The Real Money Show
The Real Money Show - February 6th 2016
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and welcome to the real money show the numbers start investing one eight seven seven eight silver online to guildhall wealth.com make sure you sign up and get the precious metal advisor the investor kit and there's always information as well right on the website in fact the top corner use the e-store you can start investing in physical metals right there in your house coat in the company your own home on your computer and a reminder as well when you invest five thousand dollars u.s. and rsp account that's rsp tfs a rsp lift riff lira all of those for every five thousand dollars invested you will receive one gram of gold courtesy of the good folks and the good fellows here at guildhall well so we'll kick off the show i know it's a busy week uh daren why don't you kick it off for us well thanks john it's been a super busy week i mean from our perspective as it usually has been this time of year we've had just a complete uh an unbelievable line of clients come to the firm so first before we get started i mean you have to welcome everybody to the firm congratulations to those that have bought in this week especially those that are buying ahead of the rsp deadline of february 29th this is uh a tremendous opportunity for clients to be able to be in this market have physical precious metals held in their rsps or tfsas rsps and we've done all of them this week this week is a seemingly very busy week for all sorts of account types and also a welcome to those that purchase colored diamonds this week which was a number of folks and also to those that took bullying home with them or opened up a depository account we're glad to have you aboard and as this week comes to an end we're taping here on thursday and we have a completely incredible interview to do today and i'm excited about it uh germi's going to be interviewing eden rachmanoff of the rachmanoff family and rachmanoff diamond empire and uh it is going to be an exciting opportunity for our listeners to get really really inside the diamond industry the color diamond industry from one of the industries foremost analysts and people that understand own buy and sell and uh we're glad to call him a friend of the show and a friend of guildhall so we're going to get into that shortly as well but the week that was john what an incredible time for silver and gold we've seen both metals pick up this week both are pushing higher gold as we're taping the show right now on thursday at eleven hundred and fifty five an ounce that's an improvement uh of three to four percent week over week as well as silver up to fourteen eighty seven uh as we're talking to you right now and i'm kind of flabbergasted just slightly because this is the highest it's been since december and this is on growing risk aversion and shifting sentiment that's seeing safety bids come into the marketplace and gain momentum it's not necessarily indicative of a resumption of the trend higher just yet we'll have to get a break above i believe fifteen fifty in order to confirm that we're going to see the next leg up in this bull market but it's certainly a good change and as a result of course we can see that people are flowing in calling knocking on our door for a little more product uh this is certainly on the heels of several factors which are pointing to increased potential gains in the precious metals arena as investors are forced to basically pivot from yield to quality in an effort to hedge against on growing turmoil and um you know you're looking around the world you're hearing inflation is low uh dragging prices in the metals markets certainly confirm that there's no rush prior to this month and certainly leading up to the end of last year but we've also talked that length Jeremy and i and Paul about the tightness in the physical supply chain alongside increased in hedging against uncertainty uh of monetary policy and central banking issues which i'm going to talk about today and of course these all contribute to higher prices in gold and silver and inevitably what we're seeing is a lot of surging volatility around the world as i'm taping the show on thursday german i talked about it this morning and uh we were discussing the dollar index and how quickly the currencies have started to fluctuate over the last number of days the number one eight seven seven eight silver to start investing precious metal advisor the east door and uh all those options to uh start investing in some precious metals and physical metals now Jeremy yeah the currency is what we're seeing this is interesting for people who are really following the exchange rate between the Canadian and us dollar what we're seeing is the exchange rate has improved and just as we discussed most likely the the markets really going to start to move based on us dollar weakness which we started to see which is why the exchange rate is uh improved as we're taping the show and of course silver is up uh two three percent on the week so what you end up with is that ultimately consider what you're paying in Canadian dollars which right now for a hundred ounce bar for example you're in the twenty two dollar range twenty two plus and it's been in that range for quite some time so we have this opportunity continue to add to the position get involved in the market and think of it as okay we're buying at twenty two dollars an ounce if silver were to go to fifty or seventy five or a hundred and thirty five dollars and we're and we're at par that's a very good very good uh gain in the market and if the exchange rate stayed where it was then it seemed an even greater gain because you're converting back into Canadian dollars once you sell your US dollars so this is ultimately an opportunity what we're seeing i think what this is leading to is some type of event that's going to occur and it could be within the next number of months if we see these types of uh monetary fluctuations continue and of course the volatility increase overall