The Real Money Show
The Real Money Show - April 26th, 2014
The Real Money Show from Saturday, April 26th, 2014.
And welcome to the Real Money Show hosted by Guildhall Wealth Management, the show that's about incredible potential of owning physical, gold, and silver, natural, fancy-colored diamonds while they can do for your portfolio, the number to call and find out more information, 1-8-7-7-8 Silver. That's 1-8-7-7-8-7-4-5-8-3-7, the website, therealmoneyshow.com. And as always, sign up for the Precious Metal Advisor while you're there. Welcome to the show, guys. Darren, take it off. How was the week? The week that was, John, was a good week. Gold sitting as we're speaking during the show in the 1,300 range, while silver rebounded late in the week up to the 1980 range, currently trading between 1960 and 1980. And I'll tell you, momentum is an extremely powerful force, my friend, when it's working. Trend-following traders and algorithms looked as though they were going to push the price of gold and silver a wee bit lower earlier in the week. And there does remain a possibility of further weakness in both gold and silver testing. In particular, it's big support level of around 1180, but we look further away from that as the end of the week is approaching. Now, having said that, the geopolitical backdrop of increasing tensions over Ukraine between Russia and Western powers and indeed between China and Japan is very gold supportive, as is the still very robust physical demand, especially from China and Asia. In the week, we had the FMC preparing for their monthly meeting. This tends to have a fleeting short-term impact on gold prices and barring any major surprise, Yellen's monetary policies already priced in when it comes to gold and silver. As ever, a better than expected jobs number on Friday, we're doing this show in the morning. This is something that can make or break gold in a later stage of the week. But again, we saw very good numbers this week for gold and silver. And let's say congratulations to everybody that bought this week. We had an influx of depository clients this week. Sometimes I think people understand when there is concern, especially growing in geopolitically concerned geopolitical instability. People use that as an excuse to get into the market, and it's perfectly acceptable. We're going to talk about the history of silver today, a little bit about the more recent past, and certainly want to welcome those that are listening as new members of Guildhall Wealth Management and those that bought this week. Well, the interesting thing is as well, there was a pretty big run-up this week in the Dow, as well as the Nasdaq Apple deciding to split this stock 7-for-1 so that they can get into the Dow. As we're recording this show on Friday afternoon, the Dow is down 164 points. Crude oil is hovering just above $100, yet there's no let down at the pumps. It's still about $35.40 a litre wherever it is. If you're using the higher grades, you need to get two American Express cards to fill your car up. It's getting pretty, pretty expensive. My belief is, in my opinion, is that the stock market is ready to come off gold and silver should move up nicely. As Darren said, we're trading in the $1,300 range in gold. Silver is just under $20. I think it's an incredible buy. There's only a certain amount of places where you can put your money. You can put your money into real estate, real estate moves up. You can put it in the bank. You're getting no interest at the moment. You can put it into the equity market and get some dividends. But dividends are no good to you if the equities start to drop in value and you see your capital start to erode. I think that's going to happen over the next little while. A gold trading that's just under $1,300, silver at $20. I think it's an incredible buy. The number to call is 1-877-8-Silver or 1-877-8-745-837, the realmoneyshow.com. Fellows kind of an anniversary of sorts. Darren, tell us about these silver prices. Well, listen, three years ago, this week on April the 25th, silver hit near $50 an else. It was on April 25th and traded at about $49.80 in the New York spot market. That means silver was trading in many places, including ours over $50. There was a lot of business going on at that time. But after holding $49 for the rest of that week, silver prices began to retreat and they did it very fast. Remember, if you've been listening to this show for years, days, maybe this is your first time listening, we have always established that there are four main fundamentals working in this particular market of gold and silver. That is that there is an expectation. Number one, that there will be a falling US dollar or a weakening US dollar the world over as a currency. Number two, part of that weakening is predicated on the fact that there is going to be a lot of more printing and quantitative easing, which puts the fear or threat of higher inflationary pressures coming into the market. There is number three, geopolitical instability. We're seeing that in effect right now, in essence, what's happening with Ukraine and Crimea and Russia. That is definitely something that's happening. And number four, supply and demand worries. These are the four fundamental groups. And we have talked about this till we're blue in the face, but that's what has been involved in every major market. So three years ago, that transpired in one of the factors that many traders were looking at back then was the gold silver ratio. Some believe that silver was much undervalued versus gold, and it currently is, and that it would recover its historical high, which is 16 to one. And if you look back to 1979, the last time we're in a bull market, in fact, at its peak, gold reached 850 at its peak, silver reached 52. And that is a 16 to one ratio. This ratio has been around for hundreds, even thousands of years. And certainly traders saw that ratio coming back. And of course, that created a ton of momentum 36 months ago, and people bought silver based solely on that and other reasons. But there were a lot going on back then that's very similar to what's developing right now. And certainly over the last three years, for those who continued to hold bullion, they understood the reasons they are what's considered strong hands in this market. Certainly it's been frustrating for them, but three years is not a long time. And it's interesting to see how fast things can