The Real Money Show
The Real Money Show - Saturday, June 21st, 2014
And welcome once again 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 to contact any time one, eight, seven, seven, eight silver. The Real Money Show dot com going to welcome our Calgary listeners show will be on throughout the summer months. And you can go right to CHQR the website to watch our scheduled dates in the real money show dot com. Listen for shows and starting now. Welcome our US listeners now this week on WCRN News Talk radio for Worcestershire and Boston. We are also this week very excited to have the pleasure of speaking with David Morgan today. David Morgan a widely recognized analyst in the precious metals industry and consultant for hedge funds, high net worth investors, mining companies, depositories and bullion dealers. He is publisher of the Morgan Report on Precious Metals and author of Get Skinny on Silver Investing. Darren, tell us a little bit about Guildhall how long you've been in business, what you guys do exactly? Well, Jonathan, exciting week. As you said in the intro, we're welcoming listeners again to Calgary, CHQR and Calgary is where you can find us. And this week in Worcestershire and Boston, WCRN News and Talk radio, we're excited to be there. And Guildhall wealth management is a firm that was established back in 2002. The purpose of establishing this firm was to give potential investors a vehicle to buy and own physical gold, silver, platinum and palladium. We are focused primarily on our depository storage program, which gives folks the opportunity to buy in as little as a couple hundred ounces of silver, 10 ounces of gold as a starting point. In either of those metals, they can also add platinum and palladium and give them the opportunity to store them or take that metal for immediate delivery either way. This is an immediate delivery firm and whatever you're purchasing can be stored or taken home. We have vault facilities in Toronto, which is, you'll hear later in the show with David Morgan, an opportunity if you're in another country and listening to keep your metals safe in a very, very stable economy, politically stable here in Canada. We have vaulting facilities in Singapore and in Delaware as well. And this really starts out with identifying what you want to do as an investor and how you want to get into gold, silver, platinum, palladium and it's physical. We don't deal in futures markets or options on futures. We're not trading the SL of V or the GLD or any paper instruments. That's not our firm. If you're looking for that or advice on mining operations or mining in juniors, that's not us. We are in the physical gold, silver, platinum, palladium, realm and natural fancy colour diamonds. I also got President Paul Wiseman in the studio with Jeremy Wiseman, Vice President of Guildhall, guys. The number, once again, 18778, silver, guys, the other investment you guys are in is investment quality diamonds. Tell me something about that. Yeah, this is something that Paul introduced the firm to as a collector of natural fancy coloured diamonds. We focus on very high grade natural fancy coloured diamonds. These are considered investment grade coloured diamonds. They are extremely, extremely rare. What Guildhall does is we have a very strict criteria for the type of diamonds that we purchase and that our clients purchase and we enter into a sort of a symbiotic relationship in terms of having the clients hold those diamonds, get the equity that builds in those diamonds as the value is increasing, and we also provide an opportunity to help them resell those diamonds down the road. This is a great investment. It's very new to a lot of people, so it's something that we encourage people to get an investor kit on. Natural fancy coloured diamonds is one of the best kept secrets out there. It's the type of investment, believe it or not, that these natural fancy coloured diamonds tend to double between four to six years on a regular basis. Again, it all depends what type of diamond you buy, whether it doubles in three years or whether it doubles in six years, but we're here to help you make that investment. It's a proven track record since they've been keeping records for the last 40 years. They've never ever dropped in price and it's one of the only assets that you can actually ensure, which makes it very, very interesting. We're going to talk about it more in a later segment. RealMoneyShow.com is the website you want to hit up and the number is 1-877-8-CILBER. We also like to do on the show a bit of a market update each week. Darren, give us that. Well, we're excited, first off, that David Morgan is going to be with us here in the show momentarily. The market update this week is great. As we're doing this show, we're taping on a Thursday and the price of gold is up. It's above the 1280 barrier, which was the resistance level. We broke above that and now we're above 1,300. So today has been an exceptional day for gold. It's up over two and a half to 3% week over week and silver, our favorite medal of all. Trading right now at 2072 and as high as 2091, almost that 21 per ounce, it is up almost four and a half percent week over week. So very good week for both medals and the analysts are slowly starting to turn bullish on both medals. Now Wednesday, the FOMC released their statement on how the economy in the U.S. is performing. And due to the fact that the economy is faltering, they've reduced their purchases of mortgage backsecurities to 15 billion worth tapering from 20 billion and they're going to reduce their bond purchases as they mentioned on Wednesday from 25 billion down to 20 billion. So overall, that's an impact change of about 10 billion. So instead of 45 billion of tapering per month, the Fed is going to be tapering by 35 or spending about 35 billion. And this obviously sent a shockwaves through the gold and silver pricing and through the industry and into the access market and after hours. This is a theme we've been discussing at length, ad nausea. And it certainly doesn't get any easier to discuss when these kinds of things happens because they seem to be contravening what is