The Real Money Show
The Real Money Show - Saturday, June 28th, 2014
Welcome to The Real Money Show hosted by Guildhall Wealth Management, a show about the incredible potential of owning physical gold, silver, natural, fancy color diamonds, what they could do to help your portfolio. The number is 1-877-8-Silver and the website's therealmoneyshow.com. Welcome to our Calgary listeners as well on CHQR. As always, Darren, we start with the update of the week. How are we? Thanks. Things are good, John. The market this week in gold is up yet again another 4%, actually another 2% part of me, silver is up 4% on the week. We are trading now in the 13-20 range and gold year to date is now approached 8.2% gain. A close above I would say right now $1,400 an ounce would be extremely bullish for the market and would send one half of our market expecting lower prices into a frenzy. So that's what we're watching for. Silver also very steady on the week trading right now in the 21-20 range, it is up about 4% in year to date. It is up about 8.4%. So a close above 22.50 on that metal and we would also be holding a very bullish position. Now, the news of the week was scattered. There was some of the same and there was a bunch of really interesting bits of news that are developing. One of the things that I'm following right now is that in Singapore, they have begun taking steps to become a major international trading hub. We have long discussed the movement from West to East part of the world in terms of bullion and understanding of what physical bullion is. Over here in the West, unfortunately, the majority of investors really have focused on paper investments as opposed to the physical asset itself. Really, that has not been as advantageous. If you've been a physical investor, you've actually participated in a market in gold that has traversed an incredible climb in the last 10 years, up over 320%. Silver up over 390% in that same stretch of time. Now, Singapore is taking steps to launch a new gold, 25 kilo bar gold trading contract, which is due to be launched in September, which will be a drain. Now, with Asian demand set to remain strong into the future, Singapore is capitalizing on its recent successes that were spurred on by its removal in October of 2012 of a tax that they had was a 7% good in services tax on gold, silver, and platinum. Now, Asia share of the total global demand for gold, gold, jewelry, bars, and coins in that period of time has jumped dramatically. In fact, since 2010, the demand for that physical type of gold has gone from 57% of the total market share to 63% of the total market share. And that's last year's stats. I'll be waiting anxiously by third or fourth quarter of this year for the new stats. But really, this is a huge piece of news and it bodes well for demand side of the equation where they're going to get this gold from. I have no idea. It's already thin when it comes to supply. And maybe we're going to have to end up seeing Germany get its gold back faster than they are getting it now, but don't that's going to happen. But they just put out a report on Bloomberg that everything was all fine. And that Germany doesn't need its gold back. They said, thank you very much. Pure propaganda, by the way, which Bill Murphy from GATA reported. But you know, this is this is a serious smoke and mirrors and games going on right now. Germany wanted its gold back. That is their sovereignty. It's being held in the U.S. The U.S. couldn't supply anything. They only got 37 out of 350 tons to date. That's nothing. That's a pittance. And those bars were refabricated bars. And this is over two year period that they've been trying to get this pittance of a return. So for Bloomberg to come out, we don't know if Germany actually came out and said this. But for Bloomberg to come out and say, Germany says it's all fine. It's all good. Okay. But how long is that going to keep going before the next Black Swan happens when somebody else decides they want their gold? The interesting thing you just said is they got back 37 tons of gold, was it, out of 350? Where is the original gold? Now, we have a depository at Guildhall, which is very important. You where the product is allocated, segregated, you actually get bar numbers. Nobody can take your product. No one can sell your product. You can't make a trade without telling us the bar numbers that you want to sell. So that's one of the things that we've introduced at Guildhall, which makes it really, really safe to own gold, silver, in a safe, secure, protected allocation here in Ontario. And we're very, very proud to be associated with this. At Guildhall, we sell physical gold, silver, platinum and platinum. You can take home delivery. If you want to buy a product, you can have it delivered to you. You can buy it. Or if you don't want to take delivery and you want to put it in a safe, secure location, not having to worry about it, getting monthly reports on what you own, what it's worth, this is a great way to, you know, get into holding gold and silver. But the bottom line here, John, is that we can't, at Guildhall, can't get away with nearly what the US government can get away with. They can say to their customers, "It's okay. It's there." No, you don't need to audit it. No, you don't need to take delivery. And the other countries can just take it. But that doesn't work that way in the real world. In the real world, you put a bar into the depository. It's expected that that's the bar you're going to get back. And that's the bar you are going to get back. The numbers, 1-877-8, silver, in the RealMoneyShow.com. Well, again, if you look at the world as a whole, the global metals market this year. It is, yeah, a bit of it is. The global gold market and silver market this year is in a massive state of flux. And the traditional trading centers that have been there for a long time in London and New York, they've seen their investors lose a lot of faith. And these market participants account for a huge part of the sentiment in the market. So it surprises me, it never surprises me, and never ceases to amaze me that the headlines will tell us that there is a loss of sentiment and that nobody's really paying attention to gold and silver. It doesn't pay dividends. I mean, I've heard so many excuses, but the reality is behind the scenes it's being accumulated. People want this commodity in there. They're vying for it all over the world. Now, international banks have been caught time and time again exerting undue influence over a lot of the paper markets around the world. A lot of them, the benchmarks, we've heard scandals revolving around the LIBOR, interest rates, the global currency trading, and even gold market and silver market pricing mechanisms. And now powerful banks, they're being further scrutinized over possible market manipulation. So when you're looking at all of these types of allegations coming across the wire, it's no doubt that people want their physical gold, silver, platinum, palladium, and they want to know where it is. And they want to be able to touch it. And that's what we do at Guildhall. And that's the important part of owning gold and silver. 