The Real Money Show
The Real Money Show - November 29th, 2014
The Real Money Show from November 29th, 2014.
and welcome to the real money show the numbers one eight seven seven eight silver and the real money show dot com make sure you stop by get an investor kit and the precious metal advisor it's key information want weekly to get that sign up and uh go forth we got the president of guildhall here paul wiseman and our senior analyst daren long this show today we're going to be covering lots of things silver and platinum may be signaling true hard currencies volatility and we're going to be looking at china interest rate russian gold buying and gold being repreated outside of north america of course what else is new it's never here we're always the last one to know but first daren want to get into uh the silver correction that we hit the bottom it's a good question john it's a good place to start the week was a little bit topsy tervy we started rising during the front end of this past week and we're taping the show on friday of this week and as we approached the american thanksgiving and happy thanksgiving to all of our american listeners we saw a bit of a turnaround strengthening the u.s. dollar once again near the week's end with a weakness in oil market produced additional weakness in the precious metal sector in both gold and silver fell off coming into friday morning now gold is uh traversing down towards the 1180 mark uh while silver is sitting in and around the 1580 to 1590 mark in that range and again looking very prime for those technical buyers who are looking for a nice buying opportunity but let me tell you why it's the biggest question everybody's mind rate now as to whether it has hit the bottom and uh we we can't say for 100% that there won't be further weakness in the market look what the markets have done to these metals already this year alone silver's traversed down around 15 to 18 percent uh but in the long-term picture what we're most happy about is the fact that all of the basic fundamentals are in line and intact and i'll tell you what we're looking at is although the u.s. dollar has strengthened and we've seen that happen not as a result of what we believe is the u.s. economy getting better but more or less because of weakness in other economies around the world and obviously that's a huge problem for metals in the short term but uh a lot of analysts are predicting that the metals could fall slightly further but in recent days underneath what has been developing and what we're going to talk about in the show today is definitely forcing us into the camp that suggests silver is going to break out higher here as well as gold now barring what's happened in the oil complex this week and it doesn't look like because OPEC did not change their production levels doesn't look like oil is going to be heading up anytime in the short term we are watching a couple of significant developments in the silver market firstly is the gold to silver ratio this has been and always has you know historically been a crucial measure of the correlation between silver and gold prices and it had continued to widen right out to the point that it was at about 75 to 1 meaning you needed 75 ounces of silver in order to get one ounce of gold and when that ratio gets up that high it tells us that silver is extremely undervalued should be 60 to 17 no it should be 16 to 1 yeah yeah 16 17 to 1 is what historically it has been and if you look back to the last bull market in the late 80s and the late 70s there was a you know of course peak in both gold and silver and the ratio at that time was 16 to 1 now over the last year the ratio has widened from about entering the year at about 68 to 1 up to as I said about as much as 75 to 1 and even more startling is the current gold to silver ratio which is 55 higher than what the actual 100 year average is and even 100 year average is still at 47 not even taking into consideration thousands of years so if we look at that we can comfortably say that silver is very undervalued right now and you know not just myself but other analysts in the marketplace that's specialized in precious metals are looking towards that as being a key signal as to where we're heading with this undervalued asset presenting itself as opportunity buyer should be alert right now and be looking to snap up these cheap prices well I find it very very interesting considering that today we're taping the show on Friday in the US they have the black friday sell guess what we had a black friday sell on gold and silver today it's been every time the markets close in the states for Thanksgiving they were closed they were closed basically today the markets always get smashed down it's just an amazing thing that these markets can keep getting manipulated yet over the still over the last 10 years we're up 350 380 percent with manipulation and we know that the markets are being manipulated Darren came up with an interesting thing about how some of the central banks are actually looking to repatriate their gold in 2013 Germany tried to repatriate their gold that was held by the New York Fed they haven't been very very successful they were told it's going to take about five years to get their own gold back the Dutch are just doing the same they're trying to repatriate their gold some of their gold is kept in Canada which I think we're pretty safe some of the gold is kept in London but 51 percent of their gold is kept in New York and they're following Germany and they would like to get some of their gold back because they are feeling a little unsure of the markets you have to remember you know silver is a byproduct of gold gold copper and zinc mining there's not too many silver mines that are actually out there and silver is basically used in everything today that's electrical I can't understand how this market is trading under $16 right now silver should be at $30 $35 it's extremely undervalued a Guildhall we sell gold silver platinum and played in we sell the physical product what was traded today on a on a sell-off was paper it's not the physical product I'm waiting two three weeks right now for physical product to be delivered from the fabricators that's the manufacturers whether it's Royal Mint US Mint we are behind in deliveries we sell the physical product we don't we're not in the equity market we don't sell stocks we don't sell certificates we don't