The Real Money Show
The Real Money Show - Saturday May 24th, 2014
And welcome to another edition of The Real Money Show hosted by Guildhall Wealth Management. This is a show about the incredible potential of owning physical gold, silver, natural, fancy colored diamonds and what they can do to protect and make you money in these times. The number always to call 1-877-8-CILVER, that's 1-877-8-745-837, therealmoneyshow.com. You can check past shows there, get in contact with everybody at the firm. Darren, we'd like to start every week with the update. How was it? Well, the week that was, John. It was a good week. Gold and silver held in price-wise in about the same trading pattern as they have shown over the last couple of months. Right now, as we're taping a show on Friday, the price of gold is hovering in the 1290-1300 range. Well, silver remains fairly unchanged at 1950-1960. And both metals, although somewhat stagnant, were well supported through those price ranges throughout the week. Physical demand at our firm was very solid this week. And indications going forward is that it will remain solid. The Ukrainian situation remains very supportive of higher metals prices. There's certainly no resolution in the outcome for that situation. So we expect to see more posturing between the ongoing political powers of the U.S. and obviously the eastern countries. So that is definitely supportive. We were looking this week at retailers' profits in the U.S. And this is a big story, very important to understand where we're heading from an economic standpoint, because these are the telltale signs of recession, the ugly R-word. And the retailers' profits in the U.S. missed by the most in 13 years on the report that came out this week, which is a significant decline. Of course, they'll say it must have been the snow. But the reality is that this is a certain death spiral situation in the U.S. And Paul is going to enlighten you a little bit about some numbers there. But chains are missing projections by an average of 3.2%. There were 87 retailers or 70% of those that were tracked have already reported as of this Friday. And this is brought to us by an outfit called Retail Metrics Incorporated. And they're saying that that is the worst performance relative to estimates since the fourth quarter of 2000 when they missed by 3.3%. To take note, I did the history lesson today, went back to the year of 2000, and in fact it was a mild winter. So back then, I don't know what their excuse was, but this year they're saying it's the weather. But the reality is that, you know, over the long-term chains have typically beat by 3%. And that's not happening. So the American consumers not fully back and they remain very cautious. And what's more is the expectation that the chains are missing have been significantly lowered. So a lot of analyst projections had them well above 3, 4% in terms of total gains back in January. And some as high as 13% gains. But the reality is that most retail segments are showing profit declines with department stores, teen apparel chains, and home furnishing stores leading the way. The interesting thing Darren is, you know, we look at these figures, we look at the stories and excuses that people come up with. Home Depot never met the results they were expecting. They blamed it on the weather. You know, it didn't snow all over America. You know, there is a heat wave in, you know, Texas. I mean, they have a drought. But you know, when it's cold, you sell shovels. If it snows, you sell the snow blowers, you sell salt. You know, a couple of months ago when it was cold here, could you get ice anywhere? Not ice, but could you get salt? Everybody run out. You know, it was a premium on it. Let's look at Walmart. Walmart sells it down, they're blaming it again on the weather. Best Buy, the large electronics company, having huge, huge problems. People are not buying electronics. Hewlett Packard just announced they're laying off another 11,000 people. That tells me the economy is really great. People are going to buy computers while you land off 11,000 people. Let's look at office supply company like Staples. Again, never met the results they're looking for, closing 50 stores in the States. Let's get near it a home, you know, into Canada, into Ontario. Jacob, you know, stores for, for ladies wear, closed down. Went into receivership. Grand and toy, closed every closing, every retail store and every mall. People are not the consumers, are not spending. They are worried right now about their money, you know, can they make ends meet? They've got two, three jobs. It's tax time, you know, people are working very, very hard and not getting anywhere. If you look at the results, Wall Street is doing exceptionally well. When you can borrow money at zero, you know, and this is what's happening, the banks are borrowing at zero and they're lending it out at exorbitant rates, a business in the States. And I talk about the States because it really affects us here. If you go in and you have a business and you've got it and I have a friend who went in for a sizable loan, they're asking 14 and 15% interest. They're borrowing money at zip. No wonder they're making all types of money. Credit Suisse just got fined two and a half billion dollars for helping U.S. citizen avoid taxes in the States. Two and a half billion dollar fine. Do you know anybody that understands what two and a half billion dollars looks like in cash? It's enormous. The enormity of it is ridiculous. Disability, people and disability, I'm going to go to one more step. Disability in the States is going to run out in 2016 for virtually anybody that's on the disability. They're going to be cutting it by 20%. They're giving out more money in the States than they're collecting. You know, there's more people obviously in the country than there was when 1954 when they brought this scheme out and everybody seems to be cheating. They're going on disability because they can get $1,100 a month coming in. Not everybody is disabled but they're collecting the money. But they're running out of money. It's got to be funded somewhere. The U.S. is 17 and a half trillion dollars in debt. They're supposed to be creating jobs. If you look at who's collapsing jobs, the jobs that are being created are in, you know, McDonalds, seven, eight bucks an hour and they're trying to get the minimum wage up. And all these, you know, people have to have two, three jobs to make a living to be able to get through. One in six people in the States are on food stamps. Tell me the economy is great for everybody. Well, and I mean, the point of all of this information is simple. If you can be proactive in protecting yourself, the Canadian economy