18778 Silver is the number, therealmoneyshow.com. We're gonna take a short break. When we come back, we had amazing feedback last week. Had an interview with David Morgan. We've had a ton of requests to replay that segment. So we'll get into that after a short break. Hang on. And more of the Real Money Show, the number to start investing 18778 Silver online, the realmoneyshow.com. Join the show now. He is the publisher of the Morgan Report on Precious Metals and author of Get the Skinny on Silver Investing. David Morgan is with us. Well, hello, David. Welcome to The Real Money Show. We're really big fans, and we're glad to have you here today. How have you been? Been excellent. Thank you. Fantastic. Well, get right into the line of questions we have for you today. On The Real Money Show, we've discussed cycles on our show for a long time. We've been doing this on air since 2008 ourselves here in the Toronto market and across Canada. And now in the US. And gold and silver really in our eyes has been very cyclical since the beginning of this bull market back as early as 2000, early 2000s. In your best words, how would you explain the most recent correction of the silver price since 2011 and what factors have played a role in giving us to where we are at this point in time? Well, if you go back to the previous bull market, which I participated in, really manipulated or not, it's what I would consider to be normal market behavior. And if you look at the previous bull market when gold was freed at the 4222 announce, it went all the way up to about 200, not quite. And it backtracked and fell off to about 100, not quite. And then it moved up from that level back to the 200 level and beyond. And from 200, it went to 850 on the spot market. So it was a big washout. It took a couple years. And when gold was hitting the $200 level, there was euphoria in the market and lots of commentary about how great it was going to do. And when it caved and retraced about 50% of the move, got near the hungry level, you could hardly find a solid gold bull anywhere. So knowing that and watching what took place in 2011, I called the top and silver at the $48 level. And I think I was going to send in just a few days to the exact top. Luck or skill, either when I don't care, the point is I made that call. And on the way up, and this is in the record, you can go check it, you can listen to YouTube videos, whatever. I said around the 30 level, especially the 35 level and up, if you have to buy silver and/or gold, please don't buy all that you want at this point in time. This market is getting frothy. It's going to extend. It's going parabolic. It is going to top. I just don't know when. And of course, actually, I guessed when and oh, it's correct. And a lot of people got in. I mean, there's always more money put into a market as it nears a top than there is at the bottom. I've learned from years, decades of experience that people don't buy bottoms. When emotions are running high, there's a lot of emotion and markets are moving quickly. That's when it draws in the most. And this is typical of the metals markets as well as most other markets. So having said that, when it did peak and started its downward trend or its bear market within a bull's secular market, so I still believe we're in a major bull market, I said it would take two or three years for this to consolidate. Again, manipulator or not, or how the price got there is a factor, of course, but the price is the price. No one can argue that. So when we got to the level that we saw a lot of support, which is the $26 level for silver and about the 1550 level for gold, what we saw was that level hold again and again and again. And at one point in time, I saw the data and I put on an alert to my members only by video. I do these videos with the charts and I said, it's going to break. It's going to go down. If you're worried about this, protect yourself, hedge, and I had a hedge fund manager that actually went net short, not going to recommend that. I was just telling them what I was doing. They've basically saved him because he had a huge position. And by going net short, the 26th level, when it went down into the 19s and he covered, they're really happy. So anyway, I look at it as, quote unquote, "normal market activity." I'm not trying to dissuade the fact that the markets are manipulated. In fact, in my view, almost every market is manipulated. But again, you can't argue the price or the time. We're at a point now where I think the washout is done. We've been going basically sideways in both the markets, particularly silver market, long bases. Build a lot of synergy that will come into the market later. So the bigger the base, the longer the base, the bigger the move up. We've been consolidating in this range for about a year and over all three years. So I've said two or three years of consolidation, and then we should start back up. So I truly believe, for my work, everything that I do, that the cycle's ebb and flow. And the function of a bull market is to kick off or shake off as many bulls as possible. And believe me, as you well know, you're in the business. There's been a lot of bulls that have been shaken out. They either sold the positions, or they haven't added, or they've decided to get in the stock market, back in the real estate or whatever. So there's just the sentiment is perfect. There's a very few bulls at the bottom, and that's when you should be bullish. And