progress in a three year period. Looking back, obviously, we've had a major continuation of QE. They just keep printing more and more and more back in 2011. They were still climbing out of the recession at the time. It's still questionable whether or not they actually left that, although the stock market is the only thing that would say different. The unemployment situation has yet to improve in the US and getting back to what Darren said. I think the demand supply scenario is something that definitely needs to be looked at. The sentiment in North America was brought to its knees in 2011. But since that time, the sentiment all over the globe, specifically Asia and India and China, Russia has climbed up dramatically. And I think that's something that any potential investor wants to look at. And it's the power of numbers, the power of individuals to purchase gold and put it more and more into strong hands. And I think where the price is today is an indication that it's really tough to shake that tree and get any additional weakness out of this market. When it tires flat, it's flat. And that's where we are with the current price. And this is why it's such a great opportunity to get in at the slowest price, because we can see just across a couple of ponds that the sentiment is massive. Well, one of the things as well is like buying silver. Silver is heavy. At $20, the price of silver right now, 1,000 ounces, weighs 70 pound. If you're going to buy 5,000 ounces, which is about $100,000 worth, are you going to take that home, lug it, bury it in the backyard and put it under the bed? No, the answer is you put it in a safe, secure, depository, which Guildhall offers, where we offer it. And even an insured, it can be segregated and allocated to you. We also, you know, if you want to buy gold and silver, you can buy it from Guildhall, take it home, do whatever you want to do with it. And the third option that we have as well at Guildhall, we offer collateralized financing, where you can put up as little as 20% and still control that 100% of precious metals. To buy gold and silver right now is one of the smartest things you can do. Darren was just talking about May 31st of 2011, Silver was trading at $49 and gold was trading at $1920. Silver came off almost 60% over three years, and gold is off about almost 40%. There is more movement up. If you believe, if you're listening to this show and you believe that Silver can go back to $50 in the next two, three years or two years or one year, you should be loading up the boat. You should be buying it, whether you put it into the depository or taking it home or using collateralized financing. And the other exciting metal, which we're really excited about, I don't know whether we're going to talk about it later in the show, is platinum and palladium and how Russia and South Africa, you know, are holding, but with problems with strikes in South Africa, the problem with geopolitical, what's going on with Ukraine and Russia, I think palladium and platinum is going to skyrocket. I think you could see $2,000 palladium. I think you could see $5,000 platinum very, very easily. The number 1-877-8 Silver, that is 1-877-8-745-837, the website, by the way, therealmoneyshow.com, Jeremy. Yeah, I think this is a good opportunity with this anniversary to just look at the differences between the particular run-up in Silver to $50 back in or close to $50 back in 2011, which wasn't too far too long ago, and what we saw back in 1980. It's very different. The principal driver back during 1980 was principally inflation. It was also the attempt by the Hunt Brothers to corner the market. And this was eventually squashed out by raising interest rates from the Federal Reserve as just one way that that market ended. But one thing we did see at that time was that the ratio did come down to 16 to 1, that the ratio of gold to the Dow was 1 to 1. At that point, if you looked at what gold and silver could purchase you, what their actual purchasing power was, it could buy you a lot of goods. It was what we would consider as maximum purchasing power. In 2011, silver near $50, gold near $2,000 was nowhere near its potential purchasing power. And so I think that that means you have to look at it more like it was equivalent to 1976 when gold went to $200 an ounce and then retreated to 100. Imagine how many people jumped off that boat only to miss it four years later when the price went from 100 to 850. The difference between '70s and now is very, very distinct. I mean, the fundamentals are all there and they underlie all of the major bull markets we've had in the last hundred years before we talked about. But ultimately, 30 years later, this is now a global problem. It's no longer one or two major economies. And we are faced with an epidemic of sorts, a crisis that has included countries like Greece and Ireland, Portugal, Italy, Spain. And those are countries that have very serious economic problems. And that all transpired a few years after the 2008-2009 crisis. And in the United States in particular, there's a huge confidence problem in the economy right now. And it's continuing at record lows. But I'll tell you, when the Fed started announcing quantitative easing, I think it put everybody's mind to ease that they were going to try to support the market, stabilize it. And ultimately, it's like a drug. They've become addicted to it and they cannot get away from it. And most sane banking individuals or financial planners and advisors that have an ounce of smart in them, they understand that this cannot end anyway but bad in the near future. There have been many people that have talked about a total reset. And ultimately, yes, I believe that the best way to get out of this is just to let things go. You've got to let businesses fail. You have to let huge institutions go by the wayside. And you cannot keep pumping money into it. But the ultimate asset to own during instability and during times of crisis has always been hard assets. Gold, silver, natural fancy colored diamonds. Yeah, there's no counterparty risk with gold and silver like you would have holding any paper denominated assets. Certainly, this rabbit hole of an economy makes it very difficult to make well thought out plans, make decisions based on what you're seeing. You really have to look through and look at the fundamentals and think hard. Use your brain more than just the emotions. And I think looking