The Real Money Show
The Real Money Show - November 15th, 2014
And off we go with another edition of the Real Money Show, the number is 1-8-7-7-8. Silver to start investing in the Real Money Show.com while you're there pick up the investor kit and the precious metal advisor and also on the website super easy way to buy precious metals right now in the comfort of your own home. The e-commerce side. I'll know Jeremy will talk a little more about that. With us in studio, Jeremy Wiseman, Vice President of Guildhall and of course our President Paul Wiseman here as well. Hi, Jeremy. Hi, how are you? Good. How are you? Good. I want to start with the update. I congratulate everyone who got into the market this week, purchasing some physical bullion as well as natural fancy colored diamonds. Before we get into some spectacular, exciting, crazy news that is happening in the silver market and gold market, I want to just look at the basic fundamentals for why anyone would want to hold a physical asset like gold and silver in their portfolio. We're not financial advisors, but we do understand what it means to hold a physical commodity that has been a store value for 5,000 years. Anyone looking to hold wealth, store wealth for the long term is going to want to look at a few factors. Anyone who's going to just merely look at price is what's considered a momentum buyer. That means that if you're seeing the price go down, you're simply going to be upset or poo poo it, or if you see the price moving up, you're going to get excited and jump in. To that note, in 2008, when the price of gold broke above $1,000 an ounce, a lot of people didn't think it was going to ever get there. First of all, at $300 an ounce gold, people were saying it'll never go higher. We heard the same call at $400, $600, $800. By the time it had broken $1,000 an ounce on gold, people were absolutely euphoric in the market, and they were discussing this on King World News, actually, and isn't it interesting that in 2014, the price of silver is $100 higher and people are suicidal? It really goes to show what the psychology of a market is and the dynamic of it. When you look at basic, just to digress for a second, if you look at basic economics, it's just a matter of action, reaction. That's all it is. You're going to raise a tariff here. Someone's going to suffer over there. Someone's going to react to that suffrage along the road. Anyone, let's get into one of these fundamentals. We'll look at inflation as an example. Price of food is higher, price of gas is higher, your insurance is higher, your energy costs are higher, packages are smaller. Has any of this actually benefited you, the consumer? Has that benefited and created a stronger economy? It hasn't. It hasn't, unless maybe you're a subsidized oil company that's allowed to charge higher prices, for example, and you're getting that benefit. We see that all across the board, a sacrifice of the many for the few, especially when it comes to banking. How do you get inflation in the first place? You get inflation through essentially creating money out of nothing and having the same amount of goods being chased after by a lot more money. If you read the history books, you'd know that in Rome, when the decline was happening and the government was looking for more money, they simply clipped the coins. They simply made the coins worth less. That's what happens. Now, if you had a printing machine in your backyard, we know you'd use it. You'd pay your bills with it. And after you paid your bills with it, you'd go out and maybe buy some clothes. And then you'd start buying bigger things like cars and maybe a yacht and real estate. Well, is it any different in the U.S.? The Fed has created $4 trillion in the last five years. Who's gotten that money but the big banks? Now, where has that money gone? It's gone into the stock market. It hasn't gone into lending Joe Public money, so the inflation has occurred at the bank level and the equity market level, not at the street level per se. Even though we have seen it, regardless, the majority of it has happened at that level. Now, anyone who's going to look at the market blankly is going to see that the U.S. dollar has gotten strong. Now, if you take that at face value, that's all you have is a strong U.S. dollar. If you look at the geopolitics and we'll get into that as a factor all around the globe, you start to second guess what you're seeing. See, I could tell you that the sky is blue, right, and you'll believe me. I could tell you the sky is red and you won't believe me, but whether I get you high on drugs or I convince you long enough, maybe for a little while, you'll believe that the sky is red. Now, if you're a big bank and you're getting billions of dollars given to you from the Fed at no cost, you can certainly go in and boost up the U.S. dollar by your own volition. Now, we know that the SEC hasn't prosecuted anybody from 2008, so they are acting completely oblivious to the rules. We know that that's happening in the U.S. as an example. So how can you create money out of nothing and have no consequence? Well, there is consequences. This is what's going to happen. The U.S. dollar, despite the mirage of being stronger right now, is actually worth a lot less than it used to be. In the last 100 years, it's gone down way over 90 percent of its value. How do you know that? Because a coffee doesn't cost 30 cents anymore. It costs $3 or $2, you know, $3 for an extra little bit of milk. So the value of the dollar is worth less than it used to be. The result of which has been prices have risen over the decades, whether it be a couple having to have two jobs to maintain the same standard or living that they had in the 50s and the 60s. Then you get into geopolitics as a result. People don't like this. The Chinese are the biggest debtor nation to the U.S. They've bought all of the U.S. debt. So they're in