so I think it's, again, quote unquote, "normal." Going back, I wanted to just reiterate an important point, the $26 level silver $5550 gold, that was definitely a manipulation. The amount of money that was used to sell a short amount of contracts would be more accurate, sold with a phenomenal amount relative to the physical supplies of both the metals, and it has to be delivered. You're not going to sell a massive quantity in a short amount of time unless you want one thing and one thing only, that's for the price to go down. That's an irrefutable fact. I don't care what anyone says. I'll go into court of law and stake that all day long because it's the truth. That's an interesting point because we've talked about it at length during the show, and those cycles are important because we've seen that base building happen at least three other occasions prior to this one. And of course, as you mentioned, the peaks on all three of occasions have been higher and higher. So we're extremely excited about where we are. And I do think we've shaken the tree loose of a lot of sentiment, and we are at a point now where base building is happening, and of course, great opportunities for buyers. The number to begin investing, 1-877-8 Silver, and online therealmoneyshow.com. Jeremy Wiseman here with our team had a question for you also, David. Yeah, I just wanted to reiterate actually what you were commenting on, which is it sounds like what you're saying is a lot of investors, frustrated or not, are looking for answers coming up with questions. And it sounds to me that when I like what you're saying, I think you're saying that, correct me if I'm wrong, that you're saying, look, this is sort of normal activity. And when the market's low like this, it's going to be tough to catch a bid, but the longer it goes, the more you're setting a base for the next level up. Is that essentially what I was hearing? No, well said, yes, it is. And I just want to add one thing about the manipulation. When the first world market that I started speaking about took place, William Simon was the secretary at the time. And it was sort of a wink and a nod kind of thing of how well he had done wink, wink with getting gold from the $200 level down to about the $100 level. So to say, oh, well, it's new, it's fresh, it's only happening now, it's only happening because I'm in the market, the forces are against me. Now, if you read the war on gold and you read the amount of books I've read on gold, I mean, it's pretty ench over, but particularly gold, you will see that there's very few times throughout all of recorded history where it wasn't manipulating. So it's nothing new, but it happened before under the, you know, administrations that were around during the last bull run. And it's happening again, maybe differently, you know, we've got ETFs and things that didn't exist in the previous world market. I fully understand that. The point being that fundamental fact remains. And that is that governments don't like gold for the most part. And so, you just interrupt you there, David. There was an interesting article by Mark Faber on CNBC this week on Tuesday, an actual fact about the media doesn't like gold and silver. Any comment on that? Well, absolutely. I have been on TV a few times and I was on a particular well-known financial channel, huge viewer audience, and it was when gold had gone through the $1000 level on the way up. And they were trying to get me to say that gold was in a bubble. And I said, no, gold isn't the bubble. The bubble is in the bond market, the debt markets, and they cut me off. They literally stopped the interview. Can we remember that? Claimed it was a technical difficulty. And I've never been asked back on that financial channel. So, if you're willing to speak to the power, you take your chances. Now, other financial channels actually let you speak your mind. That particular one actually has you submit what you are going to say ahead of time, at least 24 hours ahead. And in my opinion, they give the spin doctors a 24-hour long period of time to kind of spin what you are going to say. I had had that happen before, but in this particular case, since I had been interviewed by this channel a few times, I was sort of more mentally prepared to dodge and duck and get my upper cut in and that type of thing. And I was fully prepared. And of course, they didn't want to hear that. No one in the mainstream paper paradigm wants to hear that the paper paradigm has a problem. I mean, it isn't. You don't want to have that voice screaming. The emperor has no clothes because you might wake up too many people. That's the topic we discuss here very often. But more recently, you've been discussing, I've read quite a bit of analysis and questioning about physical silver demand. And obviously it was up a lot in 2013 as the coin stats would have us show. But ironically, in Canada, silver production has dropped significantly in 2014. Now, we're not a significant contributor, obviously, as a country to the overall supply side. But I think that our banks or friends would have us believe that physical silver is very abundant. It's very easy to mine and it's of little real value. The number to contact anytime, one, eight, seven, seven, eight silver. What is the real story right now on silver availability? Is it in short supply? And do you see it coming to a crunch in the near future? Well, the best I can determine, of course, this is very difficult because some of the numbers you get include like hedging or paper silver, even though they put it in a physical category. But the best I can determine, can determine on the silver side, is it's not really in that tie to supply currently. But it's such a small market that it can become a tight market almost instantaneously. And the reason I can say that with authority is that the size of the silver market is so pathetically small relative to most other markets, gold as an example, and gold is a small market. So right now, the availability to London seems to be more than adequate. And the other thing, what you said, is almost precisely the way I talk about silver when you're using it as the 70% factor, meaning that about 70% of silver mined is from base metal mining production. In other words, lead, zinc, copper, even 13% of the gold, excuse