The Real Money Show
The Real Money Show - January 25th, 2014
The Real Money Show with Guildhall Wealth Management and John Scholes from January 25th, 2014.
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 markets, the number to call always 1-877-214-1711 or online their website guildhallwealth.com In studio today we have President of Guildhall, Paul Wiseman, Vice President Jeremy Wiseman and our Senior Analyst Darren Long. Hi Fellows, welcome. We always start with the market update Darren. Update me. John, how you doing? Good, pal. Good. It's been a good week for both metals. Gold is ranging right now as we're doing the show around 1260 to 1270, while silver is holding about 1990 to 2020 range. And both metals on the week made decent gains. Silver had been as high as about 2040 during the week and gold right now in a real nice range. If we get two closes above 1250 to 1270, that should be a good jump-off point for a move higher. We're going to talk a bit about that during the show. Now, look on Wednesday and Thursday, I was unsure of the market. It looked like maybe the bankers were going to be set to whack gold and silver down during the evening trading hours of Wednesday and Thursday, trying to break that physical demand. That's been super strong this year so far, but they were unable to do it. News from China that their economy is starting to contract, plus the news of a possible default in one of their trust funds, plus news on top of that of a bank run of one of its co-op banks, which is called the farmers co-op. It basically sent gold propelling northbound and it never looked back. So a breakout, as I said here above the 1250 to 1270 range and two closes would be a huge catalyst. And that would also propel silver much higher. A breakout above 2052 closes above that price level and we should comfortably see a move of 10% or more in both metals upwards. Now, as you will see, we have only about give or take left in the trading days of this month, another week or so, and we've been following the story that I know you've asked us about every week in the futures market for delivery in the December contract, which is the largest delivery month for gold, is still, believe it or not, three and a half tons of gold that is outstanding. This is unprecedented. We've dropped down as of Thursday evening of this week down to about 8.881 tons in the registered category. That's ounces for sale on the COMEX for the big three banks, JP Morgan, HSBC and Scotia. And if you include breaks in there, it only moves to about 11.3 tons. Now, that is basically the lowest level we've ever seen in the history of the COMEX. That is the smallest amount of gold in tonnage that we've seen holding out there. Remember, three tons of it is still due for delivery. And in another week, we start taking first day delivery notices on the month of February, which is a delivery month for gold. So, real big situation happening here. And as of Thursday evening, we see JP Morgan's customer inventory level sitting precariously low. In fact, about 1.3 million ounces of gold and their dealer accounts at about only 87,000 ounces of gold or about 2.7 tons. That's hugely disturbing. And what is totally remarkable is the fact that little gold has entered the dealer COMEX vaults despite December being the business month of last year. Now, as I said, February is around the corner. And generally, January is a fairly quiet month for the futures markets. But as you can see, the physical demand for both gold and silver is starting to ramp up. Now, February, that means February should be a real fun month if you're a buyer of gold and silver. If I was thinking of investing, there'd be no better time to do it than right now if I was expecting maximum return. Now, in addition to that, gold showed a nice little surge also because of the speculation that India is thinking of easing some of its gold import restrictions. I read a little about the possibility of a short squeeze in gold in an article this week. Does it feel like like that short squeeze is underway now? It does. And this is this is the breakout we've talked about for a few weeks now. We've been talking about these, the importance of specific levels in silver and gold. And we are breaking above 1250 on gold, which is a real key point. And that's been key resistance for several weeks. We should see more follow through after the weekend. And if there is a break towards 1270 in gold, that should put us off to the races. Now, there's another fundamental type of short squeeze that we're seeing. It arises from the fractional reserve banking system. This is when you're actually short physical metal and you have to deliver the physical metal into the market. This shortage of physical metal is enormous when it's fully quantified. And that is why the short squeeze that we think may be coming right now in the market. It could be historic in terms of the price advance. You can't create gold from bookkeeping entries. It has to come out of the ground, has to be pulled from the ground and it has to be used. You have to be using existing above ground stocks. But if you look at the last two years, this picture has been developing for a long time, our buyers, the investors with Guildhall and those thinking about buying know this picture very well. We spoke about it to them and congratulations if you've been taking advantage of the opportunities we put in front of you to buy gold and silver. Want to take advantage right away? The number 1-877-214-1711 on their website, guildhallwealth.com. Paul, you're going to say. Yeah, this has been a really interesting week. Gold has started to move up. It's going north. It's up over 2% on the month. You have to look at what's happening basically in the stock market. As we're recording this show today, the Dow is down 253 points. The S&P 500 is actually fell below the 1800 level, which looks like that's going south, not north. The Nasdaq dropped 75 points today. In European markets, again, they were hit up pretty badly this morning and it reflected in what's happening in the US. In the US markets as well as the Canadian market. The DAX was down 239 points this morning. The FTSI down 109 and the CAC is down 119. When we go over to Japan, the NICI is down 304 points. The HANSING is down 283 points. You can see the stock market is starting to... They had great profits in 2013. The correction is coming. Gold and silver is going