The Real Money Show
The Real Money Show - September 13th, 2014
And back with more of The Real Money Show, 1877-8 Silver and TheRealMoneyShow.com online. The segment we love to start into, Paul, that would be all about natural fancy-colored diamonds. The seminar just happened, how was it? It was great success. We didn't get as many people showing up as we'd like to. The weather was a little off that day, but it was a great success. Jeremy gave the presentation on diamonds, and Darren gave a presentation on precious metals. Investing in natural fancy-colored diamonds is not the easiest thing to do. It takes a little bit of education in educating the client. We have a website where we go out and procure the best of the best in natural fancy-colored diamonds, whether being yellows, pinks, blues. We try to find the best diamonds that we can possibly find. At one time, we were showing the prices, appraisals, everything up on the website. Competition is good, but a lot of our competition that we're going and showing our product, taking their clients, and then undercutting us. The difference is not about undercutting our prices, it's undercutting the product. We really go out of our way to find the best product, to meet Guildhall's criteria of our collection. Now, what that means is, first of all, the color is the most important thing that we look for, that a diamond is even saturated. You know, Nicole, just on the show today with us, is a GIA diamond-grading graduate, and she knows an awful lot about, you know, why diamonds, some diamonds are rarer than others, and what makes a beautiful natural fancy-colored diamond, and she's probably going to speak a little later on this. The next thing we look at is the cut of the diamond. Now, you know, a cut of a diamond is like a bad haircut or a bad suit. You know, why can you go to Hong Kong and get a suit made in, you know, 24 hours for $100, when you can go to, you know, a Marnie makes a suit, or a Brioli for, you know, $3,000, $4,000. There's a big difference, there's a difference in the cloth, there's a difference in the cut, there's a difference in the care that's making it. That's the same thing on a diamond. It's the same thing, you know, I can talk about real estate, you can get a bad builder, and you can get a good builder, a bad builder, you know, the concrete cracks. You're in. Everything starts to go wrong. So, cut is really, really important when we buy a diamond, and carrot weight, natural fancy-colored diamonds, especially in yellows, we try to get the investment grade, which is over a carrot. Now, on pinks, we sell our gold pinks predominantly, and we sell VS quality, which is one of the highest clarities that you can get in pink diamonds. They normally come a quarter of a carrot and above. You don't see huge diamonds, because they're so, so expensive and so rare, and, you know, the alcohol mine, for example, that produces 90% of the world's pink diamonds, most of the diamonds are small diamonds. And the quality of the diamonds that we sell have to be a VS quality, which means very slightly included. Now, finally, what we look at is, as I said, is the color, the cut, the clarity, and the carrot weight. And, you know, it's important, the clarity, that when you're buying a diamond, there's a lot of diamonds that would actually come SI1, SI2, which means they have a lot of inclusions. And with a lot of inclusions, you can actually see them with a naked eye. So, all those four things together, those four C's are important. So, when people go to our website and look at our collection, we've gone to the best of the best people to buy our product. We're not the cheapest, and I can tell you right now, but, you know, we're not cardier and we're not Tiffany's and we're not graph jewelers, where you're paying tremendous amount above the price because of the retail space, but they procure the best of diamonds and so do we. We go to the same cutters and polishes, and we bring these diamonds to our clients. These are the type of diamonds that increase in value. A natural fancy colored diamond will go up anywhere from 12% to as much as 50% a year. It all depends, again, the color, the clarity, the cut and the size of that diamond. We expect our customers to buy a diamond, to hold a diamond, whether it's 5, 10, 15, 20 years. These diamonds tend to double every four to five years. So, if you're looking, for example, at retirement, or you're looking to put your kids through university, I'm in my mid '60s and we have a lot of investors are in the late '50s, '60s and '70s that are buying diamonds. Why are they buying natural fancy colored diamonds? The reason that they're actually buying them, first of all, it's an investment that's safe, secure, it's an insurable asset, and since they've been keeping records for the last 40 years, they've never, ever dropped in price through recessions, depressions, all types of bank problems, dot com problems, everything that you can name that's gone wrong in the economy, natural fancy colored diamonds have withstood that type of problem. So, let's talk about a diamond. For example, you buy a diamond for $25,000 and you hold on to that diamond for 10 years, especially on Argyle Pink, you could be looking at anywhere from $75,000 to $100,000 for that diamond. We're selling the best diamonds that we can get to produce, to give to our clients, to get them to make money and have a great, great investment. John, why don't you give out some numbers? First of all, so they can, you know, call. We also have a, Nicole wrote a fabulous booklet on how to buy a natural fancy colored diamond, and that's completely free of charge. So, if our listeners want to get that booklet, they can, you know, get it from the website or if they want to call in for it. And the number is 1-877-8-Silver on TheRealMoneyShow.com. And she is in here studio, the Queen of Diamonds, one of Canada's foremost experts on colored diamonds. Nicole, five years ago, I could have walked up to anybody in the street and said, "What is a yellow diamond?" Nobody would have known. Now, so many people know and are aware of the value of these things, right? Correct. Yes. What is it with the yellow diamonds? A lot of that has to do with social media consumption and seeing, you know, Carrie Underward wearing her yellow diamond engagement ring, Katy Perry, Heidi Klum. I mean, the list goes on and on. So, Jennifer Lopez, of course, with her pink diamond engagement