actually happening. If the market is faltering, why wouldn't you want to maintain the amount of money you're spending trying to prop up the market? But again, the prostitutes, and I use that word compliment of our friend Gerald Solante, seem to be telling you one thing with the headlines and pulling the switcher roof still behind the scenes. Inflation is out there, you know, with what's going on in Iraq, they just captured a refinery. That's going to have a big, big impact on gas at the stations. And now in Toronto, we're paying about $1.40 a liter. It's the highest it's been in a long, long time. Guess what? Get used to it. It's going to be higher and higher. We've been saying on this show for a long, long time, you could easily see $200 a barrel of oil. You could easily see $2 a liter coming up at the pump. And that's when people start getting a little upset. So to look at investments, to look at your savings, to look at your hard-earned cash, the stock market has done very, very well, but only for a very few people, like 1% up to 10% of the population. The average person hasn't made any money. With a Fed, you know, spending only $35 billion, you know, a month buying bonds and whatever, that doesn't affect the average person. It only affects banks and very, very wealthy people. So look at you, what you're investing in, gold and silver, natural fancy color diamonds, probably the safest and some of the best investments that you can make right now. And again, with our firm at Guildhall, we actually do physical only. So whether you're a coin buyer, whether you like to buy in 100 ounce bars in silver, whether you like to buy kilobars in gold, whatever you like to buy with respect to physical gold and silver, platinum and palladium, our firm is doing that for you again. It's for immediate delivery. If you're a new listener, and if you're thinking of getting into this market, it's all immediate delivery product. And again, it can be shipped, you can take it home, you can come to our office and pick it up, or it can be put into our vault, a very safe, secure, titled serial numbers, depository in Toronto. Of course, you can choose to store it elsewhere in the world, but that's our main storage facility. And of course, we're happy to bring this to all of our clients. And again, if you're listening in the US, we spend a great deal of time talking about the world's largest economy, and certainly here up in Canada, we're no stranger to it. The effects of what is happening down there. We certainly are on your side in terms of where the headlines are going versus what the real truth is. And we understand that things are not as good as they make out to be. So one of the investments that we talk about are natural, fancy color diamonds. They're also a hard asset. They make total sense for a portfolio. And again, we're online and our numbers and everything are right here for you to call. Yeah. We'll take a short break. And when we come back, he is the publisher of the Morgan reports and author of Get the Skinny on Silver Investing. David Morgan, join us right here on The Real Money Show, the number 1-877-8 Silver and TheRealMoneyShow.com. And more of The Real Money Show, the number to start investing 1-877-8 Silver online, TheRealMoneyShow.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, I'll 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 U.S. 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 then from 200, it went to 850 on the spot market. So it was a big washout, it took a couple of 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 100 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 spend just a few days with 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 near as a top and there is at the bottom. People learn 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 they're 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 what we got to the level that we saw a lot of support, which was 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. And they've basically saved him because he had a huge position. By going net short, the 26th level, when it went down into the 19s and he covered, he's very happy. Of course he was. 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 the 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 to consolidation and then we should start back up. So I truly believe from my work, everything that I do, that the cycles 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 into 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. So I think it's, you know, again, quote unquote normal, going back to just reiterates an important point at the 26th dollar level, silver, 5050 gold, that was definitely manipulation. The amount of money that was used to sell short amount of contracts 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, one thing only enough for the price to go down. It's an irrefutable fact. I don't care what anyone says. I'll go into court of law and state that all day long because it's the truth. And 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, one eight seven seven eight silver and online the real money show.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. In the first full market that I started speaking about took place, you know, 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. Sure. So, you know, 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, you know, the forces are against me. You know, if you read the war on gold and you read the amount of books I've read on gold, I mean, it's pretty ents 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, you've got ETFs and things that didn't exist in the previous full market, I fully understand that. The point being that the 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, in 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 to the $1,000 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 a 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 these spin doctors a 24-hour, longer period of time to kind of spin what you're 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, you don't want to have that voice screaming, the emperor has no clothes, because you might wake up too many people. It's a 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 any time, 1-8-7-7-8, 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... Sure it is. 