The Real Money Show
The Real Money Show - Saturday May 10th, 2014
The Real Money Show - Saturday May 10th, 2014 with Guildhall Wealth Management and John Scholes.
And welcome to the Real Money Show hosted by Guildhall Wealth Management. This is a show about the incredible potential of owning physical gold, silver, and natural fancy colored diamonds. What they can do to help your portfolio. The number to call at any time is 1-877-8-Silver. That's 1-877-8-745-837. The website is therealmoneyshow.com. And I want to tell you right off the top. You should register now for the Investing in Natural Fancy Colored Seminar. The date for this is May 22nd. The time is 7-9 p.m. The place will be the Supreme Luxury Event venue. That's 83-11 Weston Road in Woodbridge to RSVP. You want to call 905-305-8422. And you can register online. There'll be some light refreshments and a ton of knowledge for you to take in. Got to the guys here. We always start with the week that was. Darren, how was it? Well, this week was interesting. This was all about two situations, John. The Feds in the U.S. and the potentially softening stance of Putin over the Ukraine situation. Now, we're taping the show on Thursday of this week and the price of gold as we're doing the show right now is trading in the 1290 range while the price of silver is trading in the 1930 range. Now, week over week, not much of a change in either metal. We did see some better pricing earlier in the week. And certainly people looked as though they were going to have a bit of sentiment change. And that was echoed in the move forward. But by the time Wednesday came around, Janet Yellen, the chairman of the Federal Reserve testified in front of Congress. She obviously was talking about the state of affairs, the economic affairs in the U.S. And by the time that happened, of course, gold and silver, as it usually does. We've seen this with Bernanke and all the way back to various other Fed Chairman's, it's softened. So usually during the week when you see the Fed Chairman speak, that is what ends up happening to gold and silver. And this week was no exception. We also saw that after Yellen's comments, because of course, she's talking about the broader markets in general. And her generalizations were obviously pointing towards a soft, but strengthening economy, which we know is very false unless you're part of the crowd of people who are the richest 1% of America. The rest are still suffering and suffering they are. But as she made her comments, the broader stock markets did improve. And just like having a red bull, you get a very short term kick. And usually three, four days, that lasts in the broader markets and presents opportunities for buyers and gold and silver. Now, the second thing we saw this week was a seemingly softer stance by Putin. The broader stock markets also got a lift with some diplomacy on the part of Putin. And reports did indicate that he wanted some dialogue on the Ukraine crisis with other leaders. He stated that he was going to pull his troops back from the border. But NATO as of Thursday had seen no evidence of that. What else whatsoever? So again, this is not to overshadow what we believe are really strong fundamentals in the markets. But it does lead back to what we've talked about at length on the real money show. And that is that gold and silver are event driven markets. The underlying fundamentals of the market for gold and silver have not changed since day one of this bull market some 12 years ago. But it does take these events to drive these market forward. So when you are buying during these price periods, you can consider yourself extremely lucky to have the ability to do so. The number to call is 18778 silver and the real money show.com. What else is going on? Well, again, another small event, geopolitical in nature, just developing near the end of the week here, we're hearing news at a Vietnam that China is trying feverishly to establish a new oil rig off the coast of Vietnam. And of course, Vietnamese officials are trying not to allow that to happen. China's throwing its weight around. And as a result, what we're seeing are small skirmishes. These Chinese, the owners of the Chinese oil rig are actually using boats to ram the small Vietnamese boats that are getting into the general vicinity and creating quite a lot of havoc. This is important because as probably our listeners know, and if you're new to this, the geopolitical instability is one of those market events that can really drive the price of oil. And of course, oil drags gold and gold drags silver. So if we see this event develop a little further, keep in mind that the US is an ally to Vietnam now. Of course, this could develop a little bit further and you never know what buttons China's trying to push. So there are reports out there that that might happen. And we'll see where it goes from there. In addition, what's hiding in the shadows behind these reports from Yellen suggesting the economy in the US is strengthening is a look at March's report on consumer credit. 94% of all of March's consumer credit was for student and car loans. After another month, another confirmation that when it comes to the US consumer, it's all about student debt. And obviously to a lesser extent, car loans this week, the Fed reported that consumer credit number for March was at 17.5 billion. And it not only blew out the expectation of 15 and a half billion increase, but it was the highest monthly increase since February of 2013. Now, why is this important to gold and silver? Because we are witnessing in these numbers exactly where the consumer credit growth is coming from. And that is mostly from student. And as I said, to a lesser extent, car loans, this is non-revolving debt. It doesn't grow the economy. Student debt is not good debt as far as the economy is concerned. A lot of this debt is what we call debt and debt. And it doesn't get repaid. And it gets passed on as a burden to the taxpayer. So again, when this type of debt starts to grow and it is the fastest growing debt in the US student debt, it's a great concern. And it does tell us we're not back on even ground yet. One of the interesting things I was reading today and today's news is that Barclays Bank, one of the largest banks in England, probably in the world, they're just laying off 19,000 people. That's a lot of people to lay off. I mean, that's all around over Europe, but again, they're laying off 19,000 people. If you look in the retail sector right now, Jacob, a lady is a parallel store. There's probably lots and lots of stores have just closed down. Grant and toy, I've got completely out of the retail market. Grant and toy was a name for, you know, 100 years out there in the retail market have closed closing all this retail store. So what does it tell you about retail? Is it the, you know, is it the internet that's knocked them out of business? Or is the consumer just doesn't have cash? Okay. So Darren, why is that important? Well, as it relates to