control of the books because they're the ones holding all the power. They have all the money. When we want to get back to mirages here, you look at the prices silver and gold are down very much. But you have to look at the actual facts which is supply and demand. The supply is extremely tight and limited. The fact of the matter is that as an example, we've been waiting over two weeks for some product to arrive at our door that we've ordered. We know that the U.S. Mint sold out. They sold 2 million ounces of silver in almost a day. Their record breaking for their year, Canada's doing the same. People aren't buying the mirage that gold and silver are relic. In fact, the former chairman of the Federal Reserve has changed his tune and decided that gold is not a relic. In fact, it is an international currency. So we know that the price being down is illusionary and people aren't buying it. Well, people are buying the actual bullion. They're not buying that the low price is an indication that it's not a viable commodity. So that presents an opportunity. The opportunity is to say, "Wait a minute. These bankers are pushing up the price of the U.S. dollar which is backed by nothing except decree of the U.S. government which is in over $17-18 trillion in debt. The Fed has over $4 trillion on their books. This can't be repaid. The dollar is worthless. But the price is high. So maybe I should buy it. Well, maybe that's a delusion. The price of gold and silver are down. Mining operations are basically almost looking to shut down their operations because who wants to supply it at this price. The physical demand is so high around the world. So you can take the side of, "This is a barbarous relic. I don't want to be involved. I'm going to go put my money into the stock market," which there's more and more analysts saying calling for a bubble. So these are the fundamentals of the market. You've got U.S. dollar declining and declining currencies in general. This is going to create inflation. When you get this, you want to balance that against the supply demand, the actual supply demand numbers. And then you want to look at the geopolitics fallout as a result. Look, Russia just has to say we'll take anything other than the U.S. dollar and things can go crazy really fast. All around the globe, countries around the world are starting to get off the petrodollar and change in their and trade oil in their own currencies. This is another nail in the coffin for the U.S. dollar. These are the fundamentals you have to look at. The short term is that the U.S. dollars high in gold and silver are low. You've got to really do your research and decide, "Do I believe that?" The interesting thing, though, John, is that there's an article by CaseyResearch.com. There's about paper gold. On, for example, $360 billion of paper gold is traded every month, yet only $279 million of physical gold is delivered. That's $1,000 to $1 ratio. So what's being traded is monopoly money. It's literally monopoly money. It's paper. The physical, gold, and silver is just not there. There's an interesting article. If anybody wants the article, it was in the New York Times yesterday that small investors have been buying up from the royal mint or from coin distributors in the U.S. silver eagles. They've been buying up Canadian maple leaves. That's the small investor. They know when silver is trading at $70, $73 to $1 against the gold, they go out and buy 10 pieces, 10 maple leaves, or 10 silver eagles and spend a couple of hundred dollars. They can put that away and they know that his real money is going to increase in value. This brings us to a couple of interesting things. A guild hall, we only deal in physical gold, silver, platinum, and platinum. Most of our clients are buying gold and silver, whether they're buying one ounce bars, maple leaves, 10 ounce bars, 100 ounce bars, whether it's silver or gold. You can buy, you can take home delivery. If you want to place an order, you can pick it up. We brought together an e-commerce site that if you go to our website, guildhallwealth.com. Top right hand corner, you'll see an e-commerce. Click on it. You can buy your gold just with a click of a mouse. It's so simple to do it. On every order, over $5,000, there's no shipping charge if you want it shipped to you. We also offer you a depository. If you're buying large amounts of gold or silver, you really don't want to keep it at home. You can't really put it in a bank and a safe deposit box. A thousand ounces of silver weighs 70 pound and a small little box, you're going to get two bars. You buy 10 bars of silver, you need to put it somewhere safe. In today's age, there's a lot of desperate people and a lot of desperate people do desperate things. You don't want to leave yourself open to home evasion if somebody knows you've got a lot of gold or silver in the house. The safest thing to do is to put it into a depository. We offer you a depository that is safe, secure, it's segregated, it's allocated, it's insured. We offer you titles of the product and we even offer you the bar numbers. It's a great way to get into it. If you want to open a depository account, it normally costs a hundred dollars to open an account, a hundred dollar annual fee, we're waiving that for one year. Also the storage fees won't be charged. Any storage fees till 2015. Another incredible deal that we're offering, when you buy 100 ounce bar of silver, you're going to get a one ounce maple leaf free of charge. Just as an incentive to buy product, whether you take it home or whether you want to put it in a depository. This is a great opportunity. I've been buying gold and silver myself. My staff have been buying gold and silver. When we come on the show and we talk about investing in gold and silver and natural fancy color diamonds, we have our skin in the game. We own the product. We don't tell you about a stock. This is a stock, well, you