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 on the silver side is it's not really in that tie to supply currently, but it sets 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 it 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 again and they 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 and I say well 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 or 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 that 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 Central Front of Canada or BMG Group or PSLV or any of these crew holding companies or the Zirah Confidence 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 full 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 you know the 2011 timeframe from you know 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 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 timeframe 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 you know change the timeline considerably I mean there is the possibility that you know 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're 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 binding everything that they can gold wise and silver wise it all stays within the country and then they're out in the market buying gold as we all know in rather generous proportions so but they want to do it in a manner as I outlined however you know with all this going on in the geopolitical front with all these wars and tensions etc it's a possibility and I wouldn't rule it out the some blacks one event took place and all of a sudden something took off and the gold or silver markets are both that you basically couldn't stop and it started to run I can't rule that out but I doubt it and I think it's the status quo is going to be sideways markets for another couple months maybe for this summer we're always starting to see them built so we're up I think 70 cents last time we checked today which is a nice new year's nice man kind of move and I think the lows 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 as getting you know looking three years out five at the most I think will be very happy being precious metals investors throughout the sector not only the physical market which I stress especially to begin with but also in the you know I consider to be the best rivet of your top tier cash rich on hedge mining companies right we got to take a short break we'll continue with David Morgan in just a minute the number to start investing one eight seven seven eight silver and the real money show calm and more of the real money show the numbers one eight seven seven eight silver the real money show calm joined now once again back with us David Morgan the publisher of the Morgan reports and the author of get the skinny on silver investing yeah David we only said Guildhall we only saw 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 is or ten or it's roll at a time or whatever but someone of you know decent means real and you know 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 outside at least one outside of your main jurisdiction so for an example someone that was living in let's say Europe to have some in Canada some and 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 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 you know 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 we believe 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 an essential part of the equation to have those serial numbers of the bars and things of that nature yes I think you know I've done several interviews and I've gotten guests on our Mastermind series for our paid members and we've explained you know the storage penundrum and it's really not well understood even unless you're really really detailed and we know we put first segregated storage with serial numbers I mean you know one of the places that I store is totally segregated I mean the gold crue grand that my three year old daughter put a scratch in his exact crue grand I'll get back as an example that's sort of a metaphor she didn't scratch it but sure I understand 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 or penny pound wise was why isn't pound foolish there we go and they do they all 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 your 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 and to a situation and you know I want to harp on this a bit longer you know I know you know 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 while they buy it to the SOV of the GLD right 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 look at it and they don't want to store it in this cumbersome and it's all those things but there is it really a 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 you're 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 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 eighty four 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's won 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 the 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 a great great person but it's more complicated than just a 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 will be the first time in recorded history of that paper trumps 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 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 what he confiscated the gold put in the treasury to back the dollar internationally right but not so 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 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 longer than they probably should but they all fluctuate against each other but in reality the whole bathtub water line is going down down down against gold on a long-term basis well that's a it's an interesting take in 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 the morgan report dot com i do specialize in precious metals with an emphasis on silver but we look 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 a