they're fighting inflation. Wait a minute, the Fed is fighting inflation? You mean there's inflation? I should have some gold in my portfolio. So I don't see interest rates going up being a problem for gold and silver. Of course, I think interest rates going up is a big problem for the Fed, because if they raise interest rates, I don't think that there's enough buffer in the economy to actually handle a rate hike. And I think all talk of a rate hike is a bunch of BS at this point, and the fact that they haven't raised rates for so long only points out how much trouble the Fed sees the economy actually in. One of the things you have, when you got $18 trillion in debt, how do you pay it? What's the interest? What's the juice? What's the vig on $18 trillion? Whichever you want to call it, those are the three categories. The vig, the percentage of interest. Right now, it's a zip. It's a zero. They're not quarter of a percent. It's nothing. They can carry it. What happens if it goes up to 2%, 3%, what's 3% of $18 trillion? That's a lot of money. How do you, it's going to add to the total of the debt that they have. They're never going to be able to pay it off unless they depreciate the dollar. Right now, the dollar is trading a dollar 26, you know, against the Canadian dollar, 107 against the euro. Why is it so high? Who knows, but it's the best house on the worst street. So people run to the US dollar. They're scared of the euro because what's happening in Germany, the CPI hasn't been that great. They're also the manufacturing orders are not that great. Greece is definitely going to default. That's, you know, if you want to make a slam dunk, a certainty of a bet, they have to default. There's no way that they can pay the debt. What are they going to do? Start selling off the airports, start selling off their beachfronts. There's no way, you know, they don't collect taxes in Greece. Nobody wants to pay taxes. So how can they pay the debt down? 18778 Silver and Guildhall Wealth.com. Click on the east door to start investing from the comfort of your own home and computer. We're talking about the four biggest myths for precious metals right now, number two, Darren, number two. And it's a big one because, of course, as listeners know, and the new listeners may be finding out, we have a depository. And that means you're going to be trusting somebody else to store your metal. And one of the most, I guess, repeated questions we get about storage is, can my product be confiscated? Well, barring knowing what future law might be, as it stands right now, we have an historical example to look back at it. And yes, it's true. President Roosevelt had an executive order, which was 6102, which prohibited the hoarding of gold bullion and ordered citizens to surrender their gold bullion in exchange for cash. Now that happened in 1933, and it relied mainly on voluntary compliance. It didn't authorize the government agents to conduct random sweeps of bank vaults or anything like that. People didn't show up at your door with a gun and take your gold or anything like that. It's voluntary. Give us your gold. We'll give you cash back. It's an order. It's a directive. And you know, nobody was going to be breaking the law if they didn't now. They paid you about $20 for the gold and then they put a gold up to like $35. That's correct. Then I went to $35 now. So you lost money. But anyways, the one thing I want to point out about that directive and the one reason we choose not to store with particular facilities is that back in 1933, one area that they were able to go into and freely take gold from were safe deposit boxes from the banks. And that's where they seized a tremendous amount of gold. So much so that some banks actually defaulted on payments against their credit values and actually went out of went bankrupt because of it. So although we don't anticipate gold confiscation ever coming back, especially not in Canada, there's no history of it happening here. One thing you want to do is make sure that you're giving a lot of thought to where you're storing your product. Don't be silly and stored at home. And this is purely a safety reason. I would hate for somebody to take home five, six ounces of gold and all of a sudden somebody finds out and gets wise that you got it at your house and then boom, you know, something terrible happens. God forbid, but there are alternatives out there and Guildhall's depository is a brilliant way to store your metal safely and have access to it whenever you want. Going along with the confiscation myth is the fact that I'm a central banker. What do I need gold for? I've got people on fiat currency for the last 30 years plus. I've already confiscated their wealth through inflation. Gold is beside the point. I've got access to a spigot of money at my will. I can create money and do what I want with it. They've already gotten what they needed. The only reason they confiscated gold was because they were on a de facto gold standard at the time. If any country around the world tried to confiscate gold, other countries around the world would snap to attention and say, that's it. I got to get as much in my hand as possible. There's nothing easier to spark fear than to create it that