The Real Money Show
The Real Money Show - August 2nd, 2014
The Real Money Show - August 2nd, 2014.
And welcome to the Real Money Show broadcasting on the course radio network and worldwide via the web for six years. You're listening to the Real Money Show indeed brought to you by Guildhall Wealth Management today. In studio, we have Vice President Jeremy Wiseman and senior analyst Darren Long, both these gentlemen well respected in the bullying community and have been addressing and speaking with the public at large via their seminars and various speaking engagements for combined 21 years and Guildhall has been helping people over the world since what 2002 to purchase in own physical gold, silver, natural, fancy colored diamonds. They are not financial advisors or planners in past performance of gold, silver, or colored diamond is not indicative of future performance. Guys, the number to call is 1-877-8 Silver Anytime. Get your advisor kit, your precious metals advisor, therealmoneyshow.com is the website. What have we got coming up today guys? Jeremy, you first. Well, we want to talk about fiat currencies. I think it's important to talk about what's happening with the fiat currency in the US, what implications that has for people's wealth and how gold and silver play a part in all of it. Jeremy, you've had some really quality interviews on the show of late who we've got coming up today. I think we have one, right? We do have an interview coming up on today's show. It is Warren Bevin. He is a noted analyst and certainly an academic in the world of stocks, but he certainly has been following the gold and silver markets and writing quite an extensive amount of analysis on the gold and silver markets for a long time. Some people may know him and others may get to know him through the show, but you wouldn't want to miss that. He is fantastic. He'll be coming up a little later in the show. Again, the number is 1-877-8 Silver. Give us the update. How's this? How's this week looking? Well, market update for gold and silver. Pretty straightforward. Gold is still trading range bound. We are sitting here as we tape on Thursday at around 12.85 pounds while silver sits in the same time, about 20, 40 to 20, 50 range, slightly down week over week. Now, gold is testing support at the 100-day simple moving average, which was at 12.99. It fell slightly below that, and there we're going to find support at the 50 and 200-day moving averages of around 12.90, which is very close to right now, and 12.85, which is around the 200-day moving average. Now, if we dip slightly below there, expect a little bit of weakness. Again, for those sitting on the fence, hopefully you don't have splinters in your backside, but this is the moment if it does slip slightly below 1280, that you want to take advantage of it. It will open up a window, and I would expect our friends overseas will take advantage of it as they have throughout the week, and remember, gold did test 13-10 just 24 hours ago prior to this taping. We are still seeing a huge amount of geopolitical risk. It remains very high. It's certainly not been reflected in precious metals prices as of yet. The Middle East remains a huge powder keg as increasingly our relations between the US and the EU and Russia. We're staying on top of that. The headlines are giving us some insight, but as you know, we like to delve into the behind the headlines. Material and definitely relations are becoming more and more strained. We're going to spend a little time talking about fiat currency today or paper currency. That money you hold so dear, all of us in our pockets, but again, make no mistake about it. The US is transitioning. They are going through a phase in which the rest of the world is now no longer saying, "Hey, how do we get our hands on those US dollars?" They're trying to figure out ways to get rid of the US dollar, and that is certainly something that we're watching very closely. I think that as we're going to be talking about fiat currencies, gold and silver have always been the canary and the coal mine for the health of the US dollar or for currencies. We're not really seeing that right now in the long term. We certainly have, and we're going to talk about that in a little bit, but where you have to find that new barometer is to look beneath the headlines and start to see that countries around the world are starting to move away from the US dollar. That is their vote against the US dollar and its value. The more you start to see that, the more you start to see trouble ahead for the US dollar. That's again, we're gold and silver where we really strongly believe that gold and silver are going to be that safety that you need in your portfolio to protect your wealth against topsy-turvy markets, against dollar devaluations or against geopolitical unrest. We do still see that the long term is very solid for gold and silver. 