at the sentiment in gold and silver, you have to look beyond that. You have to look at the price, see how cheap it is right now. And when you do, you can see what an opportunity it is because silver has a potential to go much further beyond $50. It could go much, much higher. Gold could go much, much higher than just $2,000 an ounce. And when you can see that, hey, I'm already getting it at a discount, you've got to start looking for ways. Now, with Guildhall, we do have the depository. We give you titled ownership. We give you the ability to view your bullion any time. Take it away anytime you'd like. And I think that most people are looking for those reassurances these days that they want to make sure that it's safe, it's secured, it's insured, but they have access to it whenever they want, that they have the liquidity that they can sell it whenever they want. And that's what we offer with the Guildhall depository. Guys, want to get into an example of purchasing silver when we come back from the break. We'll take a short one. One eight, seven, seven, eight silver. That is one eight, seven, seven, seven, eight, seven, four, five, eight, three, seven. We're also going to talk more about the anniversary of silver, the record high a few years ago and the websites of real money show.com. Lots more of the real money show coming up and more of the real money show, the number one eight, seven, seven, eight silver, one eight, seven, seven, eight, seven, eight, seven, four, five, eight, three, seven real simple and the real money show.com. Darren, example me. Well, as Jeremy finished off the last segment talking about the depository, getting into physical ownership is really easy. It just starts with understanding why you want to own it. And of course, you have to address how much to invest. But once you're ready, we've established minimum. So of course, in silver, we want to have investors that are putting a hundred ounces of silver or more into the market. And then if you're going to collage we finance the product, meaning you can get as much as 80% of the product leveraged for you. Then of course, the account is starting at a slightly higher minimum of 250 ounces. Now, to get into the depository, let's say for example, a thousand ounces today is going to run you around Canadian dollars 24 to 25,000. Now that would be the most typical form, which would be hundred ounce bars. You'd have 10 of them. They'd be titled if you so desire, you can have the serial numbers. Again, if you desire, that account would be set up and ready to go within 24 hours. They would be stored in an area, which is completely liquid in an LBMA certified facility. It's a class three vault, the best of the kind in the world in our depository. And you can come and visit that product by or sell the product and have it audited whenever you like. Now, if you want to take that a step further, there is a second option. You can collage the financial product. That same thousand ounces, which carries again a value of 24 to 25,000. You could put down as little as 20% of that metal value in the same example around 4,500 to 5,000. And then with respect to ownership, you still own the product, but you held back a ton of money to do it. Now, if a rainy day comes along the price drops, you have the money. You can always pay it off if you like to do that. But here's the exciting part. If you found something that nobody knows about, a piece of Mascoka real estate 35 years ago, 40 years ago, would you buy a little bit or would you buy a lot? Now, when it comes to silver, very few people know about it. Less than 3% of the world's global asset population currently owns silver or gold. It is a relatively unknown commodity in the grand scheme of things. And with the set of fundamentals, it has behind it. After you hear the story of gold, you talk to any of us here when you make a phone call to the office. I assure you, you will be super intrigued and you will most likely think you are heading in the perfect direction for your portfolio. And when that happens, you may, in fact, want to collage the finance and product. That same thousand ounces you own and you control. But now let's compare the two. I own the depository. It's a thousand ounces. I put up $24, $25,000 to own those thousand ounces. The market goes up twice the value. Now I have two times the amount of money that I had. I laid out 24, 25,000. Now it's worth, you know, 40, 45,000. Now if I did that with collage finance product, I still would get the same amount of gain. But I laid out a whole lot less to get it. And that's a big difference. It's not for everybody. And we are not sitting here as your financial planners or advisors. That's not our role to play. But collage financing is a fantastic way to make a good return. On the other hand, I mean, if you wanted to lay out $25,000 instead of getting a thousand ounces, maybe you would buy 4,000 ounces. It's still collateralized finance. Collage financing. You're going to make four times as much money. So silver moves up $10. You've made $40,000. If it moves up $20, you've made $80,000 on 4,000 ounces. If we go back to $49 where we were, 4,000 ounces, you're going to make close to $100,000. If that's the type of money you're looking to make, this is the investment. You know, as I said in the first segment, I think the stock market is going to come off. If you look at the US right now, real estate, they're not selling as much real estate because they look like interest rates are going to go up. And you can't keep zero interest rates forever. The Fed lends banks in the US at almost zero. It then buys 10-year treasurism, makes almost two and two and three quarter percent or lends a little bit of money out on mortgages. That cannot carry on forever. You can't print money and give money away for nothing. It doesn't make sense. It's not logical and it will not carry on. So you need to be in a hard asset, gold, silver, platinum, palladium. We love platinum and palladium right now, just because of the geopolitical things that are going on. Strikes in South Africa. There's only two countries that produce platinum and palladium. Russia and you've got South Africa. South Africa's got strikes, all types of problems. And I think Russia is going to hold on to their platinum and palladium because they're going to play hardball with the US and Europe. I think that if you want to hear more about this story, this is a developing