money back guarantee so you know if you get in there very few that subscribe i want out but it happens and we're happy to do that sometimes it's you know 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 uh in monetary history and very few people are really acquainted with that and usually take self-study having said all that uh our record is as good as anyone's and i've probably it'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 in 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 unhenched mining companies as big money going to big companies you're not going to get instantly rich you're not going to get the ten 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 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've got a little win a lot you don't bet the farm on some rank speculation that stupidity we don't do that uh so you know we try to do our absolute best and uh what'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 we'll help you know our research helps us because we are in the market it also helps you because you get the benefit of our you know our hard work to help you make your own decisions in this what i think crucial area of investing the 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 and thank you uh to david morgan for joining us here on the real money show we'll take a break the numbers one eight seven seven eight silver the real money show dot com natural fancy colored diamonds that's what we'll cover next and back with more of the real money show the number to begin investing one eight seven seven eight silver and online the real money show dot com guys david morgan uh just echoing a lot of stuff you guys say in and out each week what do you think uh about what he had to say well the best thing about having a person like david morgan on the show is that it reiterates what we're saying it's the approach of don't believe us hear the other people out there and one thing that david is good at is really talking from the heart and he doesn't cut any corners he tells you how he sees it and what he likes the best and of course he made it clear that storage in the physical sense should have title should have bar numbers he talked about the u.s. dollar and of course the relationship to gold and silver and he just basically said look we're in a good position right now for those that are smart enough to take a step forward and get into some silver some gold in their portfolio and again it's a pleasure always having somebody like that on one of the interesting points is is that he said it's very hard to fish the bottom now he called last year the bottom of silver to his own uh readers and listeners and uh at eighteen dollars and seventeen cents silver uh we said basically the same thing i think it was eighteen twenty we thought it was a terrific buy though we haven't gone up you know crazily i mean it's only gone up a dollar and as of today it's up to two dollars in total uh that's still you know not a bad return on your investment over ten percent so you know where we are right now with what's happening in in a rock with the refinery being taken over um with what's happening in the new crane we can only see gold and silver and hard assets like natural fancy colored diamonds only increasing in value and this is a great great opportunity remember in 2011 may 2011 silver was as high as forty nine dollars today we're trading at twenty dollars and seventy cents so in in my opinion this is an unbelievable opportunity to get into the market if you believe that silver is going to go higher than forty nine dollars uh this is a great great opportunity i say it once again i want to be uh i want to be correct on something here for our listeners especially if you're a new listener our job at guildhall we're not financial planners we're not financial advisors we don't delve into portfolio management that's not our role to play we're experts in understanding the gold silver platinum palladium and natural fancy colored diamond market and to that end if you're looking for an expert in that arena we are the people we think you should be seeing Jeremy just to come back into what we were talking about with with David my takeaway was was looking at the bottom of the market i thought it was it's we always end up with these simple things that we just sort of say them out loud and and that is most people won't buy the bottom of the market we always say more people will buy silver at thirty dollars more people will buy silver at thirty at forty dollars fifty dollars than they will at twenty and that that's been true though demand has been very very high but i i feel that the takeaway was don't try to explain your frustrations don't really worry about it you know that the sky is blue you know that the u.s has troubles with with the debt and and with inflation and and and all these geopolitical issues that you know this is a great time to continue to stack continue to to build your position and silver build it with whatever you have if it's if it's buying a few coins if it's buying a couple bars if it's buying a good amount that this market is is at the bottom and you have an opportunity to continue to build that position as much as you can before it really takes off so that was really my takeaway from from what we were hearing this afternoon the interesting thing is you know i've always said it's better to be three weeks three months too early than one day too late because what happens is that for example today silver's hit a high of twenty ninety we're trading right now about 2065 you know people say well i'll wait for it to come back down to 18 it may never ever come back down to 18 there's more chance of it going up than coming down that number to start investing is one eight seven seven eight silver online the real money show.com the other thing you guys do so well is natural fancy colored diamonds yes we do how do you like that our business beside bullion is natural fantasy colored diamonds and if you go to our website guildholddiamonds.com you're going to see an unbelievable collection of fancy yellows pinks blue green diamonds red diamonds that are out there on the marketplace