2778 silver, the real money show.com. Darren, people get gold. They hear about gold all the time, the price of gold, but silver, are people still not getting silver? They should be jumping all over this, right? Well, if you've ever attended one of our seminars, one of the common threads that people walk away with saying to us constantly is I'm blown away. I had no idea that silver was that big a part of our lives. To think that it's sitting here at $20 an ounce, we refer to it as a precious metal and it's still far undervalued. Right now, given the situations that we're dealing with, given the fundamentals that we have in this market and gold as well, silver should easily be sitting closer to $30 or $40 an ounce. That's the type of thing in this market. If you've been in it long enough, you know full well. It sounds silly for me to say that within a very short period of time, in some cases days, the price could go up $5 or $6 an ounce, but this has not only happened once, it's happened a multitude of times and you're right, John. As I sit here, it is the most undervalued metal on the planet today and represents one of the most single best ways to prop up your portfolio and add value to your portfolio. It's definitely undervalued right now. If you look at where the price is, what it costs to bring it out of the ground, what the demand on the bullion is and what the supply side is, you'd start to see something very, very exciting. But you have to also remember that it's both industrial and monetary. So if there's issues with the currencies, if there's issues with debt, et cetera, people will go to poor man's gold. They will start to buy it on mass and we are seeing very strong physical demand in this market. On the other hand, it's also industrial. So if the markets, if the economies start to really pick up, that means you're buying more cell phones, you're buying more plasma screen TVs or you're buying more cars, you're buying dishwashers, you're anything electronic, anything digital. And if you look at a horizon over the next 10, 15 years, 20 years, population's going to continue to grow. The brick nations are going to continue to grow. The demand on the metal is going to continue to be very, very strong. And if we look at the last 10, 12 years, we can see that that's clearly been the case. Silver's gone from less than $4 an ounce to just over $20 an ounce in less than 15 years. And that's a huge gain. So to have that in your portfolio for the long term, you can see that going forward, we've got something that's really undervalued. So if you've been making money in the stock market, making money in real estate, maybe it's time to think about taking some money off the table and looking for some value. Because I believe that every investor is always looking for good value. Isn't it a scary thing too? And this is something Paul's mentioned on past shows. It's sort of for the most part, it's a byproduct metal. They're not necessarily going straight for the silver to bring out the ground. It's a byproduct model, which is scary because it speaks to scarcity right at this point. Well, the cost of producing an ounce of silver is hotly debated in the community of mining, depending on where you go in the world. But the fact is that over the last 10 to 12 years, really, we've not seen an increase in the amount of primary silver mining operations. There are a handful of what we would call blue chip or large mining companies in the world have been at it for a long time. But you're right, John, about 80% of what's coming out of the ground for our total silver supply per year is coming as a byproduct of other mining operations. Maybe gold, copper, zinc, lead, and there is definitely a good sense in the community that that's going to continue to be the case. So when those metals drop in value as they have over the last three years, there is less and less mining occurring. Add to that the escalating costs of production in terms solely of things like oil and everything that oil touches. And this makes it very difficult for us to see increasing supplies of silver. Now that being said, demand fluctuates on a yearly basis. So of the amount of metal coming out of the ground, we are usually using all of it. But what's getting recycled is not increasing. So when you throw away those cell phones, throw away those old iPods and iPads and whatever it is, and you don't recycle them, that silver that is in those components in those units, which is in every one of them, does not get reused. And that means that we're not bringing it above ground, unlike its big brother gold for which the most of the ounces of remind of gold still remain above ground. They may be used, but they're still above ground. So an interesting little side note on silver, but it makes it very good for a person that's looking for value. Not only that, it's also priced in elastic, which means that if the price of silver were all of a sudden, not $20, but $60, $70 an ounce, Dell computers are still going to need that silver in their computers. They're still going to buy it at $70 an ounce and still put it in their computers. One might say, okay, but they're starting to create smaller and smaller computers, and maybe that means you need less. In fact, it actually means you're going to potentially need more because when they put silver into the circuit boards and things like this, you actually end up needing more of it. So it's price in elastic. It doesn't matter what happens to the price of silver, you're still going to need it. You can't turn around and replace that commodity with something else. It's the cheapest of all precious metals. So it does the most work for the least. And you can't get platinum for $20 an ounce, and you won't be able to get it at $70 or even $135 an ounce. So for these reasons, the price in elasticity, the fact that it's very rarely recycled, you just have yet more demand structure coming into it with the ever lowering supply. 