The Real Money Show
The Real Money Show - April 12th, 2014
The Real Money Show with Guildhall Wealth Management and John Scholes from April 12th, 2014.
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, natural, fancy color diamonds and what they can do to protect and make you money in these turbulent times. The number 1-877-8-Silver, 1-877-8-Silver. Real simple. The website, therealmoneyshow.com. Got Paul Wiseman here as well. Jeremy Wiseman and Darren Long, Senior Analyst with Guildhall. We're going to be talking about precious metals. As always, we get a market update and a reminder when you're on the website sun after the precious metals advisor, it's information you need to know and there's something in that regard as far as diamonds are concerned, which we will get to later in the show. And welcome, guys. How are you? The market update, Darren? Good, John. How are you doing? Good. Good. The market update. This has been a good week for gold and silver. They actually rebounded in price and as we're taping the show on Friday, the price of gold is trading in a range of 13-20. It's up for the third consecutive day and silver is following the trend. It's up at the 2010 range also trading in tandem with gold and this week was good for both metals. They managed a small improvement week over week. The gains that were due most in part to geopolitical tensions that continue predominantly because of the situation in Crimea with Ukraine and Russia and what it means to the West. You had a lot of dovish sounds from the Fed in the very poor exports data from China this week, which also led to concerns about the Chinese and global economy. Now that just means that maybe the Chinese economy might clip along at 4 percent instead of 8 percent, which is still a fairly major gain. Now the minutes were released this week on Wednesday from the Federal Reserve's policy meeting and it showed that most of the officials were not keen on increasing interest rates anytime soon, which is also supporting gold and silver at this point in time. Low interest rates, which cut the opportunity cost of holding non-yielding bullion above the other assets have been a real important factor driving prices higher in recent years. These real interest rates, which are set to remain negative for the foreseeable future are also going to keep bullion very buoyant. So this week we're looking at the fundamentals, what they're telling us about the market and the underpinnings of change and we're going to talk a little bit about the stock market. We're going to be discussing a little bit about recession and things that we're seeing in the marketplace, but mark my word. We are seeing the very underpinnings occurring right now of a move forward in both gold and silver. And I wouldn't want to wait if I'm an investor for silver to hit say $23 or $24. If I knew these were happening and I'm thinking about getting in these markets and protecting my wealth, making some money, that's what we do here. That's what we go to bed thinking about and we get up thinking about how to make our clients money. So gold and silver, great weeks and doing very well right now. The interesting thing is there's a stock market in the US, for example the Dow and the Nasdaq is starting to come off. You can't have all markets all buoying at the same time. Stock market has been up for quite some time, housing has been up, gold and silver has been basically very static. Now you're seeing the stock market, especially the Dow come off, especially the biochemical stocks. A lot of the internet stocks were very, very overpriced and they're still overpriced and they're going to come off with some of the gurus are talking as much as 20% correction in the Nasdaq and as much as that in the Dow and the S&P. This will give gold and silver the spur that it really needs to move up. So far this year gold's up about 10%, it's up 1.2% this week alone. It's an unbelievable investment, extremely, extremely cheap. Everything in the 1320 range, support level was actually at 1280, very, very strong support. 1320, we've been holding very, very strong. Last year I thought gold would go to $2,000, I thought silver would hit easily $50. It didn't happen because everything went into the stock market because of the cheap money and the money that Fed was printing at an unbelievable rate. We had QE in the States and an incredible amount of money, $85 billion a month was purchased in bonds and other things that actually went to the banks. The banks got the benefit of all this money, cheap money, cheap money, cheap money. It didn't trickle down to Joe Public, it never happened. Gold and silver right now, $20 silver, 1320 gold is an unbelievable price. I mean I've been buying myself this week, I thought it was an absolute steal. You've got what geopolitical things happening in Ukraine, you've got 40,000 Russian troops on the border, you've got Kerry from the US just waving a big stick and nothing really is happening. So gold and silver will start to move, it's a great, great opportunity, a guild hall. We only deal in physical product, we don't deal in paper. The markets that you're seeing trading right now, especially the stock market is paper, inflated, it's basically, the emperor's got no clothes. We've been saying it for quite some time that this bubble is about to burst and I think it's going to burst very, very quickly. If you've been getting dividends at 3%, 4%, but you start to lose 10%, 15% of your actual capital in the stock market, you better be very careful. You work very hard for your money, look at investing in gold, silver and especially natural fancy colored diamonds. 1-8-7-7-8, silver on the website, therealmoneyshow.com. Daniel would appear that the stock market I've laid has been over, but looks like people are running back to are starting to silver and gold, is that true? Well, just on the heels of what Paul was saying, you're absolutely right. Paul mentioned that it's gold is up almost 10% this year and it's the starting point, not the final chapter because we've been seeing a lot of pessimism in the industry and a lot of concern about where these two metals might or might not be heading, but with the benefit of hindsight, extreme pessimism against bullion often has led in the past to a very, very good bottom. It's been a harbinger of positive things to come, so the sort of pessimism is exactly how these bottoms are born. So far, this is playing it really nicely. Today we're looking at a couple of charts. One is a daily and the other is a long-term weekly to help things be put into perspective. Now, although gold has pulled back a little bit after surging to the start of the year, some fail to reach any real oversold position. So when this happens, it