The Real Money Show
The Real Money Show - April 5th, 2014
The Real Money Show with Guildhall Wealth Management and John Scholes from Saturday, April 5th, 2014.
and welcome to the real money show hosted by guild hall wealth management. This is a show about the incredible potential of owning physical gold, silver and natural fancy colored diamonds and what they could do to protect and make you money and turbulent markets in studio today. We have Jeremy Wiseman vice president senior analyst Darren Long one reminds you when you go on to the website therealmoneyshow.com you should be downloading and signing up for the precious metals advisor. Good advice guys the weekly updates. How are things Darren? We'll go to you. John it's a good week. Gold and silver held steady right now trading in a range of 1290 and silver trading in a range just below $20 an ounce. This week was good for metals both covered in the same range as week over week. Gold made a little bit of a bounce late in the week around Wednesday afternoon. It climbed in London and it was the first rise in three days. So we had a little front end weakness and people did take advantage of it. We put oh gosh by by Wednesday of this week. We had put well over our normal weekly numbers in silver alone in total trade. So it was a good week. Congratulations to those that took advantage of the small dip. It was very short lived. But back to the consolidation range for both metals. Now the it's believed anyways from analyst I spoke to during the week that the seven week low we saw earlier this week is going to continue to lead to renewed physical buying in China. Now remember China was last year's largest gold buyer and this year alone is already on course to surpass last year's record demand. So although it's only the fourth month of the year we've seen the first quarter come and go. We want to stay tuned for the results of the quarterly updates from all the business world and of course we'll bring that to you here. But China was a huge buyer last year the world's largest of course and they surpassed India for the first time. And year over year by this time last year China is now ahead in their totals for 2014. So that bolded well for the long term and it does give us some inclination as to what China is expecting for the year ahead. They wouldn't be buying gold unless they felt it was there to protect their wealth was there to ensure what they've already made. And when you look at the Chinese economy they say that there is an average of one million millionaires being made I believe it's every week. There are one million new millionaires so very very indicative of what to expect in the coming months and this can do nothing but support gold a hundred percent. In addition to that there is also the continued talk of the strain relations between the US and Ukraine and obviously the rest of the world has an interest in this situation. It has been alleged that there is some activity on the borders of all countries. Again not to get into that suffice to say that is going to continue supporting gold at these ranges. It certainly is looking a little bit tensor than it was one week ago and of course some of the buying was basically done because of the geopolitical instability and some of the selling likewise will happen because tensions soften between the two countries. But that is exactly what we can we can expect in the coming months that will support the price of gold. Yeah gold and silver are trying to catch a bid. There's no doubt about that. There's a lot of people on the sidelines. The physical demand is intense. It's very strong and we're going to get into that in just a minute. I just wanted to touch upon what you were saying earlier Darren about all the wealth that's being created in Asia and I think that when we looked at the last major bull market in 1980 there was three billion people on the planet today were north of six billion and there's a lot more people involved in the market. A lot more computers involved in the market being able to buy and trade bullion which wasn't available before. So if the spike up in 1980 for silver for example from eight dollars to fifty was massive. Thirty two hundred percent. Yeah imagine what can happen in an age where there's twice the population three times less silver above ground and the speed at which you can get into the market. I think that this alone creates when you when you put that into perspective you can say there that reason alone you can see the immense opportunity. It blows my mind as an investor every time we think about that because that's approximately 1.3 billion Chinese population that didn't have their hands dipping into the gold market back then who now have the potential to own it or or India or Russia. The whole Eastern Eastern European region. So there was a lot of people not involved even with the less population at the time. So you're going to have when we when we talked about inflation being you know more money chasing less goods you've got more people chasing less goods. So I think that you know we want to always keep that perspective and that you can kind of see yeah people are frustrated there's been a bear market in bullion for the last couple years but there isn't underpinning of the mining prices there is the underpinning of demand and it's just it's it really is just a matter of time before some black swan event happens or there it's just a matter of time before people say you know what that's it I'm getting in. We don't see it as much in North America you still see it just in the wealthy population people who are looking and saying I want to protect what I do have but that mania isn't there yet. Well no I was gonna say Jeremy picked up on a key point these markets are event driven although we have long been fans of the fundamental reasons to own gold and silver it is clear from at least the four cycles that have occurred since 2002 that these markets definitely take off when there is an event that drives them higher. One eight seven seven two one four seventeen eleven the website the real money show dot com what's the petrol dollar. Well yeah there's a lot of news out there John it's a good point. On the basis of what we were talking about earlier regarding geopolitical instability there's some fear out there that there could be less demand for the US dollar and the petrol dollar is basically the dollar that is the reserve currency the US dollar and is used to trade oil. Now we know that in the natural gas market Russia happens to be a very large player. They more recently have strengthened ties with China regarding their relationships and natural gas and whatnot and this does serve as a way to forecast what we may see in the near future. Now gold is very sensitive to changes in the US dollar and somebody as big as Russia and China having getting together and having a new design for a way to pay in their own currencies as opposed to using the US dollar to pay for things like natural gas and oil. That's a pretty huge event that's something that would make these markets rock and roll and