18778 Silver and TheRealMoneyShow.com to start investing right now, Darren. Well, listen, this week we had an article written by the folks over at CNBC, and it was with Ron Paul's actually an interview that was conducted in which Ron Paul, and to be honest, not everybody's cup of tea. If you know Ron Paul, he's a libertarian. Yes, very libertarian. It was my favorite candidate from two elections ago. I just wish he won. He's just getting a little old little crotcheted. He'll stand up to the younger guys, but he got some good ideas, right? He does. He's a doctor by trade. He's been in the US government for two decades or more, three decades. And he certainly is very knowledgeable when it comes to policy development. But he's been at the forefront of a movement of people and analysts and government officials trying to number one, audit the Federal Reserve to make sure we know what's really happening there. And number two, to try and dissolve the Fed altogether, because he's saying, look, why shouldn't the function of printing money be something that the government does? Not some separate private entity called the Fed. And he quoted this week on this show in this interview saying that timing is the only thing. Obviously, you can't predict what's going to happen, but I quote, "He still believes in gold and that gold could go to infinity." He said he remembered watching gold when it was $35 an ounce. And he thought that if it ever hit $100, the world would come to an end and then $1,000. So no, it's good as long as we continue to do this. You know, it could go to infinity because when people just leave the dollar, who knows what's going to happen? It's a hell to quote. Yes. And it does lead us into the next bit of discussion we're going to have. And he said that he could not predict timelines, but he has been a staunch advocate of holding physical gold in your portfolio for a long time and believes it's a smart way to invest. So by that, we would certainly draw upon silver as another way to prop up one's portfolio. Both metals represent great value at this point in time. And again, we're not advisors, but we see the fundamentals and we want to show everyone the fundamentals of bullion and understand why we think it's so important for you to have it. That's why we have the precious metal advisor that goes out once a week. And the topic of this week's precious metal advisor was fiat currencies. So we're going to be discussing that on the show. If you only caught a little bit of the show, you can go on, subscribe to the precious metal advisor. You'll be able to listen to the show. You'll be able to find out what we're talking about, read the articles that are pertinent to the discussion, and also get an investor kit. Learn why gold and silver are so important for your portfolio, why we believe it's so important to protect your wealth with these assets. Fellows will take a short break. The number to start investing, as you heard Jeremy speak, one eight seven seven eight silver and the real money show dot com. And back with more of the real money show, the number to start investing right now, one eight seven seven eight silver online, the real money show dot com. While you're there, make sure you take advantage of the precious metals advisor. Some big news like I'm talking recent news out of Argentina, dare. There is. And this week, we got wind caught wind that Argentina has now defaulted on their bondholder. So essentially, this is the second time since 2001 that it's happened to Argentina. They're kind of in a bit of a vacuum. In essence, they they don't necessarily as a country impact much of the world global market. There is word that JP Morgan may be trying to pick up the slack, but when you see whole countries get to this point, John, it's exactly what we've been saying year after year after year, that there are better ways to do business than on paper. And most of the the damage that has been done has been as a result of the investments that they have made on paper, the debt they've incurred and the mistakes they've made in trying to better themselves by buying into this attitude that paper investments without any backing, nothing tangible are the way of the future. You just can't hold that bottom line unless you are the world's largest country and have an unlimited amount of printing capability like the US does. But again, in the first segment, we're talking about Ron Paul and he understands fiat currencies and Argentina. Unfortunately, just another casualty of this global economic situation. And to be quite frank, when we're talking about the global economic impact and how gold and silver relate to that and natural fancy color diamonds also, you have to understand this is no longer a discussion that involves only one or two countries. This is a discussion that involves the whole world. At least the top G20 nations, if not more, are involved in this economic calamity. And really, to have one country like the US print headline after headline. And people will hear it this week with a 4% gain in GDP over the quarter. I mean, you'll hear it, but there'll be revisions. But what people don't follow is what happens after that headline. And in weeks to follow, there will be revision after revision. And you will not get a sense because it will become watered down as to what the true position is. So when we're talking about these things, these are all reasons we buy and own these types of assets. They're not the only things you have. But when it comes to fiat currencies, remember, nothing is backing a single fiat currency anywhere in the world. We no longer have a gold standard one eight seven seven eight silver and the real money show.com. Jeremy, I was reading this article you guys sent to me earlier this week and all about fiat currencies, different countries through history, Roman times. And it is really scary. What happens to them? Yeah, this this is an article that we're that we posted into the precious metal advisor. So you can go on to the real money show and subscribe. And you can find out this article that we're talking about that was presented by the daily reckoning. First, let's let's understand what fiat currency is there and just touched upon that. It means currency by decree, whether it's sticks or paper, which it's typically been paper, it means that the government has