The Real Money Show
The Real Money Show - November 1st, 2014
The Real Money Show from Saturday, November 1st, 2014.
and welcome to the real money show the numbers one eight seven seven eight silver the real money show dot com we have a huge show today first let me tell you what the seven are coming up on november eight that's a saturday at the delta meadowville hotel and conference center the address is sixty seven fifty mrs. saga road in mrs. saga want to go to real money show dot com to register as well paul's and nisky will be on the show talking about diamonds and a little later on uh we have a special uh promotion happening as well too don't we paul yeah john absolutely we have a special that i think is a great great special when you buy a 100 ounce bar royal mint bar you can go to our website guildhallwealth.com right-hand corner e-commerce click on the to the e-commerce side you'll see a 100 ounce bar of royal mint bar when you buy a 100 ounce bar you will also receive free of charge one ounce maple leaf worth the value of over 20 dollars as well in with your order so if you want to take a home delivery you want to buy a couple of hundred ounces of silver you're going to get a couple of maple leaves you buy 10 bars of silver you're going to get 10 maple leaves you've also got a choice to put it into our depository and what we're offering on the depository we offered it for the last couple of weeks there is no fees for one year initial fees which is a management fee and an opening account fee for one year we are giving that away waving that for one year we are waving the storage fee there is a storage fee that you pay for putting your product into the depository it's 1.3 percent a year which includes insurance which is probably the cheapest storage out there right right at the moment but we're waving the storage fee till 2015 as well so you're going to get a couple of months free storage no fees you're also going to get a hundred ounce bar you're going to get a one ounce maple leaf completely free I think it's a wonderful deal it's a wonderful opportunity especially the price of silver today we are giving it away 1 8 7 7 8 silver on the real money show.com we'll also be talking about a fantastic charity event you guys hosted this past Wednesday we'll get to that but as always I throw to you Darren first what's happening well as we record the show today on Thursday the markets are down John and it seemingly is something that we've had the deal with over the last quarter and going into the close of the year we remain bullish I want to make it clear to everybody who is listening that the announcement on Wednesday of this week from the Federal Reserve that they are going to pull away from their bond buying program was built into the market and at the immediate effects of this announcement from the feds are built into the market so really what we're dealing with here is just a little bit of fallout and pricing and really not a ton of weakness gold remains around the 1200 level as we take the show on Thursday and silver is hovering at around the 1640 to 1650 mark and I would expect that both those metals will remain somewhat soft over the next couple of days but coming in the next week I'm going to give you three reasons why I remain super bullish on silver and there is definitely lots that we could talk about this week but I want people to realize that if you're listening to the show you've already made the decision to either at least think about buying silver gold or you own it you wouldn't waste your time listening to us or what we have to say about the markets if you didn't feel that way I cannot emphasize enough that our attitude towards the long-term price of silver and gold has not wavered one single iota since this market began in 2014 we've had a pullback in the market it does provide opportunity for some and for others a little bit of heartbreak but that is the name of what happens when you talk about silver and gold now that being said three reasons why I remain bullish on silver right now the first is the gold to silver ratio it continues to widen john it's 72 to 1 right now the historical norm for this market even up until the last bull market the 1980s was 16 to 1 and in some cases it went down to as small as 10 to 1 now typically we see in this bull market over the last 10 to 12 years a average ratio of around 55 to 1 that's almost 20 basis points different right now which means silver remains undervalued again if you're listening and you're thinking about adding it's better to be adding when the market is down as opposed to thinking about speculating on the way up we don't treat silver and gold as a speculative metal we believe it is a long-term metal to be added to one's portfolio for the benefit of protecting against the things we talk about on this show every week now there is a close correlation between gold and silver prices as i'm sure most people know which is represented by this gold to silver ratio this ratio expresses how many ounces of silver are required to buy one ounce of gold and is considered a key signal which highlights whether silver is under or overvalued in comparison to gold and when that ratio is high similar to what we've seen 2011 2008 2006 2004 when that happens that just that just means that we're seeing more value in one metal over the other but the ratio is also becoming increasingly disconnected from its historical average at the height of the bull market in gold only 32 ounces of silver were required about one ounce of gold and over the last hundred years as i said the ratio has averaged over the last hundred years 47 to 1 beyond that over the last thousand to three thousand years that ratio is 16 to 1 and the peak of the market in january of 1980 when gold reached 850 silver reached 52 was 16 to 1 so at 72 to 1 i'm giving you my first reason why i'm extremely bullish on silver this week i'm going to interrupt you there just for a second darron we're recording this show on thursday gold has come off 20 dollars on the day silver has come off 70 cents that's a 14 to 1 ratio and we should be trading it right now it's 70 to 1 ratio it tells you that silver was oversold this morning for some reason somebody is shorting silver the only reason they should it is because they want to knock people out to buy it back at a lower price and i can tell you they will be buying back this price because it traded today at sell-off at 14 to 1 not 70 to 1 jeremy why is it then i mean if it was a classic car or piece of artwork it's like it's it's the cheapest it's ever been no no i'd