one of the fears I have is that we don't know to what extent currency wars are being played behind the scenes. We know that the value of currency is dropping during this economic crisis and we know that it has dropped. We can't buy the same as we did four or five years ago with that one dollar bill but the fact still remains. Most of the impact is being felt internationally and if you're a domestic person using your dollar here at home you're just going out and using that one dollar. You're not really equating it to the big picture but the truth is we're getting less and less value. So one of my fears is that in retaliation to the sanctions that could be placed on Russia regarding the situation with Ukraine we could see a lot more gold bullion being used by a country like Russia. They're a huge buyer already and it's evidence to suggest their central bank is buying. If I know this in advance and I'm a gold investor or a silver investor this is the Black Swan thing that Jeremy is just referring to. That is an event that would drive this a lot higher so pay attention a week to come because we'll be talking more about it. We're looking at Black Swan events or currency wars. There's a reason countries around the globe have their central banks have been buying gold. They don't know what's going to happen. They don't know where it's going to happen or what's going to happen. They just see that the situation is very fragile and potentially explosive in terms of currencies devaluing or there's geopolitical unrest in the world. They're starting to back up and hedge themselves by owning gold. The reason they're doing that is because gold has no counterparty risk. It's been the center of a country's sovereignty for decades upon decades. It's where you go to be safe. If you're not sure what's going to happen you want to be in gold as a safety hedge. It's one of the reasons why China has been so strong in buying gold. They have a lot of US dollars and of course they don't want the US dollar to drop. They're holding billions and billions of it. But if anything were to happen there's the gold. We've put our wealth into something that's secure. This is why everyone should be looking to own gold and silver in their portfolio because you don't know what's going to happen. You don't know if the stock market's going to collapse tomorrow. Have you taken your profits? Have you made profits since 2008? You've got to start to look for some alternatives here and you would never own a house without insurance. You'd never own a car without insurance. We were just talking about a car accident before. You don't know if things are going to happen. So you have to have that insurance and that's what hard assets do. 1-877-214-1711, the website, TheRealMoneyShow.com. Isn't history repeating itself really, Darren? Well, it is. In a sense, John, that we're getting to this point at where there's a lot of very, very astute investors at the institutional level who are telling us that assets like gold and silver might not be the best way to hedge your portfolio. Well, if we look back at the last 40 years of history, one thing we learned for sure is that gold and silver are the most negatively correlated assets when it comes to stocks, bonds, and cash. What we typically thought was a balanced portfolio was not a balanced portfolio. So if we look back at the last bull market we saw in the 1970s, in fact, about halfway through the 1970s, the gold price fell down from about $250 an ounce down to $108. Imagine back to that time when the value of a dollar was a lot more, when the average price of a home was under $50,000 and when if you had a couple of $10,000 in the bank, you were pretty well off. The fact is that the price of gold would have motivated a huge percentage of investors to walk away. They would have been devastated, margined out, whether they owned it and sold off at a loss, they would have walked away. And the reality is gold managed from 1976 to January of 1980 to rise 850%. So it ran all the way up to 850 an ounce from $104 and imagine if you're standing on the sidelines watching that happen. But, Darren, I want to go a little deeper into history because if you would have bought gold in 1971 at $35 an ounce, you would have bought it for this one reason alone. Nixon had just lifted the gold standard. The US dollar was free to do whatever it wanted and you said, whoa, whoa, there's a reason that there was a gold standard to have to do with discipline of money and discipline of wealth. I'm buying gold then. And I'm going to take advantage of the low price as it is. So when the market did collapse in '76 from 250 or whatever down to $100, you could handle it. You could say, you know what? I'm still confident in my decision making that I did in '71 because it made sense then and it makes sense today if we're sitting in 1976. And yes, it took another four years to make your money. But what's 10 years to make 1,000% is what it eventually moved up or plus. So you have to look back to the fundamentals and say, why do you own it in the first place? So any analyst who's sitting back and saying, at least from my point of view, that saying gold is a relic, no value in it, things like that, I simply think about my own holdings. I think about the reasons why I own gold and I own it to sleep better at night and not worry about the stock market and not worry about other types of investments going sour or whatnot. And I know it's a hedge. So I'm comfortable. I sleep at night knowing that I have that. And I imagine the central banks around the world are doing the same. So what I think is really obvious when you listen to guys like us, other people that are talking the same way about the assets of gold and silver is to figure out, how do I minimize the paper risk I have by adding physical assets to the portfolio? When you're dealing with Guildhall, it's very simple. To open up an account, you just have to walk through the door. And to do that, you simply make a phone call. We give out the numbers throughout the show and adding physical, hard, tangible bars of gold or silver is super easy. You can take it home with you. You can store it with us and you can even use collateral financing to get a boost on your money. Using the concept of other people's money is not for everyone. There's risk involved in all investments. But when we come back in the second segment, we'll outline an example, tell you what you stand to make if you're putting your money into the market and the market moves up. And ultimately, having these assets is as easy as drinking a cup of coffee. I love coffee. One, eight, seven, seven, two, one, four, 17, 11, the website, TheRealMoneyShow.com. Reminder, there's old shows, current shows up on the website. You can listen to those. You can make comments. You can email questions, which we'll take on in future shows as well. Sign up for the Precious Metals Advisor. More of The Real Money Show coming up. And back with more The Real Money Show, Guildhall Wealth Management. Your host and a number to call is 1-877-214-1711. The website is