ring from Ben Affleck and then her blue diamond that she got from Mark Anthony from her year anniversary with him, even though those marriages ended, she's got a nice little collection that keeps growing. And because celebrity culture is so huge nowadays with internet and all these gossip sites, we're exposed to just so much more. Then what happens is that Carrie's on to the street level. You start seeing them in more stores and it's in fashion. And the other part of it is that with a colored diamond brings a certain sense of uniqueness. You can express your individuality. Nowadays, brides to be are thinking, "Oh, I don't need to just have a white diamond. I could have a gemstone. I could have a pink diamond. I could have a yellow diamond." And they're extraordinary. And it's almost like once you get that taste of a colored diamond, your white diamond kind of pales in comparison. So, I think a lot has to do with the social culture. And it really is portable wealth, as Paul says, every week, great to have it on. Absolutely. And absolutely. And it's the rarity. I mean, Nick, what makes a diamond so rare? It's the fact that Mother Nature only created what could be created billions of years ago, over four billion years ago, under extraordinary conditions, intense heat and pressure. And that's all that we have available. So, for every 10,000 white diamonds, mind only one will be considered a natural, fancy colored diamond. And we always tell our clients that that doesn't mean that that's investment grade. So, when you're looking for investment grade, what we carry at Guildhall, it's a handful. And especially when you have such high clarity and extraordinary color. But like Paul was mentioning, natural, fancy colored diamonds, especially investing, it's all about the color. So, the more saturated a color, the better the value. And certain colors are rare than others. So, you've got reds are completely rare. Most jewelers have never seen a red. Come on, really. Yeah. So, 98% of the jewelers in North America have never seen a colored diamond. So, they kind of told you. A lot of appraisers, too. Wow. So, the fact that there just isn't a lot above ground, minds are closing. We always are talking about the Argon mind that's closing. They've extended it again to 2020, but it's going to end, you know. Maybe slim pickens by that time, right? Yes. And so, and then we also have a lot of older minds for yellow diamond mining that will be closing soon. I mean, Argon is one of the largest. They've been operating for a quarter of a century already. But they will be closing. And then, as time goes on, the yellow diamond mines will be closing. And there just doesn't appear to be any other color diamond mines coming on board. We've still got a couple minutes. You know, people who listen to this show every week have got some education on color diamonds. But you penned the 10-step buying guide, right? So, I know what a color diamond is. Now, I don't know what to do. I don't know how to go out and get one, how to procure a diamond. What is the guide going to tell me? Right. So, the reason I created the guide is because there are more companies coming along and more and more interest, more awareness. It's confusing. When you try to figure this out on your own, going from website to website, it's confusing. And also, there isn't any manual, any book you can go get at chapters or downloads. So, you need to know what you're doing. And I tried to create something that was very easy. So, you're not looking at pages and pages. It's an overview. If you want to get more information, you can always call us. But I tried to make it very simple what to look for. And I think that the 10 steps cover everything that you need to make your successful purchase. Are they in order of importance or just 10 general steps you should be aware of? They're sort of important because I'll tell you the first one, color. That's the number one thing that you want to look for when you're searching for a natural fancy color diamond. It is all about the color. Yeah. And then, as I said before, it's the cut. The cut brings out the fire and the scintillation. That maker, the diamond, you know, most people don't understand. When we procure a diamond, as many as 17 people have touched that diamond from the time it came out of the ground to the person who put the first facet in that diamond to look inside the diamond to the person that polishes it to the person that sells it at the end. But there's as many as 17 people. So, you really, you know, need to know what you're looking at. I've been a collector for a long time and I've learned the lesson the hard way, you know, seeing is believing. You really have to see what you're getting into. And that's why we like people to come to our office. Look at the diamonds. The diamond will choose you. You won't choose the diamond. We'll take a short break. The number to call one, eight, seven, seven, eight silver on TheRealMoneyShow.com. Make sure while you're there, you look for and pick up the 10-cent buying guide to buying a natural fancy color diamond. To Cole wrote it, it's something you really need for your collection and your education. And back with more of The Real Money Show, one, eight, seven, seven, eight silver and TheRealMoneyShow.com. Darren, want to go to your right away talking natural fancy color diamonds. You got the blues, my friend. You got the blues. Well, we're just saying in the break that it's important for a new buyer to understand in a comparison the difference between colors. And Nicole does a great job of highlighting the differences when she's talking to a potential client or buyers or at seminar. And one of the things that's important in a key segment in understanding why it is, each diamond is priced the way it is, is that certain colors, even though rarity is a key ingredient in the value of a diamond, certain colors are even more rare than others. And for example, when you look at reds, they're the ultimate rarest diamond. We've sold few in our time that we've been here, but to understand a red is to understand the highest value of color diamond in the world. And the per carat cost is very extremely high. Now, there's never been a region in the world in particular, which has brought above ground a tremendous amount of red. It's not like we've seen one mine produce tons of reds and then go by the wayside. It's never been a plentiful type of diamond color diamond. So