sell futures we don't sell options on futures and we definitely don't sell ETFs so we're not in the paper market we're in the physical market you take a hundred ounce bar of silver you drop it on the floor it makes a claim you know you take a piece of paper it doesn't make any sound this is what's being traded on a daily basis is paper gold silver platinum and played in the physical products in my opinion very very under valued right now at Guildhall you have several ways to get into this market I think it's an unbelievable investment you know everybody's rushing out you know to buy on Black Friday they're picking up impulse buying they're buying garbage and not only that they're paying the HST on the garbage buy some gold buy some silver there's no HST it's something that's going to keep on showing dividends it's going to keep on going up in value we've been proven even over the last 10 years even though we're smashed down right now we're still up 350 380 percent on gold and silver I think the market is about to turn around even though the US dollar has got extremely strong what it is it's the best house on the worst street if you look at all the basket cases that they're out there when you look at Europe you look at Japan zero interest they are in deflationary mode in Japan you know no wonder people you know borrow money from Japan it's the carry trade at zero and go and put it into something where they can get dividends which is the US stock market where they're getting maybe three four percent it's not a bad thing but the average person can't go into a US or into a Japan Japanese central bank and say you know lend me 15 billion dollars because I would like to buy some stocks but governments seem to be able to borrow from each other and they're floating these markets so a guild hall you really should buy physical product you should have 15 to 20 percent of hard assets in your portfolio everybody at my company owns gold and silver we all have skin in the game we don't just come on the show and talk about it I'm expecting an unbelievable turnaround you know we're not basically you know gold bugs we're running around with gas masks and bottles of water for the next three years and tends to spam we don't do that we look at the markets we look to see why is gold and silver so undervalued because what's happened with when you've got quantitative easing and you're printing and printing and printing they are boosting up the stock market the other area where you can put into is land there's always there's never any more land except with land they're building upwards they're not building down so hard assets are always a great investment if you go to our website guildhallworld.com in the right hand corner you're going to see an e-commerce site this allows you to buy gold and silver with a click of a mouse whether it's one ounce maple leaves 10 ounce bars of silver 100 ounce bars of royal mint bars same thing with gold whether you want one ounce valcambi bar whether you want a royal mint whether you want a maple leaf go to a 10 ounce bar go to a kilo bar of gold it's available for you with a click of a mouse it's very very simple to order if you want to pick it up you can pick it up if you want to put it into our depository which is even a great way to store your product it's safe it's secure it's segregated the product is allocated to you it's one of the best ways to hold precious metals if you buy a thousand ounces of silver weighs about 70 pound you can't take that to a safety positive box you know most of the box is in the banks today are tiny you don't want to keep it at home you should be worried about home invasions you know these are volatile times out there right now give us a call learn about how to put into product into our depository it's one of the cheapest ways to store it's only 1.3 percent a year total storage and insurance you can't ensure your home insurance for that type of money your car insurance is not that type of money so something like a hard asset you can get into one eight seven seven eight silver and the real money show.com make sure you sign up for the precious metal advisor while you're there as well. Darren in last few minutes this segment talked a little more about silver demand well it's a good point it's valid based on the heels of what we were just discussing but the key drivers of this seasonal demand are growing jewelry demand in China and India for festivals and weddings that's this time of year it's been that way for the 10 years that I've been a part of Guildhall and this is you know we saw some demand changes through the middle of the year but coming in the last quarter we saw that India's silver imports alone for October 2014 spiked by 44 percent compared to September and a mass of 136 percent compared to October of the year before so we are seeing that continuation and pickup of demand for the small coinage in the small bars and that is being translated all over the world except for the west now that being said we're seeing an abundant demand here for coinage but a lot of that product is going overseas and if you look again at the investment demand for silver in coinage here you look at the largest seller which is the American silver eagle they hit an all-time October record and they've been at their highest point since January of 2013 over the last month so there are signs there that are underlying those headlines talking about the US economy and the direction that you might think the stock market is heading that are telling us all of those things are still in play now that to me is a warning sign John that if you are an investor and you're looking to park money in a smart investment that maybe you should be thinking twice about where you're going to put that money it's a certainly common sense that to be well diversified you have to have different investments and try to spread that money around why not start with something in silver gold keep it physical you can come to Guildhall and start that investment today it's as simple as can be as Paul mentioned before you just simply go to the website and in the top right hand corner you can right away start buying right online as if you were buying anything else on any other site and the reality is that by starting that investment you're going to start giving yourself a base a base to improve upon something to step off of and if you like what you're seeing and