The Real Money Show
The Real Money Show - February 1st, 2014
The Real Money Show with Guildhall Wealth Management and John Scholes from February 1st, 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 and silver natural fancy color diamonds and what they could do to protect and make money in these turbulent times. And both of your portfolio are the number to call and find out more about these hard assets. 1-877-214-1711 or the website guildhallwealth.com. We'll get to more of your new website very shortly in studio today. We have president of Guildhall, Paul Wiseman, vice president Jeremy Wiseman and senior analyst Darren Long. Hi Darren. Hi guys. Pretty good John. How are you doing? Good to have you. Good to have you back here. We have a new website. We want to talk about that right off the top. Right? You can go TheRealMoneyShow.com, TheRealMoneyShow.com, for all things Guildhall, it'll save you a ton of time going to this one place when it's up and fully running this weekend. Right? Very shortly. Correct. You'll be correct. You'll be good. The phone number to get in touch with the experts. Recent shows, archive shows. It's been on the M640 badge right at the top link to Guildhall websites, including Diamonds, Depository, Financing. You can also very importantly sign up for the precious metals advisor right from the site as well. One touch up. So you guys look great on the website by the way, posing nicely. Darren, you look very large on that website, standing beside Jeremy. Well you know what I'm saying. Your amount of a name. It's been that way for a while. It's been that way for a while. I'm not sure what it is. It's all the information. That's right. Are you insinuating he's a little guy? You're insinuating you have a very knowledgeable large cranium. So it's working well for you. Start with the update, my friend. How'd it go? Not too bad this week. We're just pairing a few losses after we've had a monthly gain in the price of gold, which was a really good month for gold. And we haven't had a good month like that since about August. And it's an expectation that we put forward in doing the show last couple of weeks. So right now gold trading in the 1240 range, silver trading in the 1920 range. And both of those are just marginally lower and most currencies as of Friday as we're taping the show. Now there were gains Wednesday, despite what the US Federal Reserve did by further reducing their massive bond buying program to 65 billion a month as opposed to 75. And that's still an awful lot of money, 65 billion dollars per month. But the prices did definitely pull back within the 48 hour period. Now Thursday was the last day. If everybody listening remembers, we talk about it all the time. It was the last day every holder of a February contract in gold must either roll to the next month or stand for delivery for the month. Now for the fast, the past several years, I mean, we have told you time and time again what to expect at the end of the month. The crooks come in. They bomb gold on that day and they are always trying to convince the people who really are going to be set on taking delivery, the metal not to take it to get out. These gains have never ended. They won't stop ending, but we did see a slight recovery this morning on Friday and it should bode well for weekend prices coming into Monday. Now I was reading this week a pretty impressive article from Mark Faber. He's one of the world's foremost analysts on market economies and he is well respected in the community. He listened to by thousands and thousands of people on a weekly basis. He's written a very wide ranging must read interview with Barron's and he did a wide ranging interview with Barron's and this guy is incredible. He has a super track record in protecting and growing wealth and he urged investors to own physical gold and I quote, own physical gold because the old system will implode. Those who own paper assets are doomed and he added I have no faith in paper money period. Next insider buying is also high in gold shares. Gold has massively underperformed relative to the S&P 500 and the Russell 2000. Maybe the price will go slightly down from here, but individual investors and my fellow panelists and Barron's editors ought to own gold. Now with regards to his allocation to physical gold, very similar to what Guildhall encourages, we typically say anywhere between 10 to 25% in your portfolio. He currently was very candid about saying he has 20% of his assets tied up in gold and he does not count that towards the total just simply because he is not a seller and that is a pretty significant person to come out and say that. He's been right about a lot of things including 2008 and it gives you a sign of the change in sentiment about where we're heading economically. We've talked about it week over week, the importance of understanding the financial media headlines and then reading behind them. And when you read behind them, you understand clearly that we're not as rosy as everybody says we are. We talked about it this week. We cannot believe that Canadian companies in light of the fact that we're being told we're in a recovery. Canadian companies are dumping left and right, Sears, FutureShop, just to name a couple of big brand stores that have been with us for a very long time, they're just absolutely shedding jobs. Well they're laying off an awful lot of people and when you ever walk into any of these stores they jump on you like crazy. So they're commission people only so how do you lay off people that get commission only? The economy is not as rosy as it pretends to be and as Darren said and was reported. But it's been an interesting week. If you look at the Dow, the Dow has come off this month, about 4%. I think there's a little bit more to go. I mean there is a correction. We are very, very surprised with the tapering of reducing $10 billion a month in purchases that gold and silver really didn't take off. But as Darren said it's the end of the month, there's a lot of corrections going on, a lot of the hedge funds and a lot of the mutual funds are taking advantage because they have to sell off to make their figures look great and this is what's happening. So as Mark Faber who writes a report as a doom gloom, boom doom and gloom and that's his report, he's been correct and he doesn't trust fiat currencies and where you've got countries like the US, Europe, you know, Great Britain, even China, they're just printing money, what they're actually doing is confiscating your wealth. The more they print, the more they confiscate your wealth, you need to