TheRealMoneyShow.com. To get started, how to invest, pick up the Precious Metals Advisor, and you can listen to old shows, comments, and emails, which the guys will answer throughout the series of shows. Guys, let's get back into how we simply open an account and get rocking with some silver and gold. We promise we would. Jeremy? Well, I just wanted to quickly say that we've designed all the different types of ways to get into the market to match the type of investors. So if you're very new to the market and you want to make it a very easy transaction, as we were saying before the break, just like drinking coffee or making coffee, you simply just pick up the phone, give us a call. We'll give you the rate on bullion, and you can pick it up and store it wherever you like. Once you get to a certain level where you're, it's what we like to say is if you can't carry it home with you, because it's too heavy, now you've got to start thinking about storage. And that's where the depository comes in. And we'll get into a little more detail on that. But essentially, we want to make sure that our Canadian listeners have a place to store their physical bullion, where it's safe, secure, it's allocated. You're getting all the assurances that you need to be safe with your investment. And then once you get to a level where you say, okay, I've got 10, 15, 20% invested in physical hard assets, I want to start to take advantage of the market. You could look at collateralized financing and take advantage of other people's money as another option that we have. When you're storing your metal, John, you're going to hear a lot about the way that Guildhall does it. The way that we do it is world class. And it can't be debated in terms of the all of the storage facilities around the world. There are shortcomings with pretty much all of them. If you're listening and your bullion doesn't include title or the ability to have serial numbers in your own depository, where you store your physical bullion, I would say, run, don't walk, to get it out of there and move it over to a place like Guildhall. But with respect to getting into the account, it's so easy. I mean, aside from some paperwork and understanding what you might gain from investing in here and listening to the show, the actual asset itself is physical. A bar, a hundred ounce bar of silver weighs about six and a half pounds. I never ever meet a person who isn't completely taken aback by how dense silver is and how much it weighs. Same with gold and a hundred ounces and a hundred ounces. But the reality is, when you're storing bullion, you want to start with the minimums. Silver minimum is 250 ounces or more. If you're starting with gold, it's 10 ounces or more. So to get an account open, you're starting with silver. And let's say you want to do, as an example, we opened up an account yesterday, it's a thousand ounces. A thousand ounces in the bullion depository would be roughly $24,000. And that's the starting point you own and have title, if you wish, and serial numbers, if you'd like, to the hundred ounce bars that you're putting in there, 10, 100 ounce bars, you may want to break it up and have some 10 ounce bars. You may even want to have a thousand ounce bars. It's really up to you as a client, generally speaking, the larger the bar, the lower the premiums between bid and ask. So you want to keep that in mind. With gold, again, 10 ounces is the minimum. And if you take it a step further and you want to apply the concept of other people's money and you want to hold back a bit of that initial investment, say you have $24,000, $25,000, and you could buy a thousand ounces. You also have the option to take a thousand ounces in a collagely financed account. In that example, you're putting up a minimum of 20% equity. So of the total value of those ounces, and let's say at market price, it's around about give or take about 20,000. So you'd have to put up the minimum amount is 20% plus the cost of business. So in Canadian dollars, round about $8,000. Now for that $8,000, you get the thousand ounces. It's stored for you. You control it. You control it. You can buy and sell on a telephone as you can with the depository. So you have liquidity there. And we're going to talk about and touch on that in a minute. And of course, you get the added advantage of being able to hold back a big chunk of those dollars that you would have otherwise invested. So when it comes to being fully invested in having a portion of your portfolio devoted to metals, we recommend anywhere from 10 to 25%. And this investment is easy. It's simple to do. And it makes total sense going forward on what we expect to happen in the economy. 1 8 7 7 2 1 4 17 11, the real money show.com to get in contact and start investing. Say someone's got, you know, a lot of mine, Darren, I got a big safe in my basement. I got all my kinds of trinkets, like, you know, whatever. Antiques down there, I can handle a thousand ounces of silver down there so they can lift it. They can carry it down. They can actually put it in a safe and have it in a safe place. Tell me about when it comes time to sell it. The problem they could have with not having it locked in, you know, with you guys. Well, there's numerous problems. The very first and most obvious is liquidity. Markets move fast and it's it's certainly not something that we're we shy away from. The silver market is a much smaller market than gold. It can be at times very volatile. You need to be able to have the sell button right at your fingertips. And that's why Guildhall is so valuable as a firm for investors. But the reality is, if I have my silver in a safe, most likely, I'm not going to take advantage of selling because I'm not really interested in those movements. I might think, you know, old school thought I don't need to sell it right now. Just wait. It's going to go up anyways. Well, sure, it's going to go up. And we believe in it's going to go up long term. But the difference is I might have been able to sell my silver on a phone call in the $40 range. And now having watched the price of silver venture all the way back to 18, then I might be able to rebuy. Not only am I buying a thousand ounces. Instead now I'm buying maybe 12, 13, maybe 1500 ounces. The reality is the most important thing you can do is set yourself up for the perfect sell order, not the perfect buy. We don't make anything off of the buy. We only make real hard cash when we sell at the right point in time. So that's one major feature. When I think about having bullion in a safety deposit box or in a basement, what I'm thinking about is I want to be able to access it. I want to be able to hug my metal if I want. I want to be able to see it. I want to be able to audit it and sit on it if I need whenever I wish. And the other thing is that I'm looking at the cost of doing business and I'm thinking, well, it makes a rational sense. Why would I pay for insurance or security of it if I'm already secure? I'll forgo that cost and therefore I'm getting it cheaper and I'm getting access to my bullion in a depository