in the marketplace and this event might be yet another major meltdown in the stock market perhaps in the housing industry here in Canada as we've made point about and the number of shows and of course if you're part of this community and you want to have some insurance against those types of events occurring there's no better place to look than to have physical gold silver or natural fancy colored diamonds in your portfolio the numbers one eight seven seven eight silver and online to guildhallwealth.com to start investing speaking of investing Jeremy how does one get involved however the different ways to to get started in investing yeah there's different ways to get involved in the market if if someone is new to the market one of the best ways to get involved is to simply go online go to the east or call us directly and get some physical product in your hand you start to get a sense of what this market's all about once you've gone through uh the first process of getting into the market and again getting some product in your portfolio once someone has accumulated enough product where they should be concerned with the security of it and of course insurance i was just speaking to someone the other day who just got a new home and they were looking at insurance and uh we're told that they could only be insured for i think three or four thousand dollars cash and bullion so we want to have if if someone is storing more than five six seven thousand dollars worth of bullion they should be concerned about that and might want to consider some storage we offer physical storage located in toronto we also offer it in singapore and what this does is allows people to have it stored in a vault that it's only purpose is to store physical product and safely secure that product it's fully insured and the customer has access to the product to personally verify it and this is the same vault that's being used to purchase it within your rsp tfsa so it is rsp time but if you already have funds in your rsp and you'd like to utilize those funds towards a hard asset and diversifying your portfolio then we can do that within an rsp we we're here to assist you you simply purchase the product outright you get allocation meaning you're going to get the serial numbers for your bars we're going to provide that for you and then again you can have access to your own product outside the banking system fully allocated fully segregated and you can personally verify your product so this is one of the best vehicles i've ever seen and we've been in this market for over ten years so i'm really excited about it and i what we're seeing is that the market's excited about so dare let me ask you this and if all things are looking good and we're starting to see silver and gold rise in the last couple months what how do things look what's the forecast for the short term well from a technical point of view john silver prices climb towards a major technical level this week before slightly retreating back to the downside amid another round of gains in us dollar now as we approach thursday we're seeing that uh basically given back those gains in the us dollar and the precious metals gold and silver have a very inverse correlation with the us dollar and similar to gold uh silver is sensitive to price momentum in the currency and you can see that because today we're looking at a dollar index which is the us dollar measured against a basket of currencies we're seeing that index drop below ninety or touching ninety six below ninety seven and it's been as high as almost a hundred uh during this uh trough in the metals pricing so right now we expect that silver is going to climb but we're not convinced a hundred percent exactly that it'll take off in a bull market for that to happen although it's trending within its 50-day moving average range we're going to have to see it climb back and up and over its 200-day moving average and uh that resistance is still uh about $15 an ounce and we're going to have to see it get above there and hold at least two closes so in other words what what you're saying is is that this is a breakout undoubtedly but this might not be the breakout the one and um you know don't put your all your eggs in one basket that this is this is the time this is the run where the market magically takes off to such and such point and i think that's an important point to make because nothing goes up in a straight line there's going to be down days there's going to be up days ultimately i think when we look at the fundamentals of the market and we've looked at them you know over the past decade especially in the last five years where the fundamentals have only gotten stronger for holding physical metal in your portfolio that you know looking at the day to day isn't necessarily should shouldn't necessarily be the motivation it's more about have you explored the reasons to have this in your portfolio do you think you should have it are you motivated to have it in your portfolio if that's the case this is a this is a good entry point yeah and you're right the stage is set for further gains in silver prices Jeremy financial markets we know do not always behave according to underlying fundamentals as is the case in silver and gold but uh pressure will remain we will have to see silver and gold in the near term uh in correlation with the us dollar movements we will have to see them both get stronger to confirm that breakout but if central banks are forced at all to accommodate monetary policy right now any further to deal with this rising volatility in the markets or deflation or any problematic uh problematic liquidity conditions the stage is already set from a physical standpoint anyways for a rally higher in silver prices so if we look at that as one of the key underlying drivers right now then of course i can understand why so many of our clients are excited about this opportunity and do expect and are behaving uh to be prepared in in essence getting that insurance policy in place you have to be excited about a move like what we've been