you start to gain value you might want to cost average and add a little more as you go along but either way it couldn't be easier and to hold something that's tangible like a big hunk of silver or gold in your hands it's one of the best things that i've ever done we'll take a short break the number is one eight seven seven eight silver want to go on to the the website as well the real money show dot com and sign up for the precious metal advisor and back with more of the real money show the number one eight seven seven eight silver precious metal advisor get that when you go to the real money show dot com you got to have it there and you write it in each week there's a lot of information people need to have like the activity happening in china and russia right now right when it comes to precious metals in china and russia those are two key demand centers in one of the two in russia is really just coming on over the last couple of years now china although they've only been allowed legally since two thousand to buy their citizens have only been allowed to buy physical bullion they're pushing it every day when you go to china you'll see it but those are two huge demand centers and china on that side of the equation is very popular for many commodities because of the growth in their overall economy and pressure metals are no exception the chinese currency the r&b remains a very non convertible illiquid currency instrument and with the growth of wealth in china which is huge i mean the middle classes is blowing up right in front of us demand for gold has been enormous overseas there and what they bring in to even fabricate doesn't leave the country so they have been a huge demand center and it's easy to see one can go on google and search it for themselves but this is the truth this is where a lot of demand is coming in earlier this year they actually overtook india for a short period of time as the world's largest buyer of gold so that's an interesting mark to be following now many wealthy chinese do buy gold and throughout history gold has been a hard asset that has held value and has internationally accepted vehicle of exchange and late last week the chinese central bank cut interest rates lower interest rates tend to spur gold buying because they lessen the opportunity and carrying costs of holding gold so lower chinese interest rates are bullish for physical pressure metals and that's happening uh right now as we speak so we're going to see more stories developing in terms of the demand centers for gold and silver which over here for buying now at these cheaper prices should play themselves out as the year progresses to the end and into next quarter now the russians continue to buy gold domestically and in the international market also and so far this year the russian central bank has added 150 tons of gold to their reserve that's a staggering amount i suspect that they have added even more from domestic production which we don't know about sanctions leveled on russia by the west uh over the course of this last half of year are going to continue to encourage russian gold producers uh purchases uh on a governmental and individual basis so i would think that that story is going to develop as well and continue to go you mean they think of gold a lot differently than we do to them it's a true hard currency if all else failed tomorrow gold would be the way that they would survive and when you have that type of mentality that's a uh not just a a mentality that is uh been around for hundreds even thousands of years it's an mentality that really tells us how different we are from over there over here in the west we've taken it upon ourselves to adapt to a predominantly paper regime our stocks are paper everything that we invest in is pretty much paper these days but the hard assets is paul said in the first segment that we add to our portfolio have typically only been a small handful you have to open up and see the big picture and when you do the underlying fundamentals for gold and silver are so awesome that you're missing out on what i would consider a once-in-a-lifetime opportunity to own something as good long-term as gold and silver could potentially be i have to look at you know the price of silver you know in the mid-15 dollars range gold just under twelve hundred dollars uh right now it's an unbelievable buying opportunity can gold a silver drop a little further yeah what difference if silver drops 50 cents there's more upside in the in silver than there is in the downside if we're at middle 15s can it drop down to zero the answer is no but can 15 dollar silver or 16 dollar silver go to 50 dollars or a hundred dollars the answer is yes you know in 2011 silver hit a high of 49 dollars gold was trading around about 1930 dollars you know silver we're off basically you know 60 percent over 60 percent from where we were on the high this is because of ease of liquidity easy money government's printing money if you look back at history and history has a tendency to repeat itself fiat currencies have never ever worked what they actually do it goes back to roman times when they were clipping coins they started off with a gold coin then it went to silver coins and then they went to copper coins and then they started making holes in coins and there's the old sand don't take wooden nickels you know that's what we're getting into paper is paper and what paper printing does is confiscating your worth when you own hard assets like gold silver natural fancy colored diamonds which we're going to talk about in the next segment you are going to protect your capital you have life insurance you have health insurance you have car insurance home insurance but you have insurance against your capital banks have the ability to snatch your money away if you want to go back and look what happened in cypress uh last year the year before they actually went in and took basically 20 percent of people's money anybody had more than a hundred thousand euros they took their money russians had a lot of money in the banks so it's wonder how the russians all got their money out before this happened anyway that's another story um but when you look at hard assets and you look at gold you look at silver even if silver drops 50 cents drops a dollar debt and right now there is more upside than there is downside you need to start a portfolio you need to have these hard assets in your