way. I just don't see that as something that would possibly happen in this day and age. 18778 Silver Guildhall wealth.com to start investing. Talking about the four biggest myths for precious metals right now, number three, let's get into that. Number three is that gold mining stocks deliver two or three times the gains of gold bullion. Let me start by saying we are not financial planners, experts, or here to give you advice on what stocks to buy at all. We're merely saying that this is a myth that's been perpetrated by the investment industry. Part of that myth pertains to the fact that people like to control things. One thing that's been proven to be very easy to control is paper assets. We've seen this argument in the gold and silver futures market. We've seen this in the stock market. Gone are the days when we take possession of our shares when we're buying a stock or company stock. Gone are the days when we want to own gold. We usually buy it because we want to own gold or silver, but we end up buying the company. If the company goes belly up, matters not what the price of gold or silver is. I'm buggers, but it's a demonstrable fact that the long-term investors have actually fared better with gold bullion and silver bullion than with gold and silver stocks. Not only is bullion less risky, it's also been more rewarding. From 2000 through to 2014, as an example, gold gained 309% over that same period by how much did the mining stocks best those gains? Actually, they didn't. From 2003 to 2014, if we look at the world's benchmark, the HUI gold stocks index, it managed a gain of only 122%. That's because paper moves in tandem with other papers. When gold prices were falling during the 1990s, gold mining stocks fell even further. There's tons of historical evidence to prove that we get better leverage from investing in the actual asset. We want to make one very important point. If you want to own gold and silver, and you don't take that product out of the market by owning it physically with a firm like ours, putting it into a safety, a safe and assured, secure environment to store like our vaulting facility, you're not helping yourself whatsoever. In fact, I would argue that if you are owning gold, like maybe the what, 1%, 2% of the world that actually owns physical product, you're actually part of the smallest part of the market. The rest are owning paper. They think they're owning gold and silver, but they're not. They own a company. They own the ability of the company to manage itself effectively. In this day and age, that's not happening. But you can also finance your physical bullion too. That's right. You can certainly contact us at Guildhall and we can talk to you about how to go about financing precious metals as well if you are looking to maintain liquidity or take advantage of the market. I think as well, when you're looking at the mining stocks, you could have some stocks that do incredibly well, maybe outpace the actual physical, but you also have to pick the management. Do they have debt? How much are they pulling out of the ground? What are their margins like? There's all these other factors, whereas when you're holding physical gold or silver, there is no—I'm going to repeat that—no counterparty risk. Well, this is the thing at Guildhall. We only sell physical gold, silver platinum and palladium. We don't sell equities, which are stocks. We don't sell ETFs. We don't sell certificates. We don't sell futures or options on futures. You're buying the physical product. It's stored in a safe, secure, allocated location. It's insured with Lloyd's Alundant. You get the bar numbers. If you require the bar numbers, it's safe for you to invest. Normally, when you try to go and buy gold and silver, somebody will want to sell you paper because it's easier to handle. It is a problem storing gold and silver. Silver is bulky. A thousand ounces of silver weighs 70 pounds. You want to buy 5,000 ounces? That's 350 pounds. What happens when you want to go to sell it? Well, do you have to take it, go get it, assayed? Not everybody's going to buy it back from you, but if it's with us in a safe, secure location, we know we've put bars from the Royal Mint into that depository. You want to sell that product. You will sell it. You will get paid the next day for that product. We don't make you wait seven days for it to clear. It's cleared. You have it. You sell it. You get paid. Why should you be waiting seven days when you buy a stock? Take seven days to get your money. It doesn't make any sense. One eight, seven, seven, eight, silver, and guildhallwell.com, Darren, before we wrap. Well, before we wrap, we haven't dealt with the fourth myth. And what we're going to do is we'll go to break. We'll come back and we'll talk about fancy colored diamonds. And in the fourth segment, the final segment, the most important myth I can think of, listeners have to listen for this because it's the most important thing I could give you as a piece of advice. But what is actually happening in the bullion market, we'll give that out to the listeners in the fourth segment. Just teasing me. Yeah. And don't forget when you buy a hundred ounce bar of silver or 10, 10 ounce bars of silver, as long as you buy