seeing over the past a couple days because ultimately this is this is the barometer you're seeing weakness in the us dollar and an exact correlation to a move up in in price as a physical metal we don't often see that direct correlation we would expect to see it over time but this is one of those rare cases where it's happening instantly you're seeing weakness in the us dollar and an instant strengthen in precious metals well it's a valid point when we come back i know john's going to take us out here but uh we're very excited we're going to have some discussion on gold certificates and silver certificates today we're going to discuss a little bit about uh what happened now that we're ten years beyond allen green spans ten year as the head of the federal reserve in the us and of course right after this break we're going to go to eat and rack one off we're going to do the color diamond portion of our show and super excited so john if you want to throw the number out and get everybody ready for that that's going to be exciting yeah daren absolutely the number one eight seven seven eight silver online to guildhallwealth.com remember your rr sp room tfsa all those accounts can be used now to hold physical gold and silver with guildhall more information can be had at guildhallwealth.com the esaures in the top right corner and a reminder once again eating rachmanoff the chairman of the board the president and managing partner of rachmanoff diamonds is coming up in the show a couple segments do hand this is information you're going to want to hear so stick around lots more to come on the real money show on talk radio am 640 and back with more of the real money show the number one eight seven seven eight silver online in this case to guildhalldiamonds.com if you want to check the collection while we're our interview takes place here in the next little while we welcome to the show eating rachmanoff is the chairman of the board and on the board of advisors for the fancy color research foundation author as well back in 2010 released the fancy color diamond book working on a follow-up book as well so during this segment you want to invest in some diamonds release get some help and some education listen to this interview Eden's going to take off here in a moment and go to guildhalldiamonds.com we're here with Eden rachmanoff welcome to the show it's great to have you here hi guys how are you we're fantastic we're fantastic we've been you know on the real money show we've been talking about the fancy color research foundation for quite some time we've been very excited about it so we're also very excited to have you here and i know we talked about this last time we were enjoying dinner in vegas so thank you for coming on the show and you know just so our listeners have an idea what is the fcrf well the fancy color research foundation is a non-profit organization the main goal is to empower fancy color diamond sellers and improve consumer experience through new information channels that were never never existed to this point another goal is to provide fact-based support for fancy color as an asset class as well all the data that's being collected from the market is being audited by one of the biggest offices in the accounting offices in New York the main thing here is to bring to the market real data based on real facts not the punches and ideas and all kind of strange things that you see online and to bring the real story behind fancy color diamonds i think this is one of the most exciting parts about it because you know up until 2014 when the fancy color research foundation was established a lot of people it was sort of looking in the dark in terms of what figures are you'd have to believe yes these prices or or the values of these things are going up all the time but there was no way to quantify it is that is that one of the main aspects not the aspect but one of the aspects is to be able to say here's here's a certain amount of people who all agree the values are growing exactly i mean a lot of companies said many things most of them wrong numbers they presented wrong data and numbers about fancy color diamonds each one had his own interest so one company was focusing on blues and one company focusing on pinks so each one showed a different kind of interest through their numbers so for the first time people can actually go to this foundation that is bringing real data from the market and we're just showing the real numbers we're just showing the real facts and the price change actually we show only price trend over the 10 years last 10 years and there is an update every three months now you've been in the market for a long time have you seen a difference in trend in the last let's say 10 years versus before that in in natural fancy color diamonds i know when you and i have talked you've certainly discussed the notion that there's a lot more companies popping up that are dealing in it but again not all the correct information yeah right i mean the big jump first of all i have to say fancy color is very very steady i mean if you look at the graph you see it's the most stable investment ever if you compare it to gold or any currency or stocks or bonds it's going up every year very very moderate i mean i would say between 10 to 15 percent and it's very stable now you won't you will not see ups and downs the only the only ups and downs that we saw are in the yellow category in 2008 where there was a slight drop and it came back very fast but other than that losing things are very very stable also uh vivid yellows and intent the big jump occurred during 2010 when the chinese market started to be i mean it was exposed around 2010 yes two pinks and then we see a big jump um but other than that it's very very stable and is that is that a is that been the trend as i i mean you've been in this pretty much your whole life right well not pretty much your whole life and has that been the trend the entire time yes absolutely we're here with edan rachmanoff chairman of the fancy color research foundation and um