rather wait till the price goes up why do you get that herd mentality people are waiting buy it now doesn't it make perfect sense to buy silver now why do you want to wait till it's 25 dollars an ounce well much of the world is buying it now you look at all the brick nations they are buying it now it's a sentiment issue in north america that that with the us dollar going up the stock market going up uh whole deck a whole house of cards we can go talk about that at length but what you have right now is the the price is being pushed down the sentiment is being pushed down on a market that is already low to begin with and you you kind of have to start questioning why why the why gold and silver why is it so important i mean the us dollar is strong you know there's strong demand elsewhere in the world the supply demand fundamentals should be kicking in in terms of where the prices are so what we end up with is a depressed price if you haven't gotten into the market we do see a lot of people who do see that the cheaper price has a great time to get in if you've been in the market for a while and you you can afford to purchase more and strengthen your position you should do that um and if you if if it's frustrating you uh i can appreciate that but ultimately when something's undervalued and you know it's going to be much much higher at some point in the future we don't know when exactly but we know that markets do have to level out at some point the stock market is is overvalued gold and silver are undervalued at some point that's going to come back to some sort of means so it might be frustrating for some your choice is to hold on or if you think that you can put your money better to work somewhere else you do it or if it's keeping you up at night you should you should change the you know you should do what will help you sleep well at night i'm perfectly sleeping while i love where the price is i'm picking up a few more ounces today for myself and uh i'm excited about where the price can go so i don't i personally don't mind that the price is low um it just gives you more potential to the upside down the road one eight seven seven eight silver on the real money show dot com dare well we're talking about three reasons why i remain bullish personally on the price of silver and where it's going to go but Jeremy brought a good point and he i don't want to glaze over it because a very important one we are in fact seeing buying around the world and it's not just falling into an empty pit where nobody really wants the products if you look at gold in particular russia added 1.2 million ounces of physical gold to their reserves during september which is the largest month on month increase ever in history and gold imports into indian september were staggering three point eight billion dollars this figure is almost double the two billion spent by indians in august and roughly five times the seven hundred and forty or so million spent the previous year so the appetite for gold in india only continues to grow as prices have fallen as well as places like russia but the second reason why i remain bullish on silver is to do with supply and demand fundamentals and they are extraordinary we are seeing more and more minds come out publicly and these are primary silver producing minds and state that they're going to slash production and that means they're going to bring less ounces to market because capital expenditures have to be kept in check now unlike gold silver is an industrial commodity as well and it has a huge range of uses including being a central component in the manufacturing of photovoltaic cells which is solar technology and with photovoltaic cell manufacture expected manufacturing expected to continue exploding over the next decade as solar power of course becomes more widely accepted the demand for silver is going to continue to grow so it's important to be paying attention to these silver miners and what they're doing with the market and in 2013 demand for silver actually outstripped the supply and i believe this is going to continue for at least a short to medium term and this is because of growing industrial demand for silver coupled with diminishing supplies caused by these slashes from primary miners for example first majestic pan american endeavor silver they all slash their capital expenditures on mind development for 2014 for the second quarter alone compared to the same quarter in 2013 first majestic's capex for mind development dropped 56 percent while pan american and endeavors were down by 17 and 66 percent respectively so what is this telling us it's telling us that at this price range we're getting precariously close to what it costs for these mines to bring silver out of the ground like oil in the opac countries they don't just continue pouring oil out of the ground when prices drop it becomes a matter of balancing profit with sustainability they bring less oil out of the ground eventually the price goes higher the same thing is now happening with silver so whether we want to think that this is going to be a short term a long term or we're walking away from the market altogether one thing is true steps are being taken to curb the drop in price in all different directions we just have to see the sentiment bounce back and it is very common after an announcement like we had this week from the feds to see the immediate 48 to 72 hour business period turn a cycle of numbers in silver and gold which typically go lower so this is not out of the realm and we'll definitely continue with point three in a second one eight seven seven eight silver and the real money show calm paul i'm kind of convinced now okay 16 bucks sounds great how do we get an account happening it's real real simple first thing you got to do is pick up that telephone give us a call we can get an account open for you very very quickly but there's several different ways you don't really have to have an account you can buy a product you can take it home for home delivery whether it's gold silver platinum and palladium our two favorite metals are golden silver you can go to our website guildhall wealth.com right hand corner your CRE commerce site simplest thing in the world of order metal you go on you register you order the metal you want you can call us figure out what currency you want to pay it in us of canadian and we ship it to you or you can pick it up third option you have is to open a depository account and this is one of the smartest ways to store your physical product it's outside the banking system first of all it's in a safe secure