The Real Money Show
The Real Money Show - December 13th, 2014
The Real Money Show with Guildhall Wealth Management from December 13th, 2014.
And welcome to another edition of the real money show the numbers one eight seven seven eight silver make sure you stop by there grab the investor kit and the precious metal advisor that is drafted written and manipulated and mastered by Darren long in studio today we have Jeremy was when Jeremy you're here but Darren is joining us via Skype because he's you're snowed in up there and wherever you live I don't know it's it's north of the GTA. Right somewhere I am there I am north I am north of the city and the snow is plentiful here today to say the least how to do the show from Skype but it's all good I'm still here and we're looking at a really good market this week John the prices of silver and gold have absolutely rebounded trading right now in the 1712 range. This is silver we're taping on Thursday afternoon well gold is trading at two one thousand two hundred and twenty nine dollars even right now and both metals saw very very good support during the week. We have a lot to talk about in the show we're going to spend a lot of time talking about updated information but the thing we want to lead with that we touch base on last week was the updated statistics on the silver eagle sales. These are the world renowned silver eagle coins and they have now surpassed the 2013 level here in 2014 so despite the price drop and we're going to talk more about that in a minute. Despite that price drop we have seen significant uptick in the demand overall after the US mint updated its bullion figures on Monday of this week 2014 silver eagle sales reach the new annual records are passing last year's total by nearly 200,000 coins not only was 2014 a banner year for the world's most purchased coins silver coins the silver gold eagle ratio also hit a new record high the US mint sold nearly half a million silver eagles over the weekend putting the total for December at one point three just over one point three million this is very very strong weekend demand push the total annual silver eagle sales to forty two million eight hundred sixty four thousand over last year's previous record of forty two million seven hundred sixty five thousand by about a hundred thousand and furthermore there are still a few more weeks remaining in the month so that number is going to grow and it's unbelievable so we're looking at very very big demand and this is happening despite the price being lower does it mean people start to wake up Jeremy finally buy silver again or what I think that it makes complete sense that demand would grow when prices are lower for whatever reason the price is lower we could talk about that for hours we can just you know get into our sewing circle and discuss all the theories that are out there but at the end of the day the price is lower and when prices are pushed too low what's going to happen is you're going to really put pressure on the supply side which we've seen we've talked about mining closures we've talked about the fact that this is the price currently is below what it would cost to manufacture silver or sorry to bring it out of the ground and of course when anything is low in price you're going to get you're going to get demand really start to be to grow in North America we haven't seen that as much but every week and we're going to talk about it a little more this week if just to drill it in a little more the demand throughout the world has been massive for physical silver and what Darren is mentioning is a pure case in point so what ends up happening is right now silver is being subsidized for for the people silver is considered you know the people's the people's gold and right now they are are being subsidized to buy it at a much cheaper price which means you can buy more than your fair share of silver what that does mean down the road is that there's going to be a lack of it for other people at much much higher prices and we're seeing article after article coming out this week that's just saying that $50 silver is a given that the prices will be much much higher than that and that's what happens when the pendulum goes from undervalued to overvalued so we definitely see that this is a great time to buy One eight seven seven eight silver on the real money show.com we've stuck at that massive ratio between gold and silver Darren. We do have that massive ratio john it hasn't changed much with both metals rising this week it's still holding in the 60 to 65 range and it's been that high for some time as you know we've been doing the show for so many years and the significance of that ratio is so important in the grand scheme of things and as that ratio declines it's an indication that silver is starting to pick up the pace sentiment is going to change and you'll see that ratio shrink if everybody recalls the last bull market we had in the 70s that ratio actually shrunk back to its traditional ratio of 16 to 1 when gold hit 850 announce and silver hit 52 announce in this particular bull market since 2002 that gap has been as wide as one meaning it requires 90 ounces of silver for every one ounce of gold and it's been as low as 33 to one and we expect right now based on what we're seeing and what Jeremy was just discussing also adds fuel to the fire. We expect that ratio to shrink again and that is usually led by a round change in gold we're seeing good support at these levels gold is now taken and captured the 1200 level. We're going to hopefully close tomorrow that's Friday and as you're hearing this on Saturday and Sunday if the price of gold held above 1200 it's a good indication we could be getting a lift in pricing. Now I won't say that we're 100% clear of this particular jaunt down in the market but when we see things like these demand sales hitting new highs in the coinage market these are the indications that a real bottom is starting to form and the beginning of a change in mentality for the next run up is starting to happen. So when we see that it just means that we're looking at the broader markets and we're applying the fundamentals that we come to the show every week with and talk about we're applying those fundamentals and they're working. Now the second story we want to talk about right now is the comics gold depositories. Now if everybody knows there are numerous depositories around the world that are controlled by exchanges similar to stock markets where you trade futures contracts and gold and silver are no exception. In the western markets we have the Chicago Mercantile Exchange which is in