story, albeit we started recommending buying palladium when it was 186 dollars an ounce. This is a long time ago. But again, it's built on the same set of fundamentals as gold and silver. It's a great story to be told. And it is something that if you're an investor, it's research laden, it's empirical data. It's stuff that makes investors scream when they get an opportunity in front of them like this. And this is the type of asset you should have in your portfolio. But to find out more, what I would recommend is get a subscription to the pressure mill advisor. I did a two part series. I've done now palladium and platinum. I'd be happy to resend those to you. Jeremy, be happy to resend them to you. So would Paul, it's just a matter of calling the firm for that alone. That may be in fact where you want to start your portfolio when it comes to physical precious metals. And that number is 18778 Silver and TheRealMoneyShow.com. Jeremy? Yeah, I think what we're talking about here ultimately is taking a look at your portfolio, asking some questions like how confident are you that the stock market is going to continue up. It's moved up basically since 2009. For five years now, it's been moving up, moving up. We know a lot of that is based on quantitative easing, of course. How confident are you that this is going to continue? How confident are you that the real estate is going to continue? How confident are you that inflation is going to stay low? Gas prices at the pumps this week jump pretty high and it's nowhere near the per barrel that it was several years back. So inflation's definitely with us. But how confident are you that it's not going to be even more of a problem going forward? Gold and silver are perfect hedges against all of these problems out there that if you feel that they're in the pipe, you want to start reorganizing your portfolio. Maybe you have made a lot of money in the stock market. Perfect. Maybe you have some dog sticking around that you just haven't made anything on and you're looking for an alternative. So we offer that alternative. Hard assets don't go out of business. It's a great opportunity, especially at the lower prices here. Take advantage just like the central banks are doing all around the world. Just like China, India, Russia, South Africa, Brazil, they're all taking advantage of the lower prices. Have you managed to take advantage of the lower prices or are you going to wait till the price is $50 in which case you've already missed over 100% gain in this market? Do you want to be that person who missed that 100% gain? The only way you're going to know whether or not you're actually going to miss it is if you've done your homework, you request a kit, you get onto the precious metal advisor and you start thinking about, "Hey, is this really undervalued like these guys say?" We strongly believe it. We think that there's an immense opportunity to make some money and protect yourself while you're doing it. Well, the other thing is as well, if you look at Gold and Silver and Platinum played him, there was a huge correction three years ago. The price was hammered down or not hammered, it was smashed down and the stock market went up. If you really think the stock market is going to keep going up and Gold and Silver is going to go down, this is not for you. It's absolutely not for you, but you've got to look at hard assets. You need to have 15% to 20% hard assets in your portfolio. It doesn't matter. It's a protection. It's a hedge. But let's look at the car industry. Platinum and played him are used as catalytic converters. Now, in the US, they sold, I think, 16 million cars last year in Europe, in Asia, in India 10, 15 years ago. In India and in China, they weren't driving cars. They were on pedal bikes. Now, they've got cars and because of the emissions, they need to have Platinum and played him. It's really important that you understand if Russia is one of the main producers, there is so much, there's only so much Platinum and played him, the car manufacturers can hold. It's going to run out. If you keep manufacturing cars and you need to put catalytic converters on, you're going to run out. And the price of Platinum and played him, I think, is going to go through the roof. The numbers, one, eight, seven, seven, eight, Silver, the real money show.com. Darren, take us back to the anniversary of Silver. Well, we are celebrating the 36-month anniversary of the highest point of this bull market that Silver has reached, which back on April 25th of 2011 was 4980 in the New York spot market. It did definitely come off over the next few days. And of course, as Silver has done four times during this last 12-year bull market, it fell very hard. Now, that being said, what interests me about celebrating this anniversary is seeing what has transpired since that point in time. We all agree there has been a huge market correction in all world markets. Globally, we are in a bit of a slump, a funk, if you will, there are very few economies that are surging forward, at least at the pace they were prior to 2008, 2009. And our economy here at Homie Canada, although stable, certainly isn't producing a whole lot of new jobs, a whole lot of new booming industry. And as a result, we're looking at what potentially could be an event that drives gold and Silver prices higher. Well, that 36-month period has transpired. What has changed is amazing. If you look at, from a demand perspective, we are now finding the highest during what is arguably the lowest amount of supply we've ever had at Silver above ground, the highest amount of industrial demand we've ever experienced. Now, once upon a time, you could, on one hand, tell me what Silver was used for. It was put in a little bit of jewelry, mostly photos. And again, it was used in-- Not in ports, not in ports. Silver where, right? How many people have a silver, silver where sat now? Nobody does. I mean, it just doesn't exist anymore. But if we advance in 2014, Silver has taken the world by storm, at least from an industrial standpoint, and we're at the highest demand center we've ever had. It's in electronics, so it's in everything we touch, from cell phones to computers, from tablets to TVs. It's an air-conditioning unit. It's in cars, solar panels, it's in solar panels. Full photo, photovoltaic technology in the solar panels, it comes in-- it's in a paste they apply to the solar panels themselves. And it