see it on TV all the time and all the business shows. Do you own the stock? No. Does your family own the stock? No. Does somebody own the stock? No, but you should buy it. Well, if you don't want to buy it, why should anybody else buy it? That's what happens with the stock market. But gold and silver has been around for thousands of years through biblical times. It's traded as low as 16 to 1 and we're right now in the low 70s. This is a bargain basement price. It's an unbelievable opportunity. Silver's trading around about 15, 60 an ounce. I still think Silver's going to move up $5, $10 within the next few months. It has to. We had on last week, we had on Mark Faber, and he said he will never sell any of his gold. A couple of weeks ago, we had Solention, who's a trend specialist. He said, quote, "He owns gold for his golden years. It's a great time to be buying. It's gone on sale. You need to have some in your portfolio, whether it's 15 to 20 percent. It's ahead of what's going to happen. Nothing can keep going up in a straight line." One of the questions I asked Mark Faber last week, I said, "How does the U.S. ever pay off $18 trillion in debt?" That's not the other $180 trillion that it's off the books for Medicare, Blue Cross, and Social Security. This is just the $18 trillion in debt. He said they don't. They're just going to roll it over. While they're rolling it over, they've kept the interest rates to zero. Interest rates go up 1 percent. What's the juice on $18 trillion at 1 percent? What is it at 2 percent and 3 percent? They're just going to print more money. The U.S. dollar cannot remain high. The problem is, it's the best house on the worst street. You look at the other economies and you look at Europe. They're all printing money. You look at Great Britain. They're printing money. They're paying. That's a bucket case. It's a nut job. They just keep printing. They've been in deflation for God knows how long, and the stock market is going through the roof. On what? Somebody has to pay the piper and it's going to come. When it does, everybody's going to rush for gold and silver. You're going to see headlines. Silver goes to $100. Gold goes to $23,000, $4,000, $5,000. We are not all nutcases, gold bugs, running around with gas masks and tins of spam and water for the next three years. We look at reality. We look at what's happening in the marketplace. I've been in this business for a long time. We started our company in 2004 and we've seen gold and silver go up and down and I've listened to people and I've watched bubbles. I've watched the housing bubble. I've watched the dot-com bubble. Even since 2004, silver's up almost 400% as well as gold. There is a real upside right now and it's a great buying opportunity. We'll take a short break and as Jeremy said, some exciting news on the other side of that break. We'll stick around 18778 Silver and you want to go to realmoneyshow.com, pick up an investor kit, the precious metal advisor, and check out the e-commerce store as well. Back with more of the Real Money Show, 18778 Silver, you've got the real money show.com as well pick up an investor kit, the precious metal advisor, and check out the e-commerce store as well, really easy way to buy. Physical gold and silver, we left off last break, Jeremy, with the tee up for some exciting news and I think you're holding it right there. I am. Okay. Along with four other banks, UBS and Switzerland was found guilty and ordered to pay almost 4.5 billion worth of fines in the currency effects manipulation scandal. 4.5 billion billion dollars for a Swiss bank. Switzerland's regulators found quote unquote "serious misconduct" by UBS employees in precious metals trading, particularly with silver as part of its review of the bank's foreign exchange business. Electronic chats played a key role in improper conduct and foreign exchange in precious metals trading. The Swiss financial markets supervisory authority or FINMA said in a statement today. It found front running when traders profit from advanced knowledge about a transaction expected to influence prices over client orders for silver. That's illegal. It's not the first time, but this is one where they're at least getting fined and it's being talked about, at least in the foreign exchange side of things, it was actually discussed on CNN, but they're not talking about the silver side of things and what's happening on that. Right there, you have an outright knowledge that the market has been manipulated to the downside as potential investors or just simply holders of gold. It's up to you to decide if that's an opportunity or not that the prices have come down. I think that in Switzerland, the citizens of Switzerland are going to weigh in on is exactly that. In the next few weeks, they're going to have a referendum about Swiss gold. If they lean towards that and if they say yes, it's going to be required that in Switzerland that they have 20% of their reserves in gold, which means they have to go out and purchase a lot more gold, that they're going to have to repatriate their gold from outside its borders. I believe they're holding a lot of gold in London and they're going to see selling any gold out of that country. Not unlike, even though China didn't need a referendum, China stopped exporting gold literally years ago and they've only become net importers of gold and whatever they mind, they keep for themselves. In Switzerland, they're deciding that amongst themselves, because they're not communists, they're democratic, but right now the leaning is 42% to yes and 39% to no and I wonder with a little leeway in between, but I wonder how much this new news about forex manipulations and literally 4.5 billion in fines. We'll see if anyone gets arrested by the way or prosecuted. We'll see how that plays out in terms of do the citizens of Switzerland decide, "Yeah, we want our gold back and we want