the prices for those diamonds have remained very high throughout the last number of decades. Now, behind reds or blues, and there was a period in time, much more closely related to yellows in which blue diamonds coming out of South Africa and places like that were slightly more plentiful. So you could find them in different places. And one thing that many investors don't know is that a lot of blues come internally flawless. It's a hallmark of the stone and a lot of them are IF stones. But Argyle does produce some blues. They tend to have grayish blues, but pure blues start to elude them now. But the idea here is that if you're looking at a stone, let's say you want to spend 10 or 12 or 15,000 on a yellow. It's a great way to get acclimatized as a collector and start your collection very simple. And yellows, what we like about them is they're becoming the next blue, the next pink. We know the Argyle mine is going to cease production at some point in the next decade. And when that happens, the price per carat for pinks will skyrocket. Similar to what happened when the last producing blue diamond mine in South Africa closed its doors. You no longer found that the blues were as plentiful, and almost immediately after that, the price of blues doubled and tripled. And that's one of the things that's going to, and we anticipate over the next decade, happened to yellows. Well, that's what happens with blues. For example, crystals in Sothebus, for every 112 Picasso's that go into auction, there's only one blue diamond. That's crazy. So, they're extremely rare, and they were sizable diamonds, and they've been kept for 50 years, 100 years, and they were basically royalty that owned these diamonds. So, to find a, you know, one carat vivid internally flawless, we had one that we sold a little while ago last year. In one year, it went from an appraisal of 950 to a million and a half. Wow. In one year, and that was a 106 vivid blue, a small, small diamond. So, we know the pinks are extremely rare, and then we're talking about yellows. If you're buying an internally flawless stone, this is a stone that's going to make you money. You can put it away, whether you put it away for 5, 10, 15 years. As I said, in the previous segment, you know, a lot of our clients, you know, don't want to take risk anymore. You know, if you're in your 50s, 60s, you know, the stock market greatest, up at the moment, you know, the bullion market, a little volatile at the moment. Oil is a little volatile. You just want to be in something safe, secure that you can take, put in a safety deposit box, even put into a piece of jewellery, but put it away, sit on it for 10, 15, 20 years. And get an unbelievable return. So, when I talk about an unbelievable return, we talk about reds before, you know, 30 years ago, you could have bought a 1 carat red for about $30,000 a carat. Today, you're looking at about 1.8 million. If you can find, you know, a V.S. quality in a red diamond, especially in a fancy or an intense in a red. As an example, in the mid-70s, you could have bought a 1 carat red V.S. quality diamond for around about $30,000 a carat. Today, you're looking at around about 1.8 million to 2.3 million if you can find, you know, a fancier and intense in a V.S. quality. Again, blues are doing extremely well. Pinks, the Argyle miners we discussed is closing in 2010. We have some unbelievable Argyle diamonds, V.S. quality. In my opinion, we have diamonds that are ranging at about 125,000. This is the type of diamond within 10 years. You could easily fetch half a million dollars. We have a tender diamond. Now, the Argyle tender is a really interesting subject. Once a year, they take the finest collection of their diamonds, which is about not even a teacup, full of diamonds, half a teacup of their finest diamonds. And they put on a tender. And a tender travels from New York, Perth, Australia and to Hong Kong. In that collection is normally about 55 to 60 diamonds. This year, there's 55 diamonds. And out of the Argyle pinks and purposely pinks. And there's, I think, a couple of, maybe even a red in there this year. We didn't go to the tender this year, but we went previous years. But this year only, there is four V.S. quality diamonds, four V.S. Now, on our website, we actually have four V.S. Argyle diamonds. One of them is a tender diamond. Again, it's on for about $390,000. Within 10 years, this diamond could be over a million dollars. That's what they're fetching. This is the type of price. And this is the type of investment that is safe, secure and insurable asset that is only going to go up in price because there's no more mines coming on, on site. It's not like you've got a turnkey operation. You turn the key and away you go and drill for mines. It just doesn't happen. We have, right now, if you go to our website, guildholddiamonds.com, you're going to see some fancy, internally flawless yellow stones. Magnificent stones. One of the stones is a 101 carat cushion. The appraisal on the stone is actually $24,000. We have it on for $9,995. What a great stone to get started, just under $10,000. You can just step up a little bit and go to a 110, which is again a beautiful radiant cut diamond. That's on for $11,495, $11,500. Great, great stone. We have another few stones in a little bit larger size, a 123, which is almost a carat and a quarter for $12,495. Unbelievable stone, beautiful cushion cut. This is a type of stone as well that you could put into a piece of jewelry, but let's take $12,500. You sit on this stone. They tend to double every five to seven years. Let's be conservative, 12% a year. This stone could easily be worth in 10 years time, you know, close to $50,000. In 20 years, you can be talking about $100,000. If you're invested, you've got stocks that are not doing well, real, real dogs. You're still holding no tell, maybe. Not there anymore, or the other one with the telephone, the other telephone company. But again, this is a great, great investment. But we go up, we've got about seven or eight of these fences that we brought in. We bought a parcel. They are great, great investments. In actual fact, I've got a 204 carat. It's not even on the website. I just brought it in. It's appraised at $50,000. We're doing that stone for $24,995. It's an unbelievable stone. We'll make somebody a beautiful ring, a beautiful wedding ring, an engagement ring, or a present, a 25th wedding anniversary. It will be just