be in hard assets. Now, you know, I don't want to get into a hard sell but a Guildhall, we only sell physical gold silver platinum and platinum. We don't sell equities, we don't sell ETFs, we don't sell certificates. These are all paper vehicles. We don't sell futures or options on futures. These are all paper, paper, paper. We sell the physical product. You take a hundred ounce bar of silver and drop it on the floor. Let me tell you it makes a claim. Make a hundred dollar bill, drop it on the floor, doesn't make a sound, it's paper and paper is very easily produced and it puts, if you look right now, what's happened in the emerging markets, there was cheap money with the amount of money that the US were putting into the market in quantitative easing. They're taking that out of the market. Where can you put your money? You know, there's only a few places that you can put money that's safe. Real estate, great, it's real estate in Toronto, it's up, it's a terrific investment. Same thing out in Alberta, same thing in BC. It's been an incredible investment, but it's getting to a stage where it's a little frothy right now. Can you put your money in the bank and you're going to get 1% on a GIC on a million dollars? You're going to lose 3%, 4%. If you look at inflation, every country, whether it's US or Canada, tells us inflation is at 1.2%. These people that write these reports don't go out and buy groceries, they don't fill their car up with gas, and they don't spend any of their own money. The average person knows that inflation is 6%, 7%, because that's what they're paying for their groceries. Your insurance bill goes up, your gas is going up, every cost is going up. So where should you put your money? You can put it in real estate, you can put it in the bank, you can put it into the stock market, the stock market has had an unbelievable run up. But who has made the money? Wall Street hedge funds, the average person, Joe Blowout there hasn't made any money. He's actually down probably 20%, 30% in his revenue. The average person is not moving up with the rest of the world that's making. That 1% to 10% is making all the money. You need to be in hard assets. You need to protect your hard earned money, your capital. So a Guildhall, we deal in physical gold, silver, platinum, platinum, you can buy it direct. You can pick it up, we can deliver it to you. The second option you can put it into us, depository, which is safe, secure, insured. We even have an elite where we can segregate and allocate the product for you and even give you the numbers of the bars. Terrific way to go. The third option we have is that you can get into collateralized financing. You can put up as little as 30% and still control 100% of the product. Let me give you a quick example. If silver today is trading around about 1950, you pull 5,000 ounces of silver, it would cost you around about 95,000 in change, plus some commission, let's call it $100,000. For you to double your money, silver would have to go to $40. Instead of you putting out $100,000, you can put up as little as about $35,000, still control that $100,000. Silver moves up $7, you've doubled your money. It's up $14 from $19 to $33. You're going to make $70,000. If it moves up $21 to $40, and remember, in May 2011, silver was $49.30, and I think this year that price will be taken out. So if we get a $30 move in silver and you've got 5,000 ounces, you're going to make $150,000 on a $35,000 investment. If that's the type of money you want to make, you should give us a call. 2772141711, the website is guildhallwealth.com. Darren, how's he? You mentioned inflation. How's a grocery list coming? It's coming. It's complete. And I'm just writing up the article. It's run out of cash to buy the grocery. That's true. There actually, there were some surprises. There were some let downs, but overall an increase that's above and beyond what the rate of inflation is reported to you by the Canadian government. Some of the things that I shop for that are in that basket are good to the same every year will blow you away. Some things were 12% higher year over year. Some meat products were way up, and I mean, that drags the whole index up. I'm just going to get a lot worse with, you know, hearing Ontario, for example. We don't grow anything in the winter. So with the dollar where it is, you know, a dollar 11, dollar 12, you know, you're bringing in those vegetables and produce from the States and Mexico and everywhere else. Someone has to add on to that figure. It's the same thing I was listening to the radio the other morning, actually, and they were talking about the minimum wages going up to 11 dollars, and somebody said, "Well, we can put hamburgers up another quarter. You put hamburgers up another quarter. Who gets the benefit of it?" HST, 13% on that extra quarter. You know, the government doesn't give anything back. They only take. You mentioned the meat being right up there as well, and so what Paul says is not only the fact that we don't grow stuff here, look at the weather they've been having self the border too. I mean, it's climate change thing to go off in a different direction. It's going to affect all that stuff, and it's going to raise the price, right? Well, it is. I mean, people talk about the effective inflation, and if people have listened to this show, they know we've talked about four main fundamentals as drivers behind why gold and silver have risen as they have in the last 12 years. One of them is the expectation of currency devaluation and a lower US dollar. The second is because of the money printing that's happening to lower the value of those currencies we're going to have inflation. The third is geopolitical problems and reasons why whole countries would flock to gold as an insurance investment. The fourth is supply and demand, but when it comes to inflation in particular, you don't ever want to sell that whole argument short because people talk about deflation, stag inflation, and many economists aren't sure what particular area we're in right now, but mark my word, we're living in inflationary times, minimum wage is rising. I mean, that's a whole kick on the whole sector. People buy assets like gold and silver to protect themselves and give them insurance, and whenever you're paying more year over year for something, that's a clear sign that we're in in an inflationary period or about to be there. We've been in this business since 2002, and I can tell you that looking back even 10 years ago, if you wanted to get information on the gold market, there'd be one or two books at your local