generally remains a very bullish market. And then if you look at the other things that are contributing to demand and what is driving gold pricing, you'll look at global jewelry demand, for example, it's up 17% higher than last year, according to the World Gold Council. And it's now over 2.2,000 tons, so I mean, it's a lot there. And coin investment surged about 28% during 2013, and it's the highest ever on record despite the low prices. It means that the mentality towards gold and silver at the very high end in the financial media may still be pessimistic, and people are being told not to own these assets perhaps, but the reality is everybody is buying them underneath, especially the ones that know and understand and are astute enough to follow the team here at Guildhall, as well as the real market news that's coming out of the rest of the global market. Now, we've been in a five-year bull market, and there has been periods of times where stock returns have been great, like more recently over the last three, four years. But ultimately, those tops all come in, and just like everything else, they have their day, and then there's pullback and correction. We think that this particular moment, the stock market, is very overbought, and it is an opportunity for people looking for alternative investment classes to jump on board gold and silver, while those two metals have their opportunity to rally in a pullback in the stock market. Yes, we definitely think that there's a correlation there, and gold and silver are going to benefit from it. Well, there's a plethora of news out there. Some of the headlines. One is U.S. household to withdraw $430 billion out of the stock market this year. Another one is talking about reverse financing, where the majority of the middle classes in the U.S. are starting to reverse finance their mortgage, because the middle class are looking for extra cash. You're seeing a lot of predictions about the U.S. stock market falling. JP Morgan failed to hit targets for Q1. Looking at the U.S. dollar collapse, you're seeing a ton of articles coming out about that at the end of the petro dollar. Then you see stuff like India having massive imports for January, which almost hit their full imports from all of 2013. There's a lot of messages out there basically leading to gold and silver. Another example is that they're showing that the top tier wealth in the U.S. is at an all time high. Something like 1,600 families controlling the same amount of wealth as the bottom third, and this is unsustainable at this point. The U.S. dollar is not doing well. All you have to do is open up a newspaper. All you have to do is go on to a website like Zero Hedge, and you can see the state of the U.S. dollar, and people are starting. They need to start looking for a way to protect themselves, a way to be defensive in this type of market, because remember, the way things are right now, it could be a bigger pullback in the stock market and a bigger collapse than we saw in 2008, and you have to ask yourself, are you prepared? 1-8-7-7-8, silver, the website, therealmoneyshow.com, tell me about the guildhallwealth.com investment package. Paul? Or Aaron? Aaron? Well, this is a package that's going to include information about gold and silver. The reasons why we believe there is a good amount of fundamental evidence to suggest that both are going higher and have been going higher. It shows a little bit about what our firm does and the expertise that we bring to the table when you align yourself with a firm like ours. That is to say, you're getting liquidity in the investment, which means you can buy and sell. You're getting the opportunity to take some leverage in collateral financing if that's what you'd like to do in terms of speculating in the market. You're getting the opportunity to have color diamond in your portfolio, and all of this is coming by way of the expertise that is involved in this panel every week on a weekly basis. We basically go to work every day and sleep, eat, breathe, precious metals and color diamonds, and as a result, what we typically suggest is that when you're looking at a package like this, remember, if I wanted to get open heart surgery, what I choose to go to my general practitioner, meaning if I wanted investment advice, do I go to my bank and get the overall picture, or do I get the best damn heart surgeon possible? In other words, if I want to invest just in precious metals and color diamonds, do I not get the most expertise out there in the world? The answer is simple. You go to Guildhall because that's where it is. We've been in business since 2002 in the precious metals markets specifically, and we offer several different ways to get involved in the market. If you're very new to the market and you want to keep it very simple, all you have to do is give us a call. We'll give you some rates on physical bullion, buy it, take it home. If you're having a tough time carrying it out of our offices, you might want to start to think about the depository, we just brought a client to the depository on Friday or yesterday to show the bullion, audit their bullion. They were happy with the experience, happy to see the type of security we have there, and that's available for anyone. You allocate your bullion, you can get your serial numbers, you can audit it whenever you want. You have as much access to it as you would if it was in the basement or in a safety deposit box. It's fully insured, fully allocated, what you put in there is going to be what you take out of there in 20 years, and you have an access to the liquidity. At some point, you're going to want to sell. We're looking at one of the biggest wealth transfers in history. There's so much cash out there, and gold and silver are trading at a minimum to what cash is out there. Gold could be trading as much as $16,000 an ounce. We just don't know where it's going to be, but we do know that the fiat currencies are doomed to fail, that other countries around the world are starting to position themselves like on a chess board for that imminent failure, and you have to start to say, "Okay, how am I going to take advantage of it?" Owning assets is how you do it, and eventually you're going to want to sell those assets. That's what we allow clients to be able to do with the depositor. What I see happening, John, and the reason why so many people come to Guildhall is there is a sense of change in the middle class. The middle class is, for the first time in a very, very long time, decades, it's starting to shrink incandence in North America, and part of that is because we are seeing that large transfer of wealth happen. Many people that were rich, or what we would consider not to be middle class, the