gold and silver, it's very important because now is not the time to think that we're in a growing phase of the economy. The economy is not set to expand rapidly. We're not we're not set to see a new housing boom. In fact, Yellen on Wednesday, when she was talking in front of Congress, blamed a portion of the failure in the housing market on student debt, which is ridiculous. They've dumped 2.7 trillion into the market into housing debt and it's done nothing for five years and they continue to spend 45 billion every month. The reality is now is a time to protect wealth, to take that which you've already learned or that which is left over, or that which you've just not sure about what's going to happen going forward and put it into a hard asset like gold, silver, or natural, fancy colored diamonds. And I think as well, it's also going to be when you look at all these situations, you look at the student, the student loan situation, one of the things about that is obviously that students don't need education as much as they're going to need jobs. They're the fastest growing unemployed section in the economy and it's going they need to get jobs. They don't need no offense. They don't need the education. It's great to be educated, but making money is also very important. That's a big aspect. I think the other thing is that there's not a lot of money coming into the markets and you do have to protect yourself. And then in that sense, what about the US dollar? In 2008, people jumped into the US dollar as a safe haven. Is that where they're going to go this time around knowing that people can't pay their debts, that the US is printing tons and tons of money or rather they're creating it out of thin air? This is this is the problem. So you don't know where that next flash point is coming from. And are you are you prepared to stay in cash and whether the storm holding US dollar, which by the way is at a very low point right now, could break below its low point right now and keep going lower? So they're defending that. But again, when you're creating billions and billions of dollars, what is that currency actually worth? And what we see is that clearly people are moving towards gold and silver. I like to say that a billion people can't be wrong when we look at China, India, they're upping their purchases of gold ahead of the election coming up very soon, I guess next week. But we see the we see it also in coin sales, both in the US Mint and the Canadian Mint. The sales have been doing nothing but going up on the rise, doubling over in the last several years a couple times over since 2008. And what I mean by that is that in 2008, when the market went down, we had a lot of people that gave up on the bull market. They said, ah, forget it. We don't want to be involved in this. There was still that paper mentality. Now you can clearly see when it comes to the physical side of the gold and bullion market that people want to be in hard assets, they don't want to own the paper. The number is one eight seven seven eight silver. That is one eight seven seven eight seven four five eight three seven the real money show.com to start purchasing. So Dan, how do I basically how do I get gold? How do I get some gold and silver into my portfolio? Couldn't be easier with Guildhall wealth. You have a couple of options. But the easiest and quickest way is upon contacting us, getting in touch with us, coming to the office, you are going to be looking at opening up a depository account. That's physical product. It's stored locally. Can be bought and sold by a telephone account, start as small as 10 ounces in gold or 200 ounces in silver. And with a little bit of paperwork, you can get the ball rolling. Now, if you're somebody that likes to keep close tabs on their product, you can have the serial numbers. You can also have that product titled in your name and segregated for the rest of the bullion. But the reality is more and more people are realizing that if they wake up and they were looking to get invested dollars into the gold and silver market, the best and most convenient way to do it is to own it physically. Don't go the paper route because you're in essence not impacting the price at all. Owning a junior miner is fine. And in some cases, it's definitely what is part of a portfolio, but it's not necessarily going to impact the price of gold or silver. So opening up an account couldn't be easier. It's becoming more and more difficult to trust the headlines every day. We see this headline throughout the week in the Globe and Mail saying that the unemployment rate in the US is coming down. And at the same time, you know that a million people dropped out of the labor force. We talked about that last week. So, you know, how can you really trust the figures? We all put gas in our cars and we go to buy food. We're going to the movies. We know that things are costing more and more all the time. We all pay insurance. The price continues to rise. Are you going to continue to believe that the inflation rate is actually less than 2 percent? The inflation rate is probably more like four or five. And on a 10 year period, that's 50 percent. When you put that into perspective, you have to say, okay, you know what? We need a different rationale for investing. Four, five, six percent a year is not going to cut it. Now, I know that gold and silver haven't done a lot in the last couple of years, but it doesn't change the fundamentals. And the fundamentals don't always react perfectly in sync to what's happening right now today. There's a lot of perception out there in the market. And this is what you have to battle. There's a lot of perception that things are fine, that everything is fine, that unemployment is going down. Well, you have to use your logic. If things were getting better, people would be coming employed. Banks wouldn't be laying off people. Companies wouldn't be closing. Prices would be coming down or at least stabilizing. And you wouldn't have that nagging feeling that you need to be making more and more every year to keep up. And that's what is in the news these days when it comes to the middle classes, they're shrinking. I think in Canada, they're barely hanging on. And I think we need to start looking at alternative ways to not only protect our wealth, but to grow it. And if you look at the story of gold and silver, I think you find something very, very exciting. We'll take a short break. The number is 1-8-7-7-8 silver, the realmoneyshow.com. Reminder, the investing in natural fancy-colored diamond seminars happening on the 22nd, 7-9 p.m. The place will be the supreme luxury event. Venue, 83-11 West End Road in Woodbridge, all starts at 6-30 p.m. You'll want to register two ways, 905-305-8422 and Guildhall Diamonds.com. The realmoneyshow continues. The number is 1-8-7-7-8 silver, the realmoneyshow.com. And coming up on the 22nd of this month, it'll be the investing in natural fancy-colored diamond seminar. The place is going to be the supreme luxury event