survives and thrives during periods of growth and expansion when the U.S. is also surviving and thriving. How we can be separated from that is beyond my recognition. I know that the 1% that make the wealthiest of Canadians are doing extremely well and they're continuing to do extremely well. If you look at the housing statistics, they tell us that there is a very, very huge problem in the U.S. right now. And of course, we're very concerned about what's happening in Canada, but in the U.S., if you look at it, they'll argue it was the weather, but home sales are not anywhere near what their expectations are. Despite the fact that they have historically low interest rates, people can go into banks that have a great credit, great rating and have a big whack on money to put down. They're still not getting home loans right now. So who is buying renters, speculators, the richest of the rich are adding to their portfolio in hard assets via the housing market. But if you look at that as a telltale sign of what the economy is doing, we're simply arguing that you need to be proactive. One way to be proactive, take your debt down to zero. That does not appreciate or does not attach to anything of appreciation is bad debt no matter what you do. Pay off your bills. You know, when you use your credit card, don't use it for things you can't afford to buy. Use it for things that you can afford to buy. Accumulate the air miles. It's a fantastic idea. But the reality is when you have these positions in front of you, you need to be proactive. One way to be proactive is to take a small portion of your portfolio 10 to 20% and put it in physical gold, silver, platinum, or palladium. Color diamonds are also an excellent way to diversify. And that is one way that you can do that. One eight seven seven eight silver is the number of the real money show.com Jeremy. Yeah, it's, you know, we're talking all these statistics going on in the States as pushback against the mainstream media saying that everything's okay or looking for a paltry excuse like the weather to, you know, for the fact that things aren't going the way they should. The fact is is we've been doing this since we've been at this game since 2008 trying to make excuses for the economy. And if you want to keep accepting the promises of the mainstream media, of governments to produce new jobs, it's just comfort to a fool. And this is owning gold is about having zero counterparty risk, having silvers about having zero counterparty risk, not having to deal with trust issues with other institutions, with companies where you're not sure what and half of the statistics that come out get, get re edited is inflation really at one or two percent sovereign debt. You know, the reason you don't hear about bad things going on in Canada so much is because we're printing gobs of money. And at some point that that's going to come home to roost and the Canadian taxpayer is going to pay for it because governments don't have anything to sell off other than commodities, crown land, crown corporations, and once that's gone, what's left? There was a time where they could sell off gold. Central banks have been buying gold since 2009. So there is a move towards getting some sort of asset in country's portfolios because they see how much the currencies are worth, not a lot. So you have to protect yourself or you can go along except the promises that it's just the weather when it's not. You have to stop with the promises and start looking out for yourselves and owning a hard asset which has been historically the way to protect wealth is the way to go. Well, we're not, I mean, we're not advocating as financial planners or advisors. We're merely suggesting that you take a portion of your portfolio and put it into something that historically has performed well during uncertain periods of volatility. And that's what Guildhall is all about. And I mean, to do that couldn't be simpler and to get into the market with Guildhall is a very easy thing to do. We'll take a short break. Want to get into exactly how to get your hands on some of that physical gold and silver there and the numbers one eight seven seven eight silver that is one eight seven seven eight seven four five eight three seven and the real money show dot com and more of the real money show the number one eight seven seven eight silver in the real money show dot com. Question for you, Darren. How about housing in Canada? We never talk about it. Well, John, let me be specific about this. I don't want to really tick people off. I have a lot of close friends who are in the real estate business have done very well by their clients made their clients a ton of money and been some of the best people I know working in industry. Unfortunately, in Canada, what we lack is what the US has plenty of and that's statistical data, which tells us what the mortgage market is doing, what the resale market is doing for homes and a lot of that data is very scattered in Canada. You can't get some of it, but it's not easily accessible. And right now, I mean Deutsche Bank, for example, it's a very well respected institution. They ran some headlines this past month suggesting that the house price to rent index says Canada has the most expensive housing market in the world. They estimate by their data based on historical evidence of bubbles and housing markets that it is as much as 60% overvalued. Now, obviously, that's not everywhere, but that's not to suggest that it's going to pull back 60% either. We are very open to foreign investment, which means that we are in a very unprecedented age of global liquidity and cash rich, wealthy individuals who are looking for places to park their money are finding it easy to do so in Canada and have been doing it for some time. So you have a very significant percentage of the core housing areas across Canada that are owned by non-domestic investors. That happens when their home economies spiral or falter. The first thing that happens is they liquidate their outside assets, which would put tremendous burden on the housing market here in Toronto, in Calgary, in Edmonton, of course, in Montreal to a lesser extent, but huge in Vancouver. That's really true. When I talk to my real estate sources, they say the biggest part of the real estate boom right now is foreign investment. They're happy to get their money out of their countries. They don't care if the market goes down a little bit in the market because they're just happy to have their investments somewhere else. They feel Canada is safe. In actual fact, a lot of these in Toronto, where you've got these residences and hotels, a lot of that is being bought up by foreign investors because let's be honest, no