portfolio we spoke about in the first segment it's very very easy to own gold or silver with guildhall you can own it you can take it home for a media delivery you can go to our website guildhallwealth.com right hand corner we have an e-commerce site it's so easy you click on the site you can buy gold silver as small as one ounce bars of silver one ounce silver maple leaves you can buy a 10 ounce bars of silver 100 ounce bars of silver the same on gold it's a click of the mouse we've been running a special for the whole of november where when you purchase a 100 ounce bar you received a silver maple leaf it's been unbelievably successful so what i decided to do was to run this to the end of the year till two to december 31st 2014 so when you make a purchase and you purchase 100 ounce bar of royal mint silver that's 0.999 silver you will receive a silver maple leaf again completely free of charge this is a wonderful offer it's a wonderful time to get into the market what's your investment grow 18778 silver the real money show dot com remember sign up for the precious metal advisor daren you mentioned that especially china and russia the number one two countries as far as geographical size they are hanging on to the stuff they they mine imagine all the undiscovered silver and gold they probably have underneath the ground they don't even know about yet we'll never see it's true we do have a limited amount of resource i'm glad you actually brought that point up john because one of the things i want to touch on today is what the gfms which is a european a regulatory body which oversees metals has put out this past week uh calling for peak silver in two to three years which is astounding but when we first started doing this back in 2004 we actually drew our listeners to uh an article that was written and actually released by the geological survey in the u.s which said that total silver supply at current methods would run dry by 2029 that was back in 2005 that we uncovered that article and read that and brought that to everybody's attention now what we have is that we're seeing the gfms is saying that silver mine supply is going to peak within two to three years and that's against the drawdown that's happening in other major exchanges so well paper is limitless and by all means you can shape and craft any type of headline you want when you're able to produce as much paper as you need to make that headline let's not forget about all of the intricacies that happen within markets and how those in each of them can be manipulated nobody can print gold if i have a physical bar i can't print another one i can't just create it a thin air i can't loan it and say that i own it in six different places that's hypothetically and it's illegal it's against the law so we don't do those types of things and that's why taking a piece of physical product out of the market means there's less and less these stories will come to light sooner or later the mainstream will have to effectively agree with our opinions on this market and accept not disagree or talk negatively about gold and silver now when you look at this gfms report they say that they're expecting to see peak silver mine supply reach in the next two to three years and it includes this year's supply and demand statistics and they were released in what is called the gfms 2014 silver market intern report for silver institute would be happy to supply this to anybody that wants it it'll be in our press smells advisor an upcoming week and of course if you get on to there it'll be part of it anyways but they state that the reason for peak in silver mine supply is due to current price levels maintaining production but constraining investment in new capacity so basically that they're saying that the current low silver price will mean we maintain production for the short term but this has created a decline in mining investment and that means that no new mine's coming online and furthermore if the metals like Paul was saying earlier that are supporting silver because silver is a byproduct of those operations start to come down in price copper zinc gold if those values drop as they have we're not going to see as much of that byproduct we've already had a short fall over the last 10 years that has taken total above ground supplies down to nothing and the COMEX in New York which is where the major center is supposed to be for delivery in the west they're down to about 65 million deliverable ounces they have five contracted ounces for every one ounce they have available what they're going to do who knows we always know at the end of a month like today is the first day of the next month of delivery taping on friday we always know that they manage to roll these contracts over or get people pay them a premium to not take delivery that happens people behind the scenes people are being paid exorbitant amounts of money premiums if you will on these contracts to stop from taking stopped them from taking delivery of the metal so we know there's a shortfall otherwise they wouldn't be paying these ridiculous premiums and so Darren you know where there's smoke there's always fire of course there's a referendum going on right now in switzerland i believe it's on sunday um they've got they're backing their um swiss frank up by around about seven and a quarter percent gold right now um they the party that really wants to go up to 20 percent um is in this referendum and it's sound sound economics to have a product that backs up your money i mean for a hundred years banks did it or countries did it when they decided to get into fiat currency and it really started with the nixon in in the early seven is when he took the gold standard off you know gold was thirty five dollars an ounce you know we've quickly went up to a hundred dollars an ounce and two hundred an ounce in seventy nine eighty we went up to eight eight hundred and eighty dollars an ounce in a very very short time in two thousand eleven we went up to nineteen hundred dollars an ounce paper is paper you know german is trying to repatriate their gold holland is trying to repatriate their gold the swiss may be doing it very soon sunday's referendum it's scaring the living daylights out of the u_s because the u_s_ supposed to be the largest holder of gold in the world but how come they can't give germany back their gold because it's for not for not yeah i mean you know when cypress