bookstore that sold, that gave information on bullion. Skip ahead to today. You could basically have a section your own on physical hard asset investing. Of course, if you went to the mainstream, it might as well be 2003 all over again. We're here to get people learning about it. These fundamentals are a key sort of glasses that you want to wear in order to understand how people skew the markets and what you really need to focus on. Again, it's inflation, it's dollar devaluation. When it comes to supply demand, geopolitical unrest is also about lack of credibility that people have for their governments, et cetera. So best way to get involved, best way to start learning about it, precious metal advisor. So give us a call, go to therealmoneyshow.com, and you can get the precious metal advisor for free. You can do that and call this number, 1-877-214-1711, or their website guildhallwealth.com. And again, mention therealmoneyshow.com to have a look at that as well. Take our first break here on The Real Money Show. And back with The Real Money Show, the number to start investing 1-877-214-1711, the website guildhallwealth.com, and the website that just launched therealmoneyshow.com. While you're there, take advantage of the precious metals advisor during the investing this week. How's it looking? Gold and silver. Well, first, let's congratulate the people that did buy this week because there were a tremendous amount of buyers, and they are to be congratulated. Thank you. Welcome aboard. We're glad to have you. Well, selling, I think we had one seller this week, which didn't get filled yet because the product isn't at the office. So that's all we had for selling this week, really, on the sell side. But the buy side was pretty heavy. Of course, people want to take advantage of these prices. They tend to end late in the week. We see these late prices and good opportunities to buy, but I mean, Paul, you've been buying all week, right? Yeah, I love this. You know, when the market comes off, I load up the boat. I think it's a great opportunity. We offered our clients, and especially the people that were buying physical products, the way that they took it home, or put it in the depository, every 100-ounce bar. You got a one silver maple leaf completely free of charge that was worth $23, $24, with every 100-ounce bar that you purchased. If you use collateralized financing, we offered a one-time commission. In actual fact, we're dropping all the opening fees as well right now when you open an account using collateralized financing. It's a great opportunity. We're also bringing to the front that a lot of our clients are requesting right now is called a monster box. Jeremy, do you want to explain what a monster box is? So a monster box is 500 individual silver maple coins. So a lot of people are interested in owning the small divisible coins in one-ounce increments, and normally they come in tubes of 25. A lot of people are looking places to store that once you get up above a couple hundred ounces, and that's what the depository is all about. It's all about storing physical bullion. We can store monster boxes, same price is holding 500 ounces in general. So we don't make distinctions between types of product once you own the silver, you own the silver. So we have a lot of people bringing product to us as well, people who have been holding on to it realizing there are certain limitations to whether putting it into a safety deposit box. I'm not looking for a Canadian bank holiday, but certainly there have been times where banks are closed and you can't get to them. Your bullion is stuck there. The depository basically follows a private business and we're not associated with banks, so your bullion is a lot more available. And of course it's insured. You can put bullion in a safety deposit box, but it isn't insured. So knowing what you have is one thing, knowing that you have it and that it's secured and insured as a whole other process. So we're offering monster boxes, 100 ounce bars, kilo bars of gold, any type of bullion product that you can think of. So we're starting to see more people bringing their bullion to the depository and storing it for safety. Something to consider the monster boxes are also growing in popularity and we just wanted to let the audience know that that's something that's always available at Guild Ball. It's a little tough as well. Monster Boxes Jeremy said they come in tubes of 25. So there's 500 one ounce silver maple leaves in a monster box comes in a beautiful thick yellow, heavy plastic box. Very hard to put in a safety deposit box. I mean it weighs around about 35 pound, you know, tough to lug. You've got two monster boxes, you've got 70 pound of merchandise. And the reason people like maple leaves, but it's a safe thing, it's a Canadian thing, but you also pay a little bit of a premium. You're paying $2, $3 extra on each maple leaf where you buy a 100 ounce bar, you're paying less for that product. But you've still got to get started. I mean it's a great way to get going, I mean I always give maple leaves away as presents to kids, birthdays and different things during the course of the year. Great way to get started. Whether you want to take it home, you can still put it away, put it under the bed or a shelf or whatever you're going to do. If you want to put it in the depository, you can buy 100 ounce bars, you can buy silver maple leaves, you can buy one ounce of gold, you can buy 10 ounce bars of gold and kilo bars of gold. And we can do that for you. One, eight, seven, seven, two, one, four, seventeen, eleven, the website rather guildhallwealth.com. The new website is up the real money show.com. Paul, something you've mentioned before, it's better to be, you know, a month earlier than the day late buying. I don't know what the price of silver is closing as we record this show. But Jeremy explained, what would the ratio be to people who actually listen your advice and say, this is a good time to buy when it's really low, or the people who get in at 30 bucks and think they're getting a good deal. They're wrong. Yeah, so the ratio is one way that listeners can understand what the value is, right? Price is what you pay, value is what you get. And ratios start to give you a feel for what things are actually worth. So right now, for example, silver's ratio to gold is something like 63, 64 to one. It's historic ratios 16 to one, meaning they pull out 16 ounces for every ounce of gold. Of course, we use silver in everything, electronic, digital. Now it's in clothing and things like that, medical usages. There's