control and owns the New York Mercantile Exchange and on that exchange is the COMEX which is the commodities division of the NIMEX and there we find gold and silver and gold in particular a very interesting story. Registered inventories declined 25% in one day and it was a very surprising update. There were two large gold withdrawals from the COMEX last Friday and that's if you're listening to show on Saturday Sunday that's a week ago not this past Friday, not only were these large withdrawals they came from Brinks and Scotio McCott as registered inventories and these are inventories that almost never get touched. So even though the COMEX holds about 7.5 to 8 million ounces of gold, only 10% of that product is stored in the registered category. And on Thursday Brinks last week Brinks held 257,000 ounces of gold and Scotia held 339,000 ounces in their registered inventories. And then once Friday took place, the CME Group released an update and its COMEX gold warehouse stocks and Brinks registered inventories declined, so did Scotio McCotta, and that left us with a bit of a gap. That's kind of one of those defining moments, John. We talk about those triggers. This is an event-driven market. If you're a buyer, these are the things you pay attention to. You want to get on and understand a little more about because these are the triggers that set the market off. And as we're seeing this happen, prepare for more news similar to this. As we see the inventories go lower and lower, similar to what we're seeing in China. 1 8 7 7 8 Silver online, TheRealMoneyShow.com. You mentioned about getting off the fence, Darren, and buying. Jeremy, how do we do that? How do we start? The easiest way would be you can go to guildhallwealth.com, click on the e-store, and you can choose from a variety of bullion products. And it couldn't be easier. You can just register online, pick your product. We'll send you the Canadian costs for those. And you can either pick it up directly from our offices, or we can ship it to you. And shipping's free above $5,000. We're also doing a promotion this month that for every 100-ounce bar of silver you purchase, you'll get a silver maple. So if you've been thinking the time is right to get into the market, well, you could pick up 500 ounces, order that through the e-store. You could set up your depository account and store those 500 ounces in the depository. And then we'll ship you the 5 maples, and you can give those away as stocking stuffers. So we're adding a little bit of incentive for such great prices here in the market. But again, you just go to guildhallwealth.com, log on to the e-store, and you can pick up your bullion right away. And if you are looking to add bullion right now, the suggestion that I'm going to make is to start by adding both gold and silver. Both are tremendously low in price right now. My suggestion is to simply take your budget, maybe take a 70-30 approach, 70% to silver, 30% to gold. I personally like silver a little more than I like gold. If you don't like to speculate, then perhaps you can go a different direction and try perhaps to go a little more heavy on gold and less on silver. But I do think right now that you're getting a prime opportunity to take advantage of marking of low market pricing in both gold and silver. And the stories are starting to shape up again on the heels of that last story we talked about, yet another one we want to discuss, which is a huge game-changing catalyst for the price of silver. There are a number of indicators that silver is extremely undervalued. We've talked about the ratio between gold and silver. It's extremely wide, which means silver right now is more undervalued. And the key to gold and silver, that ratio, it has continued to widen. And at around $16 an ounce, it's down around 14% over the last year, despite gold's recent rally. So I expect that if we hold over the next few days, silver will get a nice uptick. It could move towards the $18 to $19 range, barring any setbacks and pricing there. And of course that can change. But I think there are two emerging catalysts that over the long term will drive price for silver exponentially higher that are part of the whole demand side of the equation. The first one is what we call photovoltaic cells or PV's. And that pertains to global demand and photovoltaic cells can be found in solar technology. And this is a growing technology that is widening hand over fist in different segments around the world. It's still a very cost prohibitive technology. You're not getting a lot of support from governments around the world. But parts of Europe are completely using solar technology and they're seeing this shape the way demand in those areas for silver is playing out. This is a huge, huge thing for the demand side of silver. And you want to consider the fact that silver supply is dwindling. It's not growing. We're not getting a growth in the primary silver miners. You're getting less and less and less. So as we come back to segment two, we're going to discuss it a little more. But this is a huge thing. And I'll point out number two just quickly. We're seeing a growth in high-tech electronics. And by high-tech electronics, I mean no longer are we getting a bevy of electronics that come from multiple producers around the world. We're now seeing a very fine-tuned market start to grow in the high-tech sector. And that means we're going to get more demand for silver coming in TVs, in the tablet growth, the market in the tablets, in laptops, in very high-end technology. So we'll talk a little more about that as well. And you got the technology. Again, Jeremy, along the same lines in cars, right? Everybody's got a pop-up screen and literally a flat panel inside their car. It all requires silver, right? Yeah. You know, Guildhall's been in business since 2002 and every single year there's something new with technology that's involving silver. And it's a constantly growing industry. The solar power is one part of it. Water purification is another. I think that's a huge one going forward. Battery power is another part that silver gets involved in. And micro-technologies as well. And not to even mention the fact that it does naturally absorb bacteria. So you see it in clothing technology where it's in a lot of sports clothing or in washing machines. We've seen it in that or even simple things like soap and toothbrushes and things that absorb bacteria. So we can be free from bacteria and keep ourselves healthy. That's where the born with the silver spooning comes from. Right. So we see that as definitely a growing part of that demand. And of