we're talking about how the prices get set and oftentimes we see these massive diamonds going at auction um is this a is this an indicator for the market or are these more one-offs do they lead the market or are they in a different league altogether well the auction is very misleading for a couple of reasons first of all those that are solid auction represent approximately and i'm talking about a million dollar plus they represent between 12 to 15 15 only from the market now when a wholesaler has a big stone a very important one high quality you will not go to the auction you will go to customers uh you know retailers brand all the companies now when the stone is not sold then the option is your last resort basically so the stones that you'll see options are not always the highest quality sometimes you'll see stones coming from private people that somebody passed away in the family and they have a heritage and they have to sell it somehow they have no idea so you'll see that most of the times those stones are going to be chipped we will need to have recut um so when a private is buying stones in the auction many times he will buy them at a relative cheap price but he's not getting the best product if you ask me so and and we see so and what about those diamonds that we see always breaking records are those is that is is that a similar situation you're seeing you know where else can they they sell a 30 million dollar diamond well you'll be surprised but it's it's a record breaking price for auction but stones um i mean important stones are being sold at retail at the big houses for much more so it's a business reading when they say record breaking price so one of the things you know talking about about sort of dealers and and the diamond market one of the things i notice working with my father paul is that is that if you don't jump on something it's gone and you never get it you never get that chance again um which to me speaks to the rarity of the diamond um do you find that is an overall approach with dealers that they're will that they're willing to jump on those type of opportunities when they find a good quality diamond well unfortunately you're right um our biggest i mean we are in a war and the war is to get the stones not not to sell them so much uh every standard we sell we we're sorry 10 minutes later because we know that we cannot replace it so that's the main issue here um and yes whenever we see you know as a manufacturer when when i see rocks when we're when we see a nice polished stone we jump on it we have to buy it because we know it's just a matter of time till we sell it so we've talked a little bit about how people how we see dealers jumping on diamonds and i know that feeling of once once something sells it's it's very difficult to replace and you almost feel uh you almost feel naked until you can find that next one that comes along um now the the fancy color research foundation you're this is not necessarily for the public at large this is more for the dealers and retailers to learn about natural fancy color diamonds is that right yes absolutely they're completely B2B uh platform although you know if you're a big collector you can sign in but most of the information is really for professionals um like i said B2B yeah and and so so uh you know i'm starting to notice myself that you see these jewelry stores focusing a little bit on color diamonds yet when you walk in there's still only a couple in the whole entire store is is this a changing thing or are jewelry stores really starting to to get a feel for these for the value of these and appreciate them rather yeah you can actually see a big change in the last two three years first of all the big brands are moving towards a fancy color um i don't want to name any name but you know the big american brand uh your european brand uh if you go to the window you'll see more and more fancy color diamonds they understand that this is the place to be um they also don't mind holding stones in inventory for for a long time uh as opposed to white diamonds and when you buy white diamonds you are completely dependent on the price list which is very volatile and fancy color are holding a price uh very strong so they don't mind only getting pink or blue or yellow stone in inventory for three four years and that's uh that's showing a lot of confidence and um you have more and more high net worth the individual in the world it wants something unique and there's always a customer for a nice sense of color diamond so retailers are absolutely they're completely in that zone even they're in long here i just on that point i i something that came up here that i i'm not sure we're prepared to discuss but your your opinion would matter to us greatly on this question when we started getting involved in color diamonds and of course started attending some of the various shows you need to become professional in this particular industry we had the luxury of meeting yourself and others with your organization originally back uh in Las Vegas one of the largest in the world the shows there and i remember us having a discussion briefly at dinner about the importance of understanding the difference between how people treat the diamond industry and the way the future is going to define uh define color diamonds differently and we realized after that point in time and here's my question that many of the other associations that we dealt with refused and really danced around the idea of color diamonds as an investment i'm interested in your take not so much on what the future value will be or any of that but i'm interested in your take on how that relates to this day and age is it become more acceptable to use the term investment when you uh use or talk about color diamonds in general well yes we see more and more consumers i mean although i'm not working directly with consumers about i'm getting the feedback for retailers and organizations that the consumer is uh looking at fancy color diamond is an asset class i mean you know he's holding a house he wants