to increase our gold reserves." But is that also going to be the front runner for other countries that have... Set president? Yeah, that have products supposedly sitting in New York and supposedly sitting in other countries. Many try to get their gold back from the New York Fed and New York Fed said, "Well, it's going to take five years for you to return, for us to return the product." You know, you're supposed to have it ready. If a customer of ours says, "You know, I want a thousand ounces of silver and I want to pick it up, I want to take it out of the depository," it's there for them to do it. So why don't countries who have their product outside their own country for safekeeping and they're asking to bring it back, why should they get storied about their product? What does it mean? There's a product being rented out, leased out, sold out, you know, all types of things done with it. The product may not be there. So what's happening with Switzerland, they're saying, "We want to repatriate our gold. Do you have it?" Now if you don't have it, then the countries that are supposed to be holding this is going to have to go out and buy it, it's going to force the price of gold up to, and I expect that to be happening. What do you think, Jeremy, exactly along those lines? I think that the fallout of messing around with markets for the sake of keeping the U.S. dollar, having the appearance of value and high, is geopolitical fallout. That means that countries have to protect their own selves and their own economies, and one of the best ways to do that is to ensure their sovereignty by having physical assets. You look at all the BRIC nations, and it's a given, China buys gold, Russia buys gold, India buys gold, they're already well on the way to protecting themselves. It's almost amazing that countries like the U.S. haven't embarked on their own sales, but that again says more about the sacrifice of the many for the few. And even though it's a great country, I visit it all the time, and there's so many things we love about the country, and that we love about Canada, I consider myself patriotic for Canada. I love living here, but sometimes governments lose their fiscal way. That seems to be the case in the last several years, and here's a case in point. Low interest rates mean regular people, like the people in the studio right now, and those listening in their cars are at home, can't put cash in a bank and save money the way they used to even 15 years ago. Instead, we're forced to take risks. We're forced to put our money into a stock market, forced to look for places, and maybe we look at markets that are rising like real estate, we say, "Okay, let's put it into there." But the bottom line is you have to take a risk. If you are a saver, you have to take a risk, or you're losing against inflation. You're not getting any returns. I mean, if you're getting 1% interest on your money, you're doing well. Inflation, they say, is no inflation, but it's 6%, 7% in the real world. You're losing money. You're losing buying power. So it's important to have some type of insurance. You have life insurance, health insurance, car insurance. You don't want to claim when your life insurance, you never want to do that, but you need to ensure your capital. And one of the ways you can ensure your capital is own precious metals, gold, silver, natural fancy colored diamonds, a guild hole where you only sell the physical product. We don't sell paper, as I mentioned before, about what's being traded in paper in the gold market 1,000 to 1. We sell the physical product. We don't sell futures. We don't sell options on futures. We don't sell ETFs. We don't sell certificates. And we're not in the equity business. We sell the physical metal. You can buy it. You can take it home from media delivery. You can buy it. We can store it for you for easy liquidity. You can put it into a depository, which is safe, secure, allocated, segregated. It's insured with lords of London. We even give you the bar numbers if you request and have title to that product. It's a very, very easy way to purchase. You can go to our website, guildhallwealth.com, top right hand corner. You'll see an e-commerce site. Click on the e-commerce site that will take you into buying and selling bullion. Click on silver. Click on gold. You can buy 1-ounce maple leaf silver. You can buy 1-ounce bars, 10-ounce bars, 100-ounce bars. You can do exactly the same in gold. You can buy maple leafs, 1-ounce bars, 10-ounce bars, kilo bars of gold. It's available for you. This is easy as just pressing that mouse. The numbers, 18778 silver, the real money show.com, get the investor kit, the precious metal advisor. And do what Paul says. Click on the e-commerce section and start buying right now. The other thing is as well, John, we mentioned it in the first segment, but let's mention it again. If you buy a 100-ounce bar of silver, we will give you as an incentive of a 1-ounce maple leaf, whether you take it home or whether you want to put it in the depository. If you want to open up a depository account, we will waive the fees for one year. Normally, it's $100 to open an account, $100 annual maintenance fee. We're going to waive that for one year. Storage, we will waive and start in 2015. So basically, you're going to get a month and a half of free storage. It's a great way to get into owning physical gold and silver. If you want to buy on a piece mill, if you only want to buy 10 ounces of silver a month, that's a couple of hundred dollars that you really just, that's all you could afford. Or you, $1,000 a month, whatever it is, start up a little portfolio, buy it every week. You're cost averaging. You're buying silver, it's $16 an ounce US. It's pretty, pretty cheap. So buy it, put it away, watch it mount up. If you want to take it home or you want to put it in the depository, we will be happy to service you and take you through