me, silver supply comes as a result of gold mining. Only 25% comes as a result of primary silver mines. So the 70% of base metal miners really don't care that a fig about the silver price, for the most part. And if this is true, if you study their balance sheet income statement and their annual reports, and what they'll tell you is that silver is a byproduct to them, and that's a fact, and that they use it as an offset. So in other words, whatever they can get for this silver, they use as an offset against their lead production or the copper production or whatever. So this is a real problem for the silver market, because what happens is 70% of the market comes physically from entities that really don't care about the price. But what makes it much, much worse is they take their book, in other words, their production schedule, and they give that to the bullion banks, who help them manage their cash flow in the silver realm so that they can use it as an offset on their balance sheet. And what that means is that these derivatives experts take the amount of physical metal and they can divide it up again and again, and you use that paper silver and it's done in the gold market as well, and use it as a delta heading mechanism, which is just a scheme that basically they put a spread on the price. And if the price goes against them, they just sell more to make sure the price goes where they want it to. Now no one says that, but that's the way it actually works. And I think people are tired of it. And of course, the main question I get continuously is, well, I'm not going to get in the market because these guys are doing this and they'll never stop, as they will. The reason that they'll stop is that the paper product doesn't equal physical reality. And again, coming back, will there be a crunch time for silver, a short supply in the near future, and the answer is no, not in the near future, but in the not too distant future, meaning around the 2015 timeframe, there could absolutely be a scenario for silver in particular, but it could be in gold as well, where you cannot get physical in size. Oh, sure, you can go to your coin dealer and buy some rare coins or maybe get a 100 ounce bar or something like that. But for a central fund of Canada or BMG group or PSLV or any of these crew holding companies or the Zirah Continental Bank as a example, to come in and buy 20 million ounces of silver like they can do now, or 30 million or whatever, that I believe strongly will not happen. And what that will do is that will panic the market. I mean, real panic will set in. And of course, you can't keep a lid on that kind of a truth. So once that gets out, and this is conjecture on my part, it could be wrong, but I really believe this will happen in this bull market. It will be the first time ever. People will go to the next best thing. Well, what's the next best thing? Is it an ETF? Not really. The next best thing is a mining company. So this is why I believe, still strongly, that the best days are ahead of us. But that's going to be a very difficult market because it's going to be panic and fear buying. And the price is going to go up and up and up. I mean, what we saw going into the 2011 time frame from January through the end of April, where the price of silver just went up and up and up. That's a prelude to what's going to happen the next time because it's basically a warm-up, as exuberant as that market became. And remember, they had to raise the margin requirements four or five times to call the market. That's nothing in my view compared to what's going to do the next time. But again, I'm not looking for that type of a build until probably the 2016 time frame. Is it possible, based on that answer, David, is it possible that the Eastern countries will contribute in terms of total demand to the point that the Western countries cannot control that mechanism anymore? Yes. And it could change the timeline considerably. I mean, there is the possibility that could happen day after tomorrow. I really doubt that. The Chinese, particularly, and Asians in general, take a long-term view. Some are looks like the Native American Indians that they look out like four or five generations. So they are very smart about how they accumulate wealth and they use the accumulation pattern, meaning they buy just enough in the market to not make the price go up if they can, until they have actually taken so much physical that the price has to come up because there's just less and less available. So they're mining everything that they can, gold-wise and silver-wise, that all stays within the country. And then they're out in the market buying gold, as we all know, in rather generous proportions. But they want to do it in a manner as I outlined. However, with all this going on in the geopolitical front, with all these wars and tensions, et cetera, it's a possibility. And I wouldn't rule it out. There's some blacks one event took place. And all of a sudden, something took off and the gold or silver markets are both that basically couldn't stop. And it started to run. I can't rule that out, but I doubt it. I think the status quo is going to be sideways markets for another couple months. Maybe this summer, we're always starting to see them build silvers up. I think 70 cents last time we checked today, which is a nice move. I think the low's in. I'm on record in several shows. And, of course, for my paid members, that the low was the 23rd of June, 2013, so roughly a year ago at the 1817 intraday low. So I'm very optimistic longer term. And I don't think it's going to be that much longer. Again, looking three years out, five at the most, I think will be very happy being precious metals investors throughout the sector, not only in the physical market, which I stress, especially to begin with, but also in the life considered to be the best derivatives, which are top tier cash rich on hedge mining companies. Right. David, we only sold physical gold, silver, platinum, and palladium. We also store in our very secure, safe, depository. How would you buy or recommend to buy a gold and silver, platinum, and palladium in physical form? You know, that's a great question. And I'll just be totally honest. There's no reason not to be. It depends on the individual. Some people of modest means are best to basically