actually five times more gold above ground than silver. That's a whole other ratio. But that does say that silver is actually more rare above ground than gold. But these ratios are interesting, again, to show you what things are valued. So for example, in 1980, when gold hit the all time high at the conclusion of that bull market, you were looking at a one to one ratio to the Dow. So with one ounce of gold, you could buy 850 shares in the Dow. That's where it was peaked. The ratio of gold to the debt in the U.S. was one to one trillion, which right now the debt is closing in on 17 trillion. So you could imagine where gold could go. Look at the ratio of gold to the Dow right now. I think it's somewhere in the range of nine to one. At the recent peaks, and again, fundamentally, we're still in a major secular bull market. But in the recent peaks, when gold was at 1900, silver was at $48, you saw silver around 35 to one on gold, and gold had come down to against the Dow around four to one. And you could see that people still thought, yeah, it could go much further here. The ratios have further to go. But think about it. Do the math. Take your calculator, say, how many ounces of gold would it take to buy my home? Is that reasonable? Like, is 400 ounces of gold reasonable to buy a home? Hey, maybe to some people, if it's a useless relic, then maybe the answer is yes. But when you look at the fundamentals, when you're thinking about the credibility in governments, their ability to have discipline in creating money out of thin air, you have to start thinking there's a reason why a lot of people are moving into the physical market in gold and silver. Tell me more about the cyclical market, Darren. Well, with respect to gold and silver, it's exactly where Jeremy was heading. The idea of the market is that these cycles repeat themselves. And since 2002, we've seen no less than four of those cycles come and go. And these are traditionally from trough to peak, about two-year cycles. They end up running with some type of peak by spring of a year. It happened in '04, '06, 2008, 2011. And these cycles, you can see them before they happen. Right now, for example, the price of gold, we're looking for two closes above $12.70. And about 90% of the cases, gold leads silver. And that's been the case since day one of this bull market. And that's one reason why when you're watching gold get close to these resistance levels, you want to start to think about if you already own adding a little more silver. But again, you want to look at where gold is heading. So two closes above $12.70 right now. And I suspect that we're going to see a push towards $13.50, $14.00, ultimately on our way towards $2,000 an ounce. And I think we will break through the previous highs set in both gold at $19.20ish and in silver at $49 on this next run up in the market. So adding that type of product to your portfolio today, I mean, you're going to look like an investing rock star, in my opinion. So that's the type of thing you want to do when you're acting in the contrarian while it's cheap now. What we were talking earlier about, you know, all the gold has ever been actually produced is still above ground. And silver is being used up at such a rapid rate. Somebody asked me a question yesterday. How much gold actually is there in the world? Darren, you had something about the octatrium? Well, yes, if you take all of the gold and you compact it into one large pile, it would stand approximately three quarters as high, same width and depth as the octatrial in Paris. Yes. So Paul, I hope you're listening. I guess that answered your question. Wow. So the question is that, you know, all the gold is still above ground, whether it's in jewelry, whether it's in coins, whether it's in teeth, it's still above ground. Silver is being used up at a rapid rate. Silver is used in so many different technologies, whether it's flat screen TVs. It has a cell phone today, DVD players, hybrid cars, it's all using up silver. And it's going at an unbelievable rate. And in my opinion, I think somewhere down the road, silver is going to become more rarer than gold. Well, above ground, you say it is right now. It's laughable because people just don't know that. Again, it's an effect of the headlines leading us astray. They never ever talk about it. In fact, we've touched on this particular topic so often here that our listeners know it full well. And in fact, even when we mentioned a few weeks ago, headlines such as the one about the comic features market not being fully disclosing the amount of gold still standing for delivery. Here we are at the end of January. And there are still four plus tons of gold standing and waiting for delivery in the month of December. Now February is a delivery month and we're about to roll over into that month. In fact, today we roll over and that is going to be an extremely positive thing. Now traditionally, there have been a couple of really good periods of time in which to be buyers. This is one of them. So I can't tell you if I'm thinking of investing, how now is such an important time. This is a great time when you see the markets come off for absolutely no reason. We tapered $10 billion. Benanke is no longer with the Fed. It's his last day on the job. Thank God. We're bringing somebody else in new. I don't think things are going to get any better in the States. The figures Obama did gave the State of the Union. I think it would have been better if he said the State were in because that's really what they are. There's only a few people in the States that have done exceptionally well. And as I said, that's hedge funds, people on Wall Street, people with lots of money have made money. But in actual fact, they've only got back to where they were in 2008 and 2009. If you had $50 million in 2008 and you dropped down to $25 million in 2009 and you're back up in 2013 to $50 million, have you really done well? You didn't lose any square meals a day. You were still eating. You still had lots of properties. You still went on holiday. The average person hasn't done well in these growing economies that's supposed to be so great. At Guildhall, you really need to get into hard assets. We believe in gold, silver, platinum, platinum, platinum, natural fancy color diamonds, which we're going to talk about in the next segment, is the way to go. When I see silver drop down to just about $19, I know that this market is temporary and I can see in the next few days, next week, beginning of February, the market will take off. So if you want to buy a product, you want to take