said this is money. They create it out of thin air and they get get the citizens to use it as a as a currency. But it actually has zero value attached to it. So what they've done throughout history is there's always been some sort of value attached to it initially. And then that fades away. And what we see throughout history is that the world history is one of a pendulum swinging between a hard solid currency that is that is money, like gold, that is a commodity that backs the currency, which then moves down to a fractional reserve currency down to a fiat currency, which is just paper. Then there's a boom that happens with this paper because someone's getting access through this alchemy. They're profiting by it. There's a big boom that happens because you've just created all this wealth out of nowhere. And then ultimately there's this lack of discipline that goes along with it and a big bust. One of the examples in this particular article, of course, is what happened to Germany after the First World War, where they owed so much money and so much debt that they had no choice but to create money out of thin air. And it just inflated and inflated the dollar away to the point that nobody wanted to own it. In April of 1919, this is scary. It cost 12 marks to buy one US dollar. That's April 1919. A mere four years later, by December of 1923, what cost 12 marks to buy one US dollar advanced and inflated so far that it cost 4.2 trillion marks to buy one US dollar. It's an extreme example. We've seen others in countries like Zimbabwe and there are another few of them, but everybody must understand that every six, seven, eight decades, there's a major currency switch. The reserve currency isn't held forever and a chart would show that. We've gone through the last 100 years of having Spain, Britain, and others that have held reserve currency status. All currencies when they're not backed fail. That German situation sounds so familiar to what's happening in the US now. Well, I think the similarity to take from that, because when we look at fiat currencies, that's definitely an extenuous circumstance in terms of how quickly it happened, how fast the inflation was as a result. But of course, this was because it was based on how much debt they owed. And I think that's the similarity to the US right now in terms of they're just creating this money to help get rid of toxic investments to pay for the debts they currently have. But the debts keep growing. And so the point here is that with fiat currencies, you can't grow yourself out of the debt because at some point people stop wanting to have that currency. And this is why countries around the world are starting to move away from the US dollar because they don't want that currency. They see what's going on. Let's jump back in time to the 11th century when China did the same thing. They were issuing paper money, but they were actually funding an ongoing war with the Mongols, which they eventually lost. But one of these things why they were printing money was to fund a war. Sound familiar? That's what the US has done over and over and over again. They did it for the Iraq war, which they started having to print millions of dollars a day, which is why we started presenting gold and silver to the public saying, look, there's going to be inflation ahead. And we already talked about this on the show a couple weeks ago, John, talking about how all of the different food products have gone up in the last several years and how the double digit inflation. But as well, it wasn't the first time that the US had printed money out of nowhere to help fund a war. You know, when the other time they've done it, the Vietnam war, during that time in the 60s, they were still pegged somewhat to gold. And of course, eventually France came along and said, well, we want our debts paid back actually in gold, not paper. That's when Nixon's decided, no, you know what, we don't have enough gold or it's just not convenient. We're going to shut that window. Now it's just strictly paper money. And of course, throughout that decade of the 70s, gold went from $35 to $850 an ounce. And silver went from less than $3 to $50 an ounce. Again, you can get this article, the precious metal advisor when you sign up. It's the real money show.com. It's funny. I was reading this article as you were speaking further down it says, we've been involved talking about the US in some form of violent international accord in 44 of the past 93 years. So right there it speaks to what you're saying, right? And we shouldn't forget that recent history has taught us a lesson as well. And we certainly should learn from it. In the 70s, as Jeremy was just touching upon in 1971, Mr. Nixon, President Nixon came on air and he decreed that there was going to be an end to the gold standard. They needed to print money. They had been through the Vietnam War. They needed to pay debts. There was all kinds of geopolitical issues happening. And there had to be a change in policy. That led to a period of inflation during the late 70s and early 80s that stemmed from that money printing. We have never, and I repeat never, and this is an extremely important point as it relates to gold and silver, why you should own it. We have never, ever gone through a period of money printing, of our excessive money printing, in which the price of gold and silver didn't, you know, go much, much higher. In the last 100 years there have been four bull markets and all four of them we've experienced money printing to some extent and the creation of long term debt. And that has always led to higher gold and silver prices. So in essence, fiat currency never ever does what you needed to do for an infinite amount of time. There's always a