a wonderful, wonderful present. Or even if you're looking forward to Christmas, you know, where you could put something away and have work without designer, work with Nicole, and make a beautiful piece, whether it's a ring, whether it's a pendant, or even if you want earrings. We can do something very, very special. But this is an investment that while you're wearing it, it's going to increase in value. How many things do you know that can go up in value while you're wearing them and using and getting the beauty of it? One eight, seven, seven, eight, silver on TheRealMoneyShow.com. Nicole. One of the things that I wanted to point out is that in our industry, there's two events that happen that help to dictate value in natural fancy color diamonds. One is the JCK Show, which happens once a year in Vegas. And that's the world's largest diamond and jewelry show. And we see prices. They always jump up at this particular show. Demand is very high. And the other one, of course, is the Argyle Tender. And the reason that we are so big on the Tender is not just because we love our Argyles. But what happens is every year, the prices seem to go up about 30%. Just because there's so few and such demand and they're so magnificently beautiful. But that actually trickles down into the natural fancy color diamonds of all colors. So then you'll see a few months later, by the end of the year, yellows are now jumping up again. So that's one of the reasons we find it so interesting. Now, what's going to come about from the Argyle Tender is going to also be very interesting because Sotheby's Hong Kong is having their magnificent jewelry sale in October. And there's an 8.41 carat pear-shaped internally flawless fancy vivid pink diamond that just looks extraordinary. And it's expected to fetch between 12.8 and 15.4 million. So it's going to be very interesting to see what happens. Because the US dollar is not Hong Kong. Right. But it's going to be very interesting to see what happens at the Tender to see where the price goes on this diamond. But the one diamond in particular that I'm watching with the Argyle Tender is the Argyle Rosette. It's gorgeous. It's a fancy intense purplish pink VS2. So if you recall, Paul was talking about how there's only a handful, less than a handful of VS diamonds in that Tender. We can't wait to see what's going to happen because at Guildhall, we only carry VS. And a lot of people can't understand in the industry if we're carrying Argyle, which is already the most exquisite, the most rare, why aren't we carrying SI? Why do we only carry VS? And that's because we have a strong, strong ethic. And we want everything to be high, high quality investment grade so that our clients make money. Well, if those diamonds at the Tender have going way up like that, that really, I mean, all boats rise with a tide. That means your current clients are going to get more increase out of them. Absolutely. I'm one of my favorite things. And I always say it every time I'm on air is that I love when we get diamonds for your praise for our clients. Because nothing is more rewarding when you see that their investment has gone up. It's the best feeling. I always call them with the happy news and send them the reappraisal and it's amazing for investors. We'll take a short break. The number to call sounds interesting. Peak, your interest. Get on at 18778 Silver and TheRealMoneyShow.com. Broadcasting in the chorus radio network and worldwide via the web. For over six years, you're listening to The Real Money Show brought to you by Guildhall Wealth Management. Today in studio, we have the president of Guildhall, Paul Weizmann as well senior analyst Darren Long while respected Booney community. They are and have been addressing and speaking with the public at large with their seminars and speaking engagements for a combined 21 years. Guildhall has been helping people. The world over backs in 2002 to purchase an own physical gold, silver and colored diamonds. To get in touch, you want to go to the website TheRealMoneyShow.com and 18778 Silver is the number to call. Question right off the top for you, Darren. Are you prepared? I am prepared. Good focus, son. Why invest in gold and silver at this point when we're seeing like repeated signs that the economy may be improving, saying the basic data like GDP and unemployment appear to confirm the stock markets can need to rise and for gold and silver remain range bound. Answer me that. Well, it's a big mouthful. And what you're basically saying is that at this point in time, if I'm an investor, what am I looking at? To be honest, I know the way people think. And the basic sentiment out there, if you're a random investor or just an average Joe, is why would I buy silver and gold? God, I can't even make money on my stock portfolio. I hear the stocks are rising all the time. How about me? I'm not making anything. And the truth is you can look at it from multiple different perspectives. But with the amount of reading I do every week and, you know, I don't suggest that everybody go right out there and read every little thing they can because sometimes it can give you the wrong impression. And if you don't know where to look for the right data, you can get confused. But when we talk about this, I really like to break it down in a very simple form. And the case for gold in silver right now is very simple. If you give in and don't want to buy, let's take a look at that for a second. Bullion sales at the US Mint are in decline. Let's go with that for a second. That's a headline that I pulled out this week. And it's basically an article which says sales for both gold and silver coins at the US Mint have gone soft. You know, one ounce American silver Eagle coins, which we sell on our e-commerce site. Now, we're going to talk more about it during the show have been in a slump all summer and are down about 41% from 2013. And that's the stat from June to August versus last summer. If gold buyers are buying less, shouldn't you as an investor? And if I'm an investor and I read that article, I'm probably listening. You know, I'm saying they're thinking, yeah, you know, why would I be buying something that's not going up in value? The interesting thing though, Darren, is that if people are buying less, how come I'm back ordered from my suppliers on 100 ounce bars and one ounce gold bars? If there's so easily and there's a ton of merchandise out there, why has it taken