venue. That is in Woodbridge at 83-11 West End Road. You'll want to register as soon as space is limited. And the number is 905-305-8422 as well, Guildhall Diamonds.com. Jeremy, there was a recent article on Business Insider David Einhorn got to sit down with the former chair Ben Bernanke and kind of pick his brain, give him the gears a bit. And part of that article said this, and he was saying this to Bernanke, "My feeling has been that by having rates at zero for a very, very, very long time, the harm that we're doing to savers outweighs the benefits that might be seen elsewhere in the economy." Bernanke turns around and says, "You're wrong." First of all, he says, "That was good." And then he said, "The reason, if you raise interest rates for savers, somebody has to pay the interest," which is kind of funny. So you don't create any value in the economy because for every saver, there has to be a borrower. It's the same thing for every winner. There's a loser for every, you know, fortune. Somebody loses a fortune. It's, you know, Ben Bernanke, you know, got, I guess, the U.S. out of a lot of problems when the subprime hit. But it hasn't really anything changed. I mean, Farber was on CNBC this morning he phoned in, and he thinks the U.S. economy is in a terrible, terrible state. He thinks it could be worse than 2008. What's coming up? And he's recommending, you know, to keep your money in cash or in hard assets rather than being into the market. You know, Bernanke is so sure about himself when he's talking, but he said that subprime was contained and it absolutely was not. So he really doesn't know what's going on. And when he talks about savers basically being a burden to those who are the debtors or those that borrow from them and have to pay them interest, I think that's, that I'm not sure what they're teaching at Princeton, but that is not economics. The fact of the matter is, is that, and I have, I think I know where it's coming from when you're, when you're not giving any interest for so long and you have to pay low interest rates on a growing debt in the U.S., you absolutely don't want to have to pay more. That's where he's coming from. That's an insider saying, if I have to pay on my debts, which is to the banks, to the, the U.S. debt, I don't want to have to pay more. And if I have savers, I'm going to have to pay more. The fact is, is that savers create jobs. You know what they do with their money? They walk into banks, they have collateral, they have trust of the banks and the banks lend them money. And what they do with that money is they open up businesses. This is probably one of the reasons why companies like Grandin Toy and Jacob are no longer in business because there is no, whatever money that they were making can't be put in a bank account and make 5, 6, 7%. So it's a constant losing battle where you have to up your sales constantly to do that. So I believe that savers build economies, not, not our burdens to them. So it's very interesting that Bernanke can say these things. I think he's in some glass tower and he's already been proven wrong before. And I think he'll be proven wrong again. And I think that interest rates will ultimately rise with or without central bank planning. Well, he's an elitist academic. I mean, there's no doubt about it. He doesn't have an ounce of true real experience in the business world. But again, he definitely had to lead the ship and that ship was setting sail before he came there. And of course, the path that it was taking was set out before him by all the rest of the Fed Chairman's, those around him, the president of the United States himself, I'm sure. But this is as it relates to gold and silver, an important point. When we look at savings, there are different types of savings. Most people think of just paper as I take a dollar and I take 50 cents of it and put it in the bank. Most people think of it as RSPs is another way to save long term. But few people actually think of gold and silver as savings. Now, if I in 2002, 2003, 2004 took the 10 or 15 or $20,000 that I had to put into my RSPs, knowing the tax break that I would get and the long term incentive, if of course, when I finally retire, making less money, if I had done that, perhaps right now I could look at very best to have seen a growth rate of in the single digits. I would hesitate to guess that most Canadians listening to this right now in the last 12 years have done at the best probably two, three, four, five percent average if that. And that's giving a lot. That's conservative. However, despite the fact that for 36 months, the price of silver has gone somewhat sideways as has gold. Since 2002, the price of silver is still up 300%, which means over the span of that time since 2002, that's 32% per year on average. So if I had taken that 10 or 12,000, it's now worth every year, 32, 33% more. Now, if I'm not buying and selling because I don't want to speculate, I'm in Paul's famous line is that you don't day trade your house. Why would you day trade silver and gold? That makes for one hell of a great savings plan. So looking forward to the next 10 years, I have liquidity in gold and silver. It's not like an RSP. I can't, I don't need to worry about having to get out quickly. If I want to buy and sell gold, I can do it within seconds. And that is something that I want to consider if I'm growing my portfolio. And speaking of the next 10 years, if the interest rate is 2%, let's say, which it's less than that, on a 10 year period, that's 20%. Now, silver is trading at a very low price right now. What is it going to take for silver to match 20%? Well, let me tell you something between 2001 and 2011, the average price of silver has been over 15%, over 20% a year. Even with a sideways market, the market is still at that rate performing well beyond these type of numbers. So look at the look at the case for silver and ask yourself, well, can silver outperform 10%, 20% in the next three, four, five years? Because that's going to well outdo having cash in a GIC or just in the bank. And all you have to do is see that the market is extremely oversold in immense demand. And I think you'll be able to say, okay, you know what, I can take 15%, 20% of my cash that's in there and maybe look to own a thousand ounces of silver. 