one local in Toronto, for the most part, wants the burden of those investments. But the foreign investors will definitely invest in a high-end hotel chain. It is curious, and I think to that extent, you're absolutely right, that if currencies start to falter, then they will be pulling their money out of those investments, whether by need or by want, and that could be what's already a fragile state, that you could see the market come off very quickly. So I think to add to that, because interest rates are so low, I think that there's a motivation on the part of Canadian banks to want to lend as much as possible and get the mortgages as high as possible because the interest rate is so low. I know for myself, a few years ago, when I was applying, the bank was willing to give me way more than what I was actually comfortable with in terms of a month-to-month mortgage, and they're doing that for lots of people. They really like you. No, but people are willing to accept the bank, giving them a higher mortgage. I know you own gold and silver and diamonds. No, I've heard lots of stories where people say, "I got a million-dollar mortgage. I don't know how I got a million-dollar mortgage because all I could really afford was 400." But the banks are willing to do that because the money's free. Well, maybe there is no housing bubble. I mean, I'm looking at it from a practical perspective, and I'm looking at historical data, and I'm trying to assess whether we might be in that situation. In what I see are a few very, very fine signs that were, in fact, heading in that direction. One, the gap between house prices and income is the third worst in the developed world. Canadian real estate prices have outpaced income growth for over a decade now, and historically, Canadians paid between three and four times their average annual income for a new home. But today, that figure is ballooned to about seven to eight times their annual salaries. So I was right. Yeah, you are right. Big time. You are right. And if you look at a report last summer, when we were doing the show, we talked about it, the OECD, which is the Office of Economic Control and Development. They released a report estimating that Canadian housing prices are about 30 percent higher than what their traditional historical norms were during boom periods. And that should be something of concern for Canadians. Now, number two, the gap between house prices and income is the third worst, but the gap between house prices in rent is the second largest in the world. In the rush to become a homeowner, Canadians are paying record premiums for the privilege of buying a house. And today, the average residential home sells for 27 times annual rental income. Though in most major centers like Toronto and Vancouver, this figure is well in excess of 30, maybe even 60 times rental income. So what does that mean exactly? I'm thinking of a story where I know some people bought rental properties and they're literally renting them out at a loss. Well, yes, because they are because they're expecting home values to continue to rise, in which case they're buying it for the speculation of the land and the property versus the rental income that it's generating. In the US, that's completely flipped now. What you're seeing is a growth of rental income. And it is, in fact, coming way down to the extent that that ratio is not as high as these here in Canada. That's yet another sign. The third sign is that Canadians have never been in so much debt. You have to look at it from the practical standpoint, Jeremy's right, we're being lent way too much money. And to finance these purchases, Canadians are turning to increasing amounts of debt. According to numbers compiled by Statistics Canada, household debt to disposable income hit a record 163% this year. This is approaching comparable levels to the United States in '05, right before their real estate market imploded, and Canadians appeared to be debt mad. I mean, even I know myself and Jeremy, we talk about it in the office with Paul all the time constantly. And one of the things Paul has mentored us on since we've been at the firm is getting rid of bad debt. Pay down your mortgage. Don't carry that burden because life gets a lot easier when you don't need to. One of the things I used to appreciate when Mark Carney used to talk about the economy and whatnot, he used to say, "Okay, we're not raising interest rates, but Canadians, watch out for your debt. Be careful. Try to pay it down." He used to say that every single time. So he was sort of talking out of both sides of his mouth because on the one hand he's making it very easy for people to borrow, but on the other hand he was warning to be responsible. You know, ultimately again, real estate at this point is definitely become speculative. When it comes to owning bullion, it's not about being speculative so much as it is about owning an asset that holds value. And whether or not you think the market is volatile, it is not so much about speculation as about putting your wealth into something that can't be torn away from you. Now, you know, the market's moved from $280 an ounce in 2001 or to where we are today, which is $1,300. In gold. In gold, the long term is quite pretty for gold. It's extremely undervalued today versus the debts that are out there. So for example, when gold hit its all-time high in 1980 at $850 an ounce, the debt in the U.S. was $1 trillion. Take that $850 times it by $17.5 and you'll get an idea of where gold could go based on the currencies. You know, every time you print another Canadian dollar, you print another U.S. dollar, you print another euro, you print another yen, you are now making the prices for everything else need to rise against it. Now there might be a lag between when you actually create that dough and people having to actually buy goods. But when you look at ground level, street level, people are paying 6%, 7% more this year for stuff than last year. And it might come at the rest of chicken one day and a can of tuna, the other in gas and other. But the fact is, is the prices will reflect that. McDonald's staff wanting $15 instead of $8 reflects that. And how do you protect yourself against these things is by owning an asset, not a piece of paper that depends on the banks or depends on institutions, but by owning something that has zero counterparty risk that only you can hold no one can take from you and has thousands of year history of maintaining wealth. This is why we love gold and silver so much. And we do it. We help investors by allowing them to actually physically purchase it either stored in a depository or simply take it home. Again Jeremy's points are very, very important to understand