uh property so he's treating fancy color as a property now what's good about this property it's very easy to um take it with you anywhere you go uh it holds its value it's not volatile and you can pass it on in the family without any paperwork so yes to your question a lot of people are buying investing money in fancy color first of all it's beautiful you can always put it on your body you can wear it and it's uh it's an amazing it's a miniature sculpture that's worth two millions of dollars and uh it will hold your money forever. Eden Rackmanoff our guest today is on the board of directors for the fancy color research foundation and author as well he's gonna hang out for a moment here get into our next segment we'll be back with mr. Rackmanoff in the meantime the number to start investing is 18778 silver online to guildhalldiamonds.com this is the real money show on talk radio am 640. Back with more of the real money show the numbers 18778 silver online to guildhalldiamonds.com we continue our interview here thank you for hanging out to Eden Rackmanoff he's from the fancy color research foundation Jeremy we noticed that people who get involved in the market will often become collectors as well that there that some people will will put a toe in the water and others will will sort of catch the catch the itch if you will um are you seeing demand overall uh through through the the you know through the information that you're receiving are you seeing demand growing yes the demand is growing first of all because there is a big awareness for fancy coloring the last few years like i said well and there is a huge shortage in the market basically so the demand is always higher than the offering right it's difficult to say how big is the demand because we're always back i mean we're always behind the the offering but the demand is huge absolutely and so i guess is it is is this still a best kept secret would you still consider this a best kept secret well for me part of secret i face this fact every day yeah i guess for the consumer that is not aware of what's happening in the market i guess it's a secret yes and you know there's not a lot of information on on color diamonds it's it's not like you can go to um you know bookstore and just pick up a book on natural fancy color diamonds however obviously you did write one um and uh this is a good place to learn about natural fancy color diamonds if you were in a room with someone who had never heard of natural fancy color diamonds how would you begin to explain the rarity of them wow that's a big question i don't want to make it too long but you know basically most diamonds are 150 to 600 kilometers underneath our feet and there's no way we can reach this that most of the mind that we have on the surface of the of this planet are going to be um they're going to be finished very soon when i say soon it's between 40 to 50 years from now and then we're going to start seeing only the secondary market as far as rarity i would just i want to tell you something the average rough stone in the world is 17 points which means the average polished stone is six points so when you talk about the 70 point pink doesn't understand how rare it is only one out of a fraction of a percent of all diamonds is fancy color diamonds 80 percent of all diamonds that come from the earth are industrial so it's only 20 percent are gem quality and from that small percentage of fraction in fancy color so when we talk about the rarity it's extremely rare people are people don't understand because they see them in the window from time to time but what you see basically is this is it i mean i can talk to you about rarity for an hour but if i want to bore you with numbers well i you know just hearing that aspect alone i was uh was exciting to to hear about so it what's what's next for the fancy color research foundation i noticed that you have a contributors page where i think we're going to start showing some of the quotes from some of the dealers but where do you see the fancy color research foundation headed next well we're going to launch a very interesting product that's going to show you uh it's a rarity calculator estimator uh that you're going to put the data of your stone and it can show you how rare it is meaning uh one out of how many yellows or one out of how many pinks or blues and how frequent it will be in the market let's say once every two years once five times a year you can see it's not like this so it would really give you a three-dimensional uh fooling of how rare it is and we're going to launch a um auction calculator that when you go to auction it gives you the exact budget you know because it's very complicated to uh to estimate the the prices you actually have to pay i don't know if people are aware of it when you go to christie or the soldie is if you're bidding uh let's say a million dollar you end up paying 1.3 million because you have to pay the commission it's very complicated so we're gonna we're launching this calculator as well uh there are many many other products as uh they aren't going to come with uh through the foundation excellent we look forward to that what you know what before we go Eden i wanted to also just mention one question that i had as well and that is what is your opinion about the approach one should take to color diamonds ours has always been since day one that this is not something a short-term buyer should get involved in what's your take on holding a colored diamond if i wanted to buy one investor or not that's a very good question um well like i said it's a property that you need to hold because there's no way the price is going to go down i will never promise anything but i would i would can i can definitely uh promise that the price is going to be stable we see in fact that the price is going up all the time but it happens slowly and i would rather invest something that is stable and goes up slowly than something that is you know jumping high and it's very volatile because if something goes up very fast it will fall down very