course the low price is just putting more pressure on the supply side as mentioned. So it's time to get involved. If you've been watching the market, you see that this is value value value. You know, price is what you pay and value is what you get. Right now silver is incredibly undervalued, but it also couldn't be easier to purchase it. You can go to guildhallwealth.com, register at the e-store. You can just select it through there. We offer storage services with our depository, fully allocated, segregated product. Yep, we can do it that way. It's fully insured, fully secured and very liquid that way. So that's what we do at Guildhall. We'll take a short break, guys. Go back into more of this. And eventually in another segment or two, we get into natural fancy colored diamonds. In the meantime, want to start investing number, very simple. One, eight, seven, seven, eight silver and online to the realmoneyshow.com. While you're there, make sure you pick up an investor kit and sign up for the precious metal advisor. And back with more of the real money show, the number to start investing, very simple. One, eight, seven, seven, eight silver online, the realmoneyshow.com. While you're there, you know by now to pick up the precious metal advisor, sign up for that and get an investor kit. So I want to give you the heads up right away. December 20th on this show, we will have David Morgan. Give me more details on David Morgan, Darren. Who is he? David Morgan is a world renowned silver expert. He's a precious metals aficionado. He's got degrees in finance and economics as well as engineering. He created the website known as silverinvestor.com. And he originated the Morgan report. And this is an economic news overall financial health of the global economy report. And this guy's known throughout the world. He speaks at conferences everywhere. We've had him on the show before. He's a friend to the show. And of course, those that are listening to the show love hearing David Morgan. So we'd be happy to have him. Darren, I hear this week something out of the States that mortgage loans could possibly be going the way we went a few years ago. Please tell me this isn't true. Just more bad news. It is. It's unfortunate, but Fannie and Freddie officially have approved 3% down payment mortgages. This comes from housingwire.com. And this is a very, very tough pill to swallow because it tells me. Number one, we didn't learn our lesson from 2008 and what happened then. And folks in the US are still paying for that right now, which is an unbelievable thing to have to go through. They're not certainly back to square one, so to speak. They've still lost a ton of money. And houses are still in foreclosure at record numbers comparatively speaking to what it was prior to 2008. And we have both government sponsored enterprises. These are officially announcing that they're individually 97% loaned value products in the government's latest attempt basically to expand the credit box for first time homeowners. So you have both parts of the government that oversee housing commit to this. Fannie and Freddie, and it's unbelievable to see this happening. It tells me that we're not learning our lesson. And one of the things we're excited about in having David Morgan on with us is to discuss the way sentiment might be different if we experience a global downturn. And if we do experience a global downturn, will in fact the price of silver and gold chase down like the stock markets the pricing as it did last time. Our belief and I've written extensively about it is that that won't happen because I think people have got a fear inside of them that they didn't have prior to 2008. And that means that right now if you saw silver at four or five dollars an ounce back about five or six or seven years ago, and we told you where the market was going, we said, hey, this is going to be a devastating time for the stock markets. People are going to lose their homes, their net worth. Would you have bought silver back then? And the answer is, of course, it's overwhelmingly. Of course you would have. You would have gone out and taken a chunk of money and bought some silver, knowing it was going to go to forty nine dollars an ounce. So this is what we see happening. Jeremy's take on it is probably similar, but Jeremy, we were discussing it. This mortgage loans debacle, it's starting all over again and it's a scary thing. You know what, I want to add to that another headline here. Why is the US Treasury quietly ordering survival kits for US bankers? The US Treasury is putting two hundred thousand dollars into survival kits. So, you know, they put out this one piece of news that they're going to allow basically no down payment. On the other hand, they're going to hand out survival kits with thermal blankets and tablets to get clean water. So, you know, what are they doing over there? What are they doing? They're just making a mockery of the economic system. And this just comes down to simple economics. When you interfere with economics, what's going to happen? You know, you can't simulate a free market, right? So, everything gets thrown out of whack and that's what you're ending up with with also a ton of smoke and mirrors. I also know that for the last three years, anyone who's bought gold and silver in the twenty dollar range is certainly not going to sell it if the price of silver jumps from seventeen to nineteen. No way. Right? Even if they bought it three and a half years ago at thirty dollars, they're not going to sell it at seventeen, eighteen dollars. They're going to wait for fifty. Exactly. Anyone who's bought in the last three years is simply not going to let it go. So, this is what having gold and silver in your portfolio is all about. It's all about insurance. If you have insurance for your house and you have it for your health, why don't you have it for your portfolio? Are you looking for a particular price? You shouldn't be because price is what you pay and values what you get. This is about adding that value to your portfolio. Now, there's going to come a time where that fifteen percent stake in your portfolio because silver or gold will double or triple in value will all of a sudden be worth twenty-five percent of your portfolio. Now, you want to look at how much you should be holding and maybe it might be time to take profit. But, again, I don't see anyone who's purchased in the last three years is going to be taking profit of silver at twenty-five dollars. I just don't see that happening. You don't think it will be a case of once bit and twice shy with people living in the States. What? I