home delivery, again, it's special. We're going to keep it going on a 100-ounce bar. You've got a one-ounce maple leaf at no charge. Whether you want to take it home for immediate delivery or we can deliver it to you. If you want to put it in the depository, it's a minimum of 200 ounces of silver to put it in the depository. If you want to buy a monster box, that's 500 ounces of one-ounce maple leaf. If you want to get the 500-ounce maple leaf for nothing, buy 500, 100-ounce bars. Real simple. The more you put in, the more you're going to get. And the same thing, if you want to use collateralized financing, we offer that. You can put up as little as 30%. We've got a one-time commission that allows you to trade in and out. If you're a type of person that just wants to buy the product, not trade it, just put it away, I recommend the depository. If you want to trade, you want to take advantage of the dips, you want to take sell-off when the market moves up, then get into a collateral financed account and we're going to talk about it a little later again. We'll take a short break. The other half that you guys do so well is Natural Fancy Color Diamonds. The number you need to know to start investing 1-877-214-1711 and the new website, go check it out TheRealMoneyShow.com. The Real Money Show, the number, 1-877-214-1711, the brand new website, TheRealMoneyShow.com. We'll get a flip over Paul to GuildhallDiamonds.com, which I am wearing right now. That's what we're going to talk about, Natural Fancy Color Diamonds. Before we get into that, what I'd like to recommend people to do, if you're listening and you haven't applied for the precious metal advisor, I recommend that you go on to our website. We can send it to you electronically if you want a hard copy. We can also do that. It's normally $250 subscription, but we're giving it to you for one year, completely free of charge and what cost nothing can't be expensive. It's a great tool. You need to get into it. You can get that at TheRealMoneyShow.com. Let's talk about a diamond, very exciting. First of all, I want to congratulate everybody, the purchase of Diamond last or this week and last week. We offered and it's still offering till February the 14th Valentine's Day. Many diamond on our website that you purchase between now and February the 14th, you will get a beautiful diamond, heart-shaped necklace, great gift to give the girlfriend, the wife, somebody else's wife, whatever you want to give. It's a great, great gift and it's on any diamond that's on our website. I don't care whether it's a diamond for $12,000 or a diamond for $300,000, you're going to get a diamond necklace when you make a purchase. We have some really exciting diamonds. I was in New York a couple of weeks ago and I bought some, I think we just sent out, Nicole sent out some information on some of these fancy, internally flawless. They range from a 104, a 111, a 113, a 114, and a 135, they're all fancy diamonds. They range fancy, internally flawless, they're beautiful stones, in my opinion. Though I purchase these stones as fancy, we sell three grades of diamonds, fancy and tens and vivid, I think these stones are intense. They are so beautiful, the color is really, really strong. They start off at $12,995 and that's on a 104 and on a 135, you're looking at $15,995 and again, you're going to get a beautiful diamond, heart-shaped pendant, which is absolutely gorgeous and it's going to make somebody very, very happy. We're talking yellow diamonds now. Yeah, these are yellow diamonds. They're beautiful. I'm looking at them right now. They just gorgeous, gorgeous stones. These are considered entry-level diamonds for getting into colored diamonds. If you can, it's always good to move up the color grade, which would be, the next grade up would be intense, which we're having a really tough time replenishing the one-carat intense diamonds at this point in the yellows. But definitely look at them. We've got a couple of one and a half-carat intense and we also have a two-carat intense that you could look at. The diamonds are doing very well. People are starting to look at them. They're seeing the type of gains that can be had on appraisals year over year. They're starting to, I'm not sure what it is exactly, but people are starting to think, "Hey, you know what? The last five years, nothing much has happened. Maybe if I put my money into a diamond for the next five years, at least I can see something happen." So the diamonds are always rare. They're not pulling them out of the ground like crazy, so the supply is always tight in this market. A lot of people put them to the back of the safe. So being a collector's market means people are always doing more buying than selling. And that's coming through in the appraisals year over year. And just these diamonds. I just want to talk about a couple of appraisals. Argyle Pinks, for example, extremely hard to get. If you go to our website, you'll see Argyle Pinks. We only sell V.S. quality, which is one of the highest qualities you can get in, especially in Argyle Pinks. One of our, actually I've just got a couple of diamonds reappraised, but let me give you an example. A diamond that was appraised just under three years ago for 90,000 is now appraised at 135,000. Another diamond that we had from two years ago, and Argyle Pinks is a .55. It was appraised 150,000 two years ago. It's now $225,000. That's a great, great investment, and all they're doing is getting harder to find, and all they keep on doing is going up in price. We have two beautiful stones right now on our website, a .23 Argyle, great stone to get involved with as a starter, it's appraised at 27,500. It's a fancy purposely pink, which is a really great color. It's appraised at 27,500. We have it on for just under $16,000. Beautiful starter stone is not even up on the website, so this would be a terrific stone to get involved with. We also have a .27 is a fancy orangey pink, which is another beautiful color of ES2. It's a radiant. It's appraised at $20,000, and you can get that for $10,500, and that's not up on the website. It's going to be up on, I hope, in the middle of the week. We just got it back from appraisal. Is there a specific cut you do recommend for entry level, whether it's a marquee cut, radiant, rectangular cushion? Well, generally, there are certain cuts that are going to bring out the color. However, if we do find different types of cuts, for example, we do have a marquee cut yellow, and a marquee is sort of almond shaped. If it holds the color well, we're definitely going to procure