requires a very high purity of silver that's not commonly found in the market, which is four nines. Usually a lot of the silver found is three-nine. But ultimately, these are the growing industrial trends in silver. Now, knowing these trends ahead of time, knowing right now as a listener, you are seeing the market evolve and mature, and it is not the hunt brothers that are going to corner the market. It's not one entity that's going to buy all this silver. Rather, that when the economy starts to improve, guess what? Unlike its big brother Gold, which is basically just uses a store of wealth, this is an industrial metal. And so many people are going to own and buy more of it as a result. So when you know this is going to happen, like I said earlier, it's like a great piece of real estate. If in hindsight, 40 years ago, you knew that you could buy a cottage on Lake Joseph or Lake Rousseau up in Miskoka for a pittance of what it's worth right now. I think many people would have bought up as much land as they could. Now, it's a mill plus an acre, a two mill plus an acre, and it's a beautiful investment that is exactly what's happening with silver right now. 18778 silver is the number. The website is therealmoneyshow.com. And what Darren's talking about is supply, demand, aspects. And I want to add to that, the fact that back in 1980, there was 4 billion ounces above ground. Now, there's less than 1 billion ounces above ground. The population of the planet's twice what it was, and the technologies have increased exponentially when you think about that. Now, also start to consider another aspect of this. Think about the US debt for a moment. It hasn't gone down in how many years. So one can assume it's only going to continue to increase. And if interest rates go up, now the payment on that is going to be massive. How much of the GDP is going to be put towards making just interest payments alone on the US? So they can stave off some emergencies here and there, but it is a very fragile situation with the world's reserve currency and what they're trying to stave off on a day-to-day basis. So how long is it going to be before the debt is 20 trillion, 25 trillion? And before they're paying, before they're spending most of their tax income, just trying to pay off the interest alone. So when you do think about those things, you combine the industrial demand with the hedge of having physical bullion in your portfolio to hedge against declining currencies. You can start to see, whoa, we have, and I've repeated it several times here, a tremendous opportunity at $20 an ounce. And I find it amazing, actually, that really only the bargain hunters are out right now. Every day, every client who's getting into the market, and we've got a lot of people buying in, but they're all bargain hunters. We haven't seen a non bargain hunter for several years. They should be loving the price at $22, $20, $19.50. It's an amazing steal at this price. And again, you should be buying when the prices are low. You're supposed to buy low and sell high. You don't buy high and sell low. I mean, that's the most stupidest thing. You know, we will sell more silver when it's $25, when it's $30, when it's $40, and when it's $50 than when we will at $20. The same thing with gold. People love headlines. It's a herd mentality. You see gold hits 1,400, goes 1,500. Do the headlines, $2,000. Everybody, when a taxi driver tells you to buy, you should be selling. And it's going to be exactly the same thing as the stock market, the .com bubble, real estate bubble. Not everything can float up at the same time. Equities can't go up, real estate can't go up, interest rates can't go up the same time as, you know, real estate's going up in value. Real estate, the interest rate has to be low. Jeremy's talking about the debt of the US, $17 trillion at zero interest right now, zero interest. The treasure is 10 year of 2.69, something like that. Who's selling? Who's buying the treasure is? Well, $17 trillion, not at zero debt, at zero interest. What is it at? 2.69? Well, they're getting gas on interest. That's $17 trillion debt total. Yeah, but I'm saying it's printing. Yeah, I know, but it's at 2.69. That's a pittance. That's good. They want low interest rates. Of course, they do. But then they've got another $200 trillion that's off the books, that social security and Medicare. That's not even on the books. That's being kicked down the road for later on, for generation to generation to pay. Interest rates go up a point, 2.3 points. They're keeping it down. They're keeping the price of gold down. They're keeping the price of silver down and they're pumping up the stock market. Last one in, first one to get hurt. That's what's going to happen in the stock market. They'd go doing Apple 701 split. They want you to buy it. They want you to buy it into the stock market. Your dividends 4% and what happens if the stock market comes off 20%, 25%, which it's going to be. It's going to be a correction. There is always a correction. There's always a correction in real estate. There's always a correction in the stock market. There's been a correction in gold and silver. Do you want to buy something that's been corrected, let gold and silver, or do you want to buy the stock market? That's a ridiculous price right now. If you've been sitting on the fence, this is the time to get into the market. 1 8 7 7 8, silver is the number. Remember at 1 8 7 7 8 7 4 5 8 3 7, the realmoneyshow.com. We are talking natural fancy colored diamonds when we come back. And more of the real money show. This is the number 1 8 7 7 8, silver. That is 1 8 7 7 8 7 4 5 8 3 7. The website is the realmoneyshow.com. Let's talk diamonds, Paul. I love this part. Well, let's, isn't, let's talk diamonds because Darren in this last segment was talking about a piece of property. Where was it Darren? I was talking about actually between segments. We were saying that a good friend of ours bought up in Muscoco, which led me to using that analogy today in the show, a piece of property, some 40, just a little under 40 years ago. And at the time, they paid 38 and a half thousand dollars for the property. And at this particular point in time, with a small upgraded cottage, which is just a three bedroom cottage, it is no more than 1500 square feet. That property is estimated value of one acre with just over one acre lot with a 160 foot of frontage is valued at just under four and a half million dollars. That's a great example. Let's talk about natural fancy color diamonds. Natural fancy color diamonds come in an array of different colors from yellow, pink, blue, green, orange, all the way up to red, which is the rarest color. 