can get a free mortgage? Let's do this all over again. Like, how did you not learn the first time? Yeah, I don't know. I see what you're saying. I completely agree. I think 2008 wasn't that far ago, long ago that we'd forgotten what happened. And we had a client in our office today who was in Virginia back in 2007 with a friend and said, "Oh, look at that shack over there. It used to be worth one hundred and fifty. Now, it's worth three seventy-five." And, by the way, the gentleman who lives there doesn't have a job. That's the way it is, right? What is going on? And everyone can see and be rational and logical and they see the stock market rising, but the economy isn't moving. Oil prices are dropping. Why? Because demand's off? Well, you can't have it both ways. You can't have a brilliant economy, but demand on energy has dropped through the basement. And we haven't even talked about what could happen, what the results could be of low oil prices. I mean, it's great for us. We get to fill up our tanks at cheaper. We can no longer worry about buying a Tesla. We're just like happy to fill our cars up. Let's go buy a massive SUV. But it does have significant repercussions to the economic situation here. So, what could that be? What banks could be in trouble right now because the price of oil has gone down significantly. One eight seven seven eight silver on TheRealMoneyShow.com online. Make sure you get that precious metal advisor. Sign up for it on the website. Darren, tell me why the bears might be wrong in all this. Well, the bears got it wrong, John. There's no doubt about it. And we were talking in the first segment about some of the key indicators that are telling us this is what is the wrong way to pursue this market. I mean, if you look at it, the idea here is very simple. One of the biggest reasons why I think the bears got it wrong and the bears are the people who think the price is going lower. And the reason why I think they're wrong is because China continues to accumulate record amounts of gold. Mainstream reports. And this is what most of our subscribers and listeners will read. Mainstream reports will tell you that Chinese imports of gold through Hong Kong are down. And that's true. They are. But total gold imports into China are up. And most journalists continued over. Look the fact that China imports gold directly into Beijing and Shanghai now. And there are at least 12 importing banks that we know of. If you're counting these unreported sources, imports have actually risen sharply. How do we know? Well, from other countries, export data. If you look at Switzerland, for example, so far in 2014 alone, Switzerland has shipped 153 tons or 4.9 million ounces to China directly. This represents over 50% of what it's sent through Hong Kong, which is 299 tons. The UK has also sent in exports 15 billion in gold so far through 2014. And in fact, London has shipped so much gold to China and other parts of Asia that its domestic market has tightened significantly according to bullion analysts there. So you're looking at this and this is what's happening. And really what this means is the overall picture is that in fact, China is working to accelerate its accumulation. This is a growing trend and the People's Bank of China released a plan just last Wednesday to open up gold imports to qualified miners as well as all banks that are members of the Shanghai gold exchange. Even commemorative gold maker China gold coin could qualify to import bullion. And that's a big one for China. So not only will this further increase imports, but it's going to serve to lower premiums for Chinese buyers. And it's going to make purchases more affordable. So we are seeing that happening. It's burgeoning demand. And it doesn't matter what anybody else says, what the mainstream analyst says, what CNBC or B&M might say demand is rising there. And these centers are going to get on fire. If the price starts to go up because everybody's going to try to jump in at the exact same time to accumulate as much as possible. I know Jeremy, you were going to talk about a few other things as well. Yeah, this is what we're talking about is coming from a great article put out by Jeff Clark from Casey Research. That will be in next week's precious metal advisor. And to get that, you just go to the RealMoneyShow.com and you can sign up and get that weekly newsletter that we send out that Darren puts together. But it's not just China that's accumulating and wanting to increase the accumulation of gold. We have talked about this that since 2008, central banks have become net buyers of gold. They're no longer selling their gold. They're looking to purchase gold. And we're seeing that through hoarding of many countries around the globe. The World Council is reporting that for the 12 months ending this past September, that gold demand outside of China and India was 1,500 tons. That's 50 million ounces. The problem is that the demand from China and India already equals the global production. So what we're getting at here is again, when you have prices that aren't free market prices, that aren't where you're not getting that proper free market mechanism of price discovery, what you're ending up with is subsidized low prices. And India and China are taking advantage of that in spades. And what that means is you're going to end up with a situation where there's a very limited supply, but massive, massive demand. And how are you going to handle that? During the 30s, when they tried to keep meat prices down, sorry, during World War II, they tried to keep meat prices down, what ended up happening is you had to ration out it. You had to ration it out because everyone was saying, okay, I'm going to get more than my share then, but you can't have it that way, right? So are they going to ration silver at this point? I mean, certainly dealers could do that. But even right now, the demand side, sorry, the supply side, dealers are having a tough time keeping things in stock. Well, it's scary when it's the two biggest economies in the world that are all over this. Right? Absolutely. It's not us. It's not guys up in Peterborough buying silver. It's China and India. Yeah, you know, we do see a growing trend. We see a trend where most people say, look, I've seen the market for the last few years. It hasn't done a lot, but I've seen all the other things that are happening and it's frightening. And let's do something about it. Let's buy the product now that at its low price, it's starting to make a lot of sense. So we're seeing a demand despite the media saying that there is no demand. We're starting to see