it. Generally, you don't see a lot of brilliant cut, which is a typical white-colored diamond cut in the yellows, because it just doesn't hold the color so much at the edges. Color is the key. Color is the most important factor when looking at colored diamonds. Of course, we have to go well beyond that. It's got to have good clarity. It has to have good strength of color as well. There are other factors to take in, but if it is something that is holding the color, you've got something more rare. We've only seen a couple of princess cuts, that perfect square cut at Guildhall. We've only seen a couple of brilliant cut yellows. They don't come along often, and they definitely come with a premium. You can pretty much rest assure anything you do see on the site if it is of a special type of cut that it holds the color well. In most cases, a brilliant, if we buy a brilliant, which is a round shape, they normally are about 40% more price when you purchase them. But as Jeremy said, to get one that holds the color is really, really tough. There's one more diamond I really want to talk about. It's not on the website, but we just got it back from appraisal. When I was in New York, I bought this magnificent 0.46 fancy blue internally flawless. We've just got it back from appraisal, it was appraised at 138,000. It's a pear-shaped, it's fancy blue, it's internally flawless. They just found a 27 carat stone in South Africa that's going to be cut, which is going to put a premium as well on blue diamonds, but this stone is a $100,000 stone. It's an investment-grade stone that can easily double in the next two years. I'm not just saying this because that's what blue diamonds do. Blues tend to double between two and three years. If you can find an internally flawless in a blue, it is extremely hard, extremely rare. We talk about blue diamonds. If you look at what goes into auction at Sotheby's and Christie's, for every 112 percassos, fair enough, you go into auction, only one blue diamond goes into auction at Christie's or Sotheby's. This 0.46, though it's a pear-shaped, it's just under a half a carat, and because it's just under a half a carat, you're getting an unbelievable price, but because it's pear, it looks like a carrot and a half a carrot and above. At $100,000, in my opinion, it is an absolute steal. Just to have a look at what it may look like, you have a 107 blue pear-shaped on the way. Yes, we do. It would be a bit of an idea what it would look like, right? And that's over $300,000, so because that's over a carat, this is under a half a carat. It's still an diamond that is desirable, and this is for an investor. I mean, this is not a diamond that you would put into a piece of jewelry. It's strictly for investment that you would buy. If you've got kids going to university or you're going to looking for retirement, this is the type of investment that you can put $100,000, and you can almost guarantee in 10, 15 years time, you're going to get $4, $500,000 for this diamond. 1-877-214-1711, the website, therealmoneyshow.com, to take advantage of all that, Darren. Well, what I like about colored diamonds is that they simply meet every expectation I have as an analyst of what would make a good investment. They have very little or no volatility. You're never going to wake up in the morning, have your stockbroke calling, you're telling your colored diamond value is crashing left and right, we've got to sell. It just doesn't happen. The track record has been so magnificent. You do have a trade-off with respect to the selling time it takes. They're not as liquid as a stock, but again, you wouldn't want to sell it right off the bat because you want to find the right buyer. You want to see it in their hands, put it on their fingers, get them to wear a piece of jewelry, but when it comes to that, the other thing that I like is that this opens up the whole broad spectrum and discussion about who is actually a colored diamond for. In the past, it's been for the wealthy, the ultra-rich, the famous, the celebrity types, but now it's everyday people. We have basically a huge spectrum of blue color, white color, stay-at-home moms. People who are managing finances that weren't doing it 10 years ago that are looking for alternatives that are scared to try things like the stock market. That's where colored diamonds make sense. When it comes to selling it, the other part I like about this is that we as a company help you through that as well. Unlike so many other times, we've had phone calls, do you guys buy diamonds? Well, no, we actually don't buy diamonds unless you're a qualified distributor that we search the world for to find the best quality of. Unfortunately, too many people get caught in that trap and forget to ask, what do I do when it comes to selling? Give you a perfect example. I just sold a diamond for a client, not but a couple of weeks ago, and he bought that diamond less than 36 months ago, couldn't afford the time to wait until the diamond matured to the extent that we believed it would, maybe five, six, seven years, had to sell it for other reasons, put the diamond up, and he actually got a 10.5% return over 36 months. We generally say, "Hey, you're not going to get that return until about five years," but the reality is, it ended up giving about 10.5%. It took us a three months to sell the product, and it was 10.5% per year on that diamond. Overall, he was extremely pleased, got a check back the day after we closed the sale. And very quickly, we didn't have to wait a week like a bank, you know. No, there was no delay. You get the check right back, and he was awesome. So he's given us a referral, and now, as of a couple of days ago, gave me an email saying, "Hey, I would like to pass your name and the information off to a friend of mine who's looking into alternative investments. Can I do that?" Absolutely. 