just stack their silver, you know, the coin at a time, or ten, or it's roll at a time or whatever. But someone, decent means, and we're talking size here, I think is best off by buying to somebody such as yourselves that can go, you know, monitor it or whatever, and store it in a secure location and that type of thing. And what I actually recommend is to have it in probably three locations, preferably at least one outside of your main jurisdictions. So for an example, someone that was living in, let's say Europe, to have some in Canada, some, then maybe two other places, both of those could be in Europe as an example. But it depends on the individual. I mean, I've gotten consultation calls from people of extreme means that have bought huge quantities and asked really the question was, "David, I trust you. I want to buy this amount. I don't want to see it. I don't want to touch it. I want to know it's there. I want to know I can get it out. If I want to, who do you recommend?" So in those kind of cases, I do what I just outlined. I would recommend, "Well, I don't think you should have it all in one place." If you are thinking like I'm thinking, you might have it in another jurisdiction. And then I would set it up with two or three different depositories that I know and trust. So that's probably a long answer, but that's the best answer I can give you. Well, it's a good answer. I mean, what are your thoughts on this? We believe in using title and serial numbers, which is something a lot of our counterparts don't offer. But what are your thoughts when it comes to that? Assuming somebody like yourself recommends somebody like us or somebody else recommends us, do you think it's essential part of the equation to have those serial numbers of the bars and things of that nature? Yes, I think I've done several interviews and I've gotten guests on our Mastermind series for our paid members. And we've explained the storage conundrum. And it's really not well understood, even unless you're really, really detailed. And we put first segregated storage with serial numbers. I mean, one of the places that I store is totally segregated. I mean, the gold cruegerman that my three year old daughter put a scratch in is the exact cruegerman I'll get back as an example. That's sort of a metaphor she didn't scratch it. But what I understand is that the exact metal that is mine is the exact metal I'll get back out. I think that's very important. But a lot of people, you know, it's funny, they'll spit, you know, the old pound wise was, why isn't pound foolish? There we go. And they do. They'll buy, you know, the best price and get the cheapest storage, not realizing that, you know, what does unallocated mean. And they think that it's a big entity, it's a big bank, it's a well-known name, and therefore they're safe. And in some cases, that's anything but true. You really want to be sure. And you know, when you're putting that kind of money or any kind of money, I don't care if it's, you know, your very modest means. You want to own what you bought. And it's funny, the, you know, penny wise pound foolish, they'll put in, you know, thousands or hundreds of thousands of dollars. In fact, sometimes above that, into a situation. And, you know, I want to harp on this a bit longer. You know, I know, you know, a fair amount of fund managers. And, you know, most of them in my view are the worst, because what they'll do is buy, you know, millions upon millions of dollars worth of metal, but how they do it, whether they buy it to the SOV or the GLD. Right. And why do they do it that way? Well, because it's a mouse click. And they're dealing in those kind of numbers that they need to liquidity. And they don't want to store it in this cumbersome and it's all those things. But there, is it really hedge fund? If what you're doing is playing a paper paradigm that, you know, when the electrical power goes out for two days, you can't get it. I mean, it's not, it's not my preferred method. Now, I have nothing wrong against free markets and people deciding that's what they want to do. But what I stress is, if you're going to play in that paper prepared, I make certain that your foundational investment in metals is metal that you can touch it. And that's it. If you don't have that, then you don't understand what precious metals are all about. I mean, I'm very strong about that point. As a good point, and it's one that we reiterate on a weekly basis, and we've migrated to this particular method with title and serial number now for for a number of reasons. But we use three facilities worldwide. So it's nice to see somebody else kind of bringing that to the forefront. The number to contact anytime one eight seven seven eight silver. One of the more common themes we've been discussing lately on the show is the relationship of the US dollar to the price of gold. And of course, there is certainly an historical relationship that we have seen take place during bull markets in particular. But as we're sitting here taping the show today with silver up 84 cents, the US dollar is slightly weak in a number of currencies today. What is that relationship and how is it being impacted currently with the threat of other countries moving away from US dollar reserves? Well, there's a lot, a lot to be said. One is some of my contemporaries have a chart. I think Ian McAvity is one and he'll take a gold chart and show that and then I'll take a dollar chart and then he'll invert it with a slide show and show you that they're inversely related, which is true somewhat. I don't agree totally with Ian. And I like him a great deal and he's a great technician and a great, great person. But it's more complicated than just the dollar. First of all, I think the bigger, far more important question is really what is the relationship to fiat currencies in general? And that is that there has never been the history of mankind. Any fiat currency that hasn't failed. So whether you're talking about gold and price of yen or gold and price of Canadian dollar or US dollar or the Australian dollar or what have you, the real fundamental question is what survives and what doesn't. And there are people out there that will advocate that the deflationary depression will take the US dollar to new highs. And I disagree totally because it'll