had a problem and they needed euros to fulfill a run on the banks they sent over you know four five tractor trailer loads of of europe got there pretty quick you tell me they can't do the same with a run on gold or run on silver they can't just put it into a plane ship it over and have you know security trucks deliver it's not there you know you can't hypothesize if you don't have the product to start off with and one thing that's very crucial to understand is that when the price gets this low if you are able to stand back and look at the long-term picture and that's the way we've always talked about precious metals as a long-term investment you will realize that we are coming into a period in time in which if the gfms is right about peak mind supply over the next two to three years we're going to see a significant drawdown in inventories if that happens owning an ounce of silver today will be as good as buying a pink diamond speaking of diamonds that's where we're going to go guys we love this part of the show another half of the investment that you should have in your portfolio we'll get to natural fancy colored diamonds the numbers one eight seven seven eight silver online the real money show.com make sure you get the investor kit and sign up for the precious metal advisor more of the real money shows coming up and back with more of the real money show the number to start investing one eight seven seven eight silver really simple go to the real money show.com and guildhalldiamonds.com and while you're on the real money show website make sure you sign up for the precious metal advisor will give you all the things you need to know about gold and silver and guys we roll into natural fancy colored diamonds i'm going to give you a number darren and you can tell us more about it how does 2.4 four million per karat sound. I'm going to keep it short because this is incredible news yes prior to this show paul had been discussing throughout the last year year and a half the value of a one karat red and he had been saying that the value buying that at open market is in and around the 1.8 million mark which is wickedly healthy it's huge and of course to find a red diamond if you've been a listener to the show you know how rare it is the rarest diamond the most rarest diamond in the entire world here we had go up for auction at christy's and hong kong november the 26 a 2.09 karat fancy red heart shaped diamond in the setting and it sold for just under 5.1 million dollars and or of course 2.44 million per karat to a private asian investor that just set the world auction for highest price paid for red in history plus 15 percent commission that's not put on there but you know i i've been saying over the last little while the reds have been fetching you know 1.8 million a karat you could have bought 30 years ago a one karat for 30,000 a karat so that's not a bad return in 30 years 2.4 million um there's also uh this the 21st of november they went a blue a vivid blue pair that was a 9.75 karat and that was also sold at sothebus um and that went for 32 million dollars and that's the highest price ever paid for blue or blue now in november the 26 of this this month a 3.39 vivid blue diamond ring went for 5.8 million also close to $2 million a karat we sold last year a 106 vivid blue internally flawless for $660,000 so you can see what type of price is these diamonds are fetching you know if i would have held onto that diamond i could have probably got a million and a quarter to a million and a half dollars today because it was vivid it was an unbelievable color blue and it was internally flawless so guildhall what we try to bring to our clients to bring to our collectors is the highest quality gems that we can find the diamonds have to have a lot of specification for us to buy the first thing that we look at guildhall when we buy a natural fancy color diamond is the color color is the key thing the diamond has to be evenly saturated it has to have tremendous fire the tremendous fire or the make in the diamond is the cut the cut brings out all these vibrant colors so the first thing we look at is color the next thing we're actually looking at cut the third thing we look at is the clarity now we sell in yellows a guildhall basically internally flawless but we do sell vs diamonds and sometimes i buy a vs diamond because i'm buying color first it's the premiere it's the first part of what i'm looking at and if i see a diamond it has unbelievable color unbelievable cut i'm going to purchase that diamond we sold a diamond today um you know which we've had on the website it was a green yellow it was a one and point five three magnificent stone um when we were looking under fluorescent light it was kind of flat as soon as we went into another room with different lighting you should have seen these colors come it was like a fireworks display i mean it was just incredible the amount of color just the most beautiful diamond at guildhall as i said we go out to find the best of the best i believe we've got more internally flawless yellow diamonds on our website than anybody in the world and i can say that every diamond that's on that website we have there's no switch and bait or bait and switch to say oh we don't have that one when we have a diamond it says sold it's sold if it says hold it's hold it means someone has put a deposit on that diamond everything else is up for sale we have it in stock we also have other product that we're bringing in all the time that's actually being appraised or it's coming up you know from israel from the cutters or antwerp or from tel Aviv or from new york there's always product we go and buy the best and we bring the best to you the reason that we bring the best is that we know that this is an unbelievable investment what was that article that we read last week about pink staran where i think it was from south of his and christy's and kartier tiffness they were born in the same club what was that thing that we were looking at we mean the membership to the new color diamond yeah that thing we were discussing that but anyway let me just kind of bring bring it to a to a head what they said is over the last nine years pink diamonds of all cuts color and and clarity have gone up actually 360 percent that's a 40 return per year now i don't know many investments out there that are giving you 40 return on your investment daren i want to take