100%. Well, I had a wonderful client conversation today with a client who is 70 years old, and he's about to purchase his first colored diamond. And his reasoning for it, I thought, was quite interesting. I wanted to share it today. He said, "I'm 70. My wife's 64. He knows lots of people who are 90 years old that live to the ripe old age, and he's looking for something to protect his wealth. He said inflation can steal a lot of money here over the next 5-10 years, and he's looking to hold the diamond for over 10 years." And that's something you're going to put the wife in product exchange for $2.30, you know? No, he's going to put the diamond on her finger, let her enjoy it for the next 5-10 years. So I think that's really interesting that whether you're 28, looking to get married for the first time and wanting a diamond that's going to be worth something in 40 years, or you're in midlife looking to retire, and you want to look for something that's going to give you well over 10% a year gains, and you have that ability to wait, or you're 60+, and you're saying, "Look, I'm going to be around for another 20, 30 years. I need to protect my money. I'm going to put a little bit into diamonds." So more and more people across the spectrum are getting into this market. RealMoneyShow.com can send you through to the Guildhall website. And of course, if you're on the precious Meladvisor, we do send out a feature diamond of the week. It's a great way to just get a little flash of the market once a week. And it's good to get in the launching pad of a yellow diamond where the common surf like myself can get in at an investment level and start buying diamonds, right? Those were buying questions you're asking before, so let's stick around after the show. You bet. More of the RealMoneyShow coming up, 1-877-214-1711. The new website, check it out therealmoneyshow.com. The RealMoneyShow continues the number 1-877-214-1711. The new website is therealmoneyshow.com. Let's talk a little more about diamonds, Darren. Well you know what, listen, it's a time of year. Paul has an excellent proposition for people listening. And I think that it's something that everybody that's thinking of buying a diamond should take advantage of. And if the wife's in the car with you, cover her ears because this would be a great opportunity. I just want to kind of recap, I just want everybody to take advantage of the precious Meladvisor. It's put out every week by Darren. He writes some great articles. It's normally a $250 annual subscription, but we give it away for one year, completely free of charge. If you are an existing customer, you automatically get it. But it's a great way, gives you updates in the market, what's happening in metals, what's happening in the diamond, as Jeremy said, we put a diamond of the week up every week on the advisor. But this is an opportunity to learn a little bit about product. If you've been sitting on the fence, this is the promo. If you go to Guildhall Diamonds, look at our diamond collection. Any diamond that you see on that website, you purchase, you will get the most beautiful diamond pendant. It's a white diamond pendant and a heart-shaped make of unbelievable Valentine Day's present. It's good. This offer is good until February the 14th. After that, it's not available. If anybody had purchased a diamond a month ago, this doesn't, it's not validated. It's from today. It's from last week up to the 14th. Darren, recap the market for us. Well, look, this week has been an interesting one. I think people that are watching the price may have seen a slight dip in the late stages of this week, Thursday and Friday, don't be mistaken as to the reason why you're seeing a dip. It is not necessarily because of the announcement to cut 10 billion additional dollars out of the monthly bond buying program at the Feds announced on Wednesday. They're down to 65 billion. Mark my words. That is so much bloody money that one cannot even begin to fathom how much is actually going out there. Remember, since 2008, we have quadrupled. In fact, there's $2.5 trillion floating out there somewhere in the monetized space. We used to have before Obama came to power around $800 million. So mark my words when I talk about gold and silver. This is a huge, huge experiment, a science experiment of great magnitude, and we are the guinea pigs. Owning these assets is the greatest thing you can do to protect yourself. We have to remember that part of the reason why the Fed is creating all this money is so that they can have bond purchases to keep long-term interest rates low. The minute that stops, interest rates go through the roof, and we've got some major, major problems in the States. It's very curious that they're willing to drop or ease quantitative easing or taper rather, but it really stinks of Bernanke looking for some sort of legacy that for the next 20 years, he can say that his last two FOMC meetings, he lowered the, he started to taper. Of course, I'm positive we're going to read a book in the next five years of Bernanke telling us just how bad things really are. We got it. We got it from Greenspan. So it's certainly the looks, that's the direction we're headed. So, you know, look, print 65 billion, print 55 billion. A billion dollars is a lot of fake money to be printing. So we're not looking for excuses when we say every month or whatever that they're tapering here. They've already done it. Darren just said it. They already posted that in the mail. They have created so much, gobs of money, and the fact that they have any credibility is amazing, and it's clearly on the decline, look at China, they're buying gold like crazy. They're willing to mine it at a loss, because that's how much they feel about the credibility of the US dollar. And by the way, they stopped buying Treasuries in 2011. So clearly, this is something that only if you've been listening to mainstream media that you believe, but that's part of the reason that we have new media. That's part of the reason that you might be listening to the show. You're looking for an alternative view. You're looking for someone to give an example of why things just don't possibly make sense. So look, one of the things that don't make sense is gold going down, silver going down. There's an abominable amount of paper out there. That is synthetic supply. That is not physical supply. The physical market is tight, super tight. It's hard to describe how tight it is. It'd be a billion dollars tight. This market is ready to pop. And when it does, you might wake up one morning and silver is no longer $20 an ounce. It's $28 an ounce, and you missed it completely. So consider putting 10, 15% of some extra cash that you have sitting around into some bullion. Give us a call. We'll show you the type of numbers that you might be looking to get in return-wise. The number one, eight, seven, seven, two, one, four, seventeen, eleven, go to the website, therealmoneyshow.com. It's brand new. It's a great website, and it's certainly helpful. Everything all in one place, and that's what makes it so simple to use for investors. If you were paying attention to the show earlier, Jeremy was talking about the ratio between gold and silver being about 63 to 64 to one, and that means that for every 63 ounces, 64 ounces of silver, you have one ounce of gold. That