top two, three, four percent of wealth, they were sheltered because they had enough to weather the storm. The average folk that invest every day in paper investments and mutual funds and stocks and try to balance their portfolio, make money for retirement, what's happening is they have the same dollar value they had five, six, seven years ago, and in many cases, a lot less. They're making the same amount of money, or in many cases, a lot less, but the cost of doing everything has gone way up. They're putting less into their important investments to mind their wealth and protect their wealth, and they're keeping cash in the bank because they're petrified they don't know what to do. But a trillion dollars sitting on the sideline, and when we come back, we're going to talk more about that condensing middle class, and how we can turn that around and get wealthy again. We'll take a short break and get into the exact ways how you can start getting some natural fancy colored diamonds and gold and silver buoyant into an investment for your self or talking hard assets. The number is 1-877-8 silver, the website therealmoneyshow.com, and lots more of the real money show coming up. And more of the real money show, the number you need to know is 1-877-8 silver. Very simple. The realmoneyshow.com. Also, if you're on the cell phone and you're not able to put in 1-877-8 silver, it's 1-877-787-8745-837. So that's 1-877-8-745-837. The important thing is at Guildhall Wells. We only sell physical gold, silver, platinum and palladium. As Darren mentioned earlier, you can buy gold and silver. You can take it home for home delivery. You can actually put it into a depository with us. The minimum order is 2, 100-ounce bars or 10-ounce as a gold to be able to open an account. We also offer collateralized financing, and this is another way to get into the market where you can put up as little as 20 percent. For $7,000, you're still controlling $20,000 worth of metal, and instead of laying out $21,000, you're holding back $14,000 that you can keep in the bank. Get interest on, which the banks don't really pay too much interest, but you can hold some of that money back. As an example, silver trading are $20 today. For you to double your money, silver would have to go to $40. But by using collateralized financing, you're putting up, we charge a one-time commission. This allows you to trade as many times as you like within 24 months, buying, selling, buying, selling as the market goes up, take advantage, sell up some product. On the dips you buy, this is how you make money in the market. There's a one-time commission on the product that you buy. For example, market moves up $7, you're putting in $7,000 give or take, you're going to double your money. The market goes to $34 from where we are now at $20, you're making $14,000. If silver goes to $49, which we did made the first 2011, you're looking at $1,000 is going to make you, that $7,000 is going to make you $29,000, less some charges of interest or whatever, some small fees. But let's look at 5,000 ounces. If you've got $35,000 right now and you think silver is going to go to $49, you're looking to make around about $140,000. If that's the money you're looking to make, this is the investment for you. The number is one, eight, seven, seven, eight, silver and realmoneyshow.com. I hate the R word, Darren, but we're heading towards another recession. Well, we're talking about the middle class before the break and the truth is part of the reality is understanding what the situation is underneath all of the headlines and that is the truth, John. I believe we are heading towards another recession. If you look at the numbers and we don't get a lot of economic data in Canada, at least not like they'd have in the US, especially in the housing market, and it's really, really sad that we don't, but unfortunately got a fish for it. In the US, we look as the leading world's economy in January, for example, real disposable income in the US experience, the largest year-over-year decline that they have seen since 1974. If you look at the latest figures from the Bureau of Labor and Statistics, it reveals that 62% of Americans earn $20 or less per hour. I mean, if you look at the total numbers, the US has close to about 130 million jobs. 18 million jobs pay less than $10 an hour and 63 million of those pay between 10 to 20. These two segments alone make up 81 million jobs, so it's understandable why the two-income household is more of a necessity now rather than a luxury. Remember, there's a day and time when we didn't have to have two incomes in the house, but now it's a necessity, and unfortunately, that's the reality. It's becoming more of a reality when I look around and talk to my friends that I grew up with. We are looking and comparing where they're heading, what they're investing in, and the truth is most of them aren't investing because they're either too scared or they don't have the money, and that's a sad reality for me because it means that we're not protecting our futures. We need to be owning hard assets in order to do that right now. I see it as there's two factors at play. Paul's mentioned one. Darren's mentioned the other. One is, where do you put your money? Where are you going to put it that you're going to feel safe, especially knowing where the stock market has come from today from 2008. It has made a lot of gains. A lot of that, let's be honest, based on a lot of printing of free money. On the one hand, you've got where do you put your money? On the other hand, you've got to say, "Well, where is there actual opportunity?" I think on the one hand, you see that with precious metals, you've seen a lot of volatility, which makes it very difficult to want to take that plunge and say, "Yes, that's the right market for me." How do you possibly invest in something that's 60% off the last high it was at? What is going to motivate you to say, "I'm going to get into this market, 60% down is actually a bargain." If you're going to do that in gold and silver, specifically silver here, if you're going to take advantage of that 60% discount, you've got to understand the fundamentals. There's a lack of silver out there, there's five times more gold than silver above ground. There's four times less silver today than there was 30 years ago. It's used in every product from solar power to your iPad, to Band-Aids, to water purification, it's in athletic clothing, et cetera, et cetera, et cetera. The demand is going crazy all around the globe, except maybe for you and your neighbor. Your taxi driver hasn't recommended it to you yet. That's when you know it's at the top. They actually start recommending gold and silver on CNBC. It's over. Be a bit contrarian here. Look at the numbers. This market has always been up and down. It's always been bullish, but there's been major gains over the last 10 years. Again, Guildhall's been here the entire time. Understand the fundamentals. You'll see the opportunity, request an investor kit, and look at the depository brochure we have, see the potential gains here, and be one of the top people that make the money in this market. 