a hundred ounces of silver, you will receive one ounce bar completely free of charge. And this runs till April the 30th. So it's a great opportunity to get silver, take that out one ounce piece of silver, give it to your kids, give it to your grandkids. Great way, great presence. Again, the number 18778 silver online to guildhallwell.com. Check out the E store while you're there. More of The Real Money Show coming up, talk radio, AM640. And back with more of The Real Money Show, 18778 silver and guildhallwell.com. Make sure you pick up the precious metal advisor sign up for that. Check out how you can use your RSP contributions to buy a physical gold and silver. And by the way, until the end of April for every 100 ounces of silver you receive, you purchase, you will receive one ounce silver bar on guildhall. Pretty cool. Let's talk Diamonds, Paul. Love this part. Yes. Let's talk Diamonds. If you're looking to retire in the next 15 to 20 years or you're looking to pay for your children's education, if you're tired of the stock market and you're looking for an alternative investment, natural fancy colored diamonds is the way to go. It's probably one of the best kept secrets of the wealthy. It's one of the oldest, the most concentrated, concentrated forms of wealth. It's a collectible luxury asset and it's a stable asset that you can ensure. Natural fancy colored diamonds, since they've been keeping records for the last 40 years, have never dropped in price. In actual fact, over the last 10 years, they've gone up an average of 150 percent. Some diamonds like pink diamonds from the Argyle mine have gone up almost 340 percent in the last 10 years, which makes it an incredible investment. Guildhall diamonds, we have one of the best collections in yellows of internally flawless in pinks of VS quality, which is extremely hard to find. These are great, great investments. We've just bought an unbelievable parcel of natural fancy colored diamonds. We do directly with the cutters and polishes. And just to give you an example, this week alone, we sold, I think on our website is you'll see hold, hold or sold, sold, probably seven, eight diamonds this week, just alone on natural fancy colored diamonds, especially yellows. Now, if you're looking to get into the market as a starter investment diamond for around about $12,000, $13,000, we have brought in a parcel of four diamonds. They're incredible. Actually, there's a larger parcel than four diamonds, but there is four fancy yellows that are in the parcel that we're bringing out next week. One is a 103 carat fancy yellow, internally flawless, beautiful stone. Another one is a 131, and that's a pear shape. Pear shapes are very, very desirable and very, very popular. I have a 121 fancy yellow, and again, this is in a rectangular modified brilliant, which is radiant. And we also have a cushion, which is 101. Now, these stones range from around about $12,000 to about $15,000. They are great investment stones. This is the type of diamond that you hold on for 10 years, 15 years, and you're going to get an incredible, incredible return. 18778 silver online to guildhallwealth.com to check out that collection. One of the things I love about colored diamonds is the fact that it has no bias towards who the buyer might be. In many cases, assets and different types of stocks like that precludes certain buyers. For example, if I want to learn about a company, I have to be smart enough to read a balance sheet, understand what the company's doing, maybe get a little bit of insight from an analyst. In this case, I can come to a company like Guildhall. I can sit down in one hour, literally start to understand colored diamonds a whole lot better like the people at Guildhall. And many people invest for different reasons, John. Like Paul said, it might be for retirement, but I like investments that might hold a little more water and give me a better boost in the short term. And for colored diamonds, I mean, although the holding period should be five years or more, as a minimum, if you're going as a guide to get into the market, there are some exceptions. If you're a buyer out there and you think you have the portfolio that would accommodate, say, for example, a larger pink diamond, let's say, and you can start in the 100,000 to 200,000 range. And that's a comfortable arena for you. Then that type of diamond might, in 36 months, be a tremendous gain for your portfolio. I've seen this happen. If we look at the tenderstones that have come out of the Argyle diamond mine, these are some of the rarest pinks in the world, the most highly sought after and most valuable per carat pinks that you can buy. Those have come through our office and of the few that I've been fortunate enough to have sold to my clients, these clients are sitting on a gold mine and they don't want to give up these diamonds. Twice now, I've had to ask particular clients if they'd be willing to resell their tenderstones so we can accommodate new buyers. And they've said no. And I'll give you a perfect example. We had a tender stone, a pink diamond that when we acquired it had an original asking price of approximately 165,000 gotcha. And that was about three years ago. That price never dropped. It