finite amount of time attached to it. 18778 silver and the real money show.com and Jeremy. And definitely give us a call. Go on to the real money show.com. We have an investor kit that talks about these fundamentals. It's clear for understanding and why we think that gold is of such value right now. Why we think it's so important to have it as part of your portfolio for protection and for profit at this point. And you want to know where you are in the cycle. John, you and I were just talking before the show saying, listen, we can't be idealistic about saying, oh, there should be a gold standard. Human history is one of the pendulum swinging from a pure standard of some sort, like when Napoleon came in, we should talk about France in a little bit. He came to power with a gold standard. And eventually that disappeared. The pendulum swing the other way. So this is something that is not new to human history. We have to figure out where we are in this cycle. And when all these countries are moving away from the US dollar and all of this money is being created, you can start to see, we're almost like Weimar Germany. But what you want to see or take note of is that in 1913, when the Fed came into power, gold was trading at $25 an ounce. Today, it's trading at just shy of $1,300 an ounce. Now, that's not an indication of the increase in value of gold. That's an indication of the decreasing value of the US dollar over the last 100 years. And this is why it's so important to have gold long term and to have silver long term in your portfolio to protect against this gradual decrease in value of the currencies. And on that point, if you want to visualize something, think of it this way. Jeremy just mentioned the last 100 years that the US dollar has lost the tremendous amount of value. It takes, if we put it against, let's say, a basket of currencies, and we look to use that US dollar around some of the more notable places in the world, i.e. Canada or Britain or in the Eurozone, then it takes 92% more of those dollars to buy the same thing as it did 100 years ago, meaning it's lost 92% of its purchasing power. Now, can that number get worse? Yes, in fact, it can be a negative number because it can take an excessive amount to buy it. You may need 110% more within the next 10 years. But the reality is that over these long spans of times, we rarely recognize these trends in place. We live for the here and now, we plan for the very short term, maybe medium term and a small percentage of us certainly live generation to generation, but that's less common unless your last name is perhaps Rothschild or somebody of that stature. But the reality is when it comes to fiat currencies, they are losing value. If we look at the mid 60s, if you wanted to buy a gallon of gas, it cost 30 cents fast forward to 2014, what can you do with those three dimes? You can do nothing with them, but in 60s, they made those dimes with silver in them. If I extract that silver out of those three dimes, it still buys me the gallon of gas today. Some 50 years later, I still maintain the purchasing power using silver. No, it didn't give me a huge peak and it didn't give me a huge bust. It gave me the purchasing power that had been robbed by using fiat currency and inflating that currency value. And then during the Roman Empire, where they started devaluing their currency by clipping the coins and taking the silver out of them, they started out at I think 55 AD with 100% and by 240 AD, they were down to less than 1% of silver in their coinage. But back then, one ounce of gold would buy you a handmade toga, a handmade belt and handmade sandals. Today, one ounce of gold will still buy you a good suit. And a belt and maybe a pair of shoes. Maybe pushing it a little. Maybe pushing it on the shoes. But that just says that gold's undervalued right now. But the point being is that gold represents a certain amount of purchasing power. And if you start to look at it against the Dow, against oil, against housing, against this and that, you'll start to say, oh, you know what, when I look at it across history, I can see that both gold and silver are quite undervalued right now, which makes it a great time to get involved if you've never purchased. So give us a call 1-877-8-Silver. Get in your guide to investing in both gold and silver and take a look at the fundamentals for yourself before you make a decision. And understand everything that we do is in physical form. You want to come to us and buy an ounce of gold and take it home, that's fine. We do have account minimums when you want to open up in store with us and use our expertise as a team to help you with that. But we hold investments in silver, gold, platinum, and palladium. And they are physical folks. They do not come in paper form. If you want to visit your product, you can keep it in the depository accounts that Guildhall sets up on your behalf. These are non-discretionary accounts. They're yours to control. You can visit your metal. If you want to buy and sell, you do not have to take it out of the basement, lug it into the back of the car and drive 15 minutes to your closest, hopefully getting a price at your closest buyer. You can just simply pick up the phone and call us and get it done today. You can get into this market for a couple of thousand dollars as a new investor and the sky's the limit. For large investors, what an opportunity to take a little bit of that stored wealth you've built up over the years. Maybe you've got a savings account that's doing nothing for you, put it in the gold and silver. It's a very smart thing. Let's get that done. You can do it by calling us today. And the number is one, eight, seven, seven, eight silver and online. Check it out