a major uptick in buying here. People are saying, you know what? The price is low enough. We're seeing the value. It's time to get in. So if anyone is feeling that way, that the price of gold and silver is low enough to make that first purchase, you can simply go to guildhallwealth.com, log on to the e-store and you can make a purchase very easily. And again, or you can go to therealmoneyshow.com and sign up for the precious metal advisor and keep learning more. Let's take a quick break, guys. We'll get back into it. Some natural fancy color diamonds love this part of the show. The number to start investing was Jeremy mentioned, one, eight, seven, seven, eight, silver, and go online indeed to the realmoneyshow.com. And more of the real money show, one, eight, seven, seven, eight, silver and online to the realmoneyshow.com. The precious metal advisor, make sure you sign up for that when you're on the website and listening to the show. Let's talk about some diamonds here. Jeremy, favorite part of the show, Natural Fancy Color Diamonds. What do you got for us today? We have a few new diamonds that came in. One in particular is 1.10 fancy yellow radiant. Beautiful. And it's internally flawless, of course. And you're looking at just shy of $14,000 Canadian for that. One of the problems with the US dollar, of course, is that we do have to contend with that for purchasing natural fancy colored diamonds. And so we've had a tough time keeping the prices where the market should be because the dollar has been climbing. But of course, we do see steady rises in the value of natural fancy colored diamonds across the board. It's such an easy investment to make because you're just purchasing something beautiful, sitting on it. And a diamond like this, you could see anywhere from 7 to 10% gains in valuations on that annually. So on a 5 to 10 year basis, you're going to be looking at a significant increase. And again, that's based on something investing less than $14,000 Canadian. And what you're getting is a diamond that is in size-wise hitting the mark over one carat in strength-wise. You're getting fancy, which there's vivid, intense and fancy. We wouldn't go lighter than that in terms of the saturation quality. Clarity, you're looking at internally flawless. If we were to go and buy a similar white diamond, you probably wouldn't find an internally flawless in a jewelry store anyway. So if you were to just compare apples to oranges here, this quality of diamond already well surpasses what most people would buy in a jewelry store. And even if you could buy that white diamond internally flawless with all the type of qualities that this has, you're still not going to get that investment side. It's not going to be nearly as rare. So a diamond like this, again, a 1.10 fancy yellow internally flawless trading for just under 14,000 Canadian. You could put that into a ring. You could put that in an engagement ring. You could put it into an anniversary ring. You could put it into a pendant. There's so many things that you could do with that to enjoy it over the next 5, 10 years. And while you're enjoying it, you're going to be getting that increase of, again, anywhere from 7 to 10% comfortably on that. Now, if you wanted to look at a much stronger investment where you were putting in anywhere from, let's say, 60 to 100,000, you could be looking comfortably at a pink diamond. That could be either a large fancy or a smaller intense, and those diamonds could be getting upwards of 20% plus a year. We're constantly trying to procure more diamonds, and it's always a struggle. For example, getting back to the fancy yellow, Paul must have gone through at least 100 GIA reports from the one dealer, and they were all good diamonds to begin with. But none of them were investment grade, and once he found the ones that suited his purposes GIA-wise, now you had to actually look at the diamond and see if it had something. Sometimes they can be great on paper, but lifeless in real life, and I find it's just like dating. You could find someone, hey, that person looks great, they're a doctor, they're this tall, whatever it is, right? But at the end of the day, you still want to go for coffee and see if there's a connection, and these diamonds have fire, they're beautiful. And again, what type of investment can you enjoy while it's continuing to make money? We've never had anyone who purchased a colored diamond with Guildhall that's lost money on a natural, fancy colored diamond. In fact, we've seen valuations that are constantly surprising, so it's such a wonderful market to be a part of. If you want to look at what we're looking at right now, you can go to guildhalldiamonds.com, go to the collection, and you can see the type of diamonds that we're talking about here. And you can almost forget, because you're enjoying having a ring or a pen that you're making money on it, and that's such a great entry level, about $14,000 for that yellow, right? Yeah, if you want to push buttons all day and watch stocks and pull your hair out, both you and me don't really have that problem, John, but if you did want to do that, then this isn't what you'd be looking for. You'll invest in your stocks, you'll go in and out and try to make the same type of returns. However, if you're comfortable with, let's say, GICs or real estate, where literally you're just buying it, sitting on it, and seeing how watching it grow, this is something that you could really get behind it with just a little bit of knowledge. You know, we all had to go through some paces to learn how to buy real estate, learn what to look for. But once you make that first purchase, all of a sudden, the world opens up to you and you understand it and you're willing to buy the next one and the next one and the next one. So we definitely see that people who've purchased colored diamonds in the past will come back and create a collection. And to create a collection is wonderful. You just buy a yellow, you buy a pink, you buy a blue-green, you buy a different type of yellow, and you can see the type of gains it's going to get year in, year out. And people follow the website, they see the prices increase. And our prices are a reflection of A, the buying power is always getting better. We're always finding new places to purchase. But the supply side, just as we were talking with Silver, is always tough. They're just not, these diamonds were created billions of years ago. There's only so many in the Earth's crust. You're only going to find so many. It could literally be one in a billion to find a type of diamond like this. Even the fancy internally