historically, and if you look at the last kind of housing setback we had in the early 90s in Canada, what did it coincide with? A major jump in the price of silver rose from was trading around $4 and it rose to $8 an ounce before the end of 1995. And that's a significant historical point to make. I can go back a further step and look at the late 70s when mortgage rates started to jump up much higher into double digits, interest rates started to jump up into double digits and again the housing markets suffered because of it and lo and behold what happened, gold and silver hit their all-time historical highs in '79, 1980. So there is a relationship that has happened and we want to remind people that it's important not to be lulled to sleep watching a market for now 36 months in the price of silver, not effectively really doing much. We kind of forget where we've been. Let's not forget that silver over the last, well since 2002, still 300 plus percent higher. Yes, it's gone up over on average 30 percent per year and gold on average up over 20 percent per year. So this is something of significance and when you're looking at these metals, remember they're not the only metals that you can invest in. The thing is as well, Darren's talking about a 20 percent increase a year on gold. I always tell the story and I'm going to tell it again this week as my daughter's granddaughters birthday in a couple of days. On every birthday I give my grandkids an ounce of gold. Nice. I've been doing this for the last eight years when gold was trading as low as 550 and we've been up as high as $1,900. But if I was to give my grandkids $500 each on their birthday, an eight-year-old would have $4,000. The ounce of gold that I give is worth 10,000. Eventually gold is going to be worth $2,000, $2,500, $5,000 an ounce. The time they get to 18, they're going to have a nice little nest egg they're taken care of. It's the same thing. If you're looking to retire, you've got kids going to university, you need to protect your wealth. And owning gold silver, platinum and palladium, and we've been talking about palladium as well for the last little while, and palladium is taken off. And the reason palladium is taken off, it's a metal that is used in catalytic converters in the auto industry, the same as platinum. There is two countries that basically manufacture or mine. One is South Africa and one is Russia. South Africa has problems right now with labor, with strikes. If you've got problems in Russia, they're not going to let go of their palladium and platinum when they've got problems going on with the Ukraine and when there's sanctions by the US to them. We've seen, we've been selling, again, palladium since it was $160 an ounce. Right now as I'm looking, it's $135 an ounce, 835 an ounce of beg your pudding. It's a terrific investment. I think you're going to see palladium hit $1,500. I think you're going to see platinum go to $2,500 in a very, very short time. We love gold and silver, we think they're both undervalued. Jeremy said earlier, you know, in 2011, gold hit 1900 and change. Silver was at $49, we're trading at $19. Anybody out there that thinks that it's not going to go up, don't even listen to the show, turn it off. This show is not for you. This show is for people that understand what's happening in the marketplace. Not everybody can afford gold, silver, platinum, platinum, and even natural fancy color diamonds, but they have a little bit of money. If you have a little bit of money, make a start. Put $500 a month in, $300 a month in, and get started. If you want to open an account with us, you can buy a physical product, you can take it home, you can open a depository account for a little as 200 ounces of silver, 10 ounces of gold. We can put it in the depository that is safe, secure, it's allocated. We can even segregate it. We can title the bars to you with numbers. We'll take a short break. The number one, eight, seven, seven, eight, silver, one, eight, seven, seven, eight, seven, four, five, eight, three, seven, the real money show.com to start investing right now. The other half of the show, we love natural, fancy color diamonds. Lots more of that coming up on the Real Money Show. And back with more of the Real Money Show, the number to contact, start investing one, eight, seven, seven, eight, silver, and the real money show.com. You've been saying this a long time, Darren, really, there is no substitute for hard assets, physical gold and silver, is there? Well, you can definitely go out and get some paper, if you like, and you can try a stock, you can do all those things. But for me, it's physical, and that's the number one way I would suggest you invest. If you are looking to buy gold and silver, Jeremy touched on it earlier, it's a matter of not being a liability of anybody else. I'll never wake up during the day and find out that somebody embezzled $50,000 out of the company, and even know it's a blue chip stock. The company's stock just took a nose dive, and they're backed by gold. Well, the reality is, it's nobody else's liability when you're holding a physical bar in your hand, or if it's in the depository, and that's the beautiful thing about it. It is safe. Like Paul said, it's secure, and when you can get your titles to your title to your name on that product and the serial numbers, it's second to none. That's a top tier depository. Because we're talking about physical products, you know, you take a hundred ounce bar, it has a serial number on it. If you buy a thousand ounces of silver, that's 10, 100 ounce bars, and you would like that to put in the depository, you want it segregated and allocated, you would like the bar numbers. If you want to see those bars, and Jeremy was at the depository yesterday with a client, if you want to actually see your product, they will bring that, as long as we give them 24 hours notice, they will bring that product out and show you your bars and you can check. You've had customers who have 10,000 ounces of silver come to the depository and they bring it out on a skid, and you know, this was a little while ago, we had a lady, she went through every single bar checking off the numbers against her receipt that we gave her to make sure that those were her bars. We don't touch it. It's segregated, it's allocated, it's insured with Lloyd's in London. There's no better way to hold gold and silver or platinum and platinum and platinum. Some people like to keep it at home. It's good for some people, but there is a problem. In markets the rise go up and down and one time or another you are going to want to sell your gold or silver. Whether you want to sell a portion, you want to take some profit off the table, you