18778, silver, the real money show.com. What do you think of all this? Well, the interesting thing is, is when you see silver trading in the 1930, 1940 range gold, you know, $1,300, the smartest thing to do is to cost averages by on a monthly basis, buy when the market is low. I do that. I don't want to buy at the top. I want to buy at the bottom and sell at the top. So the smart thing to do is when you get an opportunity, a window of opportunity, like we've got right now, silver trading, you know, over nine, just over $19, gold, $1,300, what a wonderful opportunity. You don't have to go crazy. You really do need to have 15, 20% hard assets in your portfolio at some time or other, whether it's gold, whether it's silver, whether it's natural fancy color diamonds, whether it's a collectible, whether it's really high priced baseball cards or collectible cards, unbelievable postage stamps, art, these are all things that protect your actual, the money that you have, your credit, the money that you've built up, your collateral. If you don't get into hard assets, some time or another, inflation is going to confiscate it. Printing of money is going to confiscate your wealth. If you can go to the bank today, if you've got $25,000, $50,000 that you have, you've saved, you've worked hard, what are you going to do with it? How are you going to invest it? Are you going to put it in the bank and get 1% and lose 3, 4% to inflation every year? Are you going to be in mutual funds? You know, there's some people that do make money in mutual funds, but in most times the people that make the money is the house, the broker, you know, and so therefore you want to get into something that is going to be, make you money in the long run. Don't look at it on a daily basis, look to buy some gold and silver and natural fancy color diamond. We're going to talk about in the next segment how natural fancy color diamonds, one of the best kept secrets, one of the best investments that you can possibly make can grow, you know, double every 5 to 7 years on this, you know, a small investment of $12, $15,000, you can double your money. Are you going to be able to double your money in the stock market? Only if you got insider help and the only people to get insider help are the people at the top. The last one in is the first one to get her and that always happens in the stock market. You know, if you look at the momentum stocks right now, you know, they've been getting killed. The average retail investor has probably lost 30, 40% of their money getting in. They get talked into buying stocks that are high with 350 and today are trading at $200. That's what happens. But how many people out there, the average person with 10, 20, 30, 50,000 or 100,000 to invest can own Google, can own Apple shares? John, how many Apple shares do you own at $500 or $600? How about none? There you go. But how many can you buy? I mean, it's very, very tough. So you need to get into an investment. A guild hall, you can buy the product hour, you can buy gold, silver, platinum, and platinum. And we haven't spoken about palladium today, but that's one of the metals that we really, truly love. It's used in catalytic converters in the automotive industry. We've been, you know, telling people to buy it since it was $180. It's trading around about $815 today. Great investment. You can buy, take home the product. You can have it delivered to you. You can buy the product. You can put it into a depository that we have, which is safe, secure. It's segregated, allocated. If you're buying 1,000 ounces, 10, 100 ounce bars, we can even give you the bar numbers. Nobody can touch that product. It's segregated for you. It's insured with Lloyd to London. The other option you have, you can use collateralized financing. And this is not for everybody, but this is where you put up basically 20% of the price of the metal. Let me give you a quick example. If you would buy 1,000 ounces today, it's going to cost you around about $20,000 US. For you to double your money, silver would have to go to $40. I don't think that's a hardship anyway, because three years ago, we hit $49 in change and we've come off. So can we go to $40 in the next two, three years? I think so. So that's one way. But if you use collateralized financing and you're only putting up 20%, so you're putting up, including commissions, around about $6,500, silver moves up $6.50 from $29 from $19 to $25 and change. You've actually doubled your money. So if it only moves up $3.25, you've got a 50% return. If it moves up at $1.87, you've made 25%. That's on silver. It's a metal that's undervalued right now. It's used as an industrial metal as well as a precious metal. It's used in every single thing we use in electronics, from flat screen TVs to iPhones. Everybody's got a cell phone out there. There's some silver content. Everybody's got a TV with a flat screen TV. There's silver in it. Whether you're using anything today, electrical, it has silver in it and it's not something that you can recycle. It's left in there. Right now, it costs more to produce virtually to bring it out of the ground and what it's selling for. How long can that remain? It can't remain. Gold and silver is going to go up. 18778, silver, therealmoneyshow.com. During you often talk about it and you just mentioned it, you don't day trade your house long term, but is there anything to suggest that it's in the short term? Silver might be picking up some steam. There is, John. In fact, if you look at the numbers, what they're telling us right now, although silver prices are nearly unchanged on the year, they are underperforming the rest of the precious metals complex. It's been slightly sluggish, the price action. But when we look to the options market where the futures price comes from, that's where spot prices derive from, this gives us some inkling as to which way the market is heading. And in fact, the options volatility levels are near multi-year lows. Now, the last time that happened, and that just simply means in terms of the overall volatility in the marketplace being bought and sold, that volatility is being measured on a daily basis. And that as a percentage is at a multi-year low right now. So in terms of seeing significantly lower prices from here, that gives us a sense that that won't happen. In terms of seeing a takeoff point, well, for most of the last four cycles we've had, where the price has peaked up at very high substantially compared to where the low was, this is the type of setup that has occurred. So if we look right now, not only is it highly unusual, but when you see this comparatively speaking, this was what we saw in April of 2013 when the price of silver broke up towards $35 an ounce. And we saw it in late 2010 when the price was trading up around $28, $29 an ounce. And before may of that following year in 2011, it broke, as Paul said, to $49 an ounce. So this definitely gives us some insight to where we're heading. The question is where and when and when it will happen is impossible fully predict, but there are clues. And definitely, this means that the path of least resistance is up from here for the silver price. And one of the best clues is that gold silver ratio. I know we've come talked about this at length, the historical norm 16 to one or seven 16 to one, right? And again, if you look back at the former bull markets, every occurrence of the peak of that market is 16 to one. The last one in 1980 gold reach 850 silver was at 52 16 to one. So again, when that starts to transpire and you see that ratio break apart, it's telling us that one of the two metals is either overpriced or undervalued. In this instance, when the trading range is 65, 66, 67 to