flawless. So it's such a small supply side, but the demand side is massive when you think about the fact that there's 7 billion people on the planet and people are getting engaged. They're looking to be more individualistic with their engagement rings. And so there's always such a strong demand side of this that it's a fight to try to find something that not only is already beautiful, already rare, already of immense criteria. But now you're fighting to get that. So for example, we're having a tough time finding intense pinks that are Argyle. Argyle right now. We do see some fancies and they're going up immensely as well. Just right now we're going through a pocket where we're having a tough time in intense. Same thing in yellows. We're going through a little bit of a pocket where we're having a tough time finding intense. But that said, we do have a really beautiful, you should definitely check this out on the website. A 2.8 intense yellow princess cut. This is a gorgeous, gorgeous diamond. I remember buying it. Really? Yeah. And we actually had it with a client and they've moved up to a different diamond. So we're helping to resell that diamond. And this is what Guildhall does as well. Because they're so hard to procure, we're more than happy to help resell these diamonds. I consider ourselves almost like a high-end real estate agency that's dealing in a particular neighborhood. We know the neighborhood and we want to continue to sell in that neighborhood. Or a gallery that sells Andy Warhol paintings. When you're finished with your Andy Warhol, what do you do? You bring it back to the gallery that sold it because that's what they focus on. And we focus on internally flawless yellow diamonds. We focus on VS pinks and all of these diamonds because they're so rare, because the criteria is so high, they get incredible valuations year in year out. The difficulty for us to procure them only results in the fact that these prices continue to rise. What is it with the Argyle mine? Why are they so rare? It's closing, right? It is closing. You can only mine out of one mine for so long. This mine's been bringing diamonds out of the ground since the mid-80s. They've finished open-pit mining, so now they're mining deeper. And the deeper you go, the smaller the diamonds get. And the harder it's going to be to find pink diamonds. What's interesting is they do produce 90% of the world's pinks. But strangely enough, I would put the premium on the other 10%. The pink diamond that you'd find in Russia or the pink diamond you'd find in Brazil. Be that as it may, Argyle does have a certain cache about it and people are vying for these diamonds so much so that every year, those that can bid on the Argyle tender, which goes around the world shows in about four different countries. They show off the best 50, 60 diamonds that they have. Bidders are willing to go over 30%, over 40% to try to get those diamonds because it doesn't matter. You're going to get it. You're going to hold on to it. It doesn't matter if you, I mean, you're not overpaying if someone else was willing to pay over 30%. So you're not really overpaying, but you are willing to hold on to that. And it doesn't matter if you sell it this year or you sell it next year or you sell it the year after, it's money in the bank. And the problem is going to be when you sell it, what do you do now that you've sold this beautiful thing? Imagine owning a Picasso. Try to replace it. What do you do once you sell it? Same thing with pinks. And we've seen the prices rise incredibly. We had a, most recently we had an Argyle pink. I think it was a 0.81 intense. And originally back in 2011, you would have been able to buy that in the low 200,000s. Okay. It was selling, it sold most recently just under four. I'm looking at it right now on the website. It's incredible. That's within three years. Yeah. Now that money makes money in this respect. You know, that rarity equals value. So this was a very rare diamond and it's going to be very difficult to replace that diamond. So anywhere that someone can start, I think we cover the gambit on our collection in terms of getting into the market for as little as 11 to 14,000 up to millions. You know, we have people who are always trying to source diamonds. It's nice to come into the office, look at the diamonds, knowing your price range, and letting the diamond choose you. We see that almost. Paul says that all the time, right? Yeah, we see that almost all the time. Some will say, yeah, I'm looking to spend about 40 to 50,000. We show them what we have at the time in that range and inevitably they'll choose something that's the one. That's the one. That's the one. 18778 silver and online to guildhalldiamonds.com. You mentioned that being a starter stone in the yellows and is it often the case that people get into a yell, like you said, may move out to a small pink and they put these away, maybe for pay off a mortgage in 15 years, possible university for the kids in 15 or 20 years. Good plan, right? If you start with one because it's new to you and you've learned enough to say, yes, I see where this is going. I want to get involved. Knowing that guildhall stands behind its product because we own all of the product that we have and you get involved, you purchase, let's say you purchase the fancy and a few years later you're getting the appraisals year over year or every few years, you get the new appraisals, you're following the pricing in the market online with either guildhall's inventory or just seeing what's out there and you decide, wow, three, four years, the prices have moved up significantly. I'll give you an example in just a minute and then you can always move up. You can say, look, I've got this fancy, I want to move up to an intense. We have clients do that all the time. I had a client do that recently, moved up from an intense and just said, no, obviously the more I can put into this, the more I'll get out of it, so I want to move up to the vivid. Remember, we're talking about yellows right now and the strongest color, most saturated colors vivid, the next level down would be intense and the next level down would be fancy. We don't do light fancy. The intense diamonds, you could have bought three, four years ago an intense diamond in the mid-teens. Now they're in the mid-twenties. Where are they going to be in 10 years, right? Exactly. Right. Some might say, wow, that diamond could be worth $150,000. Who would spend $150,000 on such a little thing? Who knew you could be spending $600,000 on a 1,200 square foot house? House, yeah, right. Exactly. More than that now and yet that's