as well. The real money show.com and the number to call to get in touch and start investing one, eight, seven, seven, eight silver and the real money show.com. Paul, I want to talk about diamonds. This article I have in front of me, I feel like I just have some soft music, a little bit of jazz, maybe a glass of wine with me here. Talking about cushion cut diamonds are a vintage cut that has become a fancy shaped favorite second in popularity only to rounds, harkening back to a gentler era. The soft curves and gentle glow of the cushion cut is flattering, feminine and elegant. It is the perfect shape that will stand the test of time for years to come. It's either a movie trailer or a Harlequin romance or a very cool piece of evidence from Rappaport. It's from the Rappaport magazine. There are the world renowned leaders in reporting on the diamond business, whether it's white diamonds or colored diamonds. If you look at what's been happening in the auctions, a lot of the huge diamonds, 10 carat, 15, 20 carat, pinks and blues, have been cushion shape because what the cushion does, it actually does look like a cushion with soft corners. It brings out the fire and the scintillation in the diamond. The cut is beautiful and especially for natural fancy colored diamonds, the colors just fly off of these types of cuts. We just got back actually from Calgary. We did a seminar on actually precious metals and diamonds and people were actually more interested in what we had to say at diamonds at the end because of how diamonds have gone up in value. It's probably been one of the best kept secrets out there. The wealthy and royalty have known about it for basically 50, 100 years, but it only came to light natural fancy colored diamonds from auctions that had started basically in the 70s where they were reaching and fetching unbelievable prices for diamonds. One diamond, which was a red diamond that was bought in 1957, was purchased for about $13,500. It went in the early 80s into an auction and it reserved price and it was $150,000. It went for $880,000. This was a .95 purplishly red. It wasn't a red, it was purplishly red and at that time it was a record price. What we've been seeing at the auctions, diamonds going for $35,000,000,000, not everybody's got that type of pocket change to do to spend. Why are people buying these natural fancy colored diamonds at auction for these prices? Because they're scared to death of fiat currency, of paper. The people that have been making money, have got money, want to protect it. This is why you're seeing art, especially pictures, are going for unbelievable amounts of money, but the diamonds have been fetching highest amounts for pinks and blues. Red diamonds, for example, 30 years ago, you could have bought a one carat red for $30,000. Today we're looking at $2.1 million. If you can find one, they're just not out there, so they're extremely rare. Now, the supply is diminishing in the mines. There is no new mines coming on site and the mines that are out there are becoming less productive and they're closing. For example, the mines 90% of the world's pink is called the Argyle Mine is in Western Australia. It's due to close in 2018. They produce 90% of the world's pinks. Their production, in actual fact, is one-tenth of one percent of that mine's production, a pinks. It just tells you how rare. Another example, let's look at blue diamonds. For every 112 percassos that go into South Abyss and Christis, which are the biggest auction houses in the world, there's only one blue diamond that ever gets into auction versus 112 percassos. There's a growing awareness of this investment and also a growing demand. We've been keeping, no, not so us, been keeping records, but they've been keeping records for the last 40 years from auction houses, from wholesalers, from dealers. Natural fancy colored diamonds tend to double every five to seven years. Now, this is according to what diamond, there's three groups of diamonds that we sell. Fancy, intense, and vivid. If you go to our website, Guildhall Diamonds, which you should look at, you'll see an unbelievable collection of Argyle pinks and beautiful yellows, internally flawless and vivid. We're also bringing in VS1 and VS2 in the vivid because it's becoming almost impossible to find internally flawless diamonds in the vivid, and yet the price is even of the VS1, VS2 are going up like crazy. Go to our website, guildhalldiamonds.com, or give us a call at 1-877-8-Silver, that's 1-877-8-Silver. And we were talking about cushions, and one of the things that... No fabric cushions, cushion cuts. Cushion cuts, that's right. One of the reasons why they are... Maybe redecorating. This is what it's like around the dinner table, trying to get a word in. How's your digestion? Don't ask. So the thing with the cushion cut diamond as well is they do bring out the color. They keep the color. Color diamonds tend to be what they call blockish shapes, and the cushion definitely fits right in there because you want the color to be even, and it's all about color, and that's what's creating the value. Of course, you want to keep the other four Cs involved, and it does matter in terms of all of those as well. But for color, the blockish shapes like cushion and radiant really hold the color, so that is a very typical shape that we see. And it is very beautiful, and we tend to really gravitate towards them, and it's such an exciting industry at this time, because while it's sort of coming in fashion, when you open up a magazine like the Rob Report, you see lots of ads for color diamonds, and color is something that's becoming very popular. But as far as an investment is concerned, as far as understanding the quality that needs to be