1-877-8-Silver, 1-877-8-745-837, and TheRealMoneyShow.com, Darren. It was something that I wanted to talk about a little bit earlier, but on that theme of what Jeremy was just discussing, we are at a standstill in terms of new minds coming online for silver. There are none. You do have slight increases in existing production, but remember, about give or take 70-80% of the product that's coming out of the ground, silver that's being drawn out of the ground each year, is a result of mining in other metals, so gold, copper, lead, zinc. If those industries slow down like they have because of the crunch in prices in those commodities up until recently, then you get a pullback and the amount of silver being made available to the public. Now what is happening is there is a huge shift in mentality, and what used to be a physical market here in the West, especially in the 70s where we had coins in our pockets, we knew about the silver and coinage. When that all ended, we went to a paper mentality and we've never gotten off of that addiction, and that is what's transpiring in this day and age. People are addicted to their paper products. If it's not on paper, it's not a legitimate investment, and the reality is, once upon a time, hard assets were the only way to go. If you own a stock, you got the certificate mailed to you. You physically had the share in your hand. No longer does that happen, and the reality is right now that when we look at what's happening going forward, the situation hasn't changed. All that countless amount of money has been dumped into the world economy by all of the big countries around the world, and it's done virtually nothing but hold them from blowing up. Again, this type of science experiments in which we are the guinea pig waiting to be shot into outer space is the type of experiment where if you're on the right side of it with a good asset like silver and gold, in literally four or five months, you become filthy rich. You can become wealthy. It's happened before, in 1979 and 80, in a period of less than 90 days, there were more millionaires made because they invested in silver than in any other time in history. It's never been repeated, not in the tech, not in the big huge real estate booms, not in the junk bond era of the '80s, it's never been duplicated before like it was in gold and silver, and that is slowly transpiring again. We've already seen a little tiny example of what silver can do. In less than a year, from 2010 to 2011, it rose from $18 all the way up to $49 an ounce. The same people were involved. Every day, good investors like the people listening to this show, they bought silver and they watched the market go higher. You've got to also understand, I'm not condoning that you go out and have 100% gold and silver diamonds in your portfolio. You need to have a 20, 25% just as a hedge against paper assets. I mean, you don't day trade your house, you really don't have to day trade gold and silver. It's a long hold. I'm not talking about buying it today, selling it at four o'clock. You don't have to do that. You buy, you hold, as the market moves up, you take some money off the table, smart thing to do. At Guildhall, we only sell the physical product. We don't sell paper. We don't sell equities. We don't sell futures. We don't sell options on futures. We don't sell certificates, which is a letter of saying that we promise to give you gold. Try to go and go into a bank that offers you a certificate and go and ask for your gold and silver when you bought a certificate, doesn't exist. We don't sell ETFs either. That's all paper traded. You buy the physical product. You buy gold, silver, and one of the metals I just love right now and I'm going to mention it on the show is Palladium. Now, Palladium is used in catalytic converters. It's trading right now at about $780 an ounce. Car sales are up in the States, about 16 million cars. Every car has a catalytic converter. It's made out of palladium. Two countries that produce palladium. Russia, Russia is sitting on a stockpile and they're going to play a little bit of hard bull with the West right now. The other countries, South Africa, South Africa has problems with strikes and people, their staff want more wages. You're going to see the price of palladium, in my opinion, move up. It won't go up 100 percent, but I can see it moving up 10, 15, 20 percent rather quickly. One, eight, seven, eight, silver and the website, TheRealMoneyShow.com, Jeremy. Yeah, speaking of the miners and Darren mentioned it a bit earlier, if we've been in a recession, are we coming out of air? Are we going to have another one? I don't think we ever left, but prices have been going up for a decade. Cost of fuel, cost of by equipment, cost to get something going when it comes to mining. It hasn't become a cheaper industry. I don't know an industry that's gotten cheaper over time. The cost to bring it out of the ground has only gone up as well. I think where we're sitting right now in silver is pretty much a bottom in silver. Anything under this is very short-lived. We've seen that time and time again. There's definitely a base where you can't pull it out of the ground for much cheaper than where it is now. A lot of mining companies are not profitable at this price. This is another consideration when you're looking at an asset, whether you want to own it. Hey, if it's not like silver and gold are trading at seven times earnings here, it's trading at what it almost costs to take out of the ground. There's definitely an opportunity in there. When we're looking at the charts, we can see that silver's next destination could be as high as $100. Are we going to wait until it's at $50 to finally believe? Seeing is believing a lot of the time, and most people don't get in until they see a much, much bigger move. Unfortunately, you're not going to make as much money. You want to get in early, so why not consider maybe splitting the difference? Oh, you know what? I'm not invested yet. I'm thinking of getting in if I see silver break 50. Well, why don't you buy it at the price that cost a minute right now? Get some today and maybe buy some more once you've already made some money in the market. Interesting thing as well. We've been in the business since 2002. Silver was trading at $3.80, gold was $250. Time has