never went on sale as colored diamonds do not. And it rose. And then we were asking in the 200 range, then we were asking high 200s, then it was low 300s. And finally, this last year, just in December, that diamond actually sold for $395,000. Now, I mean, to most people, the average investor, that doesn't make sense because they can't afford that in their portfolio. But what if you had been that investor 36 months ago who had looked at that from the perspective of growth and said, what am I going to own? Can I own real estate? Can I own stocks? Can I own cash in the bank? What will give me that type of return with such little work? All I had to do is sit and admire it. The odd time go see it and show it to my family. Nothing. There's nothing in the marketplace. Not even gold and silver gave us that type of return over the last 36 months, yet that option is still available today. I could walk into Guildhall, pick up a colored diamond, think about those returns that I'm looking for. Think about that cottage I want to buy in five or six years. Think about that boat I want to own to go with that cottage. Think about the family and the gifts that I'm going to buy for graduation. The new car I want to buy from my 16 year old when he gets to that stage. All those little things that have to come through investments in hard work. And I know most people are putting a little bit of money away, but it's not enough. You've got to think about investing in other types of assets and look at alternative routes to make money. Color diamonds is among the best in the world hands down. A lot of people know about real estate. Now, you know, if you were looking at a home, you know, or a condo and it was a million dollars, you're going to have to put up a hundred and fifty thousand dollars. What is your return going to be on that a hundred and fifty thousand dollar investment after you pay commissions, taxes, if you're going to rent it out, whatever it is, you know, is that product going to be worth in five years, ten years, two million dollars with interest rates right now at zero or one two percent to take a mortgage. What happens when interest rates do rise and we get to five percent, ten percent, maybe twelve percent interest. Real estate is not going to go up. It's going to come off. A natural fancy diamond, colored diamond, like a pink, an argyle pink that you can buy right now over a half a carat for maybe a hundred and fifty, hundred and sixty five thousand dollars, that diamond can easily be worth in the next five years to ten years, let's call ten years, maybe a half a million dollars. Over fifteen, twenty years could be easily be worth, you know, a million dollars because that's what's happening in the colored diamond market, especially in pinks. The argyle mine, which is, which is in Western Australia, is going to be closing in 2018. The production is already down in that mine. They produce 90 percent of the world's pinks right now. 90 percent of the world's pinks come out of the argyle mine. That production is only one tenth of one percent of the total production. So it's very, very small. The diamonds that are coming out of the mine right now are smaller and the clarity is not very good. We only sell VS2, VS1, VS2, upwards in quality because that to me is investment grade. There's lots of SI1s, SI2s, I1s out there for pinks and we get a lot of calls from people that have bought diamonds, pinks in SI1 and SI2 and are trying to sell them and they're a much harder sell than a VS quality because that's what we sell. So let's look at the diamond itself. The argyle mine is going to close in 2018, maybe 2020. There's going to be less pinks out there. There's less quality. There's no new mines coming on. A little way down from the argyle mine in Western Australia is another mine called Arendelle. They produce 80 percent of the world's yellows. Their production is down, completely down. Yet they produce 80 percent of the world's yellows. Now there's 20 percent left out there. It's going to put the price as well of yellows up. We have trouble right now finding vivid, internally flawless, intense, over to Cara. Very hard to find. If you go to our website guildholddiamonds.com, look at how many internally flawless diamonds we carry. We have more internally flawless diamonds than anybody in the world and I can say that on any website. We have the product, there's no bait and switch. We don't show you, say, show something and say, well, we sold that and we have something else. It's in stock for you to see. Every diamond on that website we own, it's not out on memo to us. We have it. The GIA's are ours. And the most important thing is, well, we have a GIA diamond graduate on stuff that helps us pick the quality that we bring to you. We educate our clients in what to look for. Whether they buy from us or not, we educate them in what to look for. Yes, there's the four C's. There's the color, which is the most important, the clarity, which is very, very important. The cut is important. We only sell yellows over a carrot, so carrot weight is important. In pinks, we only sell over a quarter carrot in pinks because those are the most desirable stones for collectors and investments. So the four C's are important, but there's a fifth C. They are a currency. They can be sold in any currency. Right now, we sell every diamond in Canadian. Diamonds are priced in US dollars. If you bought a diamond from us last year or 18 months ago, it was almost par on the dollar. So if you bought a diamond for $50,000, even if the diamond didn't go up, it's worth $62,000 just on the currency. But the diamond has gone up. The diamonds have appreciated whether it's a fancy 8% to 10% or 12% and in 10s, maybe 15% a year and if it's close to 25% to 30%, pinks are going up, maybe 35% to 40% according to the quality that you bought. Blues have virtually doubled every two years and reds are doubling every year if you can actually find a red diamond. 