fast so this is what i like about fancy color because it's very stable again and i would uh listen i treat diamonds as a beautiful object i mean it's a beautiful crystal it's difficult for me to talk about investment although it's a great investment because i'm selling really beauty i'm i'm sud i'm selling you know it's a beautiful object but yes uh it's definitely a very good investment and you need patience you need to wait four or five six years until you can make serious money and i guess the last question i have and this is open-ended so if uh you can shed some light on this would be great we have spent a great deal of time in trying to understand certain colors combinations of diamonds and things a lot better than the average retailer and one of those colors that we've tried to invest a great deal of time in is the pink and of course as you well know and you've written about and talked about extensively it's one of the colors along with reds and blues that are very very popular and have you know had a great track record have had no drops in value and really do uh stand the test of time can you offer our listeners any insight on what you think is going to develop in the pink market uh over the next say five to ten years for example i don't want to put you on the spot and say pin you down for pricing or anything like that but if we knew that one of the major suppliers in the market was no longer going to be be able to offer the same quality uh or quantity of pink diamonds that they had is this something that you see coming to fruition perhaps uh you know a price spike or perhaps at the wholesale level uh getting more difficult to acquire year by year well uh that's a big question i would say i mean the demand for pink is going to stay here forever because it's the most feminine color you can have and ladies love pink where the i don't know how um let me just say that you don't have to wait till one mind is uh finished i mean it's going to run over i mean the the demand is so big for pink that uh it's growing all the time because the chinese market is looking for pink color all the time so you don't need to wait till one mind is going to shut down so i mean if you have the money and you have the budget uh to invest pink is definitely one of the most uh safest uh investment edan i want to thank you so much for joining us here on on the real money show and how would anyone want to get in touch with you if they do want to uh inquire about the fancy color research foundation or of course uh get a copy of the book uh the first book is sold out by the way so we don't have any more from the first book but the second book is coming out it's going to be the architecture of price we explained there how uh how you actually build the price um the conceptual estimation it's uh it's going to be very interesting wonderful thank you again for joining us here on the real money show and we look forward to talking with you soon you're very welcome and we'll take a quick break guys 1 8 7 7 8 silver is the number to start investing go to guildhallwealth.com or guildhall diamonds.com as we mentioned over the last two segments to have a look at the guildhall collection lots more information to come we'll remind you as well how you can use your rsp room and your registered accounts to get involved and get investing in physical metals lots more of the real money show coming right up here on talk radio am 640 and back with more of the real money show 1 8 7 7 8 silver online to guildhallwealth.com daren got to love the last two segments eat and rackman off in the fancy color research foundation what a breadth of knowledge on that guy if anybody thinking about investing in natural fancy color diamonds this was the interview to catch on the real money show for sure well john i couldn't agree with you more that segment was incredible it was an awesome opportunity for our listening audience and all the people that have been investing with guildhall for a number of years to get to know eden he's uh well established in the diamond industry is well respected and he's been at the forefront of this fcrf since day one as the advisory board chairperson so again thank you to eden for coming and taking the time to speak with us of course he's overseas right now and um you know he's busy and we get to see him the opportunity to meet with him and we've been doing that for a number of years and it's the first time he's been on the show so hopefully not the last but with respect to diamonds in general i think the most important thing to take away from that is how eden finds value in understanding some very basic concepts as an investor in what owning a color diamond is all about the first one is longevity there is a track record that is extending back now some three decades that has undoubtedly determined 100 on equivocally without any doubt that color diamonds is ultimately a good investment that the prices have continued to go much higher and that you will continue to see that he said in his interview uh that the color diamond market has experienced very little in the way of fluctuation and the only fluctuation that was experienced in price was a brief uh drop in pricing below intense and in fancy yellows back in 2008-2009 so again we're in the rest of the world fell apart for a brief moment you saw some uh lower pricing at a wholesale level in color diamonds that does not mean at the level the investors are buying them at but at the wholesale level another important thing that he mentioned in this interview was that there is a misunderstanding not so much a misunderstanding but perhaps not enough focus as an investor put on understanding what rarity means when it relates to color diamonds he said in that interview that the average rough diamond or raw stone coming out of the ground is 0.17 in size that's 0.17 carats that's not even a fifth of a carrot size the averaged polished stone is 0.06 and of all diamonds coming out of the ground white and colored 80% of those diamonds are used in industrial applications leaving just 