two, three weeks to get delivery? Well, that's the point at hand, Paul. And this is the significance of understanding due diligence, the process of doing it. Now, if I wanted to be bold instead of folds, instead of walk away from gold and I wanted to turn around and buy gold at this point, here's what I'm looking at. Central banks continue to hoard gold at record levels. Russia, Mexico, Kazakhstan, Tajikistan, all the different stands, Serbia, Greece, Ecuador, I mean, I can go on and on. They've all reported higher gold reserves this summer. Further contrary to that mainstream expectation of lower prices, almost no central bank has liquidated its gold housing, that gold holdings. Just the opposite. That's correct. Okay. For the slip there. That's right. Easy, sorry. But in the second quarter of this year, central banks bought over 118 tons or 3.8 million ounces. It's a 20% increase over quarter two of 2013. Now, that's the smart money. Central banks versus what we would not say is the stupid money, but is not central bank money. They've now been net buyers for 14 consecutive quarters and are on pace to surpass the record of 409 tons or 13.1 million ounces that was set just last year. Right in the middle of this going down in price where sentiment tells us we shouldn't be buying gold and silver. Why are they buying? Paul's right. For the people that are buying physical bars and coins, there have been delays. And in dollar term, central banks have invested 27.1 billion in gold from January 2013 through to June of 2014. And this excludes all Chinese data because we can't trust it. By the end of 2013, central banks around the world were estimated to hold 30,500 tons of gold, just under 1 billion ounces. This is a new record and it does represent about one-fifth of all gold ever mined. All right. Question for you again. Central banks put in a happy economy face when the, you know, talking the public, but behind closed doors, these guys are gobbling up gold. They're buying bars, putting away in storage. Why? Yeah, well, listen, that's the other point that's a part of this argument. If central banks are buying, why are they buying? Well, if it were time to sell, they wouldn't be buying. That's the pure fact of the matter. But instead, there's stockpiling bars of gold. Well, that was interesting. That's Nicole's cell phone, but actually sounded like an order being taken. That's for sure. If this were true and, you know, you didn't believe it, let's look at the fold side of the argument. If I want to give in and not buy gold in silver, while the U.S. dollar is strengthening, let's look at that argument for a second. The U.S. dollar index, as of the last couple of months since May, has shot up about six, seven percent. That's an uncharacteristically strong move for a currency. The index is now trading at a 14 month high and this is basically contributed to a weakening gold prices. We know that generally speaking, gold goes the opposite direction of the U.S. dollar. And if you look at it, a strong dollar going forward is exactly what the analysts are calling for, saying that the market's going to improve and the rest of the picture looks very good. Now, if I was taking the other side of the argument, I wanted to be bold instead of fold, and I wanted to buy or make the case for owning and continuing to support my ownership. Numerous countries around the world outside of the Western hemisphere are moving away from the U.S. dollar. It's not so much that the dollar is strengthening as it is other currencies weakening. That's what we're not paying attention to, especially the euro right now, which comprises 57 percent of that dollar index when we put it in the basket of other currencies. But the bigger issue is the trend of countries diversifying out of the greenback, which continues to gain stream. China just signed a bilateral currency swap agreement worth $150 billion or $24. something billion U.S. dollars with the Swiss central banks, and they can invest up to $15 billion in Chinese bond market as a result of that agreement. This is a three-year swap. It marks a change in the mentality, and this is happening all over the world. You've heard Paul and myself and Jeremy talk about the BRIC nations, sometimes referred to as the BRICs. This is Brazil and Russia and China and India, and sometimes South Africa. Correct, and ultimately they are as an entity looking to do more business together, trade in their regional currencies, and are also moving away from the U.S. dollar. So this doesn't bode well for the U.S. dollar long term either. One of the reasons the central banks buy gold, because they kind of lose a little bit of faith in fiat currencies. That's paper currencies, and we're seeing this more and more. You look at the news and you look at the business news, especially, I mean, I'm up five, six o'clock in the morning watching CNBC. They hate gold, they hate silver, they just love the stock market. CNBC is a channel that is all the adverts and all the commercials are all about brokerage houses, all about banks that have placed their ads. If you look at the news today in the states, unemployment went up by 11,000 people went on to unemployment. If the U.S. economy is booming, how come there is so many people still going on to unemployment? If you look at foreclosures, for example, foreclosures are starting to creep up again in the states, which means people are not paying their mortgages, or they've been on the books of banks for a long time, and they have to liquidate some of these assets, because the banks have to show some capital, not just receivables, and with some of these foreclosures, they've got them on the books. A home that was worth 500,000 is worth 200,000, and it's still on the books for 500,000. It's like going into a big warehouse and seeing all these boxes on pallets and all the way stacked up, but you know if there's goods in them, and this is the same thing. A Guildhall, which is really, really important, we sell physical gold, silver, platinum and palladium. We're not in the paper business. We don't sell equities, we don't sell ETFs, we don't sell futures, options on futures, or certificates. We sell the bars. You take a 100-ounce bar and drop it on the ground, it makes a clank. That's a $2,000 bar. You take a $100 bill, or take the same $2,000 in bills and drop it on the floor, you don't hear anything. You know, gold and silver is a hard asset. If you would have