the whole process. I think for anyone looking at the markets today and looking for opportunities, the first thing you have to do is get some solid information. We do have an investor kit where we show you, at least from our perspective, we believe in gold. So you're getting the pro gold perspective with Guildhall. You can call and request an investor kit for that. And I think when you're listening to the news, listening to the radio, reading articles, consider the four fundamentals, declining currencies, the resulting inflation, supply and demand on physical bullion, and the geopolitics that result from meddling with certain things like currencies, for example. And I think once you start to look at those fundamentals and read the news with those glasses on, I think you'll start to see that gold and silver is something that you're going to want to have in your portfolio. The funny thing is, Jon, I was with some people yesterday, and they were talking about the actual seven years having a car going on a ride, putting on the radio, not listening to things that are going on, I says people chopping people's heads off. There was a nicer quarter time. Will we ever get back to that with the geopolitical things going on? Russia has basically gone into the Ukraine. It's under a stealth with whichever they're doing. The US cannot bully Russia. They can put as many sanctions as they like, but they're going to do whatever they want. And it's dangerous times. And these are the types of times that are turbulent in markets. And when things start to go wrong, people head to the hills and they buy gold and silver. It always has been a safe haven for 5,000 years, and nothing is going to change that. It's easy to do. Pick up the phone. One, eight, seven, seven, eight, silver. Get yourself an investor kit. The precious metal advisor got to read that each week. Or go to therealmoneyshow.com and while you're on the website as well, click on the e-commerce site as well. Start investing today. And back with more of the Real Money Show, the number one, eight, seven, seven, eight, silver. Make sure you stop by there on the website as well to grab the investor kit and the precious metal advisor. I want to talk Diamonds, Paul. Love this part of the show. And I know you want to start out before we get into a couple wonderful Diamonds pinks, as a matter of fact. Argyle pinks you have with you and ready to go. Let's talk about the Argyle Tender results, shall we? Yeah, the 2015 Argyle Tender results are just out, John. They're not actually published, but from what we hear is there was 55 stones that went into the auction or to the tender, and it's a blind tender. Four of the stones were VS only, so the other 51 stones were SI1, SI2 and I1. Beautiful, beautiful colors. I mean, they're the best of the mind that comes out. The prices that were actually, that we heard were fetching, were actually very, very high. And this was because of the Asian interest from China and from India. They are buying up what we have here in the West they want in the East, and they are prepared to pay virtually any price to get these magnificent stones. You have to realize that the Argyle mine in Western Australia produces 90% of all the pinks mined in the world. Now that sounds like a lot. The other 10% come from India and some a little bit from Russia and from Brazil. But that 90% of the Argyle mine is only 1/10 of 1% of their total production. Small fraction, tiny fraction. Really, really small, and even though it's 1/10 of 1%, not all the diamonds that come out of the mine, the pink, are what we call investment grade. I mean, Guildhall diamonds, we look for the best of the best quality. Now a lot of the diamonds as well are under 0.18 carat, which means they're melee. They're very small. They go into jewellery. So we're looking for diamonds over, personally we purchase diamonds that are over a quarter of a carat. They have to be spectacular colour. The clarity has to be a VS quality. And most of the diamonds that come out of the Argyle mine are Si1 Si2 and I1. So to find the VS quality is like finding a needle in a haystack. So that's why the Argyle tender, these prices are getting incredible. I just read something today about pink diamonds in actual fact. There's a written by Rakminov and they've just formed a new buying group and then part of that we're going to be a member of this group as well. It's not a buying group, but it's an information group. And you've got Cartier, Tiffany's, people like that that are members of this new thing that's put out from Rakminov. And just on pink diamonds alone, over, since 2005, pinks have increased approximately 360% in nine years because they are one of the rarest of the colour stones. And there is just a requirement for these stones. So a 360% return is about 40% a year. So I don't know too many investments out there that are giving you 40%. How about nine? Right. Well, yeah. Very well, all right. So with the diamonds, especially pink diamonds, we try to get Argyle pinks. But remember, the other 10% also are great pinks and they come in great colours like strawberry and bubblegum colours. But two of the diamonds that we're actually kind of going to talk about today is a 0.27. It's an Argyle pink. It's a fancy intense, which means it's a middle colour. We sell fancy, intense and pink diamonds. Those are the three grades. So the intense is a really strong colour. It's purplishly pink. So the modifying colour is purple, which makes it even more stunning. It's a 0.27. It's a round diamond, which means it's a brilliant cut. Now this diamond was appraised at $80,000 through Harold Weinstein. We've actually put it on for $40,000. I think it's an absolute steal. This is the type of diamond that you hold for 10 years and a $40,000 investment could easily return you. If we're looking at a $360,000 return in the past 10 years, especially on an Argyle pink, you