segregated allocated account we can title the product to you we can give you the bar numbers as well it's a great great way to store your product minimum order to put into the depository is two 100 ounce bars or 10 ounces of gold very very simple to do if you want to visit your metal you can give us 24 hours notice and we'll set you up an appointment to go visit your metal in the depository they will bring it out if you want to put a scratch on the coins that you're putting in on the bars you're putting in they will bring back the same bars that you're putting the scratches on if that's what's been allocated to you so again you can order the product you can pick it up take it for home delivery you can order the product through our e-commerce side which allows you to make an order to have it delivered home or pick it up or use our depository to store your product even if you've got product at home it's dangerous to keep valuables at home in today's economy you know greedy people out there there's some dangerous people out there and it's a silly thing to do to home invasions out there personally i don't keep a nickel at home i don't keep a dollar's worth of silver at home it's in a safe secure depository and that's how you should be thinking yourself insurance on this product is also there from Lloyd's alondon so this is a great way to do it john give the numbers get our investment kit get our depository kit also sign up for the precious metal advisor and we've got an upcoming seminar which is on november the eighth which i think you should tell the people about john yeah that's seven hour paul saturday november eighth it's happening at the delta medavale hotel and conference center sixty seven fifty missus saga road in missus saga and uh real money show dot com to register you want to get on this before it's all filled up the number one eight seven seven eight silver and the real money show dot com will talk diamonds and we'll talk to a paul's and nisky very shortly independent diamond industry analyst and consultant little later on the show as well and back with more of the real money show indeed one eight seven seven eight silver make sure you call that number to take advantage of the investor kid or the precious metal advisor real money show dot com is the website and again a reminder that the natural fancy color diamond seminars happening on the eighth of november that is a saturday the place is a delta medavale hotel and conference center sixty seven fifty missus saga road and register for that one very shortly because it is going to fill up darren when we took a break we were talking about the three reasons why you were still very much bullish on silver number three is what we got to get to well number three is an important one and that is that institutional investors continue to bet big on silver john and they may do it in the paper form you know from listening to the show and those that are listening now we are fans of the physical asset only but in the paper form we also must be aware of what people are doing and wall street continues to bet heavily on a rebound in silver by the end of the second quarter of 2014 institutional investors george soros and john hussman which are two names that are synonymous with money and wall street had amassed significant stakes in silver uh company called silver wheaten which some of our listeners may well know uh their stakes for george soros nine and a half million if for john hussman seven million respectively now they have also made a big bet on pan american silver with sorrels investing eleven million and husband four million in the same period and this indicates that wall street is expecting a rebound in silver as growing economic and geopolitical uncertainty coupled with the supply constraints that we're seeing that we talked about in the last segment are very much set to push silver price higher the best way to play this in our opinion remains physical because you're taking an ounce out of the market unfortunately when you're betting in a company you're still betting in their ability to be well run well managed silver and gold have no third party liabilities you are taking that ounce out of the marketplace you are making it your own and by doing that nobody else has the right to own that ounce and that is the key way to play silver in our opinion so when you're going to be buying whether it's starting with a hundred ounce bar whether you're looking to spend a couple of million the average investor has a means in a tool and a vehicle to do so and that's through uh guild hall whether it's the e-commerce store uh or whether you're buying direct from us by calling one of the brokers that's the best way in our opinion to play this market one eight seven seven eight silver in the real money show.com yeah Jeremy well last night we we're doing the show on Thursday but last night we were at the charity event for cardiac kids great um you were there john it was great to have you there it was a wonderful event a really great support out for the event we raffled off diamond pendant and everyone took part in the in the raffle and it was really great to see one of the nurses that perfect got got the pendant which was wonderful obviously it was a wood buying racetrack grade of venue uh great food everything like that but the event was a wonderful success yeah it was 400 people there last night which was incredible and they you know we had several draws as well for uh silver bars that we were giving away not only we're giving away maple leaves on a hundred ounce bars we were giving away ten ounce bars last night but it was very a great cause it was very charity and the cardiac kids is a wonderful wonderful cause um we a guild hall try to be a good neighbor we try to help the needy we try to do what we have to do owning gold and silver is looking after yourself first it's a hard asset that's going to protect your hard earned wages your hard earned money you need to have some type of hedge against inflation i was watching cmbc very early this morning it's basically a six o'clock they had a senator on from the u.s that actually is a republican senator from texas and he was kind of telling some home truths which made it very very interesting do you realize they say the unemployment is six percent he came up with a figure there was 93 million people in the u.s unemployed since a bomb has been you know in power in the last five years uh the debt has gone from 10 trillion dollars to close to 18 trillion dollars if anybody out there understands what a trillion dollars looks like it's