atmosphere. You're getting absolute access to your bullion. You can visit it whenever you whenever you wish, but you are getting that added insurance number one. So you're not having to worry about your about your basement being broken into and worrying about your family. And you're getting that liquidity down the road, which Darren was just saying that is it worth knowing that I can sell very quickly? And we've seen the price of silver come down 10 dollars in less than a day. Are you sure you're going to be able to get out of the market? Is it worth paying what less than 2% a year, less than a 30 cent move in silver to give yourself that type of liquidity and added insurance? So I think when a client is looking at the options, again, if you can't really carry it in one shot, if you need a wheelbarrow, you got to start thinking about insurance, start thinking about your exit plan ahead of time and think about using the depository. The other thing too is you want to think about third party liability. When you're holding bullion in what you perceive to be a safe environment, are you certain that somebody else isn't leveraging that bullion? How do you know that that firm isn't going out and getting loans based or predicated on the storage value of that bullion? There's no way to know unless you have title in serial numbers of the bar and the firm is storing with guarantees you in writing that there is no third party liability. That is what you get with Guildhall when you open a depository account. And that's the safety and the insurance that we provide for the investor. The number to call and start investing is 1-8-7-2-1-4-1711 on the Real Money Show. Dot com lawyer, they take advantage. I know you guys always talk about the precious metals advisor there. And this is something you put together and you've been doing for some time. Yeah. I started the pressure mills advisor in 2005. And now it's a firm-wide cooperative effort each week to get it out to our readership. And there are thousands and thousands of people on our list and it keeps growing. It's free for the first year. And then we charge there after. But it's an essential part of understanding the weekly changes and the dynamics of the marketplace. And yes, every week I try to add a fully fledged and well thought out article that Jeremy and I pieced together. And certainly that's important to me that the people know what we're thinking and it's invaluable. So if you can get that, it's free for now. And again, this is something that helps you and you do diligence to make the right decision about owning physical gold and silver. Is there a coin promo happening right now, guys? I believe there is. We do. For every 100 ounce bar of silver you purchase, you will receive a silver maple, which is nice. Give it to the kids. Give it as a gift or just know what to just have that extra bonus. I think we're good to the 14th on that one. We are until the 14th of this month. We've held over that promotion. And that's important. Yeah. Now speaking of minted coins, I think we do have to talk about the mint sales last month because that was huge hashtag. Huge. Silver is on sale. Hashtag people's. Hashtag gets them now. Yeah. Well, this is the thing before we tell you how just how big it was. The thing is is that we have to understand that silver is what they call the people's money. Gold is expensive. Everyone's going to say, you know, gold at $1,280 in Canadian. Now you're looking at $1,400. That seems very expensive. I mean, that's obviously more expensive than Apple stock. So it isn't for everybody. Silver is. And when we look at not just the mint sales, which we're going to tell you about in a second, which are massive, but when we look at the refiners and we talk to our refiners day in day out, they tell us we would they would rather put the money into producing the smaller goods because people are willing to buy the smaller goods than the larger product. So the larger product is for the serious investor. The smaller product, not that they're not serious, but that it's easier for them to get involved. So people, there's as much. What I'm trying to say here is that there is as much money going into silver that is going into gold and there's a lot less silver out there. This is eventually going to show up in the price. But Darren, why don't you get the numbers on the mint? Well, sometimes I get carried away. I feel like Rick Mercer in a rant. So I'll try to keep it somewhat summarized. But March sales for silver eagles are now up to 5.3 million. And you say, well, is that important in the grand scheme of things? Well, year to date, silver eagle sales in the US as of the end of March totaled 13.8 million. And again, you say, well, what's that mean in the grand scheme of things? Well, this is the highest total of silver eagles sold in any regular month in the 27 year history of the American Eagle bullion program. Now, the headlines tell us consolidation, gold is falling, silver might be falling, small, jaunts down. But behind the scenes, we had the largest demand in a single month for that coin program. Now, the next question you have to ask yourself, well, again, to point out to 5.3 million coins that were sold that past month indicate a daily production run rate at the mint in the US of approximately 170,000 coins per day, which is a brand new, freshly achieved record. I don't know how they do it with the current printing mechanism they have, but they do it. And the question still remains unanswered is, who do you know what is buying this product? Exactly. And the reality is that this is not john cube public. But whoever it is, not only has the deepest pockets in the world, but pretty much knows that the days of $20 silver are numbered. And it's only a matter of what three digit price tag this baby is going to have when the smoke clears and settles. Well, I think there's three, there's three ways to extrapolate or three things to extrapolate from this information. A, there's a understanding that the window of opportunity here is closing, that someone that the entities out there on a rush to get into this market. Two, Darren said there must be a larger entity purchasing through this channel of the US mint to continue to acquire bullion. And three, that speaking of the people's money that the every day Joe on the street is saying, I don't like what's going on. I'm looking for ways to protect myself. And by buying coins and small bars is the way to do it. So I think there's three major things happening here. And the biggest is that the window is closing that there's major problems in the world and silver angle present zero counterparty risk, a great place to store your bullion, a safe place to be when you don't know what's going to happen tomorrow, the next day, next month. Where is the next black swan event and how will it affect your portfolio? The other thing you guys do so well, and we'll take a short break and talk about that when we come back is natural, fancy colored diamonds. I love this part. I love this part. Did you bring one with you, Darren, other than the