want to go on a trip, whatever you want to do, you want to be able to sell it. At home, you've got to take it, you've got to take it to somebody who's going to buy it, probably bring it back to us or go to a bank, go to a coin dealer. But by having Guildhall, you can make a phone call, you can sell it out of the depository on a phone call, you can pick up your check the next day. That's the beauty of storing precious metals with Guildhall. And to add to that, you might be saying, "Well, it's fine. I have no problem, I'm a big guy, I have no problem hauling out 3,000oz out of my basement except when you're in Jamaica on your Christmas vacation and you have zero access to your home at that time and the market's doing something." Now I remember owning some Uranium stocks and the Fukushima thing event and even then, I was a bit lazy to do something about the stocks because clearly everything was going to be falling in that category but at least it was easy to just push a button but we're talking about owning your physical bullion, having access to your physical bullion and then having the logistics to actually be able to sell it when the time comes. We have people just pick up the phone, they call, client picks up the phone, they buy as well, simple, we book the price and then you send the funds. So Guildhall isn't about just securing physical bullion, it's about allowing for the liquidity in and out of the market at the same time. One, eight, seven, seven, eight, Silver and TheRealMoneyShow.com, let's talk about diamonds guys, love this, love this. Absolutely, absolutely. First of all, I'd like to congratulate all the people that came out to our seminar on Thursday evening, it was a great success, it was a great time had, it was very informative, Jeremy did the presentation, he did an excellent, excellent job, myself, Nicole Darren and Steven were there to help our clients answer questions and it was really, really great. I just want to give you a quick example, one of the questions that came up was about owning real estate, how easy is it to sell diamonds versus real estate? Well, real estate is, most people know about it, they own a home, they might have a second home that they're renting out. We showed a diamond that was actually purchased in 2011 with an appraisal. Now this was a 1.75 Vivid, internally full as yellow diamond. It was appraised at 125,000 in 2011, I think it was May 2011. The following year it was appraised again for 145,000 dollars. Last year, the same diamond was appraised for 175,000 dollars, it's up on our website right now for about 104,000 dollars, it's a magnificent diamond. But I had the appraisal redone, dated May 20th, the diamond is now 225,000 dollars. So in a three year period, that diamond has gone up 100,000 dollars from 125,000 to 225,000 appraised value. That's only in a three year period on a vivid, internally full as. Now if you've got real estate, it's great. You've got a house, you've got a condo, whatever money you put down, whether you put down 50,000 or 100,000 on it, you're still carrying a mortgage, whether you're renting it, you're paying taxes, you've paid legal fees, you've paid land transfer fees, you may have a tenant that's not paying the rent, you've got problems with a dishwasher or you got problems with a plunger and you're running around worrying whether your tenant's going to pay you the rent on time every month. A natural fancy colored diamond is probably one of the best kept secrets. The type of product that we sell, the diamonds that we sell are of the highest quality. They're investment grade, they tend to double every four or five years. Some of the diamonds, Argyle pinks are doubling every three years. Blue diamonds, vivid, internally flawless, for example, are doubling every two years. Red diamonds, which is the top of the class, the cream of the cream, they're doubling almost every year. So this is an investment that is appreciating. If we look at the auctions, we're seeing unbelievable amounts fetching for diamonds, but not everybody has got $25 million. Not everybody's got $80 million, which some of these diamonds are going for. But remember, the diamonds that are going for $80 million weren't purchased for $80 million. Some of these diamonds were purchased maybe for a million and selling for 80 million, but they've been held for 30, 40 years. The big diamonds are not available anymore, the 100 carat diamonds and the 25 carat blues. We're not seeing those diamonds coming out of the mines today. They're smaller diamonds, but they're extremely rare. What we have is countries like China, India, Brazil, Russia, Japan, all wanting to own these natural fancy color diamonds. It's for a reason because they are so rare, they are so beautiful and they are appreciating at an unbelievable rate. Everybody wants to own an asset that they can protect themselves against currencies that are being devalued. Your wealth is being confiscated when countries print money, whether it's the US, whether it's Canada, whether it's Japan, whether it's Great Britain, they are printing. And once they're printing, they're confiscating your wealth. That's why you're seeing diamonds appreciate at an unbelievable rate, as well as they are so beautiful that they are required and needed and wanted. Anyone number, one eight seven seven eight silver and the real money show.com Jeremy. It is important to buy quality. And I think that in a world where currencies are being debased, banks aren't trusting each other country to country is suspect in terms of trust, especially with all the NSA issues that are out there. And there is a need for trust and you can trust in quality. And I think that's why people, whether it's individuals or groups getting together to purchase multi multi million dollars worth of a single diamond, they're doing that because they understand the rarity, they understand that these markets continue to move up that over the last several decades, there's been zero volatility in natural fancy colored diamonds because they're rare. You wouldn't say, Oh, Van Gogh paintings. Well, the the self portraits have been quite volatile over the last 20 years. It just doesn't happen like that. They only go in one direction because he only painted so much just as there's only so many vivid internally flawless yellows out there. So when we try to go and purchase one, it's always difficult. We always have to really, really seek out or just wait till one comes around. And when it does, it's usually much higher. Every year there's an Argyle tender and every year, the few that get to bid on it are willing to overbid much more than they did last year just to get one because they know if they don't overbid, they won't