an awful lot of money hmm the people don't get that there's inflation the average person is living the average joe is living paycheck to paycheck the price of a dozen eggs on wall street they don't know what a dozen eggs cost because they're eating 69 dollar stakes they're not even interested in that wall street has made a lot of money it hasn't trickled down to the joe public gold silver natural fancy colored diamonds is probably the best hedge right now against inflation that is out there it's coming and it's going to be coming in a big way they've just taken off quantitative easing this means that there's the free money is going to stop the stock market has had a wonderful role from 2008 2009 rather to 2014 it's going to change the stock market cannot keep on going up and it's going to hit hard you need to have gold and silver in your portfolio today whether it's 10 15 20 it's going to save you in some of these treacherous times i think they're coming and ultimately you want to look at the price right now you have an unbelievable opportunity below 20 dollars an ounce to get involved in silver gold trading just shy of 1200 dollars an ounce these are opportunities that aren't going to come along every day and knowing if you've been following the show or getting the precious metal advisor and seeing the economic news through the headlines you'd see that to be able to buy it today at these prices you know you're going back to 2010 pricing here it's a wonderful opportunity so really for anyone who's been watching the market and waiting for their turn it's not going to get to look much better than it is today the other thing is as well there's an interesting article on CNBC by Greenspan the former chairman of the Fed he was interviewed on Wednesday and again he thinks price of gold will rise he frets over losing control of the rates he's worried about thinks the Fed is wrong on inflation Greenspan says stocks to see significant correction Bloomberg TV he thinks gold is one of the safest places right now to put money and i think you know you've got to follow where the money is and where the brains are 18778 silver and the real money show dot com online to start investing daren what are you thinking well i was looking at that same article and i was right the idea that somebody is powerful and as knowledgeable about the world marketplace as Alan Greenspan the former Fed chairman talking about gold is probably something very new for people they're not used to hearing that but if you look at the history of who Alan Greenspan is he's a huge proponent of gold and has been for some time seemingly the period of time in which he was federal reserve chairman was the only period of his life in which he didn't go out of his way to talk about the merits of ownership probably wasn't out of gold of course but the reality is that he does indeed have a long history of supporting gold and this article does touch on it it's by a company called Merck Investments and we certainly want to make sure we we shed some light on who the articles by but if you wanted to take a look at this article we put it into our precious metals advisor this this week and this has already been released as of Wednesday but we're happy to send it out to you if you're a new investor we like a little more information but he does talk in addition to things Paul was touching base on he does talk about the idea of a welfare state and a welfare state is something similar to what the US has right now and although Greenspan never in the article accuses the US of being a welfare state he does in the article point out that in a welfare state you cannot go to a gold standard it's impossible but that certain aspects of a welfare state do definitely support the notion of higher gold prices now when asked directly where the price of gold would be in a year's time or in five years time from now the only response Greenspan had was higher and when prompted to say how much his only response again was one word and it was measurably so even Ellen Greenspan understands the merits of owning gold and why countries own gold central banks own gold and I would think that one of the biggest concerns he must share is the fact that we're talking about before the break about this is that countries like China communist country is now the largest second largest economy in the world and countries like that are amassing huge stockpiles of gold now take a second and think about the long-term outcome of that if the US has the gold they say they have why on earth wouldn't they want to tout that why wouldn't they want to be accurate in talking about the actual gold how much and why they're adding more if it indeed was the last bastion of support to make sure they have a pillar holding up all they need to do with respect to the US dollar if China is in fact amassing as much as the media is reporting and I would think that they are amassing more than what the media is reporting because they don't have to as a communist country report to anybody nor would they nor would they then we should be somewhat concerned because if they're going to use that gold as a way to back their currency then we could easily get into a day and time in which people definitely use the one or the yen perhaps could could also be a powerful currency but the one to become the world reserve currency now that's a scary thought for me and it's not to fear longer at all it's not the purpose it's just to simply say that by owning gold silver even colored diamonds we here in the west are giving ourselves the opportunity to take those assets away from people in the east and there's nothing wrong with that it's just a competitive nature of the way I am I'm spirited as an analyst and I'd love to see the people here that are at home in North America that are listening to the show benefit from the ownership of things like gold silver and colored diamonds if we know long term that the outcome is going to be a certain way why wouldn't you want to step into that realm and at least try to protect yourself with a number of different assets like the ones we're talking about here. Paul also says you know you want to be a day early they're a month or than a day late right. That's always been my saying and I got to tell you I think the price of silver today is an unbelievable buy the same as gold gold trading a $1,200 silver is in the 1650 range I think it's a great opportunity if you want to buy the product you want to take it home you can we can deliver it to you you can pick it up if you want to go to guildhallwealth.com you can go to our