be the first time in recorded history of that paper Trump's gold. That has never happened and it won't happen and here's why it won't happen. A Jim Pababa who runs the financial sense news hour and a good friend and they used to be on the show fairly regularly. But anyway, I had had been on recently did a great study on collapse of currencies. And what he determined after basically a summer of study is that there has never been a time where paper has trumped gold when you've been on a pure fiat system. So if you look back into the 30s depression, really gold was the money even though Roosevelt restricted gold ownership and you couldn't use it. He confiscated the gold put in the treasury to back the dollar internationally, but not. So the point I'm making is if you don't have a goal, if you are not on a gold standard of some type and you have a currency crisis, the currency crisis is going to take the paper away and what's going to left standing is what stood his money for the test of time for thousands of years. That's gold and silver. So that's my absolute. I don't think there's any way out of that regardless of the deflationary arguments not to say that these currencies don't have been flow. I call it the vestige of hope for the bankers because if they can trick the majority into thinking that one currency is better than another, they'll stay in the paper paradigm far along them than they probably should. But they all fluctuate against each other. But in reality, the whole back to water line is going down, down, down against gold on a long-term basis. Well, it's an interesting take and it's something that we share in terms of our opinions on that particular matter. The number to begin investing one eight seven seven eight silver and online the real money show dot com. David, it has been an absolute pleasure to have some time to spend with you today. And again, we'd love to have you back in the near future. Can you tell us how our listeners and anybody that's listening to the show for the first time get in contact with David Morgan and use your services? Absolutely. The easiest way is it's a web based business and just go to themorganreport.com. I do specialize in precious metals with an emphasis on silver, but we looked across the resource sector and there's like 12 special reports that we put together over the last several years that will help a beginner intermediate or advanced investor that comes with a subscription. It is a 30 day guarantee price point of money back guarantee. So, you know, to get in there very few that subscribe one out, but it happens and we're happy to do that. Sometimes it's over somebody's sophistication level. If you're a precious metals investor, you usually an investor of some type before you gravitate to the metals because it takes an understanding of monetary theory and what happens in monetary history and very few people are really acquainted with that and usually take self-study. Having said all that, our record is as good as anyone's. It's my understanding looking at everyone else's work that we have picked more minds that are more junior situations that have actually become minds than anybody else in the industry. Are there those opportunities left? Quite frankly, though, there's really very few exploration situations that we like anymore. So, we stress, we've always stressed in the Morgan Report, which is top tier cash rich unhinged mining companies. As big money go into big companies, you're not going to get instantly rich. You're not going to get the 10 baggers, but you're going to preserve your capital and grow it over time and some of these companies just keep compounding. They're very, very good companies. We like the royalty companies for a variety of reasons and we explain that. And then we go into the mid tier where they have a higher growth profile, but they have a little more risk. And then we love to speculate, but we do it in a manner that is prudent with what the word means. You bet a little when a lot. You don't bet the farm on some rank speculation. That's stupidity. We don't do that. So, we try to do our absolute best and it's one of paradoxes in life. It's self-serving from the aspect that we do a lot of research for what we recommend. But we also want to share that with others. So, well, our research helps us because we are in the market. It also helps you because you get the benefit of our hard work to help you make your own decisions in this what I think crucial area of investing, precious metals. Excellent, David. I appreciate your time very much. We're thankful that you could spend it with us. We look forward to speaking with you soon. Thanks again, David. My pleasure. Take care. We'll take a short break. The number to start investing is 18778 Silver and The Real Money Show.com. And back with more of The Real Money Show, the number to start investing 18778 Silver, the website TheRealMoneyShow.com. Darren never sees who amazed me in the knowledge of that man, David Morgan. He knows more about silver and gold to get you on the right track. If that doesn't convince you to start investing, really. Well, it is true. I mean, we've had Gerald Florentine here in David Morgan and throughout the summer, we'll be adding some more really, really high-profile analysts to our lineup here. And really, what we're trying to do is just say, don't take our advice. Take the advice of others. Listen to what they have to say about the market and how long they've been here and what they believe is really happening behind the scenes. And one thing is really evident from that interview is that David doesn't pull any punches. He says what he feels. He tells you exactly what his thoughts are on the market. And he's a firm believer in physical bullion investment. And that's music to our ears because it's the exact same line of defense that we recommend in everybody's portfolio today as well. So when it comes to ownership, I mean, there's no second-guessing physical bullion. When you own it and you can have it titled and you can have serial numbers and you can go and visit, which are all part and parcel, the reasons to invest with Guildhall, it makes a huge difference over just thinking that it's there or having it in your portfolio and paper. And that's just our opinion on it. But I mean, that is why we're