30 years ago, you could bought a one-carat red for $30,000. Today, you're paying $2.1 million if you're lucky enough to find a VS red diamond of a carrot. That's how rare these colored diamonds are. They come in yellows, they come in pinks, they come in blues, oranges, purple, red. These are the colors. We don't sell champagne or cognac or chocolate or black diamonds. These are food categories. They're not diamonds. They're not collectibles. They will not go up in value. But if you like a diamond that is chocolate color, good for you. I've got somebody coming to see me this week. Very hard to take a young couple that's getting engaged because they've got white diamonds, because all their friends have white diamonds for us to talk them in to buying a yellow diamond. White diamonds don't necessarily go up. You can have it for 20 years, 25 years, and it's worth the same price you paid for it. As you bought a D, which is the highest quality white diamond of maybe two, three carrots in IF or VVS1, VVS2, then that diamond has gone up because it's also very, very rare. But natural fancy colored diamonds increase in value every year. They hold their price and it's one of the best kept secrets. You're seeing movie stars. You're seeing people in the red carpet wearing natural fancy colored diamonds. What do they know? What a royalty know? What you don't know? It's been a really good secret kept and it's been an investment that's making money. Continue it. If you look at the auction prices, diamonds that people have held in their families for 50, 60, 70 years are fetching incredible, incredible amounts at auctions at Sotheby's and Christie's. In actual fact, they've even opened up an auction site where they will take your colored diamonds and put it up on their website to sell the diamonds. The prices are a little crazy, but you can buy on auction some of their diamonds. We're bringing to you the best of the best in natural fancy colored diamonds. We've sought them out. Diamond, we see a lot of diamonds every week, every month. We turn down a lot of diamonds. Somebody else is buying those. We don't sell those. So look, go to our website, go to guildhalldiamonds.com. Look at our website. Make an appointment. Come and see us. Let us show you some product. If you invest, want to invest, you can invest for as little maybe $10,000, $11,000, $12,000 and get into a natural fancy colored diamond and start making money. 1 8 7 7 8 Silver, go to guildhalldiamonds.com and make sure you're on the website at guildhallwell.com as well for this month until the 30th. When you buy 100 ounces of silver, you will receive a free one ounce bar of silver on Guildhall. More of the Real Money Show coming up, talk radio, May M640. And back into the Real Money Show 1 8 7 7 8 Silver Guildhall wealth.com. Make sure you check out how you can use your RSP to buy physical gold and silver as well until the 30th of this month, April, whenever you buy 100 ounces of silver, you will receive a free one ounce bar courtesy of Guildhall. Now segment before last year and we were talking about the four biggest myths for precious metals right now. And we've we've held out till number four. Now you're going to you're going to roll it on right now. The most important one. Yeah. I do think at this point in time, it is the most important one. A lot of people, despite the fact that gold and silver have been in somewhat of a trading range for the last 36 months. In fact, if you owned gold or silver prior to 36 months ago, you might realize that both gold and silver were many times higher than what they are right now. And it really does mean either there's a falling off of the market and we're now going to see a bare phase in the market or it's opportunity. And I look at it from opportunity because we know having been in this market as long as we have that nothing really is essentially changed. One of the problems that people right now are facing given the length of time that this has been going on and the problems that have ensued and the belief that perhaps the economy is actually getting better is a lot of people in precious metals believe that the powers that be don't want gold or silver to go up. So it's futile for the little guy to invest in it. How can I win if you know, the Federal Reserve is going to keep manipulating a market and you know, the banks are going to keep manipulating a market. How can I win if I'm the little guy? And yes, price manipulation, in my opinion, does take place. It's not just in the gold