get it because it's because it's decreasing. Yeah, you know, it's the last cookie in the cookie jar mentality. There's only so many of these type of diamonds. There's lots of colored diamonds out there, but there's only so many of certain quality that are going to reach what they call investment grade. So at Guildhall, that's what we focus on. Only investment grade natural fancy colored diamonds is why we only have 30 or so diamonds at a time on the site because as we're getting them, we're selling them and it's it's difficult to keep an inventory. So for example, pink diamonds ranging from 25,000 to 35,000 usually don't stick around very long because people know they're in demand. But we stick with high quality, we stick with transparency. We believe in the market in terms of what these assets can do. And we want to take it to the next level by not only being transparent and being the company that you trust, we want to help people build collections. I would say over 50% of our clients end up actually owning more than one diamond because they come to love the market and what it's accomplished over the last 40 years specifically since they've been keeping records, but they understand they see that these appraisals are going to continue to move up trying to replace the diamonds is going to get tougher. The prices are going to keep moving up. So it's a very easy, safe investment. How's that for game plan? You get in there, I go see go haul, get your first diamond 15, 20 grand. Can you step up over the years, get into maybe a pink, get into maybe a blue eventually, maybe a red. Do people do that? Yeah, I had a client two weeks ago. He has a pink diamond, a blue green, but he started with an intense yellow, one carrot intense yellow. And he was looking at, well, what do I do? Do I buy another yellow? Do I buy a vivid? He elected to just put in another 20, 25,000 and move up from the intense up to the vivid. And so we took back the intense and helped him move up. And we were more than happy to get back that intense because actually that's the one area that we're really having a tough time keeping around or even finding. And that's the intense yellows at this time. So we were happy to get that back and so it was a great deal. He moved up to a vivid, which are even more rare than the intense. Why are they still tough, Paul? Because what we look for is the, first of all, the diamond has to meet all of our certification and classifications and criteria that we're looking for. The color is the most important, the clarity in yellows we look for internally flawless. In the Argyle pinks, we have VS2, VS1, which are the best quality. There's a lot of pink Argyles out there, the SI1, SI2, I1, I2. They are great diamonds. I wouldn't call them such an investment diamond. They will appreciate in value, but they're not an investment grade. Whereas an investment grade tends to go up 20, 25, 30% a year. If you're buying an SI1, SI2 in a very light color, it's going to appreciate, but it's not going to go up as quick. So it's really important, you know, when we sell a diamond, every diamond that I buy, I know sometime down the road I'm going to get it back. There's a lot of people that sell colored diamonds, they're not interested in getting the diamonds back. They say, "Well, we sell diamonds, we're not interested in buying them back." I know that somewhere down the road, I'm going to get a percentage of my diamonds back. I'm happy to get them back. We will resell them for you. 80%. Think of it in this way, 80% of all the diamonds mine end up being industrially used. So those are no good for investment there on cutting wheels. They're used for mining projects and really don't see the light of day for investors. Of the 20% that we would consider wearable, 1% would be graded by the GAA in New York or elsewhere as what they call fancy colored. Of that 1%, 1% of those would be in the category of what we post on our website, which in yellows is internally flawless. So when you're asking the question about why does this happen or why are they like this, rarity is the key. It means everything in this world and in yellows, pinks, and then stepping up from pinks to blues and even reds, you are talking about a commodity which is not readily available for everybody that wants it. Yes, there is a cost prohibitive feature of investment in colored diamonds. They do start for our firm and these diamonds at around $13,000, $14,000 and go up from there. But for those that are in the market for that type of investment, it's a common sense way to protect wealth. It has been historically very good during volatile periods. The average gains priced out over the last 40 years have been very stable and consistent and they make for a good asset in terms of wearability and luxury and a lot of other things that are nice about owning something. You can't really say the same thing about a big hunk of 1,000-ounce bar or silver that weighs 65 pounds. You're not going to put that on your finger and wear it out. So this is another reason why colored diamonds are beautiful. We'll take our final break, the number 1-877-8-Silver, 1-877-8-745-837, the realmoneyshow.com. One more seven, coming up, stick around. And back with the real money show, the contact numbers are 1-877-8-Silver. That's 1-877-8-745-837, start investing. And guildhallwealth.com is the website you want to go to Jeremy, you got a big smile on your face. Yeah, because it's my update section. I get to do some updates, Darren gets the front end and I'll take the last section to do some updates. First, anyone interested in learning more about Palladium, we had an article published. Darren wrote it on Palladium in PalladiumInvestingNews.com. And speaking of websites, it just dawned on me that we haven't discussed the fact that Guildhall relaunched the Guildhall wealth site several weeks ago. So if you haven't seen the new revamp of the site, please check that out at Guildhallwealth.com. And some new... We've also got news, we've got any commerce site coming up. Yes, just to help people purchase their physical bullion a bit easier. And next week, we are going to the JCK show in Las Vegas. This is something that we always talk about on the radio show before and after. And we're getting a lot of updates to see what's happening in the industry already. But we're looking forward to... That's the biggest jewelry show in Las Vegas, just in case people don't know what JCK is. Yeah, we're looking forward to seeing friends, finding out what some of the trends are in the market. And one prediction I have is that prices are going to be up all around and hopefully we'll be able to find something and be able to bring you some new news on that. So