the case. The only difference is people don't mortgage diamonds. They buy it, they hold it and it's such an easy way to make money that yes, if you were thinking 15 years out, you could start with an intense, you could start with that yellow diamond for just under 14, again, one carat, fancy yellow, internally flawless, 15 years from now, you're probably going to double your money at least three times, I would think, and that might not pay for the full education, but you're going to be definitely on your way. If you deposit box, not really forget about it, but just let it grow as they say, right? You could do that. I think that's personally, I think that's a shame. I think you should put it into something, you know, if you are lucky enough to have a partner who wants to wear it and is telling you, yes, I want that, you are going to be the bell of the ball. It couldn't express more individuality. It couldn't attract more attention and what's also interesting is people still don't know what they are. They still don't know. They think, oh, a color diamond, that's less rare than a white, right? It's not just not the case. It's worthless. Yeah. And look, we have investor guides, we have buying guides, you can just pick up those, you can go to guildhalldiamonds.com and fill out the forms, and you'll send you the information on natural, fancy color diamonds, so you can learn as much as you can, and I'll tell you what people do. They learn about color diamonds just a little bit, even if you come to Guildhall, look at some of the color diamonds, look at some of the prices, look at the quality, and then I challenge you to go out to some jewelry stores, and A, try to find them, try to find a color diamond in that meeting those criteria, and then see what type of prices are, and you'll start to understand the difference between wholesale and retail, and just what type of quality we have at Guildhall. I would think that that's probably our biggest challenge is just trying to get across just how rare they are, just how strong the quality is, knowing that Guildhall puts, we put our money where our mouth is, we own these diamonds, we're willing to hold on to them, we'll hold on to them as long as it takes. Because they're still making money. Again, it's all money in the bank, but generally I'd say that the turnover of our collection is pretty much once a year, everything turns over, so it's not like we're having a tough time selling them. I want to talk more about, you know, trading out that diamond or even selling the diamond later on, how they do that with you guys, and also your in-house expertise, but we'll take a quick break first, 1-877-8 Silver, online to either therealmoneyshow.com or Guildhall diamonds.com as well, more of the show coming up. And more of the real money show of the number, start investing 1-877-8 Silver, you get precious metals and of course natural fancy colored diamonds as well, Darren, I want to get back into this about Venezuela adding diamonds to the financial reserves, what is that story all about? Well, John, that's a big thing because as you know, we talk about precious metals and the importance and the role that assets like gold and silver play in a country's finances. And in good times, they tend to lean away from the risk assets. Countries in central banks alike tend to be net sellers of gold and silver when their stock markets are running, when their economy is pumped up and running well and the housing markets are good. But when the downturns come, we generally see historically a move by central banks to bolster their foreign reserves by adding hard assets. In some cases, that might be for countries which are democratic countries, the growth of programs for buying gold could be the growth of programs to nationalize crown property or sell off some crown property to add or bulk up their paper reserves. But in countries like Venezuela and other countries like that, we sometimes see these crazy things happen, but as crazy as it may sound, more recently, Venezuela has decided to add diamonds and those are going to be both colored and whites to their financial reserves. This is an article found on diamonds.net. It's a move to strengthen their financial security and their currency. And Venezuela's central bank issued a decree to use diamonds, precious metals, and other currency deposits to boost their own reserves amid their own economic uncertainty and with, of course, falling oil prices. Everybody's panicking over these. Now the decree expanded the definition of reserve currency to be backed by the mineral assets such as diamonds and convertible currencies that are deposited in the bank's faults. And the statement didn't differentiate whether the precious metals, precious, the precious stones in the form of diamonds were rough or polished or a combination of both, but merely just pointed died out. So this is an incredible moment in history because this is the first time we see a central bank of any type use diamonds to support their own economy. And this is really what we said a long time ago. We've been talking about it for a very, very long time. The importance of understanding the diversification that's happening behind closed doors. What we do is pick up the paper every morning and turn on our TV, open up our iPads and tablets and we read the headlines that state the economy is getting better and better. It's very, very misleading. The headlines are really telling us something that's not happening. The truth is being swept under the rug as far as what is really occurring. And the truth is that since 2009 central banks have actually been net buyers of gold and silver. And now with Venezuela, buyers of colored diamonds and white diamonds. Now a country wouldn't make the mistake of delving into these markets unless they felt that those were mechanisms to protect their economy's long term in the event that something might happen that's catastrophic. And I'm not one that supports the notion that we're going to see the whole world fall apart and we need to have some type of barter system in place or a bunker to store all your food. But the reality is that there are central banks around the world, including those here in the West, some of them that are actually adding gold to their reserves. The US is obviously the largest of four Knox gold holdings surpassing all other holdings around the world. But we've never seen those audited in some 50, 60 years. So we don't know if they're really there. I would probably venture a guess that they're not there. And in fact, what we're seeing or sitting on is maybe half truth, maybe a quarter