achieved in order to separate that diamond out from the rest of the pack is still very much a best-kept secret, and you always know that because you talk to people. And unlike, for example, gold and silver where it can be very, how do you say, people either love or hate it, let's just put it that way. When it comes to diamonds, they're obviously a lot more open. Most people have an experience buying a diamond or looking at them, and educating people, getting our listeners to understand out there, how it all works, and what you should be looking for is very important for us. So feel free to get our buyer's guide, get our ebook on why we believe that color diamonds are a great investment, and you can get in touch with us anytime. Go to the website, go to the Real Money Show, we're here to help you. When we look at color diamonds, natural fancy color diamonds, the first important thing is color. I choose our collection every diamond we have on the website, we own every GIA, you'll see on the website, and independent appraisal on the website. We have in stock, and our collection is there for you to view. Color is the most important, as I said. The color is the number one criterion when we're purchasing a diamond. Diamonds come in fancy, intense, and vivid. I love to look at a diamond that's fancy, that looks like an intense. I like to buy an intense that looks like a vivid. I like to buy a vivid that looks like a zimmy, which is a really deep color, but that's the first criteria. The next criteria is actually cut, which we look at, whether it's a radiant cushion, brilliant cut, round cut, emerald cut. These are the cuts that actually hold the color, even saturation, scintillation comes off, the diamond, the colors are just incredible. The third thing we look at is clarity. Now, clarity is really important. In, for example, Argyle Pinks, we sell VS 1, VS 2 diamonds, which are the rarest out of the Argyle Pinks. Most of the diamonds, which are SI1, SI2, I1, I2, which means the lower grade, you can actually see the carbon, or you can see problems with the diamond by just actually seeing it with a naked eye. You can actually see the inclusions, whereas when you're buying a VS, you need a jeweler's loop, which is 10 times magnification. When you get into diamonds like a VVS1, VVS2, you need a 40 times magnification with a microscope, and then internally flawless means there's no inclusions at all. When you go to an internally flawless stone, for example, in yellows, you've lost a lot of a diamond. When they've cut a diamond down to internally flawless, they've trimmed away the fat. Let's put it that way, and you're paying for the best part of that meat, and that becomes expensive. There is nothing wrong with a VS diamond, a VS diamond, which means there's very slight inclusions, are also increasing in value at an incredible rate, especially, as I said, when you look at the Argo pinks, we have only VS quality. We've probably got the highest collection right now of VS Argo's up on our website, anywhere in the world. If you are looking to purchase a diamond, one of the things you're going to want to do is arm yourself with a buyer's guide. We do offer that. You can go to the Guildhall diamond site. You can go to the real money show and request it there, but I think this is important to have. One of the reasons for that is a lot of times you can find a diamond that actually looks good on paper. I often will tell prospective clients, "Would you have married your wife just on paper? You need to go out." Maybe if there was a bottom line on the... But the thing is, is that ultimately, you need to see the diamond in real life. You need to have that, "Ah, that's the one moment." That's what we do at Guildhall is we'll try to show a variety of diamonds in the price range that the prospective buyer is looking to purchase, and then allow them to have that subjectivity of what it is that appeals to you. Which one is really captivating your attention? A lot of times, the reason I'm saying this is because for those out there looking to purchase, a lot of times you can go online and you can see something and say, "Yeah, I've learned a little bit about the Four Seasons. This one looks great on paper and the price looks amazing." You always have to ask, "Well, what may be wrong with that picture?" Ultimately, you need to be able to get that in front of you. Whether there's money back guarantee of ship it to me, let me look at it, let me see if I'm fully satisfied before I finally approve to that, or take it for a test drive. Go and look at the diamond, see how it actually looks, how it feels to you. We often buy it in the same way. We'll go through GIA reports, after GIA reports, we'll pick out the good ones, then we'll go look at them. We'll say, "Nope, no, oh, that one is special." There is a certain amount of that aura to the diamonds. It's very important to understand these little aspects of diamond purchasing in order to be fully successful. It doesn't mean you have to be a rocket scientist or a GIA alum. It just means you need to have some basic tools, and just like real estate, you go into—you see seven condos in one week, and you say no to all of them, and then you walk into one and you just say, "Ah, this feels like the one," and you should have that when you buy a diamond. We want everyone who buys a colored diamond to love it, to really want to hold on to that, or give it to their kids, or just enjoy it while it's there. Maybe put it into some jeweler. We have a great jeweler who creates some amazing pieces and always astounded by the quality of what these one-of-a-kind pieces are like. Give us a call, and we'll show you what we have. That number is 1-877-8 Silver and TheRealMoneyShow.com, and