one, it means that silver is significantly undervalued against the other metals. And this is what's been happening over the last couple of months. And this is why those that are cost averaging right now, similar to what happened in 2010, will benefit long term. So this is giving us insight that the price is most likely heading higher from here. We'll take a short break. The number to start investing one eight seven seven eight silver in the real money show.com as we get into the diamond segment, want to remind you that the investing in natural fancy colored diamond seminar is happening very shortly. It's going to be the 22nd of May. It'll be the supreme luxury event venue 83 11 West End Road to register 905 305 84 22 and Guildhall diamonds.com and more of the real money show. The number to start investing right this down one eight seven seven eight silver in the real money show.com coming up very shortly on the 22nd will be the investing in natural fancy colored diamond seminar that is happening on the 22nd from seven and nine PM. The place will be the supreme luxury event venue. That's 83 11 West End Road and Woodbridge and registration starts at 6 30. You got an RSVP please by the 14th of this month's space is limited 905 305 84 22 and Guildhall diamonds.com while you're there, you're going to be learning tons of stuff including why investors love natural fancy colored diamonds. Why this is still one of the best kept investing secrets and of course the fundamentals for investing in colored diamonds and so much more. You got to be there. Paul, what's happening on the diamond side? Well done there, John. Thank you, sir. I might be there. I might come out. Well wonderful. Actually Darren and myself, we did a seminar and kitchener on Saturday which was very, very successful and I'd like to congratulate everybody that purchased a diamond and that took interest in what we were doing. What we tried to do is educate the public in how to invest in natural fancy colored diamonds and why you should invest and who you're investing with. We emphasize that we are a family business that myself, my wife, my son, my daughter, my son in law, Darren, he's my consolary, he's part of the family but it's a family-run business and you know if you ask my granddaughter, she's eight years old, what do you want to be when you grow up? She says I want to be a diamond raider and Darren's kids the same thing they want to be in the business and you know it's exciting to know that the business is going to carry on for generation and generation. Natural fancy colored diamonds as you said is one of the best kept secrets and it's the type of investment. I don't know any investment out there where if somebody's got 10, 15, 25, 50, 100,000 what they do with their money? I mean do you buy a piece of property? Well if you put down a deposit you're still going to be paying that mortgage or you're going to be a renter, you're going to be a landlord, you're going to rent it out, be running around with a plunger and hope you're going to get you know you rent every month. If you put it in the bank you're going to get 1% and probably lose 2%, 3% to inflation. Do you put it in the stock market? You know in my opinion right now the stock market is overboard. You know we're also in the bullion business. The bullion business is a great business but you have to have lots of patience. The market is volatile. We've had a correction over the last three years but as Darren said in the previous segment we're still up over 300% in the last 10 years. But natural fancy color diamonds, the quality that we sell at Guild Hall where we go out of our way to buy nothing but the best. You know go up in value. You can double your money in between five to seven years. It's all about the quality of the diamond, the size of the diamond, the color of the diamond that's going to make you money. You know yellows are doubling basically every five to seven years. Pinks are doubling right now. Argo pinks almost every three to four years. Blues are doubling every two years and reds if you can find them double virtually every single year. Now let me give you a quick example. 30 years ago you could have bought a one carat red unheard of. There's probably only a hundred in them you know around the world. But you could have bought it for $30,000. Today you're looking at 2.1, 2.3 million if you can find one in a VS quality. You know if you're lucky. A vivid 10 years ago one carat vivid. Internally flawless. Yellow. Yellow. You could have bought you know maybe for seven, eight thousand dollars. Today you're paying between 35 and 40 thousand dollars for that same diamond. There is just not the diamonds out there. It's you know it takes millions billions of years to manufacture and grow a diamond. It's not something where it's a turnkey operation. You turn it and out pops you know a popsicle. It doesn't happen. It takes billions of years to grow it. Then to get it to find for every 10,000 white diamonds is only one carat of color. It doesn't mean it's investment grade. To get an investment grade diamond you got to almost mine a million carats of white diamonds. Now everybody knows about white diamonds. You get engaged you know you buy gifts for people. It's an impulse item. I can tell you right now nobody that buys white diamonds ever gets their money back. You know it's Mother's Day coming up on Sunday. You know I'm sure a lot of diamonds were bought little gifts for their mother or their wives. They're not investments. We have people coming to us all the time saying well I'm getting engaged and my girlfriend or fiance wants a white diamond and we just say no. You know adamant because it's an impulse item. To me it's simply one of those things where there was a great marketing campaign that a diamond is forever and it is. It will last forever but no one ever said it would be worth something on the road. One of the things I'm addicted to is the antique roadshow. You see it a little bit in the pond stars or whatever it is but people are so excited they think that something that they own is worth so much money just because it's old or it's been sitting around for so long and they've attached all this extra sentimental value to it that this particular diamond should be worth a million dollars and this diamond for example the thing the one that I'm thinking of was in this family's for generations 200 years old worth four thousand dollars and we do get that what what we see is is basically two main mistakes that people will make when purchasing diamonds and then we'll talk about why we think you should own colored diamonds. The first is that the worst case is that someone buys something that is insignificant and then they're they're still insecure about that investment and they want to know is that is it worth something and you have to act like someone from the antique roadshow and say you know unfortunately it's it's worth probably what you paid for it or worse it's not worth that much you might have to wait