here and doing what we do. Well, especially when you see what's going on in the world in Ukraine, what's happening in some of the Arab countries, would you rather have a few coins or some silver in physical in your possession than having paper currencies? It's something that you have to be worried about. I'm not telling everybody to go and sell everything they've got. They're stocks, they're home, and buy nothing but gold and silver. But you should have 15 to 20% hard assets in your portfolio that are tangible assets like gold, silver, and natural fantasy color diamonds. And at Guildhall, we give you the ability to buy it outright. You can take it home, a media delivery or a media delivery. You can put it into our depository where it's safe, secure, it's allocated. If you want to have the bar numbers that can be provided for you, if you want to visit your product, it's as easy as giving us a call. One eight seven seven eight silver is the number in the real money show.com. Jeremy, I think a lot of people are maybe perhaps intimidated in the market that we have obviously both gold and silver are incredibly undervalued right now. You have to look around and say, hey, what's what is undervalued right now? Where can I find some good value in the market? Maybe people are waiting for even more of a drop in the price. There is a lot of hedge funds who bought into what Goldman Sachs was saying that gold was going to drop down to 1,100. They all jumped in short in the market, got pinched and the price went up and they all lost their shirt waiting for for Goldman Sachs call to come true. I think when we look at David Morgan, this guy knows more about the market than Goldman Sachs does. He's called the bottom. I think that if you're waiting for for lower prices here, you might be waiting a long time. You have to be able to appreciate that it's cheap. It's cheap at gold is cheap at 13. It's cheap at 14. It's cheap at 15. Look at all the money that's been printed out there. Look at it compared to stock valuations, real estate valuations. Silver is incredibly undervalued when you start to look at the fundamentals in terms of how much is out there, the industrial usages out there, where the prices should be, how out of whack things have become ratio-wise. When you look at silver to gold, gold to the dollar, gold to oil. You've got to really look at this. I think that you'll see that it doesn't get to be a much better entry point than here. Well, taking a look at gold and oil, that's an important point that Jeremy's making. And that relationship has been long-term with one another. And as like most relationships, it has been both blissful and at times a very stormy affair. But gold, which is literally the ultimate canary in the global economic coal mine, it's been screaming on a high for years and years, it's leading into the global economic crisis of '07 and '08, '09. It was doing really, really well. And it reached a pinnacle in 2011 in terms of price point. And if you look at that relationship between oil and gold right now, what it tells us historically is that gold is really undervalued. And I was looking and reading a bit of analysis this week and looking at a couple of charts. And if you look at both commodities in gold and oil, gold this week, as of today's price, has moved up about 327% in the last 10 years. Well, oil has risen about 363%. You know, in a first glance, the market fundamentals are quite different for each. One is de facto currency and gold. And the other is representation of energy demand or supply and economic development. And in many ways, oil and gold confirm the trend of integration, growth and change in the global economy. So they have a really tight relationship. If you look historically at what has been happening between gold and oil, gold is undervalued against oil right now. The recent price performance may be short term overbought slightly. But in the medium to long term, gold is most likely going to rally perhaps towards 1800, 1900 in price per ounce again against gold at this range. And that relationship, I think is about to take off. So it would not surprise me that that would be one of the strong sub fundamentals that would drive gold price into the summer and through the summer out into the fall. If we get that kind of move up, both gold and oil go towards higher pricing, silver is going to follow. And of course, on every major peak in the last four, four times in the last 10 years, silver has outperformed percentage wise gold every single time. So very exciting for people looking to add some to portfolio. There's room to do a little bit of speculating. We're not here to give you the advice of your portfolio planner. We're not advisors. That's not our job. We're here to provide physical bullion. And that's what Guildhall does best. So look for that to happen over the summer. Take it before I take a short break there. And let me read this headline to you. Feds key inflation indicator, his 19 month high. Tell me about it. Well, John, if you don't step outside your house, you got nothing to worry about. But as far as inflation is concerned, I put gas in my vehicle. I happened to use premium. I paid 161.9 on Monday. And I posted that on my Twitter account. And it's unbelievable how expensive gas becoming that is more than a 12% year over your increase in the price per liter of gas. If that's not inflationary and stealing money in your pocket, I don't know. No one's going to say anything till you need two American Express cards to fill your car off. Basically, that's what it is. You know, people bury their heads in the sand. Think it's going to go away. We've been talking about this on the show for a long, long time. No one seems to be bothered. $1.42 and it goes to $1.75 and $2 a liter. Then everybody's going to pipe up. It's inflation. Gellin from from the Fed has already said, we've got to put wages up. Otherwise, we can't collect taxes. That's when it's really going to hit home. You need to buy gold and silver now at these prices. And putting wages up is just yet another indication of inflation. Look, people sit there. They complain about it. They just don't know what they can do about it. Gold and silver are a hedge against inflation. Read any article on gold and silver. Read any book on gold and silver. They are the