purchased silver at $3.80 and gold at $2.50. They snuck home never told anybody because it was a depressed market. But when silver went to $49, did they tell all their neighbors how smart they were? When gold went to $1,900 and change, they all made money. Every birthday, I have two grandkids. I give my grandkids an ounce of gold. I've been doing it. My grand order be eight next month. I've been every birthday giving an ounce of gold. I started off when gold was $500 an ounce. Even if we're trading at $1,300 an ounce, the kids got $10,000. If I had to give the kid $500 on each birthday, she'd have had $400. The same as my grandson. He's six years old. He'd have had $3,000. Instead, he's got almost $8,000. That's at a depressed price of $1,300. Smart and up out there, own hard assets. Get into gold and silver. Give us a call. Get the investment package. You want to open an account. You want to use collateralized financing. To hold your hand through the whole process. The worst thing about that is my birthday was in February, so I obviously missed the book. Well, you got to something. Thank you, sir. We'll take a short break and get into a very cool part of the show, which is natural, fancy colored diamonds. Paul, you have something sitting beside me that is absolutely stellar and gorgeous, and I would keep it away from my sneaky fingers. But we'll take a short break. The number to start investing, which you should, 1-877-8 silver in the website, TheRealMoneyShow.com. The number to call to start investing with The Real Money Show, 1-877-8 silver. The website is TheRealMoneyShow.com. Paul, let's talk about diamonds, natural, fancy colored diamonds. Absolutely, John. We sent out the precious metal advisor this week, and we were actually promoting a diamond which I brought in. It's a two-carrot, fancy, intense, internally flawless, unbelievable stone. You can see the color, the sparkle, the scintillation. This stone is appraised at around about $105,000. We have it on our website for $63,000. We did a seminar the Saturday before last, and for the whole month of March, we did a thing called March Madness to which coincided with the basketball, and all of our prices were including the HST, or any tax, whether you're in this province or out of the province. We included the tax in the price. It was unbelievable. So if you go to our website, guildhalldiamonds.com, you'll see how many diamonds are sold, how many diamonds are on hold. It's not mythical mythic wear. We actually do sell the product, and I've congratulations to all the clients that bought diamonds. They got unbelievable prices and unbelievable diamonds, but this diamond is one of my favorite diamonds. It's from my own collection. I can see why. And it's just stunning. It's two-carrot. It actually looks like a two-and-a-half caron. It's a radiant, which has got square-cut corners, which makes it look even larger than it is. The diamond is just magnificent. And this is the type of stone that will go up in value over the next four to five years. It will easily double in value because it's a diamond that is incredible. We can't even find intense diamonds right now. We're getting fancies, and we've got a lot of vivid that we've purchased over a period, and we're actually bringing out over our own inventory. The even inventory that I own, my own collection, I have to put stones up on the website to keep the product going. This stone is magnificent, and as I said, this would be an unbelievable stone. We are going to carry on the promotion that we ran for March Madness, where every diamond that you buy will include the HST. This stone is appraised at $100,000, it's for $63,000. That is including the HST, which is an unbelievable price. The other exciting news that I have to tell you about, we just purchased a parcel of stones, some fancy, internally flawless yellows. One of the stones we also purchased was a .25 Argyle Pink Vivid, which is almost when I saw the diamond, it's a purplishly pink, I thought it was a red. Red diamonds are the most expensive diamonds in the world, and this diamond is a VVS2, which means it's very, very slight inclusion. This is an unbelievable stone, we've just sent it out, actually, to be appraised. I don't expect it to be up on the website for long, first come, first served, and again, we will tell you this diamond, including the HST and the price, unbelievable. We have callers, because we do have some fancy yellows as well, that you can get into the market for around about $13,000, $14,000, starting off with a 103 fancy yellow internally flawless is in the package, a 1.23 radiant that's in the package, cushion rather, a 1.25, a 1.30 and a 1.31. These five stones are magnificent, and there's starter stones that you can get in into this unbelievable investment. The number is 1-877-8 Silver and TheRealMoneyShow.com, Jeremy, tell me about the Buyers Guide. This is something you need to have before you move forward, right? Yeah, we actually offer two different types of materials, one for clients who are looking at color diamonds for the first time, teaching them about the market, why we believe and why the market's starting to come around and find out about this hidden secret of why colored diamonds are doing so well. Then we also have a 10-step Buyers Guide. This is really more for people who are becoming more serious about purchasing, they're maybe looking around, they want to make sure that they're going to get the right diamond. A lot of people when they buy colored diamonds or any diamond, there's an insecurity in terms of did I get the right one, have I managed to buy something of value, how can you determine these things if you're not a professional? Well, just like you would have a real estate agent who says, "Look, make sure that this gets checked, that gets checked, make sure this is in your contract, that's what we do at Guildhall, that's what this 10-step Guide does." What it's going to do is it's going to say, "Look, here's what a reputable diamond company should have. Here's what a colored diamond should have in terms of what it's going to come with so that you can help make sure that you're buying the best quality diamond possible." Look, you might not buy your diamond with Guildhall. You might buy it somewhere else. You might be buying just a piece of jewelry for the first time. This will help you. The buyer's Guide is there for people who are looking to take the plunge and we find that we have found that it's been a very useful tool for our clients, even just for them to be able to appreciate what it is that we do have up on our site and what we do have when they come to the office and look at the diamonds for the first time. Paul, I think a big piece of insurance is the fact