to move up. You have to look at the hard assets. I predicted that I thought we'd see silver the end of 2013. I thought we'd see $50.60 easily. I was wrong in my assumption. I thought gold would hit $1,900 and take out the previous high of 2011. Right now, we're trading at $1,265 gold. Silver is in the 1990 range. I think this is a great opportunity to get into hard assets like gold and silver. Okay, we were saying it's really a good time to buy. How easy is it, though, to get an account happening at Guildhall? Simple. Guildhall, you have to remember, we only sell physical gold, silver, platinum and platinum and platinum. We don't sell paper. We're not in that business. We don't sell equities. We don't sell ETF certificates. Futures are options and futures. We sell the real thing, bars of gold, silver, platinum and platinum. If you want to purchase, if you want to take the product home, you can bury it in the backyard and put it under your pillow. It's available to you. There is some risk in taking home delivery. There is a lot of home invasions, and when things get bad, the needy and greedy seem to come out of the woodwork. You heard your black, too. It's heavy. Well, 1,000 ounces of silver weighs 70-odd pound. You want it by 5,000 ounces. You're going to need a wheelbarrow to move it around. Plus, when the problem is, when you want to go to sell it, when you want to take advantage of the silver trading in a $20 range, you get a $5,6 move. You've got 5,000 ounces where you've made $30,000, and you want to take some profit. You've now got to take those bars and try to resell them. Whoever you take them to may want to get them a say. It may not want to take them back. The second option we have is we have a depository that's safe, secure, and sure. Where you can buy the same product, we can store it for you for easy liquidity at a very, very low storage rate. We even can give you the bar numbers where we can segregate it and allocate this product for you. Smart way to go. Third option we have is collateralized financing, where you can put up as little as 30%, and you still have the ability to own, if you're buying 1,000 ounces, you're only putting up 30%. Darren, why don't you give us an example of collateralized financing? Well, collateral financing couldn't be easier. It's the idea or the notion of using other people's money. Likewise, if you were to go and buy a mortgage today, you probably wouldn't put up the whole value of the home. You might put up 10, 20, 30, 40%. In collateral financing, you do the same thing with precious metals. You may full well, and we do recommend that you have the full amount of the metal. So if I wanted 1,000 ounces of silver, I would have to lay out, give or take around $22,000 to buy that metal. Now, if I use collateral financing example, and I only put up 30% of the value plus the commission, I'd be laying out around $8,000 to $9,000. Basically, what I would get for that is I'd get 1,000 ounces, I'd get a one-time commission that I could use to buy and sell that metal, the 1,000 ounces or any part of it, in and out of the market as frequently as I want to. That's huge. That's huge. No other firms do that. And essentially, you could do that for putting up as little as 30% plus the cost of the commission. Now, when you're moving forward, if I pay for the whole 1,000 ounces or 10,000, whatever I buy, I pay for it outright. I'm tying up all of those dollars. I'm not able to maximize them in other investments or in other areas, short, medium, or long-term diamond, right? You could, but ideally, I want to be able to take some money off the table, put it into metals and have something to hold back for a rainy day. That's the idea of using the concept of other people's money. We don't recommend this for people who have to borrow or have to use a line of credit to invest. We don't, you know, we don't want you going to Uncle Pete and asking for a loan you can't afford. This is for people who can afford to buy 1,000 ounces or 5,000 ounces or 10,000 ounces or whatever the case is, and they want to use this system. The difference is if I buy silver and I buy every dollar value ounce today, I have to wait for the price to double in order to double my money. I buy it at $20 an ounce and it needs to go to 40. If I use collateral financing and I put up only 30%, that means I need the price of silver to move up 30%. So today, I would need the price of silver to move up to around about $26 to $27 instead of $40 in order to double my money. Now, long-term, there are always questions about whether or not this is right for an investor. You got to think about the fact that you do have some costs. You're going to incur the cost of using other people's money. There is a finance charge by the financing company. The thing with collateral financing is that as the market progresses, you can use that ability to buy and sell without any further commission to pay down that debt. We don't want any of our clients carrying debt long-term. It doesn't make sense. So when the market does move up, you've made a nice return on your investment. Then it's time to take money off the table. And that's what the expertise on this panel is here to do. This is one way to invest. And we'll talk about the other in the next segment, which is using our depository, which is another way to invest. The best thing is it sounds like positive cash low because you're not laying out all the money for all the silver. That's right. And having that money held back for rainy day means I can put it elsewhere in the marketplace in short-term investments. I can use it to buy more ounces if the market goes up. And I can also cost average if the market goes down. And when you're thinking about the risks involved in any investment, you should never be investing money you can't afford to lose. No matter whether you're buying stocks, bonds, GICs, or silver. But the reality is you're going to do better when the market is moving in an investment like this. But ultimately, the market's going sideways currently. We know that this can't last forever. We know that the supply side of bullion is very low. I would say extremely low at this point. Countries around the world are clamoring to get as much into their coffers as possible. We're talking China, India, Russia, all the BRIC nations. Why? We could conjecture on that for a long time in terms of the influence of perhaps the onset of perhaps