e-commerce site very easy to place an order to register to get your product you if you want to open an account where you want to put it into a safe secure depository you know if you're buying a thousand ounces of silver it weighs 70 pound you know if you got 5,000 ounces of silver that's 350 pound the price of silver right now has been beaten down but it's going to go up if you've got the silver at home or gold at home and you want to sell it when the market's moving up very hard to take time out of your job you know if you're a doctor a surgeon you're going to stop in the middle of an operation because I've got to go sell my gold or silver maybe with a doctor but for somebody else maybe not I mean they can't just leave their job and take you know you need a wheelbarrow to carry 350 pounds of silver you can sell it on a phone call that's how we make it so easy for you it's a great way to have your product it's safe secure allocated segregated insured should with Lloyd's in London and we can even title the product to you give you the bar numbers it's the only way to buy precious metals and before we go to break I just want to make clear I know that sometimes we get accused of being repetitive and even those that would write in and say hey you guys are doing a bit of fear mongering if we had reason to think that we thought the price of silver was going to go down long term we'd be the first to say it because we have clients who own the product and they benefit from selling it and that's a long term happy client the fact the matter is October was a record sales month for silver eagles the first price dip passing $17 an ounce made a record month in sales as long as these events take place I cannot look any other way than bullish towards the long term price of silver we'll take a short break one eight seven seven eight silver on the real money show calm one reminds you once again get on board for the natural fancy colored diamond seminar happening Saturday November 8th the Delta metal veil hotel and conference center 6750 Mississauga road in Mississauga call that number or 1 866 274 9570 in the next segment or two we're going to be talking to Paul Zymniski and natural fancy colored diamonds hang on and back with more of the real money show 1 8 7 7 8 silver online the real money show calm the natural fancy colored diamond seminar with guild hall is happening Saturday on November 8th and the place for that is the Delta metal veil hotel and conference center 6750 Mississauga road in Mississauga you can go to 1 866 274 9570 as promised on the show now we have a special guest Paul Zymniski independent diamond industry analyst and consultant while you're listening and travel over to his website as well Paul Zymniski.com that's Zymniski with a why Jeremy well I'd like to welcome Paul Zymniski to the show great to have you Paul hi thanks for having me um one of the things we were reading an article that uh an interview that you had in mining.com so we were really excited by what uh what I was reading in this article so we thought we definitely want to get you on to the show and uh hear your thoughts on the diamond market and how it relates just so the listeners know um can you tell us a little bit of background about what you do and um how you fit into all of this uh diamond and diamond and investing and mining situation. Sure so my background's in finance and I spent the majority of my career as a analyst uh and my first shop was working for hedge fund uh and I was working for a portfolio manager that was an educated geologist turned uh portfolio manager and that was kind of my introduction to the natural resource space uh some investing uh standpoint and I kind of uh took it from there and we did uh you know gold silver copper um we also did some oil and gas investments but uh I kind of started looking into diamonds myself and uh the more time I spent looking at the uh the diamond mining industry uh the more attractive I found the fundamentals relative to some of the other uh commodities that we were watching um and that kind of uh I think ties into the article that you mentioned and that uh kind of relates to the current supply demand fundamentals of the diamond market um and it's pretty simple there's only a handful of new mines set to open the next five to ten years um and you have a tremendous amount of new demand primarily coming out of Asia um we're brides to be our being given engagement rings for the first time so you've a tremendous amount of new demand um you've a limited amount of new supply and some of the larger more existing mines in the world um we're actually reaching the pollution uh levels so when you kind of take a step back and look at what's going on here um you know even if the man uh continues to remain stable I think the demand next could be favorable for diamond prices and then you know the next question is uh you know price elasticity of the demand um how high can you know diamond prices go before demand's eroded but um you know overall I think uh you know that the fundamental backdrop of uh the industry is pretty attractive and so in that sense so you're saying you've got um new wealth coming to the table like emerging middle class in China they're deciding you know what we want to to get engaged with diamond rings and I imagine that that would also maybe even come into play in other places like um in India for example or more people being able to buy in the BRICS nations as well would you say yeah exactly and again we're talking about you know that the bread and butter typical engagement ring to to ten thousand dollar price range um but the beers recently came out with report and they had an interesting statistic and um it was eight out of ten brides to be in the US or given a diamond engagement ring seven out of ten in Japan um and it's right now we're at four out of ten in China um so for us and the Japanese markets are an indication of the potential you know market penetration for diamond engagement rings um you know there's room for the Chinese markets almost double from where it is today um and it's a country of 1.6 billion people so um you know tremendous amount of of growth being driven uh from China in particular and do you do you see a potential for more new minds being open I know you said that there's just a few but do you think that they could ramp that up in any way yeah well the way that you know pretty much the mining industry were to come down to economics uh so at the price the commodity being produced um you know uh rises at a faster pace and the cost to produce it typically