a very long time. The next worst scenario is that someone buys something good which is great but they overpaid that's something that also happens a lot in this industry. What really sets Guildhall apart and and why people are so happy to invest in colored diamonds and why every single diamond buyer is pleased is that they all know that they bought something that is of value that's continuing to move up in value because we bought something that is extremely rare and we know it's extremely rare and we only have to look to our own collection to see that. Any pink diamond for example which is under thirty thousand dollars does not last long. People are ready to snap those up. Another example is one carat intense yellows. We don't have any. We haven't had one for a very long time. We just throw one in and the only one that we're about to bring in is because I have a client who is taking his intense and he's moving up to a vivid so I had to pull a little bit of a monopoly situation you know I'll trade you park place for this and he was very happy because he already owns two other he owns a pink and a blue green and I want to talk about blues in just a minute in terms of colored diamonds because there's some exciting news about that but he's he wants to move up to a vivid so we already know that it's really tough to replace inventory and the reason is essentially because people love to own colored diamonds that there's no work put into it they own it they know that in five years it could possibly double in ten years it'll be worth even more and fifteen years down the road a fourteen thousand dollar diamond will pay for speaking of Bernanke and Princeton most likely a Princeton education so it's such a no-brainer in a world where we all think investments should be very very complicated and we have to watch all these bobbleheads on BNN and Bloomberg and personally I just fall asleep with all of it because they seem to want to lull you to sleep because they're trying to make themselves important very much like when the tech bubble came around that we all had to bow down to people who could build a website you know at the end of the day it's not really what it's about this is about making money and these particular colored diamonds have all been money makers and our clients know that and a lot of them continue to buy multiple diamonds as a result the interesting thing though John that we've just gone through you know end of February the RSP season you know it's amazing how many women that we have as clients that own RSPs and they come to us and say well we've made I've made no money you know I've been listening to your show for the last four or five years I've been looking at your website I see the prices are going up all the time I'd rather pay the penalty and cash out my RSP and pay 10% or 15% and take that 25,000 and invest it in diamond that I know could double in you know four five years does that make sense of course it makes sense so again if you sit if you're listening to the show if you've got 15 20 25 50 thousand 100 thousand dollars and you're terrified of the stock market you really don't want to get into gold or silver gold and silver investing is not for everybody I mean the markets are volatile and you know the same thing with owning mutual funds I mean how many of my clients you know get that monthly statement and as soon as they get it they throw up on their shoes every month they're just not making any money they don't like the idea they're terrified of 2008 where they saw their investments their capital deteriorate if you're looking to retire whether it's in 10 15 years time if you're looking to put your kids through university what a great opportunity if you've got a couple of kids by two fancy diamonds fancy yellow internally flawless they start off 12 13 thousand dollars a carat you know in 10 15 years those stones are going to be worth 35 40 thousand dollars each you can't do that on a white diamond there's no guarantee in the stock market there's no guarantee in gold and silver either but you've got to look at a hard asset it's easily transported you can put it in a safety posit box you can leave it at home put it somewhere safe you can if you don't if you're looking for retirement what a great way if you want to buy we have diamonds an argyle pink for example it comes from the tender of 2000 and 13 2013 sorry 2012 it's a 0.81 that stone is actually doubled or almost tripled in the last two years because the argyle mine is closing in 2018 it's an intense it's a 0.81 i think in the next 10 years that stone is going to be a million dollars it's on our website right now for just over three hundred thousand dollars if you have that type of money where you're not getting any return on your investment do a little bit of research look up argyles we have argyle pinks in vs quality we only carry vs in argyle pinks not si one not si two not i ones those to me are not investment grade and that's the color is spectacular but we have argyles that in my opinion is one of the best investments out there if you go to our website you're going to see yellows internally flawless best investment you can make for a small amount of money 14 15 000 dollars you can get started as jeremy said you get into this market you watch the price every year you'll see we we can get you a new appraisal you'll see that it's appreciated and if you decide that you want to go and change that diamond and upgrade you're not going to lose a penny with us we're going to get you into a diamond and we're going to make you a great deal and make you money every diamond we sell comes with a gia which is a gemology institute of america that is the certification of that diamond we give you an independent appraisal we're a canadian company you know you have an opportunity to visit us sit down with us look at our collection you know every diamond on that website we own you know we're not doing bait and switch where we have a whole load of pictures and say i'm sorry i sold that one but i can give you this one or let me go and search one hour we have the product we have on staff a gia diamond grade and graduate my daughter i'm very proud of her uh she is really really up on everything that happens in the diamond industry she's writes articles and blogs she's really astute when it comes to the diamond so not only are you getting our staff you're getting the expertise in every diamond that we sell we stand behind and speaking of blogs and uh the promise to discuss uh blue diamonds um one in the world's largest blue diamond will soon be auctioned at christy's uh this month um that is that article is on the blog so go to guildhalldiamonds.com and you can read all about that uh guildhall does sell blues they we tend to go after very expensive ones however we do sell modified blue greens or green blues and we have a few of those on the site currently um we find those are great finds to have a great way to to round out a collection is to to own a greenish blue or bluish