taken 10 years ago as a quick example, $10,000 cash, put it in a coffee can, buried it in the back garden. Today, 10 years later, you know, it's got a buying power, maybe about $7,000. If you would have taken 10 years ago and bought 2,500 ounces of silver, silver was trading of $4. Even at $4, that $10,000 investment at $19 silver today is still worth, you know, $45,000, the worst way, versus cash of $10,000. Yeah, you may have got a little bit of interest, but interest rates right now are zero. In actual fact, the banks are probably confiscating your wealth because of inflation and everything else is going on around there. Even though silver and gold is down, we're still up close to 400% over the last four years. We're down 50-60% from the high of 2011. We believe at Guildhall that gold and silver is going to have a run-up. I think silver is going to go up past the $49 that we saw in 2011. Gold was a high of $1,900 in change. I think that's going to get taken out too. It's a matter of time. The stock market has been booming for the last three years. For the simple reason, the Fed has created all types of money that bought $85 billion worth of crap every single month and put the money into the banks. That hasn't trickled down to Joe Public. The average person can't get a bank loan, a business can't get a bank loan in the States. That money has gone into Wall Street and has gone into the stock market. You need to hold gold, silver, natural fancy color diamonds in your portfolio. We have several different ways to get in to owning gold and silver. You can buy it outright, take home delivery, or you can use our depository facility where you can take your product, where it's secured, it's allocated, it's insured, it's segregated. We can even give you the bar numbers. In actual fact, I have a client tomorrow that's coming out who has quite a lot of silver and is bringing with him another client because we're bringing out the pallet of his product with all the bars. I was in the depository last week, the same thing, I brought a client that had 10,000 ounces of silver. We brought it out on a pallet, they took down the bar numbers, they even stood on top of the bars and we took a picture. It's not to go on Facebook, but it's a great, great picture of somebody standing on 10,000 ounces of silver. This is what we do at Guildhall. We even have financing available, but financing is not for everybody if you don't want to take any risk. But if you want to buy the product outright, we're offering till the end of the year, no storage, no storage fees. Our storage fees are 1.3% a year annually. From now until January the 1st, there is no storage. There's a fee for opening an account and a management fee. We're going to forgive that as well till the end of the year. This is a great opportunity to buy and to add to your position every month. If silver today is trading at $18 or $19, it's a bargain. You should jump in, load up the boat because that's what I do because there's no way that silver can remain at these prices nor gold. It's going to move up and when it does move up you're going to miss the boat, literally miss the boat. It's better to be one month too early than one day too late because what happens when you're late? You never, ever you say, "Well, I'll wait for it to come off. I'll wait for it to drop." And it never ever happens and you miss it. This is an opportunity. You only get so many windows of opportunity in your life and today I believe gold and silver at these prices. What a win. 1 8 7 7 8 silver and the realmoneyshow.com. We'll take a short break. The number 1 8 7 7 8 silver and the realmoneyshow.com. Sign up for the precious metal advisor. We'll take a break. When we come back we'll talk about the e-commerce site and what else, Taren. We're going to talk about an article written by Andrew Hoffman called the single most bullish precious metals factor imaginable. And back with more of the Real Money Show. 1 8 7 7 8 silver and the realmoneyshow.com. Let's talk about the e-commerce site, Taren. Well launching over the next few weeks and again it's been a soft launch. We'll probably announce some type of hard launch in the near future but give it a try. Go to our website in the top right corner. You'll see our precious metals e-store logo. You can click on there and if you'd like to just go ahead and make an unassisted purchase of bullion of any type that we offer on that site you may feel free to do so. It's very clean. It's easy to use. It's organized and laid out effectively for you to either choose gold or silver at this point in several different types of product. There is a flat rate shipping fee for orders under 5,000 and shipping for orders over 5,000 is now free. For the time being and of course if you are an existing client you may also take advantage of this at this point in time. The prices are right there for you to see and of course once you've made your purchase of whatever bullion you wish to buy. You can feel free to contact our firm and we'll make sure that the order gets processed effectively. And at the bullion gets to you whether you're picking up or having it delivered to wherever you are. And again this is accessible to anybody around the world wherever they may be. We're very excited about it. And more announcements as we add more product to the site will be forthcoming and it's easy to do. It couldn't be easier and it's e-commerce. It's very, very simple. You did mention as well just before we took a break the single most bullish, precious metal factor imaginable. What is it? I'm going to tell you right now I read an article this week by a gentleman named Andrew Hoffman and what he is is a former trader. Works for a metals outfit now and of course take it with a grain of salt, a slight bias but certainly been through with firms like Pain Webber and Solomon Smith Barney and other big firm. But he's been in the business 16 years and what he basically said in his article was that Wall Street is dead. No longer do they use the hardened cold fact and data finding process that they want to tribute to the success they were having in Wall Street. It's long been discredited and by that I mean equity research. So doing your research and trying to be Warren Buffett is not going to happen in our lifetime again. It needs a reset. And what he's saying is the traditional economic roles of capital formation and allocation are no longer necessary. It's basically been