that you've said countless times that over four decades these things have never gone down the road. Since they've been keeping records from wholesalers, the manufacturers from auction houses, natural fancy colored diamonds have never dropped in price in 40 years through recessions, through good times, bad times, even in the worst times in 2007, 2008, they actually went up in price. Natural fancy colored diamonds come in all types of colors, yellows, pinks, blues, greens, red is the most rarest color diamond out there. In some cases, a red, for example, 30 years ago, you could have bought a one-carat red for $30,000, trying to buy one today for a million, eight, two million dollars. If you're lucky and you won't find a VS, you'll get Si1 Si2. The Argyle mine, which most of the reds are coming from right now, as well as the pinks, they produce one-tenth of one percent are colored diamonds are pinks. They sell 90 percent of the world's pinks and one-tenth of one percent is actually what comes out of that mine. We only sell in Argyle or any pink diamonds. We only sell VS quality, which means that's a very slight inclusion. Every GIA that we have is a full GIA, not a half GIA. If you're getting a GIA and it's a half GIA, there's something wrong with that stone. What that means is that it's an I1, an I2 Si. There is lots of inclusions and they don't want to show you that it's where the inclusions are. It's not an investment grade. For every 10,000 carats of white stone mined as an example, only one carat is colored. It doesn't mean it's an investment grade. To get a one-carat vivid internally flawless, you've got a mine a million carats of white. So this is how rare these diamonds are. We go out of our way. As I said, I just bought in a package of nine diamonds. I was shown rather probably through my agent out of New York, probably 75 diamonds. Out of those 75 diamonds, only nine met our criteria. Guess what? Somebody else bought those other 60 diamonds. So whatever you hear, whatever people are pitching you, make sure you have a GIA. We give you an independent appraisal. You also need an outlet to resell that product. There are people out there who say, "Yeah, we'll sell you a diamond," and then ask them the magic question, "Well, how do I sell it?" And I said, "Well, we don't buy diamonds back. We only sell diamonds." Well, we're happy to be able to take that diamond back somewhere in the future from you, give you a great profit, put it on our website there, and why don't you give some information on that? Well, when it comes to selling, I mean, first off, we're proud to do it because it's a diamond that we brought to the client to begin with. But barring that, the process is exclusive to Guildhall. It involves so many different approaches to selling the diamond. Some of it is direct targeting to a specific clientele who have been shopping for a specific type of diamond. We geo-target certain regions of the world, depending on the type of color and the size of stone. There is always affiliations with other alliances that we have to take that to the next level. If it's a large diamond, we're talking 10-plus carrots. We want to affiliate with some of our colleagues at some of the large auction houses. There are many avenues that we use, but generally speaking, we enter into a very exclusive minimum three-month agreement with a client, and we market that stone on their behalf. This is unlike anywhere else in the world. It's not done this way. Most people have a single prong approach, and that's either to just go back to their client base, or maybe just to try their own personal auction house, which is a ridiculously silly way to sell it, because you're not getting an big audience, and there's no guarantee of that, but really when you come to selling that stone, you want to realize as much profit as possible. You want to avoid letting other people take a piece here and a piece there, and bringing it back to Guildhall, we want to sell it for you when the time is right. Of course, the key to making money and color diamonds is you have to hold the diamond for a good amount of time. There are two, it is a two tier market in a way that if you buy a million dollar diamond, that diamond's moving up 30, 40% a year, well, you can turn around and start to sell that diamond, shop it around six months after owning it. But for most people who are buying a diamond for $100,000 or less, you're going to want to hold on to that diamond for at least four to five years plus to really see gains that you're going to be extremely happy with. This is a type of market that is a long-term market, unlike silver and gold where it could take off and do really, really well, really, really quickly, instead of taking the volatility, you're taking the slow build. But because these diamonds are in such high demand, you're getting those great returns year in year out. We look at appraisals, all of the appraisals across the board continue to move up. These are independent appraisals too. It's not that we don't appraise these diamonds ourselves. We go out, get an independent appraisal, and we see time and time and time again, the quality of diamonds that we're procuring are continuing to rise in value. As opposed to most people who buy a diamond, they're not buying it for investment purposes, 20 years down the road, it hasn't moved up a dollar. They get what they paid for it. That's not what we're looking to do. That's why we own all the diamonds. We go out on a limb and say, "I'm willing to own this diamond. It's a money maker, whether you buy it today or whether someone else buys it next year." We're all making money along the way. We do have that resale program, but I just wanted to add to what Darren was saying. We don't buy diamonds from individuals. We need to maintain a chain of integrity. The diamond dealers, cutters that we utilize, they comply with ethics standards in the US and in Europe, and we can't afford to buy outside of that chain of integrity. Who do you have on your staff that's going to be looking at these diamonds or when Paul goes and gets nine diamonds out of 60? Who's the pro on staff? The first batter up is my daughter, Nicole. I mean, she is a GIA diamond graduate, extremely knowledgeable. She's taken courses, done courses in New York, looks at the diamonds and tells me because I get GIA's before I start, she knocks out 70, 80% of them because they just don't meet the criteria. But she understands the market and she knows every diamond that we sell, somewhere down the road, we're going to get that diamond back. We're happy to get that diamond back. We're lacking real estate. If I've sold you a house and I know that house is in a great area, it's in this school, it's near