one that's in your ring? I did not bring one with me today. And I'll tell you why, John, we sold them all. Great. We have very little left. That's what we'd like to hear. It's pretty happening. We'll talk about that. I know yellows are huge. First, we'll take a break. The number is one, eight, seven, seven, two, one, four, 17, 11. The website's realmoneyshow.com, a reminder that silver coin special is on until the 14th. So check that out online and you can listen to old shows, send emails, make comments. This is the real money show. Lots more of it coming out right here. And back with more of the real money show, the number to start investing and for contact one, eight, seven, seven, two, one, four, 17, 11, the realmoneyshow.com. That is where you can listen to old shows, make comments and send emails to the guys. They are the professionals you're thinking about getting into natural, fancy colored diamonds or gold and silver, boy, and that's the place where you want to go and sign up for the precious metals advisor. Let's bounce over to natural, fancy colored diamonds, guys. I love this. What's happening this week? Well, first off, we want to say congratulations to everybody this week that bought a colored diamond. We had a nice seminar last weekend, a very exclusive location. The event was well attended, and I think everybody really enjoyed the thoroughness of the presentation. The education you walk away with should leave you in a buying frame of mind. And that's what we want to do. We want to take away the guessing. We want to make sure that this is something that's going to fit into your portfolio the right way. And that's exactly what happened. So congratulations to those that have bought. Sorry to those that are waiting on some diamonds to become available in certain budget range. We're doing the best that we can. Pink diamonds are very difficult to acquire right now. And of course, we don't want to push the envelope by letting people know we need them. We'd rather let them come to us as we always done. So finding good product is very hard. It has been hard. We've alluded to it on the show for some time. And Paul's done a fantastic job as well as Nicole in locating and sourcing the finest colored diamonds that money can buy. And again, what a fantastic week. And part of the problem, of course, is that we'd love to have a lot of inventory all the time, but we can't. We can't lower our standards. We can't lower the criteria that goes into making what is considered an investment grade colored diamond. We don't want to drop our standards. And so we're always on the lookout. And as a result, for example, that entry level range of 13,000, 13,5 to get into a yellow fancy is very difficult to get into as soon as someone's showing some interest, someone else is picking up the baton and taking taking that diamond home. So we're trying our best to keep the diamonds coming. It's not an easy process. And we don't want to miss a step and we don't want to drop the drop the standard. So the best thing you can do, though, is give us a call. When you when you join the precious metal advisor, we can we do send out emails regarding colored diamonds and what we do have coming in. So you can you can sort of get get on the fast track that way. But it's an exciting market. They're beautiful. They're rare. Every year, their values continue to increase. It makes it a very simple investment, very much for the investor who buys GICs. They're happy to buy a GIC. They're happy to think five, 10, 15 years out. Obviously, GICs don't give you the same type of returns that that that colored diamonds do. But there's that understanding that the big gains come down the road. You're thinking that long term gain. And this is really for anyone who has a long term perspective. They're thinking about that kids, their children's education where, you know what, it doesn't get cheaper every year. It gets more expensive. That $15,000 diamond will certainly pay for an education 15 years down the road. Or maybe it's a retirement. Maybe it's, you know what, 50 years old, I'm looking to retire at 65, 70. That one colored diamond for $25,000 today will be a very nice return when I'm ready to retire at 70. So there's things like that. Maybe you want to start to pass on generational wealth. It's certainly something that a lot of people think about. And so colored diamonds help fulfill that. One of the things that we do see at Guildhall that's very popular is sometimes, you know, second marriages or if it's a 20th anniversary or a 15th year anniversary, couples come in, they select a beautiful colored diamond that will go up in value. Unlike unfortunately, a lot of engagement rings just don't carry the same value down the road. So they find the diamond together. They choose it. And then we have a designer that can help them to set it into some jewelry. So that becomes a really lovely process for a couple second time round or perhaps for their anniversary as well. So this is really covering all different ranges as to why people are buying colored diamonds at this time. Hey, Jimmy, you know, you know, you know, you want a diamond. You're interested in getting a diamond. Do you have a buyer's guide that's going to guide them through it literally? Yes, one of, you know, one of the things we see is we do have a lot of people that will come to our offices or give us a call on the phone where they've purchased a diamond in the past. And inevitably, there was two situations that we've seen either they've purchased a diamond that was of low quality and they overpaid or that it's going to be a long time before they can make their money back on. Or the best worst case scenario is they find a pretty decent diamond or a very good diamond. But again, they've overpaid. There's a lot of things that can go into buying that first diamond and anyone who's ever purchased a diamond knows that feeling of, did I get the right one? Did I, did I buy right? And so we put together a buying guide for those who are ready to buy. They know they want a colored diamond, but they don't want to make that misstep on the first purchase. That's what Guildhall's whole purpose of maintaining a high standard is all about. So we're happy to put out this 10 step guide to show people what a company should have, what qualities you want to look for in a diamond. And so far, we've had some really good feedback and give us a call and we're more than happy to send that out for you. And you have Nicole at the shop as well, right? You should talk about her and her qualifications. Yeah. Well, of course, Nicole is, in my opinion, I love saying it because I know it's humbling for Nicole, but she's world class. And I mean, to have an expert in house is something that's indicative of the quality of our association and our organization. And it's not something that's happening out there in the world. If you're working with somebody that doesn't, my advice is that unless their graph or Winston or Tiffany's or one of those people, you stay away from them because their expertise is limited to the knowledge