two decades of offshoring productivity gains and the emergence of the eastern hemisphere with powers like China and America's economic empire has been in a reversible decline because of these factors. Now when he talks about bullion what he's saying is it comes down to currency because we are in the process of printing so much money and let me remind people how much money has been printed. We've gone to basically a monetary base which existed around 2008 took a few hundred years to create of around 800 billion dollars in the US. Flipping from the Bush administration to the Obama administration and things were already in play Obama just kind of set them into into role more so. They've taken the monetary base and basically expanded it in both physical and non physical digital if you will currencies from 800 billion to now four trillion. That's a quintuple quintupling of the monetary base in six years. What took 200 years to build took six years to quintuple. Now for those that are out there that think that something can't come that's very evil and dark and going to change the way we think about our daily investment habits. You're living on a white cloud and I believe that you will fall through that cloud very shortly. It is not a very good time out there to be an investor because so much is manipulated. So much is not as what it is what it seems to be. And this article really spells it out for them. So we've included it. We're going to include it in the precious metals advisor this week. And he's just basically arguing that the final cancerous stage of the fiat Ponzi scheme and global economic growth has been so important. It has been so badly crippled. Politicians and central bankers are resorting to dramatic currency devaluations in the hope of gaining manufacturing market shares or what we call jobs. The fact that inflation erodes the value of such gains and prompts basically draconian retaliation by other nations is the form of competitive currency devaluation that we at Guildfall have talked about and discussed until we're blue in the face. Every seminar I bring it up every time I meet with somebody I talk about currency devaluation and it bothers these people zero zilch. They don't care because as long as the Wall Street cronies get their bonuses, the system that's put in place was not put in place for you and I to secede. This was put in place for the powers that be to succeed and have the free will to exercise their control over the economy. And he's saying that basically what's going to happen is that and I quote the single most bullish PM factor imaginable is the catastrophic economic dislocation, political and social tension and inflation caused by the currency volatility inherent in all fiat currency regimes. Such volatility increases their inevitable end approaches and the current emerging market currency plunge, which is in places like the Euro now that we're seeing the Euro fall against the US dollar and the Japanese yen, of course, falling against the US dollar. And this is the fourth episode we've seen in the past five years of these currency pullbacks. He's saying this could literally set in motion, the largest and most devastating bad economic event we've ever seen in our lifetimes and you know what his advice is. Put 90% of your liquid assets in a gold or silver. This is a percent 90%. This is a former Wall Street trader. This is a guy who was on the inside who worked for for firms just like JP Morgan and the like. He knows the inner workings. He knows what has happened and what has transpired. And he's very clear about the data he uses in this article. And it's very supportive of his point. And he believes it's a deadly zero sum game. So from this, what we would take is say, hey, we don't recommend 90%. We never have never will, but a portion of your portfolio can be dedicated to physical gold, silver, platinum, palladium and of course color diamonds. It's very simple and I guild hall when we're talking about owning physical gold and silver. We're talking about bars. We're talking about coins. As Paul said earlier, when it falls on the floor, you hear it's a clang. It's something that it's instills confidence in whole countries to see that a currency is backed by something. It's why central banks are ramping up their purchases. It's why we're seeing more and more behind the scenes buying in gold and silver than we ever have, despite the price being down. Well, one of the reasons, I mean, they're buying gold and silver because they know their currency is going to be devalued. I mean, even in Canada, we were in power even last year or the year before with the US dollar. All of a sudden, it's close to 1.10 because somebody said, well, we can't export. We can't compete with the US. So, you know, they smash the dollar down. As a buyer, everything that comes in from the states to Canada cost you more. It's great for exports, but it's terrible for imports. You know, this is why we look at inflation. You know, things like fruit and vegetables, you know, we don't grow many oranges, you know, in the middle of winter here, you know, or plums or any grapefruits. You know, it comes from Florida and California. It costs more and more to bring that in when you devalue your dollar down to $1.10. It's great for exports, terrible for imports. And most of the product that we get from the states, we're paying more. So people always say, why is it so much more? We can buy this cheaper in the US because of what's happening with fiat currencies. You keep depreciating your dollar. You're paying. It hurts the small individual. It hurts Joe public. It doesn't hurt somebody that makes $5 million a year. They're not going to skip a meal a day. But the average person, it affects them. It affects them with the gas pumps. It affects them with the grocery stores. You know, it just amazes me when they come up and they say there's no inflation. It's only 2% a year. I mean, what a load of nonsense. I mean, you know, go to a movie. I mean, you need to take two American Express cards to get just popcorn and a drink and get into a movie. It's expensive. Go out to a restaurant today. It used to be $29.95 for a good steak. I mean, I was in a restaurant the other day. It was $59.95. I mean, these prices are just going out of control. 