the economics will um you know justify more mining um so that's you know that that's pretty much what it usually comes down to in order to point right now where there's you know only a handful I'd say you know less than uh ten projects that will go on stream in the next ten years um large mines producing an excess of 1 million carats um and it typically takes 10 years to build a diamond mine you know cost a billion to holler so um I guess with that information we can kind of get a snapshot of what we'll look at you know from from the supply side you know ten years since the future um and there just there's not a tremendous amount of growth in the supply side now when we look at auctions and we're we're specifically um looking at color diamond auctions we see that they continue to escalate uh continue to break a lot of records what do you make of the exceptional sales of these um massive massive diamonds for one they're very large color diamonds and they're quite exceptional and rare at the same time what do you make of all these record breaking um auctions going on yeah I think when we're talking about these sales that the mainstream media picks up these are the very rarest of the rare diamonds uh they're comparable to similarly priced vintage cars and art so I kind of see them falling to that category you have to keep that in mind and also you know we're looking at these and nominal prices um and as you know fiat currencies continue to be degraded on a global basis you know these assets are maintaining uh their value is on a nominal level they're going to increase in price so I think that's you know one of the greatest drivers uh you know people that are buying these kind of diamonds are interested and preserving the wealth that they already have you know they don't want to be in stocks because arguably the valuations are high and uh there's not a whole lot of stability in that market of the last few years you know but if you look up on yields or artificially you know pressed down at all time lows and and you certainly don't want to be in cash for for for the reason uh that I just mentioned you have uh you know central banks that are uh keeping their foot down the gas pedal um and uh and it's it's kind of scary to be in cash uh when uh central banks are just producing more and more fiat currency um and uh and those are really seem to be uh you know a game plan in mind right now um so it's it's I think it's a way to preserve wealth and uh you know these individuals I think you're seeing a lot of it in Asia these uh you know more recently uh wealthy individuals kind of see uh diamonds and some of these other hard assets as a place to kind of park their wealth and would you see that that there is a trickle down there from from these auctions of of these obviously incredibly rare diamonds but even down to the regular market that people are really looking two diamonds to um to store their wealth and to grow their wealth at the same time do you see that in in whites or or do you see that in color or both if any yeah you know it's a relatively cryptic you know industry from from that standpoint there's been a whole lot of pricing information you know that the big auction houses are public so they press release you know the large sales um you know and the meat of publicity is good for them so I think they want to put that out there but uh you know for instance Rio Tinta just completed uh argyle pink auction um and uh you know they don't disclose the price uh they don't disclose the buyer um but they did say that over the last 14 years the prices of their pinks and their reds have uh trip more than tripled in price um so again it's kind of hard to get a specific gauge but back to your question I think uh you know the the investment I would say that quality is is much more important than quantity one in investing uh in a diamond and uh you know you know the people that are looking at as an investment are looking at flawless super high quality um very good color and uh larger size diamonds well I was just about to ask you if you if you if you had any advice if people are looking at it as investment what uh what they would look what they would look for do you do you do you see that as a as a viable place to to store to store funds yeah and like I said you know we kind of used the term investment maybe that's not the proper term to use maybe we're getting into semantics but I kind of you know like to look at it more as a preservation of capital and I think the same goes with gold and you know some other items mentioned before whether it's you know vintage cars or fine artwork um you know these items don't take cash flow there's the cost associated with holding them um that said you know the appeal of hard assets uh has historically maintained um you know value on on a real basis um so I think this is you know seen as a way to maintain wealth in a world of fiat currency degradation um and like I said and arguably you know unstable financial market um so I think that's where you're seeing the demand coming from um excellent now we understand that uh you're looking to create a diamond index is that right yeah uh the challenge with diamonds is they have there's so many different characteristics of diamonds and they all have a different value based on a different characteristics and I think one of the challenges for people that want to get exposure to diamonds is you have to number one kind of you know know what you're getting yourself into you need to know enough about diamonds uh to understand that a slight you know differentiation and quality or color could you know mean a significant difference in price um so I think the challenge uh with investing in diamonds is uh you know do I understand enough to get involved number one um and you know number two the other option is to kind of you know get involved through somebody that does have experience whether it's a a fund or an outfit that with experience and reputation that will sell diamonds at you know a market price um but it's a relatively you know with any you know asset again whether it's a car or artwork it's a relatively wide market there's you know to say let's try to say that it's a wide bit ask spread and I think um that's kind of been the biggest challenge to people wanting to get involved um so I you know with any index I think it's a gauge the price gauge um and if you can have a buyer and a seller look at an index and get an idea of the current market for whatever asset they're in I think both sides are more comfortable with what a fair price and I think that