churches, it's near sports centers and everything, easy to get to, and I know I can sell that over and over. I'm always going to have somebody looking for that property and it's the same thing with a natural fancy color diamond. And we also have the ability to go out and promote that diamond. We spend hundreds and hundreds of thousands of dollars a year on advertising, a chorus radio alone. We're probably a very good client. We've been on the air a long time and we spend a lot of money on advertising, bringing in new clients, educating people, we put seminars on every four, four weeks, six weeks, and a lot of people come to those seminars. We'll take a short break and recap everything very shortly where there's natural fancy color diamonds or gold and silver. The number is 1-877-8-Silver and the RealMoneyShow.com. And back into more of the Real Money Show, the number to invest is 1-877-8-Silver. If you don't have little numbers or letters on your phone, it's 1-877-8-745-837, the website, therealmoneyshow.com, while you're there, you can check out old shows, send emails, ask questions, we get to those, and sign up for the Precious Metals Advisor written by Darren Harnman. Tell us another way of how to get out your hands on some Precious Metals, my friend. Well, first you call the number, you touch base with us and you have three options, John. Very simple. You can come in and take some product home with you. That's easy to do. Number two, if you're not looking to have a wheelbarrow to cart around a thousand ounces of silver, which is about 65 pounds or a small child, then open up an account with Guildhall. You have two choices, two different types of accounts. One is a depository account and you can have that product stored locally. You can visit the product. You can add to the product, subtract from the product. It's there and also you can have it titled and you can have the serial numbers too. There's lots of options. It's insured and it's one of the best storage facilities in the world. It's second to none in terms of the offering. And the third option is to clatchly finance something. So in that example, let's say I wanted to own $100,000 worth of silver. I have option one, which is to lay out my $100,000 and that's fine. Many people do that. But the other option is I could use clatchal financing and allow myself only to put up as little as 20%. So in that example, instead of laying out $100,000, I'm going to hold back $80,000. Now I get $100,000 worth of silver. I get to make the decisions on it with the Team at Guildhall helping me along the way. I'm going to benefit from the gains going forward. So if I get a $10 move and I have $20,000 worth of silver, which is about give or take about two and a half thousand ounces of silver, I'm going to get a $25,000 return just like I would if I invested $100,000. But instead of putting out $100,000, I only laid out $20,000. Now that is not for everybody. It implies that if you're going to use this method, you have the $100,000 to spend, but you can start smaller. Of course, you can start with a thousand ounces. That is an $8,000 investment and you can get into the market. It involves a one time commission so that if you would like to buy and sell that product, you're able to do so without any further commissions. And from a moving forward standpoint, if you get even an $8, $9 move, you've literally doubled your money. And in this market, an $8 or $9 move takes us to $28 or $29 an ounce in silver. That's nothing compared to where it's heading. So this could be another way somebody can make really nice return investing in silver. I've noticed the last week, they've had no news on CNN. It's only been about the Malaysian airliner, which is fine. Although on a critical note, they won't, they don't even talk about the families. They don't even talk about anyone on board. It's just we hear a ping and there's still stuff going on in the Ukraine. There's still stuff going on in Europe. There's still stuff going on all around the world. They won't talk about the financial state of things. And I think it's important that people start to obviously find an alternative news network that they're going to be able to see what's actually going on. And I think that as people start to see the different headlines out there and the trouble that the US is in in terms of their currency, in terms of their debts, in terms of their relations and policies around the globe, you have to ask yourself, are you confident that the US dollar is going to reign supreme over the next 10, 15, 20 years? Are you confident that the debts are going to be eradicated or controlled in the next 10, 15 years? Are you certain that inflation is going to be under control and that your expenses aren't going to go up over the next 10, 15, 20 years? If you're confident about that, then it's okay. Maybe you're uninformed, maybe you're apathetic, not sure. But if you're concerned with those things, you have to start looking for alternatives. Gold and silver have been, specifically gold has been probably one of the number one investment returns in the 21st century when you compare it at $25 an ounce back in 1910 to $1300 an ounce at the turn of the, sorry, $250 at the turn of the century and then to now it's at $1300 an ounce. That's incredible gains in an investment. So it's important to look at your options, understand the fundamentals. And yes, maybe 10% in your portfolio can do a lot of good over time. Maybe you want to control that over time. Maybe as the market moves up, that 10% becomes 30% because gold and silver are doing so well. Well now you've got an option to sell. So, Guildhall will show you when's a good time to sell. We'll show you why we think you want to sell silver maybe at 50, maybe at 100. What circumstances will be about that you'd want to be looking to sell. What we want to show you is what options are out there. The fundamentals as to why we believe not just defensively, but the opportunity to make money. We believe silver can go to triple digits. And we believe that there's a lot of money to be had. That 10% of the people are going to make 90% of the money. And it's your opportunity to have that, to have yours, your part of that wealth transfer. Jeremy touched on some very valid points there. And if you look at the near term in the last 10, 12 years that this bull market has been going, gold is up over 300%. It's averaging near 30% per year or more. Do you own some? Do you own a lot? And the answer for most people is no because less than 3% of the public own gold and silver. That my friends is not a bubble. In the last 100 years there have been four bull markets. And in all of those bull markets, the participation rate has been above 20%. We are not