30 years ago, you could have bought a one-carat red VS diamond for around about 30,000 dollars a carat. Today, you're looking wholesale 2.3 million. So at a retail level, that could easily be a four million dollar diamond. That's at a VS. If you were to get into a larger diamond, a tour or three carat, that diamond would easily be worth close to 10 million dollars. At auction, these diamonds are bringing for 10 carat and 15 carat pinks, 70, 80 million dollars today. These are diamonds that have been probably the best kept secret of the wealthy and the savvy investor for the last 50, 60 years, maybe a little longer. Natural fancy color diamonds in the last 40 years since they've actually been keeping records. These are records from auction houses, wholesalers, dealers, they have never ever dropped in price. Now, not all natural fancy color diamonds go up in value, only the investment grade. So let me give you a quick, quick lesson on what natural fancy color diamonds are. For every 10,000 carats of white diamonds mined, there's only one carat of color. That doesn't mean it's an investment grade, it just means it's color. White diamonds go from D quality, D E F G all the way to Z. When you get to the Z, it actually becomes a color, it becomes yellow, it becomes tinted. It doesn't mean that it's a high intensity of color in the diamond. It's just an off color. Years ago, when you say to someone yellow diamonds, they would say, oh, that's garbage. I mean, yellow diamond, no, it's got to be white. It's got to be blue white. But color diamonds start off at yellows, pinks, blues, whatever, all the way up. We carry three different types of diamonds, fancy, intense and vivid. That's the three different colored intensities of the diamonds. To find a fancy vivid, internally flawless, that means a diamond has no inclusions, you have to mine almost a million carats of white. So that's why they are so rare. When you get into colors like pink, pink diamonds don't come in large sizes. The Argyle mine, for example, which is the main producer of pink diamonds, they produce 90% of the world's pink diamonds, yet it's only one tenth. That's one tenth of 1% of their total production, yet they produce 90% of the world's diamonds. So pinks are extremely rare. Now, the Argyle mine, it's supposed to be closing in 2018. Right now, they at one time, it was like picking the fruit from low-lying trees. Today, they have to be deeper and deeper and deeper to pull these diamonds out and the diamonds are getting smaller and the quality is getting less quality than previously mined. If you go to our website, GuildhallDiamonds.com, you're going to see an unbelievable array of Argyle, fancy, intense VS qualities. Now, the Argyle mine produces in the pinks, mainly not the quality of VS is a lot of SI1, SI2 and I1, which means these diamonds have a lot of inclusion. They are investments from the Argyle in pinks, but because of the inclusions, it takes away the value of the diamond. If you were going to buy a Rolls Royce, you wouldn't want to buy a Rolls Royce with a dent and scratch in it. It's a Rolls Royce, but you're not going to buy a dent and scratch bargain. You want to go for something that's pristine. When you go to our website, you look at our Argyle pinks, they're all VS quality. You say, "Well, these prices are a little up there." For a .59, intense VS is 143,000. This diamond, in actual fact, has doubled in the last three years in price. I believe this diamond for 143,000 within the next three years is going to be close to 300,000 and in the next 10 years is going to be half a million dollars because the Argyle mine is closing and these are very, very strong investments and only the smart, savvy investors are buying into the pinks. 1-8-7-7-8 Silver or 1-8-7-7-8-7-4-5-8-3-7, the real money show .com is a website, Taren. I wanted to say that if you want to look at this a different way, everybody knows white diamonds. 80% of the total colorless market is garbage diamonds. They're not investment grade. They're used to put on cutting wheels, in costume jewelry, smaller pieces, but they are not what we would consider investment grade. Of the 20% remaining, we could classify only .9 of 1% of the 20% remaining of the total diamond's mine as colored diamonds. Of that .9 of 1%, 1% of those are considered to be investment grade. Now, anywhere else in the world I was looking or considering about investing in a colored diamond, there are a multitude of companies I could go to to find what Paul was just talking about, lower quality diamonds and you could do that day in and day out. To find what I just identified to you is near impossible, but at Guildhall, we have it because that's our job. We are registered with the NCDIA. If you are looking at colored diamonds, looking at purchasing from other people on the web or other companies, call the NCDIA and find out if they're registered. Find out if they're good business people. Are they somebody at the NCDIA recommends? And I believe that if you call the NCDIA and ask about Guildhall, they will give you a good reference. And that's what is different about our company. It is our mission to bring those incredibly excellent diamonds to our clientele so that money can be made. What we are noticing is that we still think it's a best kept secret. I think the market is growing to it more and more. You're seeing more companies come out of course selling colored diamonds. But one of the things we see repeated over and over again is we will see clients approach us after they've purchased a diamond elsewhere. And just like anybody else who buys a diamond, they wonder, did I get a good deal? Did I buy it at the right price? Did I get a quality diamond? So there's still that lack of confidence even after they've made that purchase. And for whatever reason they come to us, we help them, but we see a lot of buying mistakes. We see a lot of first time buying mistakes. We've all been there. Even Paul and myself have made those mistakes in the past. How do we correct those type of mistakes? Well, we make sure that there's a graduate from NCD from GIA on our staff to to verify the GIA reports that we're receiving before we