20% of those diamonds gem quality and of the 20% a very small uh well less than 1% of fraction of of that like I think it's about 1% or less than 1% yeah it's colored and you can go to gia.edu that's the gemology institute of america.education and uh there's lots of articles now on natural fancy colored diamonds one is by Russell Schor one of their senior analysts or these senior analysts and he's he's talked about that how a fraction of diamonds are achieve these qualities of VS quality or even better and when you start to run those numbers you can see why dealers and investors just jump on colored diamonds because if you don't buy it you're not going to see it again and we we've had that experience Darren at Guildhall over and over again where it's interesting where a diamond might not you know you put it up on the site you're holding it okay a year goes by and it's almost so what I mean it it sells when it sells and when it does it's that's it with the replacement trying to replace those diamonds is impossible I mean I can think of a one carat intense pink can think of that eight one tender pink intense um we've never had a tender stone since vivid vivid yellows that go and each one is individual each one's so beautiful and um you know there was a time where 1.752 carat vivid were and we're talking internally flawless at this point were were more I don't want to say readily available but they were around now they're just not around and of course you mentioned also too to understand that as an investor it's not something you buy today in order to flip tomorrow sometimes when you go to our website you may see that there is quite a decent collection of vivid yellows and internally flawless but what people don't understand is it took a number of years to get big enough as a firm in order to go into the marketplace and acquire those and also in developing those relationships around the world and I do mean around the world it's a global enterprise that it is often those friendships and relationships that we've got at the wholesale level that have given us the ability to go out and buy those diamonds for you the investor and he also said he didn't in fact he used the word guarantee so you can take that for what it's worth but we believe the same thing buying a color diamond is almost a guarantee that you'll never lose a penny of your principal payment and I don't know how many investments I could point to stock markets classic collectible cars artwork color diamonds gold so I don't know how many investments I could point to in the world probably a fraction that would be able to say your principal is protected but the return you're getting the potential of return is astronomical in one year a pink diamond given the right set of circumstances could rise as much as 30 percent or more and what could you get in this day and age that protects your principal but gives you that potential down the road it's an amazing thing yeah Darren I'll remind everybody again to the phone number to start investing as we continue here 187 7/8 silver and the website is guildhallwealth.com Jeremy it's really about stability and on the real money show we're talking about ways to protect your capital and grow your capital and stability is one way to go natural fancy colored diamonds are an incredibly stable asset because they're naturally rare they're also quite beautiful and because the demand is growing all the time populations growing all the time wealth around the world is growing all the time we're talking eating was talking specifically about the growth in China and I think their GDP is at 6 percent or something this year so that we would kill for that type of growth but at the end of the day this is about protecting capital growing capital and one of the other ways to do that of course is precious metals they've been around for thousands of years as have diamonds and natural fancy colored diamonds I guess that's more new in the last few millennium but gold and silver a great way to protect your wealth and we do see that people are starting to move towards this way of protecting their wealth because you can print money as much as you want you can build the debts as much as you want who's doing that a government that's getting reelected every four years that's really long-term thinking what do you think their answer is going to be to everything you can go on zero hedge for instance every other report is going to be about about negative interest rates we already saw Japan go to negative interest rates and this was after Europe did it last year they're talking about it in Canada they're talking about it in the US this is the failure of central banking and when there's a failure in central banking the government is going to come after people for for to pay the bill whether that's raising taxes or what we've seen in the last decade or so which is just simply inflation and I think we want to talk about central bankers and and its pivoting role here and understanding that maybe it's time to not follow the narrative that they're pushing on mainstream media and it's time to say well maybe there is an alternative and maybe there's another way to protect and grow my wealth if you protect first then you're prepared for for the next stage well listen if you like central banks then you must enjoy unemployment crashing economies I mean a wave of bankruptcies and half of the world's assets owned by only a few people because that's what central banks have essentially done now does that mean I bet against the banks it doesn't unfortunately they're in control and you're right this does play a role in where gold and silver go and of course to to that to that end also color diamonds but getting back to gold and silver this is probably one of the most incredible themes that we've discussed at the real money show over the number of years that we've been on the air and that is what central banks have done their misinformed guidance on the economy as a large has benefited only a small percentage of people around the world and unfortunately