green rather but definitely go to the blog read about this blue diamond there's always some great diamonds going into auction and uh setting records etc and uh the blog is a great place to find out about that take a short break the number one eight seven seven eight silver real money show.com and take advantage of the investing in natural fancy color diamond seminar the 22nd is when it's happening the place will be the supreme luxury event venue 83 11 western road wood bridge how do you get a hold of it 905 305 84 22 and guildhalldiamonds.com please get in there in RSVP by may 14th the real money show continues the numbers 1 8 7 8 silver the real money show.com there is a seminar happening you should attend the investing in natural fancy color diamond seminar in the 22nd the time there's some 7 to 9 p.m it's going to be in wood bridge at the supreme luxury event venue that's 83 11 western road the number to call 905 305 84 22 and guildhalldiamonds.com register spaces limited going to be some white refreshments you want to RSVP by may 14th uh Darren take it away. Well listen Paul's common at the end of last segment about two important auctions Jeremy touched on one that's being held for a blue diamond and another one that's also in Geneva during the month of May is an auction where you're going to see the graph vivid yellow star lot at sotheby's uh be sold it's 100.09 carat vivid yellow and the pre estimate pre auction estimate for this diamond is approximately 15 to 25 million and most of the time they do exceed the high of that estimate so it would not surprise me to see this diamond sell in the 25 to 35 million range if it were to sell at the low end for 15 million it would come in at approximately 150 000 a carat which again would set yet another record now knowing last year with the lack of vivid yellow diamonds that we were able to get through the market and this was the same for many people in our situation uh the prices of vivid yellow diamonds uh in fact had to be affected by a supply and demand in october of last year we as a firm put up the prices of of vivid yellows by approximately 25 to 30 percent depending on the diamond now if this auction goes to public again what you will find is a very quick response and of course yellows are quickly becoming like the pinks and pinks became like the blues and blues became like the reds uh but yellows are certainly the next range of diamond and if that starter price for a yellow right now in a fancy not intense not vivid but just a fancy is around 10 to 15 that's going to pull the per carat asking price up of all diamonds because as you know we have to replace those diamonds in order to sell them again so the prices will rise and we have a very high expectation that after the month of may you will hear more news about it at the end of may we will be attending the jck event in las vegas and as it was last year jeremy and paul and nicole had an extremely difficult time locating any type of quality diamonds especially in the type that we're used to in the one to care range for vivid yellows and as jeremy mentioned earlier intense as of late have been near impossible to find there's nothing coming through gia uh that really is internally flawless and we're not going to drop our mates our quality that's right that's the other difference but the thing is you can be listening to the show right now and say i don't care about a 25 million diamond i don't have that type of scratch well you don't have to have 25 million dollars to make this investment you can get in you know for 12 13 14 000 a character depending on the fancy yellow internally floss you can get in you can get started you need to start a portfolio once you become a collector i'm going to tell you you will get addicted i've been collecting natural fancy color diamonds for a long long time i fall in love with them i don't want to you know let them go i have my own collection but again there's a price for everything and if somebody comes along with the right price i'm happy to sell but i've still got to go out and replace it and again to find the quality that we're looking for is becoming harder and harder you know 30 years ago there wasn't the appetite in china or india or in russia for these natural fancy color diamonds it was just you know the very very wealthy upper echelon movie style sports personality and even now more and more sports personalities and movie styles are getting in on the red carpet with this type of product and they're happy to own a natural fancy color diamond so this is an opportunity and again you can get involved buy some gold buy some silver have a diamond get into hard assets you're going to make money in the long run you uh you mentioned uh sports superstars getting in on this paul german tell me about wealth to wear that sounds so good to have right you can do with these diamonds yeah um i particularly love wealth to wear as paul was talking about falling in love with diamonds each one is very individual and you you remember them they're very distinctive and it's it's almost sad when someone just says i'm just going to put it in the box and and leave it i mean not everyone has the opportunity to put it and wear it out in certain places they don't feel comfortable with their with their job etc but the ones who've put them into jewelry um we love the response they get because they really love um expressing their individuality color diamonds always make a statement people always drop their mouths and gape and and say wow what is that and uh the best part the best part is is most people don't really know what the value of it is either so um wealth wears a great way to make a statement it's a great way to enjoy your diamond while it's a crewing value just like you would art you wouldn't buy a piece of art and put it hide it away you want to enjoy it but it's totally right right um but but you know we what we do is we do custom designs um sort of bespoke uh jewelry if you will and um again portfolio is growing obviously every time we're we're we're creating something new we'd like to to show it off and uh again the response has been wonderful so it's a great way to add add on to the diamond and in some ways it can also add value just like putting in a new kitchen will add value to real estate putting it into a piece can often add value to uh to a diamond one eight seven seven eight silver the real money show dot com to start investing and uh something i know you mentioned in pastials as well Jeremy is the is the buying guide if people know what a diamond is they don't know how to go about getting one right so as i i was i was talking about earlier we we definitely see a lot of first time mistakes um hey it's happened to all of us even we've made uh our we've made mistakes along the way and so Nicole put together a buying guide for those who know they want to buy a color diamond but want to want to ensure that they don't have that crisis of confidence after they've purchased that once they've made