truth of what is really the touted amount. But this goes hand in hand with what we're talking about when we're talking about colored diamonds being investment stones. These are investments that really are not something that are mainstream just yet. When they do become mainstream and even one or two percent of the mainstream get a hold of them, prices for pinks, which are now 30, 40, 50,000 on our website, starting prices will easily be 50, 60,000. Just like 10 years ago, when I started at the firm, pink diamonds were selling in the five to 10, 15, $20,000 range, the same stones we have on our site today. So you're seeing tremendous gain from these. You're getting tremendous amount of return. Each diamond is unique. There is no two diamonds alike. So the return on each diamond is completely different. But the more rare the color going from the rarest, which is red down to the most affordable in our line of diamonds, which is yellows, that will determine what type of return you make on yellows for an investment that would be very on par with what you would contribute to your RSP in a year, 10 to 15, 20,000. You could easily see 8 to 12 percent return per year every year for here till the cows come home. So I mean, this is a good way to start diversifying your portfolio. If you're new to this, it starts by calling the firm. It starts by going online to Guildhall Diamonds and getting a little bit of information. But more importantly, it starts by making that first initial attempt to actually do something to change the outcomes for your investment future and your family's investment future. 1 8 7 7 8 silver and go to guildhalldiamonds.com to check out the collection that Darren was talking about. I'll get you on for the next few minutes here. We dropped out for a bit. As everybody knows, we're didn't know we're skyping this afternoon because as we record this year, way steep in some snow. So hopefully our connection stays true for the remainder of the show today. I want to get back into something you mentioned earlier. Paul has purchased some new pink diamonds, which is pretty exciting, right? It is exciting. And the reason it's exciting is because pinks tend to sell very quickly nowadays. They weren't always the fastest selling diamonds. But with the amount of marketing that's been done by the largest mine in the world, which is the Argyle pink mine in Australia, Western Australia. It has become over the last five, six years an asset, which is in high demand all over the world, it they'd paint diamonds themselves are hard enough to get, let alone the quality that we seek. When we look around the world for diamonds and Paul is exceptional at finding that quality. What Paul looks for in a diamond is something that's called VS clarity or better. And VS clarity, just to a layman's to somebody who doesn't know much about diamonds is simply the way we say the level of clarity, at which point we say, we no longer can see any flaws with our human eyes where it's not possible. We need a microscope to see any flaws in the diamond and that to us makes it investment grade diamond. Now, if you're listening and you've been thinking about buying a diamond, think twice about buying a diamond that has a clarity level below VS. If you're looking at pinks and they have an SI clarity or an I clarity, these are stones which we as a firm do not believe our investment grade stones. They may be for the size of stone. If you're talking about maybe three, four character larger, then that's a different story. But in the less than one carrot range from 25 points to a half a carrot, half a carrot to 75 points, these diamonds must be VS quality or higher. Now, Paul getting some of these pink diamonds is nothing short of incredible because as everybody knows that as an avid listener to the show, we barely get an opportunity to seek out this type of quality of diamond. And when we do, they do go very quickly. So when these diamonds come to us, you'll want to be on the list, the mailing list. And you'll want to get the first dibs at getting the email that will give you some insight about what diamonds are coming to market. And again, that'll offer you the opportunity to be first on the block to look at the diamond, see the diamonds and purchase the diamond. And without that, really, you're looking at a diamond that's going to be sought by dozens of other people on the exact same day, looking for the same thing. Now thousands of people get our newsletter every week. Thousands of people are going across Canada and the rest of the world are going to hear the show and they're going to get the first crack. So if you're not already on that mailing list, it's as simply as going to the website, asking and committing to getting that, that precious metals advisor, get on the diamond mailing list. And it all starts right there. And in house, of course, you have Nicole Smith and your diamond expert can answer all the questions and knows this business inside now, better than anybody really, right? Better than anybody. The market would be the market for diamonds is a very complex arena. If you're doing this alone without an expert on your, on your side, then I think you're bound to potentially make a really bad mistake in a type of quality of diamond that you purchase. Lots of people out there selling colored diamonds, only a handful selling in pinks vs. quality or better. Truly, when you come to us, you're coming to an expert group of individuals who understand the markets as good as anybody else in the world. And Nicole is world class. She's on our team. And if you're a client, you get her on your team. Well, I take it for another week, my friend. It's a brilliant advice and people should get on this right away. A wonderful investment one that's going to go up and you really have to do nothing else with it. But make the call and go on the website, the number one, eight, seven, seven, eight silver and online to either the real money show.com or guildhalldiamonds.com reminder as well next week on the show, we'll have David Morgan talking about silver and precious metals. You don't want to miss that one. This has been another edition of The Real Money Show. To celebrate the thrilling new series, The Day of the Jackal Showcase and Stack TV are giving one lucky viewer the chance to win a trip to London, England. Police all over Europe are looking for him. Let's go as a ghost. Head over to our Instagram and see the contest posed for details on how to enter. I'd like to win. So do I. And watch the new series, The Day of the Jackal. Remearing Thursday, November 14, only on Showcase, stream on Stack TV.