we're excited to do that. And just before we go, I actually purchased a diamond which I believe is going up on the website this week. It's a .26 fancy blue green, which is an exceptional color. It's a VS2, it's a radiant cut, it's a beautiful, beautiful diamond. It's just got a praise for $25,150. As somebody that wants to get into the market, to start a collection, it's on for $15,000. It will be, as I said, be put up on the website next week. But anybody that wants to call, wants to see it, wants to come and have an appointment to view it, it is just the most gorgeous little stone. It's a .26, as I said, it is a radiant cut, the fire, the scintillation, just the color of the stone is just magnificent, and it's a beautiful starter stone to get in and start a collection. And one of the things that we like to talk about and help our clients understand is that we have a firm belief, it's part of our mission that an educated client is a better investor and they end up doing a lot better because they are educated. It's an empowerment. And one of the things that we do, I started back in 2005 with something called the Precious Metals Advisor. It's a weekly update back then, it was a weekly update, now we're doing it once a month. And basically, this particular newsletter is free of charge to anybody that wishes to have it for the first year. 12 months, you'll get it free of charge. And of course, if you become a client of the firm, this is something that will be given to you in addition to all of the professional expert opinions that you get with our panel. Now that's one way to get educated about Precious Metals. The other is to go to our new website, Jeremy Just told you, it's guildhallwealth.com. And you can use a multitude of different clickable links to educate yourself about the ownership of gold and silver. And of course, you can ask us for anything you need in terms of feedback on color diamonds. Of course, at our office, we have the queen of color diamonds, Nicole Snittman. And she is a world renowned expert and grading expert in color diamonds. And of course, the other thing I wanted to point out is that when we're talking about color diamonds and we're telling you, you know, Precious Metals are super liquid. You can call, sell on a phone call very quickly. We want you to also know that the selling process for color diamonds, although not as liquid as gold and silver, is every bit as easy in terms of getting there. When it comes time to sell your colored stone, whether you've held it for 5, 10, 15, 20 years, you give our firm a call, we're going to engage with you in a brief understanding of where the diamond has gone. Get the diamond reappraised so we know what the value is of that diamond and what to ask. We may set a minimum. You may have an idea in your mind what is the bare minimum you're willing to take for that diamond. And then of course, we'll get a contract signed in for the next six months. We'll have the exclusive rights to market and sell that diamond. Now, it's never taken us more than six months to sell a diamond, but we do it because it's just a way to make sure that we are able to properly market that diamond for you. And an example is that if you bring back a pink, let's say, for example, we may want to geo target particular parts of the world and we may want to get out to people and put our feelers out with our crowds and let's say Japan or other areas of the Asian community that might be more interested in that particular type. For example, pear, pinks, pear shaped diamonds, the Japanese market loves these types of diamonds. So that's important thing to note too. But the selling process is extremely easy, just as easy as the buying process. It's ironic that that's sort of the number one question is how do I sell a colored diamond when the majority of people that buy them never want to sell them. If you had a stock that continued to move up, you'd have a tough time selling it. If you owned property that kept moving up, you'd have a tough time selling it. And it's the same thing with natural fancy colored diamonds. We always see many more buyers than sellers. So we're not worried about reselling a diamond if and when that time comes for you. But the majority of people really want to hold on to that diamond. The reason people ask that question is because they're new to the market and they want to have that exit strategy before they get in. But once they're in, why would you want to sell after three years seeing, we talked about this yellow diamond before that's moved up from an appraise basically buying it at market value for 70 today, you'd be buying it for 125, three, four years later. Why would you want to get off the train that's still moving? So once you're in the market and you get a couple of years under your belt and you see the type of appraisals and you start to really appreciate the market and understand the market more, you don't look to sell, you look to continue to buy more. So it's an interesting market like that. Once you get your feet wet, you really plunge in and we find that more than 50% of our clients purchase more diamonds after the first. And I was just talking about one earlier who's now trying to move up from and improve his collection by moving up from an intense to a vivid. So it's a wonderful market. It's great to ask the question, how do you sell? Obviously, we're offering that because it's not easy to procure these diamonds. So it's great if someone does want to come back and we get to put up an intense internally flawless or a vivid internally flawless or a pink Argyll 0.35, it'd be great to put that back up on our website. And of course, we're happy to sell it because we know the diamond well. We don't want to sell other people's diamonds that purchased it somewhere else. We don't want to take on someone else, some other company's burden. We're happy. We don't consider it a burden for our clients. The beauty about it as well is that we've always going to have inventory because the type of diamonds that we purchase and sell, we're always going to be able to resell. So sometimes we get a client coming in and they're looking for a certain diamond, a certain color, a certain cut. You know, I can reach out to a couple of different clients to say, are you interested in selling that diamond at a profit? And we've always going to have inventory where other people struggle. I have a collection of my own diamonds that I occasionally put a couple of my own diamonds up because I'm always buying something new myself. This is a business for us that is a terrific business. We're getting clients, they're making money in the market, their product is appreciating. As Jeremy said in one of the earlier