those are not the average listeners like we're talking about with with respect to the real money show the central bank has created these silver and gold rallies essentially their policies have provided people with an opportunity to get into these markets because of fear mongering because of the idea that things have been misrepresented and of course time and time again we've seen central banks decide to bail out their countries involved and that has led to nothing more than a less than exciting rebound in the case of the US and certainly here to some extent in Canada because we're not seeing job growth we're not seeing unemployment coming down we're not seeing the economy grows a whole more certainly not seeing bankruptcies slowed down and of course the rich are getting richer and the poor getting poor we've we're alive in a time in a space in which we as guinea pigs are part of a huge science experiments and to that end this is the first time since i've been alive in some 40 plus years that the middle class has shrunk as opposed to grown and at a time when the baby boomers are starting to hit the marketplace i can think of no better place to have money as an insurance policy than in hard assets like gold silver and color diamonds yeah we say it each week darron and to start the number one eight seven seven eight silver and online to guildhallwealth.com Jeremy it's the calamity rebate it's the inflation rebate it's having the insurance in your portfolio before the crash happens and what we're seeing right now is that governments they're in uncharted territory we've been saying this for for for eons on the show they really are an uncharted territory we don't know how this is going to exactly play out but when you've got a stock market that's based on just creating money out of thin air and hoping that it creates the wealth effect and when you look at the numbers you know anyone can listen to peter shifts podcast or read some of his newsletters to see some of the real numbers that are out there and why he's so adamant that there's going to be a big recession coming and it's going to be worse than 2008 what and he did predict that in 2008 the the housing collapse you know do you really want to take that chance and this is my opinion but take the chance that the that the Fed is right and if things go the other way they're just going to say oh I was wrong what we're seeing is people are starting to say I don't quite know what's going on but I'm not I have a bad feeling and I know that gold and silver are a great way to hold and protect wealth and capital and so what we do at guildhall is we allow people to purchase physical precious metals whether it's in an RSP TFSA lift riff etc or they can just simply buy it and take it home or there also is the possibility that you could explore of having it held in a depository whether it's in Toronto we also have one in Delaware you can also store it overseas and we can assist you with with anywhere you want to store your physical precious metals that is stored for you outside the banking system fully allocated fully segregated zero counterparty risk and this is what you want in a defensive part of your portfolio is zero counterparty risk now Darren you were going to talk about certificates I was and I'll do it quickly because we only have a few minutes left and I want to squeeze in something about Chairman Greenspan there Mr. Allen Greenspan but gold certificates is what I'm on this week I had a client call in potential client say look I bought 528 ounces of gold with CIBC we're awaiting the outcome of his call back to the bank to find out whether or not he could actually realize his physical holdings because all he wants to do is take his physical holdings that were supposed to be backed backing the certificate that he bought at a much cheaper price and he wants to bring that physical those physical holdings over to our depository to have them properly stored and managed essentially what he has as a choice right now before him is to one liquidate his holdings in which case he's forced to realize capital gains because he's way up in price or two suffer and have the ill-fated gold certificate for the long term now gold certificates aren't all negative but I will say this in the short term they are only a piece of paper there's no way for you to check or to figure out or to see or hold the gold or silver that they are supposed to that is supposed to back those certificates number two they are non-transferable I can't give them to my brother sister aunt uncle and number three in times of uncertainty if I need that physical product odds are I'm not going to get it what I'm saying folks is read the fine print always we didn't get to the green span discussion but ten years ago this week he ended his term and I have some very important things I want to talk about I'll bring it to the next show but we want to thank everybody for listening today and I'll pass over to John and we'll see you guys next week yeah another great show Darren and once again thanks to Ian Rachmanoff the chairman and involved with the fancy color research foundation for his input on natural fancy colored diamonds again start investing in any of these products these hard assets one eight seven seven eight silver and guildhallwealth.com as well when you're using your RSP or your TFSA lift riff lira RESP room is registered accounts so once you invest five thousand dollars us or more in one of those accounts you will receive one gram of gold courtesy of guildhall another funfield show we'll do it again next weekend as you know the real money show right here on talk radio am 640 hey merry christmas man the countdown to christmas celebration continues on w network that is where I thrive it's the time to shine all new movies every thursday to sunday we deployed christmas joy with three brand new holiday series thanks so much have a great holiday back-to-back movies every day we'll have you jumping for joy hallmark channels countdown to christmas all season long only on w stream on stack tv