could be looking at $150,000 to $200,000 for this stone in 10 years time. The other stone that we're also showing today I'm talking about is a 0.33, which is a third of a carrot. It's a fancy pink, it's a VS1, again a round stone. Now round, which we call brilliant in the trade, and most diamonds in white diamonds are round. Yes. But in colour diamonds it's very rare that you get a round diamond, most of the diamonds are cushion cut, radiant cut, pear cut, emerald cut. So to find a round, because you need to have it evenly saturated. Because it's round. Because it's round. And that's what you need. Now this stone as well is on for $80,500 and it's on for $50,000. The reason that it's a little bit more than the 0.27, because it is a third of a carrot, and we then get into the next range. Because diamonds range from 0.25 to 0.49, 0.5 to 0.74, 0.75 to a carrot, one carrot to 1.24, the higher the carrot weight, the more the diamond costs. And this is an Argyle as well. This is an Argyle diamond. But if you're interested in pinks, go to our website is guildholddiamonds.com. And there's a great selection of Argyle pinks as well as other pinks. Now the other stones that we are really, really inspired about right now are the yellows. The new pinks really, right? They're getting to the era. Well they are. And again, to find, I've got an article today that's called Diamonds in the Sun. It's actually about Australia mining. Now we spoke just now about the Argyle mine that produces 90% of the world's pinks. The Elendal mine, which is also in Western Australia, produces about 50% of the yellows. They're actually as they come out of the ground, they've got an unbelievable sheen on them, and they're a terrific, terrific colour. That's just on the rough. So when they're cut, they're even more magnificent. So Antifnas actually have bought virtually the lease for the best of the best that comes out of this mine, for about 18% of the total yellows that they produce go to Tifnas. So the other 80% is cut up among suppliers. But the Elendal mine, just on some little details that one should know, for every 10,000 carats of white diamonds mined, only one carat will be a colour. It doesn't mean it's an investment grey. Exactly. Now, if you fill up in the mining, and this is a secondary mine that are opening up at Elendal, to find basically a couple of carats of coloured diamonds, you have to move 100 tons, that's a truckload, of lamparite. That's the stuff that all the dirt, the ground and whatever it is. It's a 100 ton, now you're going to find basically two carats, but the stones that you're going to find are about 0.30, those are rough, they know they've got to be re-cut, so 0.30. When you cut it, there's not going to be too much left. So for every 100 ton, that's a huge truckload, you're going to find two carats of diamonds. So to find a diamond, a yellow diamond, that's one carat, that's vivid, that's internally flawless. Incredibly rare. Emerald cut, cushion cut, radiant cut, brilliant cut, pay a car, you know, you have to take a sizeable diamond and cut it, a rough diamond, cut it down, cut away all the product that's not valuable to leave you that internally, flawless, pristine, unbelievable diamond. So at Guildhall, we go out of our way to find the best diamonds that we can find for our clients. And our clients have become very, very astute and very smart in looking for the type of product that we have. They know that we go out of our way to bring the best of the best product. If we look at 100 diamonds, we may find five or six that meet our criteria. And when I say meet our criteria, the color has to be perfect, it has to be evenly saturated. The cut has to be exquisite. We don't buy diamonds that have six and seven and eight extra facets in a diamond. That's a diamond has almost been butchered. But they've done that to get internally flawless, they've polished away all the impediments in that diamond. What we look for is the best of the best diamonds, so it has to have an even color, beautiful color even saturated. We get to the clarity, we're looking in yellows where we can to find internally flawless and it's getting harder and harder and harder. We sell VVS1, VVS2 and VS1 and VS2 because the first thing I buy when I buy a diamond, I'm looking at the color, not so much of the clarity. The larger the diamond, it's harder to find three carat, four carat internally flawless or two carat internally flawless. If I can get a VS1 or VS2 in a vivid that's a stunning color, I'm going to buy it because they increase in value just as much as an internally flawless. The third thing we look at, as I said, is the cut. The cut is important, cushion, cut, radiant cut, emerald cut, brilliant cut, round cut, peark shape. These are the diamonds, the cuts, the produce, the make of this diamond gives you unbelievable scintillation and fire. The colors that come for these diamonds are incredible. Now you've got to look at natural fancy color diamonds as an investment that not many people know about. In the last 40 years since they've been keeping records, they've never ever dropped in price. Which is staggering. Which is incredible. Yellow diamonds tend to go up as much as 15% to 20% a year. On average, I'm not saying every single diamond, certain diamonds go up more than others, blues go up an incredible rate. We know the pinks have increased an average of 360% in the last nine years. When we get back to the next segment, I'm going to talk about reds, which are the rarest diamonds in the world, and as well as oranges and greens. Most people are not aware of these colors, but they're very, very hard to find. Very expensive, very rare, and make great, great investments. We'll take a short break. The number of calls, 1-877-8 Silver, therealmoneyshow.com, rebounce over to guildhalldiamonds.com, open it up, look at some of the diamonds, and come back for a nest segment right