that purchase they know what they have they know that uh it it's the right diamond and and they they don't have to worry about did i get the right value have i purchased correct so this buyer's guide is really about trying to avoid a lot of those common pitfalls that people make when they buy uh a diamond for the for the first time or even anytime i mean we just try to alleviate the risk um we take the risk away of purchasing we've gone out we've we've found diamonds like last week i had 10 gia sent to me from one of my dealers in you know in new york i turned down eight of them just on the gia's they you know the table size the depth of width they just didn't mean i didn't even see the color didn't meet our criteria the other two diamonds i had sent to me it's all about the color and it it all depends about the dimensions the diamond has to spark or has to have scintillation when you buy a yellow diamond or a pink diamond from us the colors that come off the diamond are in just incredible we've brought diamonds here before john oh amazing just colors you don't get those colors coming off of white diamond you know most white diamonds they do sparkle but most of them are a little dull they look a little soapy um colored diamonds are the way to go to give you an idea we mentioned an auction for a vivid yellow coming up this month it's a graph owned yellow in that same auction there is also a hundred carat round brilliant white diamond that's going to be up for sale as well the pre s the pre auction estimate for that diamond is three and a half to five million the same carrot size in the yellow vivid both uh both high quality diamonds the same yellow diamond pre auction estimate is uh is 20 as much as 25 million not even close not even close so although whites can be uh in particular a very very beautiful investment a very high end they don't compare to colors yeah an email question correct i did we did paul actually got one that's very extensive from a chap named callin in caladin and uh let me do the best i can to answer the question for callin he came in in the question was in four parts uh he had a bit of an issue with us calling gold a refuge or a place as a safe haven and um he also mentioned that because quantitative easing is coming down why aren't we seeing gold prices go higher uh or how how come gold and silver hasn't have been impacted as much number three when this demand rise jumps who are going to be the people that buy it if the middle class are losing wealth and number four uh the demand where is it going to come from if the middle class cannot buy this product so let me answer the show yes he has it's done um whether or not gold is a safe haven well what we do is we look back at history and history tells us that in fact it is in the four bull markets prior to this during those bull markets less than three to five percent of the investing public actually held gold and silver similar to right now less than three percent actually own physical gold or silver at the peak of those economic calamities when those markets were at their highest we had inflation we had double-digit interest rates double-digit mortgage rates and that's happened four times in a hundred years now that being said what happens is you see the growth of the public ownership jump and the last time that the price of silver and gold rallied in the 1980s in fact the number of people participating rose to 20 to 25 percent which is a huge jump from where we are right now so we know that in fact historically it is a safe refuge and that's where people go now quantitative easing is another thing it's only part of the the problem with quantitative easing it's still happening and it's still ongoing but we have not seen the money that has been put out into the public actually hit the public when it does you will see an inflationary event but until that time it's easy to see why people don't think quantitative easing is actually impacting the price of gold and silver it is just maintaining at this point but when the market starts to receive all that cash flow it will change now third who's gonna buy it well if the middle class is faltering in the US and they're not faltering here in Canada these are the types of buyers that obviously don't have as much money or scratch to put together as they did five years ago what's happening is if Collins listened to the show a tremendous jump in the amount of buyers in the Asian markets primarily in China and that is where you're seeing the middle class start to emerge billionaires are being made every month and that's where the largest appetite for physical gold and silver is right now and lastly in terms of demand Colin this is a show in and of itself we are talking about a replacement for as you said used to work for Kodak replacement for film in the form of pharmaceuticals electrical catalysts reflectance we're looking at it printed circuitry electroplating coins photography silverware and jewelry mirrors and coatings I mean the list goes on and on simply look to your electronic components alone and that in and of itself has picked up all of the slack that photography is left behind and some and then some so going forward there are no problems with this and if Colin wants to leave us another message we'd be happy to answer that as well what was the other thing as well what was the above ground uh silver 20 years ago 30 years ago how many ounces it was over three billion ounces and what is there today less than a bit less than well 900 million well so it's not rocket science it's obviously shrinking you need to get into it give us a call whether you want to buy it outright take it home whether you want to put it in a depository or whether you want to use collateralized financing and use other people's money to buy it the same amount of product get into the market I think this market is about to explode doesn't take much more convincing than that the number is 18778 silver the real money show.com to take advantage of all it and I'll remind you one more time before we go investing in natural fancy color diamond seminars happening on the 22nd of this month from 7 to 9 p.m. you want to register 905 305 84 22 and guildhalldiamonds.com the place will be the supreme luxury event venue that is in woodbridge very nice place 83 11 western road please RSVP by the 14th space is limited there'll be light refreshments and a whole lot of education really good for you to take advantage this has been the real money show what if you could have a streaming service that added new shows and movies every day 365 days a year tune in on monday and watch traumas like fight night the million dollar heist Tuesday watch reality shows like Top Chef Canada and wednesday enjoy comedies like Ted and it just keeps going and going every single day no matter when you tune in there's always new entertainment for you to discover stack tv new shows streaming every day try it free applicable membership 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