could you know ultimately shrink the bit ask spread of of diamonds and I think as that market and the market tightens up I think it's a tremendous uh room for more people that would like to get involved but they're kind of waiting for an easier uh more transparent a little bit more liquid way to get involved and if someone wants to um get in touch with you learn more about what you're doing and get get the information that you're putting out how would they go about getting in touch with you sure I have a website it's uh PAUL z-i-n-n-i-s-k-y.com excellent well it's been a pleasure to have you on the show and we look forward to speaking with you soon thank you so much it's been a pleasure we'll take a short break one eight seven seven eight silver and the real money show.com the natural fancy colored diamond seminar you want to be at this November 8th that is a Saturday at the Delta Meadowvale Hotel and Conference Center 6750 Mississauga Road at Mississauga 1 866 274 9570 register soon and back with more other real money show 1 8 7 7 8 silver the real money show.com the natural fancy colored diamond seminar is happening Delta Meadowvale Hotel and Conference Center uh it's going to be November 8th that is a Saturday the address is 6750 Mississauga Road you can register at the real money show.com or calling 1 866-274-9570 uh Darren what's happening let's talk more diamonds. Well first off in accordance with that event last night we want to thank the people who came out that are clients of Guildhall wealth and yourself John for supporting such a worthwhile cause. Cardiac great event they do a ton of charity work and uh I couldn't say enough good about Jeff Neiman and his crew and everybody that was there so we want to thank them very much for having that event. I myself could not make that event I had a beautiful little nine-year-old daughter who was having her birthday party yesterday so unfortunately I was out but we did want to say congratulations to all of the new buyers this week new diamond buyers and some diamond buyers that are collectors last night at the show although we intended today to have a diamond of the week special a .53 orangey pink IF and that is correct the internally flawless orangey pink diamond we unfortunately sold it in fact Paul sold it and congratulations Tom that bought the diamond a great addition to the collection and this is unfortunately the diamond we had for diamond of the week so what we would encourage you to do is get over to the website take a look at what's remaining right now keep in mind what we have talked about over the last number of shows about expected changes in last quarter to pink diamond pricing which is a standard every end of year we go into this period of time knowing that the results are forthcoming from the Argyle tender auction and we are still waiting for those results but they are slowly filtering in so when we have more data we'll pass that to our listeners but this means that for the moment you're getting the opportunity to buy a diamond that is definitely well priced but in the span of the next 30 to 60 days could be 30 percent higher in price and this is what you look forward to in coming years as well when you buy these don't you Jeremy yes and that's why it's it's such a great investment opportunity and as Paul Zymniski was saying it's important to get all the information that you can and get get comfortable with with what it is and see if it's the right type of investment for you and it's always great to see people who are interested in learning something new they want to see is this going to be something that would work well for my portfolio or just in in in the case of just supporting wealth and storing wealth and so it's always nice to see people interested in learning something new this is a very new market market for people and these diamonds are quite rare this is why we do the seminars all the time so that people can come to the seminar get to meet us get to see the type of diamonds that Guildhall procures and also to learn about the market more and to get that comfortable feeling when we when we help clients get into the market we do notice something in common they all tend to end up buying more than just one diamond it's such a great market and there's such a rarity to these diamonds that once you get a taste for it just like real estate a lot of people that that first purchase was just massive to them and then all of a sudden it's not a problem to own four or five rental properties or what have you so very similar with diamonds the prices are consistently moving higher so if you do take a pass on it one year you will inevitably purchase it at a much higher price and that that's just the the nature of the rarity of these markets so we encourage everyone to learn as much as you can whether it's in asking for an investor kit or coming to a seminar and learning learning more or just continuing to listen to the show and learn more about colored diamonds and I we we know that once you look at them and once you get the information you're going to fall in love with with owning one and it sounds like it sounds like such hyperbole what they are absolutely breathtaking to see them you have to see these diamonds you know the website does a great job you have to see them in person they're absolutely stunning stunning they are and and it's it's great to see the diamonds being shown off in jewelry as well it's one thing to purchase the diamond and put it away it's another thing to really express the individuality and show off that diamond and and get people talking about it because as soon as you're wearing a colored diamond people are going to you're going to attract a lot of attention and people are going to want to ask you about it and you do that as well I mean just based on the event you had last night with with cardiac kids the the diamond pattern you raffled out with yellow diamond it I mean it's so nice put in a piece of jewelry and you guys can handle all that right yeah I was on Pinterest the other day looking up colored diamonds and I have to say the jewelry that that Guildhall has produced with our designer is is first rate I didn't see anything that attracted my attention no Pinterest none whatsoever none I didn't see anything that matched to what we've been able to do with with particularly yellow diamonds so I'm really happy with the type of quality of of jewelry that we've been able to create and of course I'm thrilled with the type of returns that people are getting on on their colored diamonds we've seen some incredible diamonds being sold