it back for sector this you know we start the segment off with this uh this five million dollar red diamond now uh details christy's dot com nobody can see it because we're on radio but they can google this thing basically i'm not do you guys can't say we can't say because we haven't got this thing in front of us but the picture of this diamond it's kind of in the middle lost surrounded by these all big gaudy white diamonds it looks like one of those raspberry filled cookies jelly cookies i'm betting i'm not saying definitely but i bet you there's a there's a fairly good chance that that guildhall wouldn't even touch that red diamond if it was yours i'm not saying it's not worth a lot i'm just saying it might not be the quality you guys would sell and invest in but yet it's still worth five million dollars i don't think it's a great time if we were to own that diamond it would be just surely surely because of the size that diamond yeah i don't think it's really done the size but no we've had a couple of reds come through guildhall and if you own a red you basically own one of less than 50 in the world pure reds yeah pure reds you can get mixes different colors that mix together but the reds really don't have a lot of data you don't really have a track record for saying hey one sold here or there they pop up very infrequently and as an investor if you have the budget to seek out an own a red diamond you're owning the creme de la creme it's the most rarest type of diamond in the world that you can own but again to acquire those also means that you must pay a premium to buy at the wholesale level so those are hard to come by and they don't come up very often and paul does see some every now and then but if you look at what trade insiders are saying they're saying that clients are increasingly buying diamonds as an investment to hold for a number of years and then resell i draw people's attention to a 2012 barkley's wealth insight survey and they surveyed two thousand high net worth individuals and it revealed that seventy percent of the respondents owned precious jewelry in some form or another as part of their investment strategy and that was compared to only 57 percent five years previously in 2007 so there is a growing trend among high net worth individuals to own these types of assets and it makes perfect sense because when you see the track records when we're able to year over year provide for clients new appraisals on their diamonds and as they prepare to remarket the diamond and maybe sell and take profit off the table this is an amazing journey to take because you're getting the front end of the buying and finding the diamond a new home and when it comes to us as paul said literally every single diamond we buy is a diamond that paul would own himself that's the key ingredient this is not about volume this is about buying the key diamonds that will make you money and that's the bottom line and as an analyst for me that's exactly why my ears perk up because at the end of the day I may not wear the diamond I might just want to put it in a safety deposit box store under five or six years and look at it every so often but it's nobody's business I don't need to tell everybody else what I did and what I own and it's not like a piece of real estate that has an ungodly amount of man hours I'd have to go into managing it that we don't account for when we're looking at the value and the return on investment I do like real estate I like other hard assets but portability portability is everything to me and owning a colored diamond it's in one spot it's a tiny little portion nobody knows about it it's nice and tidy and the returns on it as paul said are miraculous I've never seen anything like it in my life and I love silver I'm an expert in silver I have a bias towards silver I'll say it on air I own silver but owning colored diamonds is so special and it's been something that's been so lucrative for our our clients that I hope this takes off and hits the mainstream because everybody that bought through guild's hall long term is going to be patting themselves on the shoulder for making one of the best and smartest investments they've ever made well you have to realize natural fancy colored diamonds are so rare for every 10,000 carrots of white diamonds mine there's only one carrot of color it doesn't mean that that's an investment grade to find a fancy vivid internally flawless first of all you don't start off with a carrot stone you know you may start off with a four or five carrot stone that has to be cut and polished taking out all of the impurities of that diamond away from the finished product you know 1718 people touch a natural fancy colored diamond before it's finished you know for the first person that cuts it or cleaves that diamond to the polisher to all the way through you know there's about 1718 people touch their diamond before it hits a retail store we don't have a retail store we're not on you know Bloor Street or Yorkdale where we're paying enormous rents you know we go out and find the diamonds the best of the best we bring them to you at affordable prices every diamond that we buy we know that somewhere down the road whether it's five years 10 years 15 years the debt diamond is going to come back to us so what's the purpose of what we try to do is to buy the best because i don't want to sell a piece of crap twice it's too hard so we buy the best and i'm happy when a client decides to bring a diamond back they've had it for five ten years and they want to make some money because they're doing something else with the money this is a great time to buy a diamond if you're looking to retire whether it's five 10 15 years down the road if you bought an argyle pink you know today for $25,000 that diamond's going to easily be worth in 10 years a hundred thousand dollars if it's moving up 40 percent a year in pink diamonds and if you look at our pinks we only sell vs that's of an exceptional quality a lot of the pink diamonds are extremely small and they come in si one si two and i one those are lower grades it means you can actually see the inclusions with the naked eye so we buy the best because we know it's going to increase in value as i said if you could look into retire you looking to put your kids through school this is an investment you put up 25,000 it could easily be worth a hundred thousand dollars in 10 years if that's the type