even look at the diamonds. A lot of its experience. A lot of it is having the right connections to the right type of cutters and polishers and dealers. So there's a lot of things that go into making sure that you get the right diamond. What we really recommend to anyone who is in the market starting to look at buying time to get the buyer's guide, contact us here at Guildhall. We have a 10 step buying guide, things to avoid, things to make sure that they have. You wouldn't go out and buy real estate without some expert advice. This is a tool you need if you're going to purchase a colored diamond. Again, as Jeremy said, if you're going to buy a piece of real estate and you're buying a resale house, I mean, you call somebody in to come in and survey the house to get an inspector to make sure the roof is okay and there's no problems with that house before you buy it. And it's the same thing. We try to educate our clients to buy the right product. The first thing that Guildhall we offer is the color. When you're buying a natural fancy color diamond, color is the first thing that you look at. The next thing is the clarity. Now, clarity means does the diamond have inclusions? In pink diamonds, for example, in the Argyle pinks, it's almost impossible to find an internally flawless because there are natural inclusions in the diamond. So they can't be polished out and you don't want to take a one-carat stone and polish it down to a quarter of a carrot. That's absolutely ridiculous. But there will always be an inclusion, but you want limited amount of inclusion. So again, if you're buying a pink, an Argyle, you want to go to VS, you don't want to go to an SI, which means you can see the inclusion with the naked eye. The third is the cut. Now, because of the cut, it brings out the color, the scintillation in the trade, we call it the fire, all the different colors that fly off the diamond. Certain cuts bring out that scintillation, whether it's a cushion, whether it's a radiant, whether it's a round, a brilliant cut or an emerald cut, those are the cuts pear-shaped that bring out the colors and the vibrancy in the diamond. And fourth is the carrot weight. We only sell in the pinks close to 20.25. .24 is probably the smallest that we go to an Argyle pink, especially if it's a color. But most of the yellows we do is a carrot and above. There's not an investment if you're going less than a carrot in a yellow diamond. If you look at our website, go to GuildWhoDiamonds.com. You will see one of the largest selections of internally flawless yellow diamonds. And actually, early next week, I think there's another 10-12 diamonds going up because I bought a parcel, they're exquisite. We've got a lot of fences. We've even got the most beautiful stone that I've seen in a long, long time. It's a 3.36. Fancy, intense yellow, internally flawless, emerald cut. The stone is magnificent. It will be up on the website next week. This is an investor's dream. This stone is magnificent. I'm actually purchasing and thinking of putting this diamond into a piece, into a ring for my wife because I think it's such an unbelievable piece. At the end of the day, what we're really proud of is quality. What we seek out is quality. We want potential clients to appreciate the quality that they're purchasing. Not that they're just purchasing a diamond, but that they are purchasing the absolute top quality that their money can buy. That we stick to the strong criteria that we go through when we're buying that diamond. Part of the 10-step buying guide and part of our brochure as well, just understanding colored diamonds, is helping potential clients appreciate colored diamonds in general, but then also appreciate the top top quality that they would get at Guildhall. I think one of the things that you get from that 10-step guide as well is understanding the transparency that Guildhall has. Not a lot of companies are going to offer that the appraisal or a money-back guarantee or show you that they're part of the NCDIA or put their prices up on the site or be able to show you those diamonds because we own all the diamonds. We're very proud of the platform that we have for people to invest in colored diamonds and as well exit the market when they need. We're really proud of this guide. We think that if you're in the market or starting to look at colored diamonds, this will be an integral part of that purchase process. We'll take a short break. We'll recap everything. Numbers 1-877-8-CILBER 1-877-8-7458-745-837, TheRealMoneyShow.com. The Real Money Show continues here. The number is 1-877-8-CILBER and TheRealMoneyShow.com. We're talking about diamonds and the way the prices go up with natural fancy colored diamonds, Paul. Absolutely. Natural fancy colored diamonds tend to double every four to five years, but the quality diamonds, whether they're yellow vivids, blues and pinks, tend to double sometimes within three years and two years. They're getting extremely rare. I've had an incredible job trying to find argyle pinks of VS quality. There is none out there. There's none on the market. There is a big jewelry show called the JCK in Vegas, which is in June the 1st, June the 2nd. I know for a fact, because I've been talking to suppliers, there is no VS2 argyle available. There's SI1, SI2. Go to our website and have a look. You can buy an argyle ping from us. If you're looking to retire, you're looking to put your kids through school when they're 18, this is a great investment. Argyle pinks tend to double every three years. If you're buying a stone for $100,000, you could be looking within three to five years at $200,000 and at 10 years, a $4,000, $500,000 investment or a return. So it's an unbelievable investment. The numbers, 18778 silver and guildhalldiamonds.com. We're talking earlier guys in the show about the anniversary of silver, big anniversary coming up, right? It is. This is the 36-month anniversary of silver hitting 4980 in the spot market in New York, which is April the 25th, April 25th of 2011. This is what we're talking about. What led us there? And what is the future going to hold? What is the future going to hold for silver? But again, Paul was just mentioning there are many anniverses, one of which he was just saying is a great story, which tells us about the longevity of gold and silver, especially gold. Yeah, 157 years ago, up the shores of South Carolina, a ship sunk carrying gold and