and every year they're always higher especially these pink diamonds it's tough to keep them around like we said we we've sold one before we've even been able to take a photo of it before we've even been able to get it appraised why because a client who's purchased diamonds in the past appreciates just how rare an internally flawless pink can be so they're going to snap at it they're going to grab at it and that's why we're a little sad to see it go because wow we didn't even get a chance to to enjoy it and pass it around the office yeah working now give me give me entry level for someone who's just getting their beak wetting diamonds where can they start great question usually you want to start at the fancy yellow level yellows are are more affordable they're still incredibly rare we still want to keep that very strong criteria that we're looking for that keep those diamonds investment grade but a one carat internally flawless yellow you can purchase for around about ten thousand dollars give or take which is a great way now in that diamond um you know you might not get over ten percent a year for it but you're going to see consistent returns over a ten fifteen twenty year period that diamond is going to have done the work for you uh you're going to be very happy with the type of gains you're going to have and of course because these diamonds are so difficult to procure we're more than happy to assist the client at the right time sell their diamond down the road these diamonds are so hard to come by you know we barely sat on this internally flawless pink of course we're going to be happy to one day eventually get to sell it again it's like it's like being a real estate agent focusing on a very specific high-end neighborhood we're more than happy to to help assist sell those diamonds again so you can start at one carat fancy ten thousand if you moved up for example to an intense which is a next level up in in strength of color strength of color is going to be more rare so a one carat intense internally flawless you're going to be looking at over twenty thousand four and then once you move up to a vivid which is even more strong in color and even more rare you're going to be looking at into the well into the forty thousand range per carat for that and then from the Ls you move up to you'd move up to pinks you'd move up to blue greens if you can get them now now we're talking diamonds that are very difficult to find right well you couldn't be more accurate in your statement there john they are difficult to find and those are really the diamonds that are special for collectors those are the type of diamonds when you're getting up to blues and green solid green solid oranges that you might be considering turning around down the road via auction and that's something that we will help our clients out with but this is a new area for many investors and the reality is that we want to help people take them by the hand slowly walk through the process it's not about twisting arms or letting people or leaving people with the impression that if they don't get it now it's gone people that have been watching guildhall know they've had their opportunities i talked with Jeremy this morning one interested investor in a diamond that we have our point eight one tender stone which is on hold right now tentatively sold and there is definitely a beautiful beautiful investment that has been made in the purchase of that point eight one pink diamond but it may not be for everybody if you want to start small you said john earlier in the segment the starting point where is it ten thousand dollars is something that could be comfortable for the majority of investors this is not for people who have to go and borrow this not for people who want to go and get a credit card and give this a role this is something that is a bit of a long-term investment you want to hold on to a colored stone for no less than 60 months that's the plan doesn't matter what the color is that's the span of time that you want to shoot for 60 months or longer and then you turn around and engage in the selling process now that being said we are seeing records broken in the yellow market in the pink market and quite frankly we strongly believe at this point in time that yellow vivid internally flawless diamonds are quickly becoming the pinks of just a few years ago we are not able to freely find that quality of diamond anymore and for new investors the interview we did today with paul's immensely that Jeremy did is a perfect way to highlight the engagement of the mainstream into this particular realm this is happening more frequently you're getting interest from hedge funds you're getting interest from mainstream investors and as it does develop into a mainstream asset this is something you can look back on and say hey i heard it here first this is the first time i got the opportunity to do it and this is for everybody this is for people who are close to retirement who are in retirement who are blue collar white collar moms dads alike who are thinking about university tuition for their kids in the next ten years who want to take some of that retirement money that they've saved so well and put aside for a rainy day and use that this is the type of investment that you can use for that and again when it comes to buying a colored stone remember guild hall diamond is going to be with you every single step of the way throughout the entire process even after you've purchased that diamond so if you're thinking about buying a colored diamond then definitely give us a call get in touch start educating yourself and of course if you're in the Mississauga area john is going to give out the details for our upcoming seminar but this is an option for you to get the ball rolling get started in your education towards colored diamonds i sure will dare the number is uh one eight six six two seven four ninety five seventy that's again on board and register your spot for the natural fancy colored diamond seminar november eightth indeed saturday it's going to be the delta meadowvale hotel and conference center sixty seven fifty mississauga road you want to catch guildhall there want you to be there got a thank again uh jeff paul's and missky for dropping by the show with his knowledge you want to start investing anytime go to guildhalldiamonds.com and the real money show dot com as well 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 let's go as a ghost head over to our instagram and see the contest posed for details on how to enter i 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