seeing that right now. And if you knock on the door of your closest nine neighbors, they don't own gold or silver. This is the time to buy it. This is the time to own it. Silver is in the same boat. It's up about 33% year over year since we've been doing this. Most people don't realize that because they're looking at a very small snapshot. Now if you look at what's happening in the rest of the market, we've already told you about what we think is occurring. The underpinnings of a stock market breakdown are set in motion. The rich are getting out of the market. The people who own the companies are selling their stock and people are moving to alternative investments. They're doing it overseas. They're trying to shelter money. We're just suggesting that you get in the game as well. But the real thing to do is own hard assets here in Canada. And the interesting thing as well. We're talking about let's talk about hard assets. In 1971, when Nixon took off the gold standard in silver, gold was trading at $35 an ounce. Single family home in Ontario or in Toronto was $44,000, give or take. Today that single family home is worth $440,000. But back in 1971, it would have taken 1257 ounces of gold at $35 an ounce to buy that home. Today, the house is worth $440,000. It would only cost you 333 ounces of gold. But that 1257 ounces of gold, there's a regional outlay at $35. Today is worth $1,659,000 versus $440. That's three times the value of the property. So again, for all those people that love real estate, it's an easy investment. You buy a condo, you put some money down and you hope you're going to flip it. But in between that, you're worrying about tenants and running around with a plunger in your hand fixing problems. Gold is an unbelievable investment in the long term. As I said earlier, you don't day trade your house, you don't have to day trade gold. All you have to do is sit on it and you will make nothing but money. It's the bedrock of a portfolio. It's a hard asset. It's a cumulative wealth. Yes, it moves up and down. But clearly, if you look at a 100-year span, it does nothing but move up in one direction. Last 10 years have been phenomenal for gold. Yep, a couple of bad years where it hasn't done a whole lot. But there's a lot at stake here. There's the US dollar versus gold and whichever currency turns around and says we're going to partially or fully back our currency with gold is going to be the winner at the end of the day. This is what we're seeing as a clash right now is very much the US dollar dominance versus gold. And I think that whoever comes out at the end saying that we're going to back with gold is going to be the next dominant player for the reserve currency. Well, the other thing is as well, the US dollar was backed by gold, Fort Knox supposed to have all the gold in Fort Knox. Fort Knox hasn't had an audit in how many years? 50 years. Since the 50s. Empty boxes and pallets probably. All the golds have been taken out, leased out, rented out, sold to keep, you know, it's like a juggler with all the bulls in the air. Sooner or later these bulls are going to drop. And when it does drop, everything's going to go to hell in a bucket. You know what, the thing is that both of these fellows touched on is that the purchasing power is dropping. And when we look ahead, we're watching these things. Stay tuned because we're going to be doing shows coming up on inflation. But when you look at the purchasing power, let me explain it to you this way and the reason why you should have gold in silver. The pumps today, it was $1.35 per liter for gas in 2008, $150 a barrel oil. We were screaming mad, running on the nightly news, telling everybody we could that we were being gouged for oil and gas to put in our cars 2014. It doesn't happen. The price per liter is the exact same as it was in 2008. But the barrel per oil, the barrel of oil now costs about 30, 40% less. That's hidden inflation. It's eating away at your pocket. We're not making more money. We think we are maybe, but we're not. And you need to own hard assets to offset that effect and the easiest way to do it is to add gold, silver, and fifth color diamonds. What about the example of the three dimes? Well, again, another perfect example. If that example didn't convey it to you, think of this in 1964, they used to have coinage in the US and in Canada that had silver in it. Three US dimes were made of 90% silver and three US dimes back then would buy you one gallon of gas. If you fast forward to today, 2014, please think for a moment what you could buy with those three dimes. It's literally nothing, a piece of candy. But if I take the silver out of those three dimes, it still buys me not only a gallon of gas, but more than a gallon of gas. So silver does hold its purchasing power over long periods of time, and anybody that tells you otherwise does not know what history has taught us. History is repeating itself. Gold and silver are going astronomically high, and it's important for people to be on this bandwagon. Now, we've done a really good show today. We do want to make note of one thing. We all want to have condolences passed out to the Flaherty family this week on the passing of Jim Flaherty. Our former finance minister was a very saddening situation to see that happen. We want to wish the best to everybody involved in that. Everybody please go to Guildhall Diamonds. Look at our website. We have the biggest selection of natural fancy colored diamonds, especially yellows, internally flawless. Our pinks are all vs quality. Every diamond comes with an NC, we belong to the NCDIA, but every diamond comes with the GIA, which is a gemology institute of America. That is the certification of the diamond. We also have an independent appraisal, and we show our prices on the website. Nobody shows their prices of their diamonds because they're scared. They love to go to our website, look at our diamonds, say we can do that cheaper. Guess what? It's all about quality. It's like real estate. It's location, location, location. With us, it's quality, quality, quality. We only sell the best, so therefore, we're happy sometime in the future. When you want to sell that diamond, we're happy to take it back. Lots of great information here. Lots to take him, but it starts with that first step in making that first purchase. The number is 1-877-8-Silver, therealmoneyshow.com. Why are there? And to the precious metals advisor sign up for the 10-step program as well, to the buying guide, get you in both some fancy colored diamonds and some gold and silver. We'll join you next week at the same time right here for more of 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. 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