market. It happens in many asset markets. Over the past couple of years, interest rate rigging scandals have roiled markets across the entire world. Technically, there's no asset class that is safe from price manipulation. And I can tell you on a personal note, several stories and examples of price manipulation in the stock market, both here, the US and other places around the world. This is just a fact of life that we have to deal with yet we still invest in stocks. We still buy and pay into our RSPs and mutual funds and a lot of the investments that are traditional in that sense. But if you look at one of the largest agencies dealing with these accusations, it's the gold antitrust action committee and it's many supporters and they have insisted that manipulation is orchestrated by the arms of the US Treasury Department and the Federal Reserve itself to artificially suppress gold and silver prices. Now, others in the hard money community doubt that manipulation extends much beyond a few opportunistic rogue traders who don't really care which direction metals prices go beyond any given day. And maybe to a certain extent, both of those types of manipulation may be accurate. I mean, we may have seen that. But regardless of which side is correct, what's the practical significance to the little guy, the guy who's sitting at home right now thinking of buying gold and might not be doing it because he says, "How can I win in that market," or he may have already invested and saw the price come down and thought, "I'm never doing this again." Well, the significant is that manipulation would make buying precious metals fundamentally unattractive if these prices were being manipulated higher. If we were sitting right now talking to you in a market in gold, which was sitting at $4,000 or $5,000, it'd be pretty hard to justify putting money into it, especially if it had been happening for the last 36 months without a break. We'd be sitting here saying, "Oh, it's bound to fall down. It's bound to break down. It's bound to come off. We're going to see 3,000." Or maybe we're going to come back to 2,000. We don't know. Now, that would be a logical argument, but it would make prices unattractive if they were going higher. However, they're not being set artificially high. They're being set, if you agree with the argument that the metals markets are being manipulated artificially low. And what happens is that that becomes a gift to buyers. Like a slingshot, they're just prolonging the time it takes for gold and silver to bounce back to their rightful places on the king and queen chairs of the commodity world. Now, hard assets are ultimately ruled by laws of physical supply and demand. I don't care who anybody is. I don't care whether it's the most sought after analysts in the world. I would sit there and face them and tell you that, inevitably, at some point in time, the laws of supply and demand will take over any market, and that will dictate price. We have proven time and time again on this very show and with our clients that the laws of supply and demand are so in favor and so one-sided for gold and silver at this point in time that barring any manipulation, barring any market corrections, barring any of that happening, the price of silver and gold stand to be multiple times higher in the future. And whether or not you're looking at industrial uses of precious metals, which have gone sky high for silver in particular, whether you're looking at investors in coins and bars and all those things, this all requires physical product and the laws of supply and demand have told us, especially over the last 36 months, that supplies are starting to shorten. There is no stockpile of silver in the world. It's made on a ready-to-use basis. We get the silver from the mines, it goes to the fabricator, gets fabricated and boom, it gets allotted. There's nothing being hoarded or stored. The mint doesn't have some great huge amount of silver that they have on hand ready to go out in an emergency basis. It's used and consumed as soon as it's made. And owning the metal itself and avoiding the paper markets that we talked about earlier, where big institutional traders dominate, is the safest way for that little investor to position himself in precious metals. And that's the most exciting part of where we are right now. The biggest manipulation is low interest rates because when you lower interest rates, yes, it's cheaper for the borrower. They can take advantage. They can now get mortgages that they couldn't have otherwise handled. Of course, that fuels a bubble. And so everyone's spending way more to buy property than they ever did before, and it's not keeping up with wage growth. On the other hand, because you keep creating more and more money, you're devaluing the currency. And you don't see that in a second per second or minute basis, but you do see it on the long term. In the case of 40 years ago, 30 years ago, you only needed a one-income family. Today, you need a two-income family. That's not a result of women entering the workforce per se. It's more a case of, well, if we want to maintain our lifestyle, we're going to need two incomes. So incomes are dropping, or rather, there's a growth in real estate or