here on Talk Radio AM640. And back with more of The Real Money Show, 1-877-8 Silver and guildhalldiamonds.com. By the way, you want to check out the full selection of diamonds, brilliant photography out there. You can really peruse before you come in the store and have a look once you're there as well. You want to get the investors kit and the precious metal advisor since we're talking about that. Back to diamonds, Paul. A couple of things before you get into reds. The first segment you mentioned, just amazing argyle diamonds, you have two things. That mine is set to close in a couple of years. Correct. In 2018, the Argo mine is set to close, and the demand is getting higher, and there's less inventory to get, so it's just supply and demand, I mean, this is investing 101. And you said the last tender, 55 diamonds, only two were V.S. quality. Is that typical? Four were V.S. Is that typical? It used to be more. Yeah, no. In 2012, there was 55 stones that went into the tender, 11 stones were V.S. quality. It's going to be rare. We actually were happy to get three of them in that tender. Last year, we never got anything, there are some tender stones, and we can try to get them from other suppliers, but when we're trying to buy them, we're going to pay an unbelievable premium on them. This year, we partnered with partners out in New York, and again, we didn't get one. There was only four V.S. stones, and we didn't get any of the stones. We were participating in, I hope, in next year's tender to obviously bid a lot higher to try to bring something back to Canada and to the U.S. market, but the Asian market is buying these stones. In the previous segment, I said, I'm talking about a red. Red diamonds today, the rarest diamond in the world. Amazing. Years ago, you could have bought a one-carat red fancy, V.S. quality, or even S.I.1, would it cost you around about 30,000 a carat? Today we're looking at anywhere from 1.8 million to 2.3 million. That's on the wholesale level, so on the wholesale level, someone's going to mark that diamond up again, extremely, extremely rare. The diamonds that we really like right now are the yellows. People are extremely hard to find vivid and intense of internally flawless. We have been buying some parcels and sitting on them. It's money in the bank for us when we buy something and push it to the back of the safe and sit on it for a year or two. When prices are increasing 15%, 20%, I don't need to put cash in the bank. I'd rather have diamonds. If we look at fancy diamonds and you go to our website, guildholddiamers.com, we're talking about diamonds that sell for $200,000, $150,000, $40,000, $50,000. Not everybody has that pocket change. At auctions, diamonds are going for 15,000,000, $17,000,000, $20,000,000, $20,000,000, $20,000,000. 10 years ago, we're going for $4,000,000 and $5,000,000,000. They're just fetching incredible prices. You need to get into this market. It's probably one of the best kept secrets, natural, fancy colored diamonds, investment grade diamonds. Talking about diamonds such as black diamonds, somebody today said to me, "Oh, do you have black diamonds? They're so rare. Pieces are cold." Literally. You know, nice for costume jewelry, not an investment. Then they said to me, "Well, what about the cognac?" Well, cognac is another word for brown diamonds. They've got names like chocolate. They've got cognac. They've got champagne. It's like grocery shopping for diamonds. They are not investment grade diamonds. The next color you've got to look at is yellow. And then we only carry fancy and tense and vivid. Those are the three grades of diamonds. We don't do light fancies. We don't do very light fancies. Fancy and tense and vivid. In layman's terms, you know, a fancy is like an Audi. An intense is like a top of the line Mercedes and a vivid is like a Rolls-Royce. So you only get what you pay for. If you buy the best of the best, it's like real estate, it's location, location, location, that's what we offer on natural fancy color diamonds. Now, you can get into this market on a 101 carat, fancy yellow, appraised at $24,000 from Harold Weinstein. You can get into this stone with us for $10,995. That's a great leap off point. That's a fantastic leap off point. Diamond to get started. You know, hold the diamond for two, three years. You'll see the appraisals, you'll see they're going up in value if you want to. Put that in exchange for a little better diamond or go from a fancy to an intense. We're ready to do that for you. Every diamond that we buy, we're happy to take that diamond bag because we don't take anybody else's diamonds. When I go and buy a diamond, it's for my own collection, and I treat every diamond that I put on my website as my collection. Every diamond you see on that website, we own. It's available. It's not bait and switch. We won't show you one diamond, say, I'm sorry, that's sold, but we have this. As we sell a diamond, it says sold on the website. If somebody's given us a deposit, it says hold on the website. Every other diamond is available, and we also have new product coming in that's not always up on the website immediately because every photo that we take of the diamonds that we have is actually what the diamond looks like. We don't put up diamonds on our website that look completely different. They're not enhanced. They're not doctored in any way, shape or form. The diamond, what you see on that website is what you're going to get. In actual fact, in real life, it's even more stunning because under light, you'll see the magnificent colors flying off the diamonds. Just flying. They're scintillating. Whichever way you turn the diamond, you see different colors, it's incredible. But again, it's a great way to get started. You can get a 101 carat fancy starting at 10995. You can get into a little larger stone, a 110, 10% more. You're looking at $12,495. What a beautiful gift