GuildhallDiamonds.com as well. Hang on. And back with more of TheRealMoneyShow, the number to start investing is 1-877-8 Silver and TheRealMoneyShow.com online. I want to talk about Diamonds, guys, and from the angle of being an investment, Darren, and I know you had a question to start the segment off as well. We did. This fella emailed us this week by the name of James Carson. He's from Oakville, Ontario, and he asked us a question. He's considering buying a diamond, and one of the questions he asked, which is a common question, is really what is involved in owning this diamond, holding on to the diamond, and how do I sell it? He wants to use a diamond for his child, his daughter's education. She has nine years, so she's expected to be in college or university, so we would highlight a specific diamond that we felt over the next eight to nine years would double in value. I pulled one diamond out for him. It is, in fact, a 1.23 carat fancy yellow cushion cut IAF. This is where you start as an investor. This is a diamond which would cost below 15,000, and it would be easy to buy, take home, open up a safety deposit box, keep the documentation with the diamond, just sit on it, get an update every year from our firm as to what the new value in terms of the appraisal is for insurance purposes. If you wanted to wear it, that's fine also, but this is the type of diamond where today we would be investing 15,000, and within eight or nine years, we would comfortably be selling that diamond for in the $30,000 to $35,000 range. And you should mention that historically, these diamonds have never gone down in price, right? Never. We look to back, I mean, you're going to find a lot of people in this world when you look at diamonds, when you're trying to educate yourself, it's very difficult because this isn't the stock market. You can't just go out and find it. You need experts like Guildhall to help you along the way. There's not a lot written on color diamonds and understanding the four Cs and understanding what contributes to defining the value of that diamond really starts with color. So when we're looking at yellow diamonds, it would be nice to buy a very saturated, extremely beautiful vivid diamond, but as an investor, this is the question posed to me. This is what I want to start with. This is an entry-level diamond. This diamond would be something that would be an example of one of the more frequent diamonds we sell because it is entry-level, and it's easy, easy, easy to hold on to. Now, in terms of what you would find with this, every year you would get a reappraisal done. The first year would be on us after that would be your responsibility at about $100 per reappraisal. It's worth it. This is an internally flawless diamond, so you wouldn't have to worry about the clarity of the diamond or whether or not it has good clarity. It's perfect. It's a natural, fancy yellow diamond, so it's not the deepest or deeply saturated diamond, but it is the starting point for investors. It's a very good polish, very good symmetry, and the weight is over a carrot. All the things that we define necessary to make it an investment-grade diamond. When you're out there, yes, the track record means everything. Back to the mid-80s, when Christie's and Sotheby's really started getting a hold of colored diamonds and started putting them up on their website, that's where the history begins. If you're working with a company and they cannot provide you that information, you're working with the wrong company. They're borrowing somebody else's advice. A fancy yellow diamond like this, 1.23 cushion, which we have on our site at guildhalldiamonds.com, this type of diamond would have sold for around $8,000 three, four years ago. Now, they're selling for over $13,000. That's just an indication of the short-term gains that these diamonds have been making. That's not because we're just raising our prices. When we go to purchase the diamonds, it's consistently more expensive to purchase them, because they're in such high demand. They're so rare. The demand's coming from all over the globe, because not only is it becoming fashionable, but people are also starting to understand the investment side of it and understanding that the rarity and the quality is there. What we consider investment grade, quote unquote, and so they're constantly sought after these type of diamonds. As we were just discussing, this is the perfect type of diamond to get into the market, to start thinking about a child's education 15, 20 years from now, because that diamond is going to go a long way to help pay for it. I don't mean interrupt Jeremy, but within eight or nine years, as I said at the beginning of the segment, that is a diamond which I could expect to double in price. So I could put it back up on the website having paid 15,000 this year and expect somewhere around 30 to 35 within eight or nine years. That's value. That's something I can put towards my child's education. And that does a heck of a lot better than a savings account. And guys, we talk about them all the time, but you can go to Guildhall Diamonds and actually see these stones with really good photography, right? Absolutely. And also, you can ask for the guide on colored diamonds, understanding what they're all about, why people are moving into them as investments, and what type of returns you can expect. And of course, you can always contact us as well. So you can contact 1-8-7-7-8 Silver and get in touch with us directly. That'll wrap it for another week. Guys, the number to start investing is 1-8-7-8 Silver on TheRealMoneyShow.com. Make sure you go there and sign up for the precious metals advisor as well. 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