the standard of living. So your dollar is dropping because governments are intervening in the dollar and everything that goes along with that particular manipulation. Now, why are they manipulating the dollar? Why are they manipulating interest rates to keep it low? Because they're scared. They're scared of what would happen if interest rates did have to climb. And on the backside of that, the savers are being punished like crazy because you can't put money in the bank and get anything for it. In fact, if you happen to borrow money or get free access to all that money, you're being charged in many cases to put that money into a bank, especially in Europe. So you do have a problem overall with manipulations in general and the distortions that occur as a result. So fundamentally speaking, it's important to put your funds into a place where it's safe and gold and silver have been a place to store value for centuries. And this is why it really doesn't matter what the price is doing on a day-to-day basis. It matters that you have some of your portfolio in physical bullion to store that wealth. And if you're not storing that wealth, then you know that you're out in the wind, so to speak, in terms of, well, the trend is your friend. Be in the stock market until the trend ends. And then now what? Where's the backup? What's the backup plan? So we think that gold is very much undervalued on a dollar basis, especially in Canadian dollars. You've seen the Canadian dollar has dropped against the US dollar. Having gold in your portfolio has actually reversed that trend for you and protected you in that regard. So definitely consider holding a hard asset, a tangible asset in your portfolio, whether it's gold and silver or whether it's a natural fancy colored diamond that is rare and of quality that's going to bring you that value. 18778 silver. That is the number you want to call. Check out guildhallwealth.com. John, we were talking about putting some lipstick on a pig and trying to make it look like a panda earlier. And this is exactly what's the case, what is happening right now, all around the world with economies that are trying to rebound. They're trying to show their citizens that things are getting better and it's not happening. We now see the IMF today, as we tape this show on Thursday, come out and say, sorry, we may have been wrong about what austerity will do to Greece. Well, it's too late. Greece is a bunch of basket cases because they have no idea whether they're coming or going. I feel terrible for those people because again, the taxpayer, the little guy in the street had no concept of what his country was doing. Sure, the party was voted in just like any other democratic society, but at the end of the day, they weren't told about every little purchase. They weren't told about how this was going to work and that was going to work. It just happened. And now they're suffering for it because their countries made poor decisions. Now, when we look ahead at what we can expect from gold, silver, and the markets abroad, I said earlier in the show in segment one and two, we talked about some of the things that were happening with the US economy right now. We talked about factory orders being down. We talked about there being problems in some of the asset arenas that are bubbling the stock market and others. Before we go today, I want you to focus in on something and do a little research as a listener. Look at US home prices right now. Many people are sitting there listening to the show thinking, I might have invested in US homes. You know, a lot of people Florida, the warm climates, they want to buy a home after this whole tragedy they heard home prices went down. Maybe, honey, we should think about buying a rental property. Well, I can tell you right now, read an article from Bloomberg. And before we leave the show, I'll tell you quickly what that title was and what the article is about. I just said that home prices in the US are surging 13 times faster than wages. Home prices in the US are rising 13 times faster than the wages in those cities on average. This is happening all over the US. What that tells us is that speculators are buying those properties. And it also lends us a little bit of a light towards seeing what is going to transpire long term. If you don't own assets like gold, silver and natural fancy colored diamonds, prepare yourself. Because when speculators take over those major markets, like homes, we get the exact same thing that occurred in 2008, starting to happen all over again. Do your research, look at it, own hard assets, colored diamonds, gold, silver. It's the way to make money. It's the way that diversify. It's a smart move. 18778 silver is that number. Go to guildhallwealth.com. Take advantage of your RSPs, your TFSA's more information if you make that phone call. And up until April 30th, by the way, when you purchase 100 ounces of silver, you will receive a free one ounce bar of silver on Guildhall. This has been the real money show talk radio, AM640 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 tronmas like Fight Night, The Million Dollar Heist. Tuesday, watch reality shows like Top Chef Canada. 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