of money you're looking to make you should call us at guildhall diamonds one eight seven seven eight silver guildhall diamonds dot com or the real money show dot com make sure you get the precious metal advisor and get the buying guide as well for natural fancy color diamonds paul mentioned argyle we'll get to that dare in the argyle pinks the mine and yellow diamonds with more of the real money show hang on and back with more of the real money show the number to start investing one eight seven seven eight silver couple websites a real money show dot com or guildhall diamonds dot com is also a good way to do it pick up the pressure precious metal advisor and the buying guide for natural fancy colored diamonds darrin let's bounce over to uh to the argyle mine and pink diamonds love those love them we don't want to leave out the argyle discussion and we'll talk about yellows as well but as we promised over the last quarter of the year we discuss quite frequently as a team and here on the radio what's happening in the pink diamond market and as everybody probably knows a lot of our listeners we've just completed the uh 2014 argyle pink tender and it produced the world's uh highest per carat price per diamond in the history of the mine in 30 years it is their 30th anniversary and uh as a result we are now starting to see that translate into wholesale cost getting slightly higher as everybody knows if you've been watching the markets this is the time of year in which guilds all among other companies will begin to start putting up their their pink diamond prices and as a result we'll give fair warning to all of our listeners fair warning to our existing clients that again coming into the last part of the year and at once christmas passes there will be an increase in the asking price for pink so this year will be no exception on the heels of that the biggest problem in identifying a fair increase is figuring out what the cost of replacement is going to be now paul last week's show mentioned or two weeks ago mentioned that bids were as high as 40 percent more than last year and still many uh buyers went home without the same amount of diamonds we have competitor who usually gets a lot of pink diamonds big budget usually picks up in the neighborhood of around a dozen lots for about a 50 to 60 lot tender and this year came home with one lot and that tells us that despite their best effort in higher offerings people are getting caught up in this and they're moving the price is higher so to replace these tender stones we're looking right now to see what we're going to get and of course we're letting people come to us as opposed to going out there and asking we're going to see an increase folks and if you're listening now and you have the ability to buy and invest in a pink diamond do yourself a favor keep that pink diamond long-term buy it with a yellow diamond put some metal into it and create an all-around well diversified little portfolio if you're listening here and you have the ability to be online right now go to the website click the e-store start buying some silver add some bullion to your portfolio is a good way to start maybe pick up a thousand ounces of silver you can get a nice yellow diamond starting in the 10 to 15 range and then add yourself a pink your pink is where the big budget's going to go you're going to start in and around the 30 to 40 thousand dollar range and rise from there but this is the type of investment that should long-term be so beneficial to you I mean we're talking about the ability to pay for college for an up-and-coming son or daughter we're talking about the ability to put a little bit of a nest egg away for retirement if you're around the age of 50 55 you've got enough years left you could put a nice colored diamond get out of those investments that are doing nothing for you these rotten investments that are in paper that you keep kicking and hoping will go higher do yourself a favor at least give it a shot get the buyer's guide get some knowledge and become educated about this so that you can make a good decision and believe me when we're talking about colored diamonds this is not for everybody but those that get involved as Paul's always said we've never had a single client and this is an awesome track record we love beyond we'll tout this never had a single client lose a single penny in colored diamonds this is also the time of the year where if we've had diamonds on our website we every year in january we get our diamonds reappraised the reason that we get them reappraised because we know all the prices have gone up and we have to any new diamonds we're buying we're buying other new prices so january we get all of our diamonds reappraised and we know you're going to see if you've been looking at a diamond all of a sudden you see go from 100,000 to 125,000 there's a reason for it because they're so hard to find and that's the new replacement value the thing that we're actually going to do for December we've actually we did it last March we called it March Madness every diamond that we have on the website you can purchase it's going to be tax included we're going to give you that Christmas present holiday present of tax included in that purchase for the month of December as well as when you buy a hundred ounce bar of silver you're going to get a one ounce maple leaf completely free so if you want to buy a hundred ounce bar a couple hundred ounce bars as an investment give a couple of the coins away to your kids or you know as Christmas presents this is a perfect way to do it and again that definitely bodes well for having a diversified portfolio because you're adding diamond you're getting bullion gold is very portable this is a good opportunity to be adding some gold your portfolio in the one ounce bars very easy to carry around or put away with that diamond in a safety deposit box and really it should be nobody's business but yours what you do with it should be your business and shouldn't be flaunted out there unless you're planning on wearing it and we will talk just for a minute about wealth to wear it's very important if you are buying a diamond and you have your heart setting on wearing this diamond or sharing it with a loved one doesn't matter whether you're male or female this is an opportunity that can also extend very well to wearing the piece if you want a custom piece of jewelry set in a stone with