they have. And that's just from reading what's on the internet. Nicole doesn't. I mean, she's gone to New York. She's studied. She's qualified. And that makes all the difference when we're selecting the diamonds. And as Paul says, every week, what we don't select most likely ends up in our competitors' hands. And those are diamonds we don't want to use for investments. So this is something to remember to and sometimes trumps the decision to buy with another outfit organization. Now, that being said, another important thing to point out here is that when you're buying a diamond, remember there are more than one way to look at this. Yes, you can buy it as a portfolio edition, an investment you might put into a safety deposit box. But believe me, this is perhaps something that you might miss out on. Diamonds are fun. Diamonds are something you put on your wife's finger as a 10th anniversary or 15th anniversary or 25th or whatever it is. This week alone, we're setting me personally. I'm setting three diamonds for clients and they get the white glove treatment. They're going to have some exclusivity on the design. It'll be one of a kind in the world. It will add to the value of the diamond. And this is something that is really special, if you want to make that right moment and approach. And not only that, you get to tell them that they reserve the right, if you're giving the diamond to a special or significant other, they reserve the right to say, honey, in six years from now, five years from now, 10 years from now, I would love to upgrade. You know, I had a yellow diamond, I'd like to own a pink. You can do that with Guildhall. It's not a problem. I mean, what woman wouldn't love to get a brand new diamond every five or six years? That's a fantastic approach to take. And of course, at the end of the day, when you need those funds, because you wanted to make an investment in your kids future or something like that, then the practical side is still there. But I'll tell you something even better, John, what the investors did that I work with this week is really simple. Came in with a budget. They had allotted 100,000 or less to buying diamonds. And this is not for everybody. This is a starting point that obviously a more affluent investor might be able to achieve. But they came in with an idea, a notion, they all three of them bought diamonds to be put and set in rings. These are gentlemen for their wives. And these are special occasions just happened to be all in one birthday, two anniversaries. And then what they did was instead of putting all of the money into one diamond and say, buying $100,000 yellow, they bought one smaller yellow. It's a one carrot, maybe all of them bought over a carrot yellow. And then they bought two small pinks. And then that way they kind of spread that wealth out a bit. They diversified a little. They get some liquidity and the ability to buy and sell maybe one of the three diamonds. But they're doing themselves a huge service by adding that to the portfolio. I mean, let's get this right here. When we're looking at today's portfolio management, we're not thinking outside the box. No longer are we going to people and hearing them talk about new products. It's the same thing over and over again. I'm going to the bank. I get the same feedback. I go to my planners, my advisors. And for the most part, I get the same feedback. What I love about diamonds is just like gold and silver. They're easy. They're simple like coffee. And if you get it right the first time, you'll thank yourself because five, 10 years from now, that diamond is worth so much. And yellows, in pinks, blues and reds that we have, they appreciate in value. This is an education for your son or daughter. This is a retirement opportunity. This is buying that future home that you might want to put into the portfolio or vacation property. Color diamonds means so many things as well as gold and silver. And they fit together in a package. So you can put all three of them, gold, silver, and a color diamond nicely together. But it all starts with getting in contact with our firm. So you got to give them a call. One, eight, seven, seven, two, one, four, 17, 11 in the real money show.com. Are there charts Jeremy in that regard? Well, the potential clients who are looking for charts are very much looking to take a financial industry perspective and put it on to colored diamonds, which doesn't necessarily work. Colored diamonds would be a lot more like buying vintage cars, buying extremely rare artwork, exactly buying wine, buying Bordeaux wines and things like that. So there aren't any charts specifically, but there are certainly ways to understand pricing. But when you're looking at it, what we're really trying to understand when we're looking for a potential investment in colored diamonds is you have to appreciate the rarity and the value and understand that you're purchasing an asset because you're looking to build your wealth. Then it becomes making sure that you're buying the right type of diamond to ensure that you are buying something that is of value, that will accrue value over time that you didn't just buy something that was of color but of poor quality. When we look at auction records, you can see that the larger diamonds are setting prices. You see that over time, it was something fabulous that Nicole did in her presentation just showing the record breaking that's occurring on the larger diamonds. Now, I think of auctions as a little bit like the high fashion runways. They're going to show you diamonds that no one can afford, but there's a reason they're breaking records and that's because the wealthy want to own these these diamonds because they are accruing value. They're not buying them because they just want to willy nilly put it into a ring. They're buying it because they're investment. But that's not for everybody. There's only so many graphs in the world. So now we move into the regular market and you want to find something that is of good value and those are moving up and we see that from two ends. We see it from the suppliers, the cutters, the polishers, the dealers and then we see it on the appraiser side and it's all moving up together. We have no choice when we sell a diamond, we have to replace that diamond. And inevitably, that replacement costs are always moving up. So you're always seeing the prices moving. Well, nobody can not everybody can afford a $50 million diamond, but I guess all boats rise with the tide, right? That's right. I mean, you got to start somewhere. And I mean, if you think of it from the same angle that Jeremy was just talking about a few weeks ago, I watched the Barrett car auction. I'm a fantastic Arizona avid fan. Yes, it was the Arizona one. Lots of money being spent on classic cars. And these are not necessarily all custom cars and nor are they all hot rods, a lot of variants and what they are. But the premise is the same thing. What they are getting is a car which has been restored to original fashion and is worth a whole lot of money. And one example, one of my favorite vehicles, 1970 Cheval, 454 big block engine, beautiful car, standing car. Diamonds are the same way. The difference is, I never really have to do much in terms of restoration. I never have to go back and get the diamond fixed, buy new parts, anything like that. That's it. And when we think about assets, we often are drawn right to things like classic cars and art. And even to a certain extent, we're buying homes for speculation, certainly within the last couple of decades, that's increased a lot. But most of those assets require a lot of restoration. They require a lot of maintenance. They require a lot of upkeep. Color diamonds don't. You put it away if you're only interested in investing. And if you want to wear it, you can. All you need to do is just get it polished. Maybe you know, and that's an easy fix. You do it anyways, the rest of your jewelry. So these are great investments for that alone. But right, John, there's a starting point for everybody. 