silver. Unfortunately, there was over 400 people lost their lives. But about 20 years ago, they were able to bring up two tons of gold from this ship. Now, that two tons of gold has gone up about three, 400% since they picked it out or brought it out of the water. They're now going back down. Obviously, the equipment is a little more up to date. And there's millions and millions of dollars worth of gold that they're trying to recover. Now, in World War II, ships left England to go to Europe. And a lot of those ships were carrying payroll for the army. They were at war. They were banknotes. They were the big five pound banknotes. Nobody's diving for those five pound banknotes that got sunk. So it just goes to show you it's a hard asset, it's something that's going to go up in value. And I think gold and silver right now is one of the best investments, along with platinum, platinum, and natural fancy color diamonds, to add to your portfolio to protect you for these turbulent times that I think are coming up. Well, when we're talking again, if we're getting back to the anniversary, it's important to note what the future holds. We've talked about all the things that led us here and the fundamentals that are driving this market. But if you look at the future, I love to summarize the future for silver in its usages. And more than ever, we are seeing the industrial revolution of silver in the physical form. Now, if you look to just one area, pharmaceuticals, this is a huge area. And it silvers a leading a revolution in technology and medicine. The white metals, unique bacteria, fighting qualities are becoming more and more critical in healing conditions. And that ranges from burns to legionnaires disease. And in fact, if you look at the most powerful treatment for burns, it is in fact silver, sulfur, diazine, which is used in every single hospital in North America to promote healing and reduce infection. Now, we already know about some of the simpler things that are causing demand to spike like electrical. Silver is the best electrical conductor of all metals because it does not corrode. It's used in electrical and motor control switches and it's universal. Every electrician knows this. But did you know also that silver is being used more and more as a reflectant? And as a reflectant, silver windshields and homes, cars, office buildings, they reflect away some 70% of the solar energy that would otherwise pass through. And they reduced the load on air conditioners in the summer. The US Department of Energy's Energy Star program has spurred 50% increase in silver coated glass in the past six years, which has translated into 350 million square feet of glass or about 5 million ounces of silver per year on that one demand alone. And the reason it can do all of these things is because it's got very special properties. It's a precious metal. It's a precious metal that's trading for a price of a latte and a magazine. That's incredible. When all other precious metals are trading at triple digits, you've got a precious metal that has the least amount above ground for less than $25 an ounce. So when you think about all of the usages that are out there and the growing usages, which has happened in the last three years since the anniversary continues to have more usages, you start to wonder why am I not buying it at this at this low, low price and how long can it possibly stay here? And I think part of what Darren was saying about looking at the future of silver, I think the low sentiment in North America is going to reverse and it's going to reverse rapidly. And it only takes one domino to fall out of the many that the US are trying to prop up that only one needs to fall before people really start to pile in. And we want to see people get in very early so that they can take advantage and make the money be the first to the party so you can make the money down the road. If you want to see silver really quickly, here's a way to do it. Take the back off your cell phone and look at the printed circuit board. That is silver that you're seeing that connects the past of electronic circuitry. It's in every cell phone you use and you've probably used three or four in your lifetime. You throw it away and you never think of it again. That's silver that doesn't get recovered and it's an amazing thing to point out. But if you're listening to the show the whole time and you're wondering how do I own silver, it couldn't be easier. To get an account open with Guildhall, you have two different ways. One is to have a depository account. I'm going to buy some physical gold silver platinum palladium. I'm going to store it at our local facility. It's a class three vault. It's an easy way to do it and it's dollar for dollar. So if I want a thousand ounces of silver, I'm paying full amount for that silver. It's stored. It can have it titled, serialized and buying and selling happens by phone calls. So you don't have to be worried. When you're ready to take profit off the table, you just give us a call. We sell the product for you. Again, if you want to take that a step further, you might like to have a little more bang for your dollar. That's same thousand ounces of silver, which cost about twenty four, twenty five thousand. If I use a colloquially finance account, could buy me up to about four thousand ounces of silver. If I had four thousand ounces of silver, now instead of every dollar giving me a gross return of a thousand dollars, every dollar gives me four thousand dollars gross return. And I can do that with the exact same dollar outlay. So again, two awesome ways to invest with Guildhall and it's really easy. So if you want to give us a call, simply hold your hand every step of the way and we will show you how much fun you can have owning gold and silver and how much fun you can have wearing and holding a colored diamond. And just to try to add to that, three years ago, silver was as high as forty nine dollars. We're in the twenty dollar range. If you believe silver is going to go back to forty nine dollars, this is an opportunity you cannot miss. You've got to call the number one eight seven seven eight silver one eight seven seven eight seven four five eight three seven online the real money show.com and guildhalldiamonds.com as well. Make sure you sign up for the precious metal advisor and check out the 10 step buying guide to buying a natural fancy color diamond. This has been the real money show.