a guildhall we believe in buying the top quality diamonds we deal directly with cutters and polishes we don't deal with a middleman we look for certain diamonds that have certain qualifications certifications every diamond we sell comes with a gia report which is a gemology institute of america every diamond we sell comes with an independent appraisal and a ten-day money bag guarantee we're a canadian company though we sell all over the world our diamonds that we sell are of the best best quality it's very important when you're buying a natural fancy colored diamond and we have if you're interested in purchasing a diamond or even looking more into you know investing in diamonds we have an investment brochure that you can we'll be happy to email out to you which will tell you how to buy and what to look for in a natural fancy colored diamond yeah this is a definitely a very new market for a lot of people typically people have always purchased a white diamond there's very few people that have considered investing in diamonds as investment colored diamonds are extremely rare and what we do is we go one step further with a very strong criteria in every category whether it's a diamond for 15,000 or a diamond for 50 or a diamond for a million we want to find the absolute highest quality investment grade diamond in that category and these are the types of diamonds that are receiving double digit increases in value every single year so it's a great business to be a part of if you're new to it you definitely want to open your eyes to it and and think about getting involved in that market the interesting thing as well Jeremy is that you know we go by in the last 40 years natural fancy colored diamonds have never ever dropped in price and we go by auction results what the dealers are selling you know the product they're selling at the quality of product they're selling it's very very important if you go to our website you know you'll see diamonds ranging from you know twelve thousand dollars up to you know five six hundred thousand dollars and we have diamonds a lot more expensive than that but at auction you know they're setting records they're setting diamonds for 25 million 50 million this is unheard of and these are diamonds that have been in collections for maybe 30 40 years as an example you know 30 years ago you could have bought a one carat red diamond for around about thirty thousand dollars a carat today you're looking at anywhere from 1.8 million to 2.1 million less return if you can find one you know ten years ago you could have bought a vivid yellow internally flawless for around about seven thousand dollars today you're looking at 35 to 40 thousand dollars for that same diamond it's incredible the amount of interest there is and you got to look at Japan you have to look at China you have to look at India you have to look at Brazil these are new you know found wealth in a lot of these countries and they want what we have in the west and they're prepared to pay and pay dearly i just got back from Las Vegas for the jc k-show it's one of the biggest jewellery shows in the world that and in Hong Kong and we you know searched around and we actually purchased from you know maybe all the diamonds we saw are only three diamonds that met our criteria it's so important that you understand the four C's which are really really incredibly to understand first of all there's color the color is what we look for in a natural fancy color diamond the next thing is the clarity which means if we're selling yellow diamonds for example we look for internally flawless in pink diamonds it's very rare that pinks come internally flawless they normally come in vs and you'll see a lot of vs quality diamonds on our website the third thing we look for is cut cut is more it is really important because it brings out what we call in in the business fire the make of the diamond brings out unbelievable colors in that diamond and the most favorite cuts are whether it's cushion radiant pair they bring out the color in the diamonds and finally it's the size of the diamond we recommend in yellows over a carrot is where you should be participating in pink diamonds no less than a quarter of carrot because they are so rare and so small but this is a great time to get in you should look at our website guildhalldiamonds.com john why don't you give out some numbers that number that paul is talking about is one eight seven seven eight silver Jeremy tell us about this what is this new attraction or seemingly new attraction people have to these diamonds yeah I think what people really like about the color diamonds is they understand the rarity it's a very safe investment in 40 years color diamonds have never had a down year so people really like the stability of the market they love that it's a very good place to protect their wealth they don't have to worry about watching it go up and down it just comes down to the key of making sure that you buy a quality a quality stone so what we do at guildhall is we definitely aim to educate clients make sure that they know what they're buying so that they don't have to worry about did I get the right one did I get something of value most diamond buyers have that that feeling after they purchase we want to make sure that you understand that this is an absolutely highest quality that you can you can purchase and we're a member of the ncdia that's the natural color diamond association out of the us and this is a very small group of of diamond color diamond dealers and enthusiasts our job is to promote color diamonds as well as sort of self-police the market if you will we're here to protect the market as much as to help people appreciate the beauty and wonder and of course the profitability of natural fancy color diamonds well pretty much take it for for the week good job guys got to thank again David Morgan for stopping by the show being with us uh author of uh get the skinny on silver investing and the morgan report as well our listeners in Calgary and outside of uh boss and wcrn that'll wrap it for another show the number to start investing 1 8 7 7 8 silver and online at the real money show