1-877-214-1711, the website is therealmoneyshow.com. So what have we learned? We've learned that you have to appreciate the rarity that you have to be able to purchase the right type of diamond. Once you can get beyond that step, which does require a little bit of learning, that's what Guildhall's here for, that's what the buyer guides for, that's what the brochures for, that's what the websites for, to give you that education so you know that you're going to buy the right type of diamond. Beyond that, it's an easy, easy investment. Everyone who's purchased this diamond, what they, not this diamond, diamonds in general, color diamonds, what they love about it is that they do not have to think about it. And they get their appraisals every year or every other year, and they see the value increases, and they become more and more in love with the investment that they've made because they see the type of valuations that the diamonds are getting time and time again. And we see that across the board. It's not, we're not like the mass media financial networks where we're picking out the winners. We see it across the board. We've never seen a diamond that got appraised a year or two years later at a lower price. And that's what's so exciting about this market that when you buy the right type of diamonds every single year, you're excited about what you're seeing. And you're also, how do I say this? Nervous in a way because you want to get in. It's like watching, it's like watching the real estate market when every year it's moving up, you're sitting there saying, I got to get in before it's too late. So we start at fancy yellows, which are give or take around the $13,000 mark Canadian, and we move up from there. We feel that that's a great entry point. We don't want to go down in size, which would mean that you could get it for for a lower price. So $13,000 right now is the entry level to get into color diamonds, whereas a couple years ago, it was around the $8,000, $9,000 mark, and it's moving up from there. As an example, an intense yellow, you could have bought a few years back for less than $15,000. Today, it would be very difficult to buy it for less than $21, $22. Now you have to buy the fancy. So this is showing you the direction of the market. Now that's not just us dictating to the market. That's us having to raise the prices because we have to replace the diamonds. We'll take a short break and wrap everything up. You've heard this afternoon, the number 1-877-214-1711 online is the realmoneyshow.com. The real money show, the number 1-877-214-1711 online, the realmoneyshow.com. While you're there, sign up for the precious metals advisor and the 10-step buying guide to buying natural, fancy color diamonds. Check out old shows, leave comments, send emails, and the guys will respond on future shows. Take us home. Darren, what have you got? It's a week that really didn't show us much in terms of increased pricing, but at the same time, we held the buying range, and that's what tells us that people were buying this lower price. Typically, there has been some pressure on the gold and silver market in the short term, but if we look at what we expect to see in the coming weeks, we're still watching the very heated issue between Ukraine and Russia and its impact on the rest of the world that extends to talk about the petrol dollar, and currency wars, and a lot that really does support higher pricing in gold. We touched on mint sales. A huge month in March for silver mint sales in the U.S. We hit record amounts. They were producing approximately 170,000 coins per day. We talked about not knowing quite where that's going, but Jeremy alluded to the fact that it's most likely overseas and that the people buying it know where it's heading. Most people know that $20 is cheap if you're already buying silver, and as a result, again, we congratulated everybody at our firm that took the opportunity to buy a little bit of silver and gold, and welcome to those new customers that have joined the Guildhall team. And of course, we also talked about central bank buying. The economy is not what they say it is, not here in Canada, not in the U.S., not in most of the G8 countries. Now, they're putting money into this at the fastest pace in history, and they're expanding the monetary base, the fastest, the fastest rip they've ever done, and ultimately, where has it got them? With this much money being printed and thrown at, every too big to fail institution, it hasn't bled down a little guy. When it does, the environment changes, and it's supportive of gold and silver going forward. We're going to be talking about in a few shows over the next few weeks, some different variables involved in that. One of them is inflation. The front end of inflation is already here. It's hitting us. It's very stealth. It's taking away our purchasing power, but gold and silver are purchasing power. They are absolutely 100% insurance in your portfolio if you have them in the physical form. And we talked about history repeating. We looked at the '70s and that people who bought gold in 1971, when the gold standard was lifted, was able to buy it at $35 an ounce. In the mid-70s, there was a bear market in the precious metals 10-year bull market, but there was a few years where there was a bear market, and gold had dropped from over $200 an ounce back down to $100 an ounce. Imagine how many people washed out of that market, how many people left the market. That's what bulls do. They kick you off the back. People who bought it earlier understood the fundamentals of why they bought it, and were able to sit with it for the next three, four years until 1980, when the market really, really took off. When the problems became too difficult to control, gold and silver really took off. One of the big differences, of course, was that Volcker was able to raise interest rates to double digits, which gave them an opportunity to try to put value back into the US dollar. Well, you can't raise interest rates in the States. They have a low interest policy right now because they can't afford to pay the interest on the debt. So that's