coming up for Christmas. What a great gift. If you're looking to put, not so much a gift, if you've got grandkids, you want to give your grandkids something for their university education, they're five or six years old, put it away for 10, 15 years. What a great return you're going to get for your investment. If you're looking to retire, you're looking for your kid's education. I can't think of anything better than a natural fancy colored diamond. We also make a manufactured jewelry. We call this wealth to wear. Not only you can buy a diamond, you can put it into a beautiful piece, whether it's a ring, whether it's a pendant, whether you want to get matching diamonds to make beautiful earrings. It's coming up to Christmas, it's coming up to the holidays. What a beautiful gift to show your love and affection of somebody that you've been with. Everybody, basically when they get engaged, gets a white diamond. Let me tell you something about white diamonds. They're great. They've done a wonderful selling job. They've promoted it like crazy. Everybody should own a white diamond. The truth is they just don't go up in value. We have clients coming to us that have been married 20 years, 25 years, and they've got the first diamond they ever bought in engagement white diamond, and they've gone back to the jeweler that they've purchased it from, and the jeweler has given them less than what they paid for it or offered them less than pay for it. The biggest test is going into a pawn shop. Take it into a pawn shop, see what they offer you. White diamonds don't hold their value, unless you're buying the top of the line, which is a deep quality, it has to be internally flawless, and we're talking about three carrots, and we're talking 50, 60,000 a carrot. Different story. We're talking about the diamond, the burden, both for Elizabeth Taylor. Different kettle of fish. Completely different. Let's talk about the yellows that you mentioned this before that, and maybe it's these studio lights in here because they're very intense, but you've brought several diamonds in here before the yellows, and it's true. It's good as the photos are. These things are just absolutely, and I hate to use the word breathtaking when you see them, and I think Jeremy mentioned this a couple of weeks ago. I don't know if it's just it's a guy thing, but yellow diamonds seem really popular with guys. Hey, they're my favorite diamonds when you bring them in here, the yellows, they're just incredible, incredible diamonds. Well, they are. The pinks to put into jewelry is getting a little out of range. You're putting a carrot. We just sold a 1.5, 1.107 carrot. It was $395,000. That's an expensive ring. That's an expensive diamond to put into a ring. You've got to be able to afford it and be comfortable to wear it. When you start off with a yellow diamond and engagement ring, you're looking at $10,000, $11,000 diamond. We can put it into a beautiful setting for maybe $1,800. You're looking at $12,000, $13,000 all in for a product that's going to double in value every four to five years. And appearance-wise, just blows a white diamond out of the water. Absolutely. Right. You're looking at how many people come up to my wife, my daughters, my daughter-in-law, to say, "What a beautiful diamond that you're wearing." And it is. It's something special. And the difference is, if you do want to just have a diamond, and a lot of people in North America, and I do business in North America with a lot of people, the Americans like size. Size does matter. They want a four-carat, five-carat, a 10-carat. We're not worried about if there's an inclusion. It's going to be big. I don't like selling those diamonds, because to me, even though, because of the size, it makes it valuable, I like to sell investment grade of internally flawless, or even VS2, VVS1, but it's all about the color. So we try to go out of our way to find the best. At Guildhall, every diamond comes with a GIA, which is a Gemology Institute of America. That's the certification. We give you an independent appraisal from Harold Weinstein, probably the best appraiser in Canada. It's an independent appraisal. It's not from us. We have on board my daughter, which I'm very proud of. She is a GIA diamond-grading graduate. She knows diamonds. She knows diamonds, and we call her the Queen of Diamonds. And we're a Canadian company. Also, we belong to the NCDIA, and that's really, really important to deal with a company that deals with other dealers. There's maybe 40, 50 people belong to the association. Most of them are in New York. There's only two people that I know in Canada, and we're one of them that belong to this association. And we please ourselves. We don't let anybody get up to scoldaggery, no bait and switch, no selling the real product at the real price. We sell the best of the best. It may be a little, sometimes it may be a little more pricey than somebody else. But you know what? People go to my website, they show, look at my diamonds, they say, "Oh, we can get that for you cheaper, but you're not getting the same product." If you're going to buy a Rolls-Royce or a Ferrari, you don't want it with a scratch and dent. No. You want it pristine, brand new, off the line, and to be a magnificent product that you're going to get. And that's what we offer you a Guildhall Diamonds. And the proof is in the pudding. You'll buy them back. Absolutely. You'll take back your own diamonds 10 years from now, because you want them back. We don't buy other people's diamonds, because we just don't have the trust in other people. The website is GuildhallDiamonds.com. Have a look at it, peruse, and call the number 18778 Silver or TheRealMoneyShow.com. He's an exceptional assassin. 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. 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, premiering Thursday, November 14th, only on Showcase, stream on Stack TV.