1 8 7 7 8 silver and the real money show.com now to start investing in physical gold, silver, natural, fancy color diamonds, physical assets is what we're talking about. Question Darren, is it possible to suggest that, you know, the average American or Canadian for that matter still let me be on their means or we witnessing any sort of, you know, recovery beyond the norm. That's showing the evidence of living standards improving or income shooting higher. Smoke show kicking the can. Nothing. It is. It's a proverbial kicking the can. It really is. I read an article this week and, of course, delving behind the headlines is equally important. And so I did that and double tested the data that was in this article. And in fact, every three years, the Federal Reserve releases a survey of consumer finances that is a basic stockpile of data on everything from household net worth to incomes. And I have in front of me the 2013 survey, which confirms what we have talked about at length, which is that unfortunately what is happening right now is that the monetary interventions that have been put in place like quantitative easing and TARP and other lending programs have failed up to this point to accomplish an increase in production to foster higher levels of economic activity. Now, with the average American still living well beyond their means and just pointed that out, John, the reality is that economic growth is going to remain very mired at lower levels because savings are not being diverted into productive investment, but into debt service. I mean, imagine if you're a listener to our show and you're listening as you're driving the car, you're at home, you're at work or play, wherever you are right now, imagine what your level of debt was 10 years ago. Would you trade it for what your level of debt is right now? And I'll bet you the answer for 90% of the people is, yes, I would. I would gladly do that because I know very few people that have decreased their debt. So although they're trying to plug more savings into fill that hole, the fact that their debt has risen means that the majority of that savings has to go to service that debt. Now, this can be expanded to the global economy. And these are the reasons why under the scenes, we buy physical gold, physical silver, colored diamonds, good quality, good quality assets that over the span of time maintain purchasing power. If you look at even the median value of net worth for families with holdings, i.e. some type of investment, they peaked out at around 1.0, basically $130,000 was the median value of net worth at around just before 2008. Right now, and since 2008, the median value of net worth for families with holdings is falling precursively close to 80,000. That is a drop of some 60, 70%. And that's an amazing statistic to look at because it's not that much different here in Canada, all those stats can does a poor job of reporting it. When you look at the age groups, they'll tell you in the states that, hey, the labor participation rate is way down because you got baby boomers retiring. And that's just not the case yet. In fact, the one age related group of people that have seen their income rise since 2008, those that are above the age of 65. They have most of the money in the country, don't they? They've got the most money, right? That's the 1%. That's where they all are. In addition to that, because people have not, this tells us also, people have not been retiring. In fact, they're staying on and working. That's why their income is rising because they have no choice but to service that, which they built up in total debt, thinking that because of their investments prior to 2008, they'd be able to retire comfortably. This is a reset and it should come as no surprise. It happens every so often. In the 80s, play close attention to what happened to gold and silver. By 76, the price of gold fell from $200 to $100. John, imagine how many people quit. Said the heck with this. I'm not invested in an asset that just torn into. A lot of bridge jumping contests. That's right. Absolutely. Companies, a lot of people, you know, it's terrible. This is what happens. Bankrupt sees everything. By the end of the 1970s, in January of 1980, gold not only went up back to $200, not to $500, not even a $700, went to $850. And imagine how many people said, "Honey, we're never touching gold again." Only to witness it hit its most historic high of the time. It's come and surpassed that. And what we're trying to point out here is that we're not sitting here with a crystal ball tongue. We know exactly the prices. Based on the facts and the fundamentals that have been in place, we have seen a bullish market transform gold and silver from very low prices where we started as a firm back at $4 an ounce in silver and back at, you know, below $300 an ounce in gold. All the way up to seeing gold hit $1920 an ounce plus and silver hit $49 an ounce plus. And all Paul was saying earlier in the show was that this is where we're going back. This is when the world realizes what the situation is and that, you know, 90% of the people are making only 10% of the money. This is what's happening and why we're going to see people invest in gold and silver and colored diamonds and other assets like that. There's so many places. Only so many places you can put money. You can put money in real estate. You can put money in the stock market. You can put money into gold, silver, diamonds. Not everything goes up in one time. You know, the stock market's up at the moment. What goes up comes down. Real estate is up. Once they start putting up interest rates, real estate is going to be affected. Inflation puts the price of gold and silver up. We believe gold and silver is going to take off, you know, get our precious metal advisor. If you want to buy a product, whether you want to take it home or you want to put it in the depository, you know, we're offering no storage fee on your deposit till January the 1st. No fees, management fees to open an account. Minimum order is 200 ounces of silver. You can get an open an account. Go to our e-commerce site. If you want to just purchase silver, take it home. Or if you want to make a purchase, have it delivered. There's no fee for it. We'll wrap it for another week. You should be convinced as you are the number simple, like Paul said, one, eight, seven, seven, eight, silver. And online to therealmoneyshow.com. He's an exceptional assassin. To celebrate the thrilling new series, The Day of the Jackal. Showcase and StackTV 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. Showcase Stream on Stack TV.