a stone in it in a necklace or hearings perhaps a ring or a brooch this is a very easy thing to do we have a very white glove approach it's hands-on it's a custom experience for each buyer and you'll get the exact type of setting that you uh you can design and call your own and even put a name on it so if you want to call it the zoe setting or the mrs smith setting or the mrs smith stone you're more than welcome to do that a lot of our buyers believe it or not love to do that with their stones it makes it fun and that's what investing should be about having fun and making tons of money and it's something can hand out as narrow room as well years gone well this is this is what it's all about and the same thing with gold and silver if you go to guildhallwealth.com in the right hand corner you're going to see our e-commerce store click on the e-commerce store you can buy gold and silver platinum just with a click of a mouse whether you want to buy one ounce bars of silver we have um silver eagles we have maple leaves uh we have ten ounce bars of silver a hundred ounce bars of silver if you go to gold you can buy gold mango maple leaves you can buy kangaroos you can buy um ten ounce bars of gold you can buy kilo bars of gold we have this available to you i think we even have the half ounce gold maple leaves for not ever if you don't have the money to spend you know on gold one ounce bars you can go to half ounce bars but this is a great great investments a great gift as well you know just think about the gifts that you buy that are useless to most people this is a something that's going to keep on giving you know you give your kids your grandkids i know every birthday i give my grandkids an ounce of gold each uh one grandkid is eight one is six but i started off when gold was five hundred and fifty ounce dollars an ounce we went to eight fifty nine fifty went as high as nineteen hundred dollars even if we're trading in the twelve hundred dollar range it's still value today i think you're going to see over the next while i think you'd easily see five thousand dollar gold you know whether it's five years down the road or seven years down the road or as something unfortunate happens in the world it could happen a lot sooner than that it's a great investment paper money fiat currency is extremely dangerous you need to be in hard assets gold silver platinum natural fancy color diamonds this is going to protect your capital daren talk a little bit about uh... on nicole who's on site who's your diamond expert right just to just to back up and reiterate the you know that the the level of diamond purchasing you guys too well it's a level of expertise that's experienced by very few firms one thing we've learned to over time is that education is the key to making a smarter investment and so many times we walk through the doors of an investment firm we make an investment walk home and we wonder what the heck do we just do we have no idea what we just invested into piece of paper it says my name on it and i bought so many shares or something or i committed to this or that and i have no idea how to explain it and i therefore have no idea where my money really is when you come to guildhall the big difference is that nicole and we're fortunate to have her is an expert in colored diamonds she is certified by gia and she carries with her a wealth and uh it's an unbelievable world class amount of knowledge about the color diamond industry she helps paul to pick all the diamonds and of course paul will go to nicole uh above all else to ask questions about the cut in the clarity and all that and what her thoughts are and of course together they make the team and they are responsible for one hundred percent of the purchases we make now that being said nicole's expertise extends also to evaluating the diamonds so once i decide i'm going to make a purchase one of the things we do for clients is we put together a package and let's say we're entertaining three different diamonds we might ask nicole for her feedback and input on what she feels is the best of the three and she will give us that feedback unbiased and of course she'll tell us what she thinks is the best diamond she's done that for numerous clients of ours and then we're fortunate enough to have that expertise on hand but what's more important than anything else is the fact that if you are shopping for something and you're looking to make an investment out of this a long-term investment don't buy from a firm that doesn't have an expert on staff somebody that's certified that has that expertise to be able to evaluate the diamonds and the knowledge and uh that's a common mistake that people make because without that knowledge you're really only going to get what you pay for and most often when people come back to us and it happens every day literally every day paul somebody calls the office and says hey i bought a diamond from so and so i'm wondering if you guys will sell it for me yeah no we won't unfortunately that those diamonds nine times out of 10 ninety nine out of a hundred times uh are are not the quality of diamond that we're going to sell so unfortunately there are still people that end up buying those types of diamonds and that's fine it happens but if you're listening to the show you've got a rare opportunity you will be one of only a very small few people to have such a high clarity high quality diamond when you're looking at diamonds on our site and they will mean the difference between making a real return on investment in making nothing and also nickel wrote the 10 step buying guide to purchasing a natural fantasy color diamond we help people the whole way through we hold your hand through the whole process and we want you to be happy we want you to make a great investment we want you to make money so give us a call at guildhall diamonds give us a call a guildhall wealth either or whether you buy gold silver or a natural fantasy color diamond it is the investment you must make and hit that e-commerce store while you're there one eight seven seven eight silver and online guildhall diamonds.com make sure you check out the 10 step buying guide authored by Nicole and also the precious metal advisor when you're thinking of precious metals as well we'll wrap it up for another week right here on the real money show what if you could have a streaming 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