a major difference. The other big difference, of course, is that in 1980, there was 3 billion people. Now there were north of 6 billion people. Half of the globe wasn't invested in the market. They couldn't even get into the market. There were no computers to really get the fast trades going. So there's a lot that's the same. We're still dealing with a fiat currency that's losing value every day, but there's some big changes. There's a lot less silver, a lot more people. The demand is huge, as Darren just said, with the mint. So these are things you have to understand before you can really make that decision with confidence to buy into this market. One, eight, seven, seven, two, one, four, 17, 11 online, the real money show.com. Are we heading towards another recession, Darren? Well, you know what? In all honesty, as listeners to our show know, we felt as though we've never really left the last recession, they talk about, let's say, GDP gains and things that are happening and what our economy is expected to grow at, and almost 900 to 10, they're revising those expectations. This week is no different. The U.S. reporting agencies came out and talked about the growth rate of the economy. And of course, they revised quarter for 2013. And on the heels of the data, they are urging everybody to understand that the first quarter is going to be worse than what they thought, which means we're not continuing to see this demand. And again, until we get a full year over year of growth and gain, really, we're not out of that rut. And this is not going to happen for the next better part of five to 10 years, in my opinion. But if you look back the numbers this month in January, real disposable income in the U.S. experienced the largest year over year decline that we have seen since 1974. That's disposable money that you have to spend on assets, investments, material items going out for dinner, shopping, clothes, anything that you want. That income dropped the most year over year since 1974. That's an inkling that's telling us where we are. And it's a shame that people don't see this or this data isn't reported. Only 35% of all Americans say that they are better off financially than they were a year ago. And in Canada, that number is only slightly better at 40%. And again, if we're not seeing better year over year results, then why are we continuing to do the same things we've always done? The economic data that's out there is showing that virtually all of the largest economies on the planet are slowing down right now. In the last three weeks, the macro fundamentals of the G10 major economies have collapsed at the fastest pace in almost four years. So this is a big slump. And it's being led by the bigger, the too big to fail institutions around the world here in Canada, in the U.S., the other G nations. And it's a scary thing because we as investors are not going to find out until it's too late. So changing your portfolio, it's very proactive, change is something that's hard to deal with for everybody. But when it comes to securing your future, I want you to know the importance of owning gold, silver, and natural fancy color diamonds. And in the physical form, at Guildhall, we sell the physical asset. When you're coming to us, you have the choice to open up an account. You can take silver home with you if you like. You can take gold home with you. It's very easy to do. You can also open up an account and store in our depository. We talked about that earlier in the show and the significance of knowing you're with a world-class facility. We also talked about the idea of other people's money. And this is the account we call collateralized financing. And this is really good. And in terms of what we offer, this just simply means we can put down as little as 20% of the value of the metal we want to invest in. And we can still own and control and benefit from the rest of that value. So when it comes to collateral financing, other people's money is something that you may want to consider. Any of the brokers at our firm will be happy to take you through that. We have a very qualified staff, experts in this field. And of course, Jeremy and I doing the show would be happy to help you out as well. 1-877-214-1711 online, therealmoneyshow.com. Tell me about the promo going on until the 14th of April, Jeremy. Yep. For anyone looking to purchase a 100-ounce bar of silver, we have a silver maple that we can offer with that. So you get a free silver maple with every purchase of a 100-ounce bar of silver. In the depository? In the depository. And we are trying really hard to get some fancy yellows into stock. We're trying to get some intense yellows into stock. Pinks are always difficult to get in stock. They seem to go out before we can get them up on the site most times. But we're doing our best and so be patient. If there's something specific that you're looking for, please give us a call and we'll definitely try to seek that out for you and put you at the top of the list. I want to just mention one thing about the history repeating here is one of the things is that after the collapse of the stock market, they put in Glass-Steagall, which prevented the commercial banks from intermingling with the investment banks and having too much margin involved. Obviously, that was repealed by Clinton and we're seeing the same mistakes happen again. So this is something that you should be prepared for, that the things that they put in place to prevent another stock market crash are no longer there. So we're back to 1928. So you need to look for ways that you're going to protect yourself, gold and silver. I've always been an amazing hedge at a great store of wealth. You sleep well at night knowing that whatever black swan event occurs that you are protected and the opportunity. They're extremely undervalued. They're underpinned by the fact that you can barely mine gold and silver at these prices. For silver to be at $30 an ounce would be more more tenable. So there's a lot of room to grow here. Think about that opportunity. Give us a call and we'll show you more about the market and it's very easy to get involved. Good information this afternoon, guys. It's a number to call to get in touch with the entire crew. 18772141711 online, TheRealMoneyShow.com. Listen to old shows, archive shows. You'll want to contact with three email with questions for next week's show. We can do that and be advised. You should sign up for the precious metals advisor and the 10-step buying guide to buying natural fancy colored diamonds. This has been The Real Money Show. What if you could have a streaming service that added new shows and movies every day? 365 days a year. Tune in on Monday and watch traumas like Fight Night, The Million Dollar Heist. Tuesday, watch reality shows like Top Chef Canada and Wednesday enjoy comedies like Ted. And it just keeps going and going every single day. No matter when you tune in, there's always new entertainment for you to discover. Stack TV, new shows streaming every day. Try it free, applicable membership required. Restrictions apply.