hedge. If you're not in it, you're not hedged against it. We'll take a short break. The number to start investing is 1-877-8-Silver and TheRealMoneyShow.com. And back with more The Real Money Show, the number 1-877-8-Silver. Real simple. The RealMoneyShow.com. Love this part of the show, Paul, where we talk about diamonds. I had a colleague of mine just prior to taping this show upstairs said, you know, the other week when you guys were talking about a diamond you actually had in the studio, was that real? I said, yeah, it's amazing. So, you know, I said, you got to go to the website and see these diamonds because when you bring them in, it's just the sparkle and the situation's incredible. Does that sound great? Perfectly said. If you go to our website, guildhalldiamonds.com, you're going to see a terrific selection and collection of our natural fancy colored diamonds from fancy to intense to vivid. I would say we have more internally flawless yellow diamonds up than anybody in the world today of quality. There are lots of diamonds out there and there is problems buying certain amount of diamonds. Every diamond that we buy and we collect has to meet the criterias. It's not just the four seas of the color, the clarity, the cut, and the carrot weight. Because a diamond, you know, is internally flawless, it could still be badly cut and the cut is what gives the fire, the color, and the scintillation and the make of that diamond makes the whole color scheme come alive. The color is important that the color is complete saturation and even saturation of the diamond. A lot of colored diamonds don't have even saturation. It is buyer beware out there. That's why at Guildhall Diamonds, we provide not only a GIA. That's a gemology Institute of America. That's the certification of the diamond. We give you an independent appraisal so you know an idea of what the replacement value of that diamond is if it's lost or stolen. The diamonds that we pick somewhere down the road, those diamonds will come back to us. A lot of companies out there will say, well, we sell your diamonds. We don't buy diamonds back. Well, we do take our diamonds. We do have a plan for our clients to be able to resell their diamonds down the road. You need to hold onto a diamond whether it's five years, 10 years, 15, 20 years. If you're looking to retire, looking to put your kids through education, you need to hold onto something. You know, you don't buy a house and day trade it. You don't have to day trade diamonds. You just need to hold it, put it away and watch it grow in value. You can get involved in this investment for as low as $12,000. These diamonds tend to increase in value. They tend to double every four to five years. Again, it's like real estate. It's location, location, location. The bigger the diamond you buy, the better quality as a vivid, internally flawless, a two-carat, 175, 182 is going to increase more in value than a one-carat diamond is a common sense. When it comes to pink diamonds, the Argyle mine is closing in 2018. We sell only Argyle VS2 quality diamonds. We don't sell SI1 or SI2 or I1 or I2. We don't believe they are investment-great, though they are going up in price. They are not such a good investment as a VS1, VS2 quality Argyle of a quarter of a carat and above. I get calls, four or five calls a week of people that have purchased diamonds from companies. They haven't really done their homework. You really have to do your homework when you buy a natural fancy color diamond and at Guildhall Diamonds, we do the work for you. We have a GIA diamond graduate on staff, which helps us choose the diamonds. That's Nicole. She writes a lot of blogs. She writes a lot of information about what's happening in the diamond market. We are a member of the NCDIA. That's the National Color Diamond Association of America. Go to Guildhall Diamonds. Look at the diamonds we sell. Look at the diamonds that are on hold. Look at the diamonds are sold. Look what the diamonds are available. Darren, you've got some auction results. I do. This is where we find out exactly what the market is bearing for prices in terms of colored diamonds. Christie's held an auction on June 11th of this year, just a couple of weeks ago. Their auction was highlighted by a 5.5 karat fancy vivid pink VVS1 oval diamond that sold for 9.5 million. It bested their estimate of 8 million by a million and a half. That's 1.7 million dollars per karat, which is an abnormally high price for pinks. But it gets even better than that. At that same auction, a 5.91 karat fancy light pink. Fancy light pink. We don't even sell fancy light pink to us. That's below investment grade. But because of the size of this diamond, they may have included in the auction. It was VS1 clarity. It sold for 1.8 million or 310 thousand dollars per karat. That's three times as high as the estimate. But here's the kicker, the best part of all. There were 10 buyers. 85% of the lots were sold. And of those 10 buyers, seven of them were jewelers, which tells us that it's near impossible, as Paul has said, for months upon months to get high quality product. So much so that they're willing to pay the buyer's premium. And whatever taxes might be processed on top of that to buy these diamonds. That's the interesting thing. That was a light pink fancy. We have a 105 karat intense VS1 on our website. Again, it's 395 thousand dollars. But it's an intense. That's three or four times the price of a light fancy. As you get into intense and as you get into vivid, they are harder and harder to find. These stones are absolutely spectacular. We have some unbelievable stones on our website at great, great prices. So if you're looking to retire, you're looking to put your kids through university, you're sick of the stock market, you're sick of any other investment that you're making. This is one of the safest investments they've been keeping records for the last 40 years, never ever dropped in price. And not only that is an insurable asset, go to our website, guildholddiamonds.com. John, why don't you give out a couple of other numbers so people if they want to invest in gold and silver and a natural fancy color diamond they can call us. That'll do it for another week. Fellows, the number he's talking about is 1-877-8 silver, the website, therealmoneyshow.com.