ratio is very important because traditionally, that ratio has been far closer to 16 to one than it has to where it is now at 63, 64 to one. It was, in fact, as high as 90 to one before this bull market started, and it has been as low as the low 30s during this bull market. Now we have been in an extended period of consolidation in both gold and silver, and every single power available to those that would wish to keep the price as low as possible has been extended and used. We are at the very tail end of that period of time. Even the greatest, greatest armies have to retool and build ammunition and more vehicles. So expect the prices of gold and silver to climb here, and if we have a simple reversion, it's going to tell us that silver is going to climb relative to gold, and if silver were to just return to the middle of that ratio range, let's say to around 53 with gold at 1250 an ounce, we would see a silver price at around 2360 or about 18% higher. If it was actually to go to 45 to one with gold at 1250, we'd see the price of silver actually jumped about 27 to 27, 28 dollars an ounce. That could be as much as about a 40% or higher move from where we are right now. That to me is very easy to see, and if you're an investor, remember, you have to make certain you understand what you're doing, never ever overextend yourself, never use money you can't afford to lose in any investment, no matter what investment you're making, and when it comes to investing, understand there's more than one way to go about owning gold and silver. First off, it has to be physical. That is the key component when you're buying gold and silver. If you're not taking a physical ounce out of the market and away from somebody else from having it, it means that you're buying paper and if you're buying paper, it means somebody else can share it, and we don't want to do that. Secondly, you want to have the ability to buy and sell that product, meaning don't take it home. It's not advisable. It's not safe and it's hard to sell when it comes time to do it. You want to be able to sell on a phone call, which is why you have the depository at Guild's Hall, and you want to be able to store that product. Once in silver, they start as little as 200 ounces, and in gold, as little as 10 ounces at the depository. There are some exceptions to every rule. Just depends on how you're setting up the account. Maybe you're buying a diamond and you want to add some gold and silver, which is a fantastic idea. If you are taking that a step further and you like the sound of what you heard earlier when we were talking about financing your purchase, remember, you can finance up to 70% of your purchase. So in the example, if I wanted $100,000 of silver and I had that $100,000, but I didn't want to spend it. I wanted to use somebody else's money and risk their money instead of my own. I could lay out as little as $30,000 plus the cost of commission and opening account fees, and I would have the same amount. I would have $100,000 worth of silver. I would be able to make the decisions on when to buy and sell that silver and certainly use our expertise to help you along the way. And I would own it and that's the key, it's being taken out of the market. And that's the power of the physical product versus the paper product. Now when we look around for science right now in the market as to whether or not that sentiment is changing and echoing the same thoughts that I have as to where the market might be moving, they're all over the place. You can see that last year was a very weak year for gold and silver. People know this, but despite that, we had some of the greatest record all-time highs in terms of sales of coins at the various mints around the world. The U.S. Mint got the top spot, they sold $42.4 million, one ounce American Eagle Silver Coins. By mid-November, the Mint had set already a new sales record for a single year of sales. The Royal Canadian Mint, they were second in the world, setting its own record with $26.4 million ounces sold and Australia's Perth Mint came in third selling $8.6 million silver ounces up about 33% year over year. So all of this happened as the price of silver declined over 35% in 12 months. So rather than scaring off investors as it has done in the past, lower silver prices actually encourage them to load up in what many consider the real last opportunity as do I to buy cheap silver and gold. And this intense physical accumulation of silver is another clear bullish sign. You have to look for these signs as an analyst. I am constantly entwined in reading articles every day trying to find these signs for our buyers. They are here, the writing is on the wall, the sentiment is changing, the analysts are beginning to echo that belief. And before you know it, you probably see silver sitting in the mid 20s on its way to low 30s. So again, this is something we want to tell our clients about, let them know and advise them. Get into the market now while it's still cheap and on sale. The question is, how are you going to go about purchasing it? Are you going to buy a certificate, which is a paper promise and ETF, which clearly paper promise, only the banks could get their hands on the physical bullion backing that their self storage. You could throw it in a safety deposit box or put it buried in the backyard as we like to say on the room on the show. But of course, there is the depository allocate, segregate your bullion, have the knowledge that you know exactly where it is, exactly how much you have. You get your reports on the serial numbers of your bars. If you want to take advantage of the market, you'd go with collateralized financing. Give us a call. We can also put a package together where we can offer you gold, silver and a natural fancy color diamond. Get it all in one. Give us a call. Get the precious metal advisor. Darren, closing comments to wrap it up. Well, listen, we, to our Asian listeners and those that are celebrating the Chinese New Year, I'd just like to say kang hei fat choy, happy New Year to you this year of the horse with great amounts of luck, prosperity, and we hope that you have a wonderful year. Thank you for listening to the show. This has been The Real Money Show, the number to call, as you know by now, 1-8-7-7-2-1-4-1711, the website, guildhallwealth.com, and the brand new website. You should check it out. It is up now, TheRealMoneyShow.com. This has been The Real Money Show. What if you could have a streaming service that added new shows and movies every day? 365 days a year. 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