segments, in 40 years since they've been keeping records, natural fancy colored diamonds have never dropped in price. In actual fact, they double every, on average, every four to five years. That's not a bad return for anybody we're making 20% a year. So give us a call, go to guildhalldiamers.com, go to our bullion website guildhallwealth.com. I don't want to bombard you with all these different websites. But if you're interested in opening an account, you can call us. We will hold your hand through the whole process. Whether you want to buy gold and silver, take it home. Whether you want to open a depository account. We're happy to oblige, we're happy to look after you. Darren's precious metal advisor, if you want to get on our mailing list, we're happy to send that advisor out to you. It's not only tells you what's happening in the market, there's other articles from other writers, other people that write interesting blogs, as well as talk about natural fancy colored diamonds. So we try to put our arms around the whole thing and let you know what's happening in the market. One, eight, seven, seven, eight, silver is the number that Paul's talking about in the real money show.com and guildhallwealth.com as well. Darren, take us home. Well, very interesting that you should say, let's go to the recap, John, because as we're sitting in the office, what flashed across the screen this morning, Stats Canada is acknowledging that there is a two percent inflation rate at street level. So we know if Stats Canada is telling us in Canada that inflation is two percent, the street level, the street levels is much higher than that. So most likely, if you go to a website called shadowstats.com, this is John Williams website. He's well, well known in the community of analyses. And this is a gentleman who will tell you exactly how inflation is going in the U.S. and in Canada. And that street rate, right now the anticipated level of inflation is actually closer to five percent. So this is where we're at. And again, this week we looked at a couple of situations. I mean, the Ukrainian situation has kind of died down somewhat, but still there. There's been no resolution and real news headlines are a little bit more scarce, but still developed down. I mean, yesterday, 11 soldiers were killed. Yeah, but headlines have died down. Well, they had lines that are behind everything. They go behind everything. Right. Right. So I mean, it's become nothing. You don't hear of anything that's going on in Syria. I mean, it's just pushed to the back. There is a lot of problems in the world. And yet all we hear is our wonderful, the economy is in the U.S., our wonderful economy is it's better than anywhere in the world. Great. Go into gold, silver, natural, fantasy, caledimas protect your capital is could be one of the smartest things you do, not only for yourself, but for your family. We discussed also to the lack of retail sales. Retailers are having a real heck of a time in the U.S. and this is really important to note because if you look across the border up here at home, chains like Sears, these are synonymous names with decades of history going out of business. People are being laid off at the big box stores and we have a huge gap in the amount of entrepreneurialism that's actually happening here in Canada. So all signs that point towards something bubbling. I can't say what it is, but I wouldn't want to wait for that to happen. I want to look at alternative ways to protect myself now and the wealth that I have amassed and the wealth that I have accumulated, I know you've worked hard for it. I know the people listening work hard for that extra dollar. There are smarter ways to protect it than to just put it in the bank and let it sit there and cash making nothing for you. People know, I speak to people all the time and they know they have a head on their shoulders. They realize that there's very little choice out there in terms of being able to have a safe place to invest. They know that they have to push them, they're being pushed into the stock market. If you're not getting any interest rate in your savings account, then you have no choice but to go out into the world, take some risks to try to make your 8%, 10% to beat inflation every year. We want clients and people who and Canadians, particular to look at their portfolio, take some time to understand the story of gold and silver and to realize that the fundamentals around this story are so strong for the market to be moving way, way higher from here that you see today's prices as nothing but extreme value. This is the time to look at the market. You don't want the price to educate you. You don't want the price to be at $45, $45 an ounce on silver to feel like you're now educated in the market. You have to be educated on the fundamentals, not the price. Well, that's why it's better to be, whether it's two weeks, three weeks too early than one day too late. What happens in these markets, all of a sudden you'll see gold and silver jump up and people say, "Well, I'll wait for it to come off," and guess what? It doesn't come off, it keeps on going up. You want to get in now, you need to call us. The number one eight seven seven eight silver, that's one eight seven seven eight seven four five eight three seven. The real money show.com and guildhallwealth.com is up and running. And look forward to the next couple of weeks. We're going to make an announcement about some of the analysts that we're going to be bringing under the show. We have Gerald Solente coming up on June the seventh. Love him. We're going to be adding some different stations across Canada. We'll be making those announcements and we're very excited about that. And a happy second birthday to my little guy at home for this weekend. So what about Jeremy's birthday on the weekend? That's right. Happy birthday, Jerry. My son's birthday. How old are you, Jeremy? Twelve. Right. I'm 25 all over again. Pretty good investor for twelve. That's twelve. And that'll wrap it for another week. The contact number once again, one eight seven seven eight silver, one eight seven seven eight seven four five eight three seven and the real money show.com and guildhallwealth.com. What if you can have a streaming service that added new shows and movies every day, 365 days a year, tune in on Monday and watch traumas like Fight Night, The Million Dollar Heist, Tuesday watch reality shows like Top Chef Canada and Wednesday enjoy comedies like Ted and it just keeps going and going every single day. No matter when you tune in, there's always new entertainment for you to discover. Stack TV, new shows streaming every day. Try it free, applicable membership required, restrictions apply.