a new global currency or reserve rather, the SDRs. But the point is, is that currencies are being printed ad nauseam, gold and silver are a finite commodity. You can't create them at a push of a button. And so it's a great time to step into the market, put a toe in the water, start your position. We always talk about a 15% to 20% position. Maybe you want to start with five. But you want to start here at this point, especially for Canadian listeners, because the exchange rate is only going to get worse. So if the price doesn't do anything, you want to get in before the price is $30. Now you've got to add that exchange rate. All of a sudden you're paying $35 an ounce. When we come back, actually, for the next segment, let's touch on that. The exchange rate where we expect the Canadian dollar to go and what impact it might have on gold and silver. I just want to add to that, when we start talking about natural fancy color diamonds, I purchase all my natural fancy color diamonds in US dollars. If you purchase a diamond, everything on our website is in Canadian dollars. You're already up 10%, 11% on the price. It's an unbelievable time to get into natural fancy color diamonds, as well as hard assets like gold and silver. We'll take our first break. The number to start investing one, eight, seven, seven, two, one, four, 17, 11, or their website guildhallwealth.com. And back with more of the real money show, the number to start investing one, eight, seven, seven, two, one, four, 17, 11, or their website guildhallwealth.com. While you're there, take advantage of the precious metals advisor free subscription when you sign up and go online. Darren got a question now. What kind of advance could we see here and how rapid could that advance be? Well, in gold and silver, both are unique metals. Gold usually leads the two metals higher and silver usually follows up with a percentage game, which usually is substantially higher than gold. But the last two years have been significant down years for both metals. And so I expect extremely strong 2014. I cannot relate enough. How strong I expect 2014 to be for both metals. This is meaning that gold is now, in my opinion, looking set to break up towards 2000 and ounce. And investors really at this point should be focusing on much higher prices. The trend is clearly higher on a short term basis, on a medium and a long term basis right now. And people should expect to see in gold somewhere near term 1500, if it can break and hold 1270. That would be certainly a short term game. And with that, it would drag silver towards the 23 range to breaks above 23. And we could see 26 before the fourth, fifth month of this year. Well, and I think it's important to note that the mentality is changing amongst amongst the central planners, central banks in in cahoots with governments in terms of the way they view the gold market. There is the regulation, the regulators from Germany, rather looking into how they how they fix the prices. And banks are certainly looking to rethink how they're doing all of this. And this could be very good news for gold. Obviously, it goes without saying, I believe that that the banks don't like gold, central planners don't like gold. They really like their fiat system. They really like control over everybody's money. So this certainly would be a threat to that system. I think you see a threat to that system through China's accumulation, Russia's accumulation. I don't think that can go. You have to highlight that when you're thinking about gold and silver, because in North America, we do see it while while we do see sales are robust. We see this general malaise towards gold and silver that that feeling of, I don't want to buy it until it's at $35 an ounce. When I finally believe it will go to 50, instead of actually looking at the fundamentals, just like you would in the dot-com bubble saying, you know what, I think paying $300 for a stock that isn't worth $300 is kind of ridiculous. Maybe I won't buy that. But no, we love that fever pitch. And I think it's good to be smart. It's good to be savvy. You want to get in early. You want to be in before the craze happens. And I do feel as well that the longer that this market has me entered at these low prices, the more you're setting yourself up for gaps up in the market. There's always that analogy of holding a beach ball under water that the longer you do it, when you do let go, it's going to jump up really high. So I think it's important to put that toe in the water, get involved, or at least start to look at the fundamentals and think about the fact that the Dow, even though it's been coming off, has been very high already in this five-year bubble that they've created in the Fed for the stock market. We need to start thinking about defending against that next bubble bursting, which I think is going to be gold and silver. It's all about physical gold, silver, natural, fancy colored diamonds, the number 1-877-214-1711 online at guildhallwealth.com. Guys, in the first segment, Darren, you were talking about the change in the Canadian dollar, the effect it might have, or will have on gold and silver going forward. Well, it is. I mean, analysts expect right now, and I've heard it time and time again, but analysts are expecting right now that against the US dollar, the value of the Canadian dollar, is pushing towards the low 80-point level, 80-cent level, which means we're going from where we are today, trading at 90-10. We're down on the year. We've had a good run-up at par and above par. We've seen import exports level off to a null effect on each other, in fact, over the last little while, which means one is not exceeding the other, which hasn't happened for a long time. So that change in the way people treat the Canadian dollar tells us there could be softness in some softness in the Canadian economy. Again, there's obviously going to be momentum traders that want to lay their two cents in there and trade on the short side the Canadian dollar, but the analysts are predicting and we tend to agree that the Canadian dollar is going to slide. Now, along the way, it's going to have moments where it rebounds and it's going to look as though it's going to repair itself, walk maybe back into the mid-90s, but that's not the case. I do believe wholeheartedly that the Canadian dollar is going to go and move towards 82-cent level against the US dollar. Now, that's fantastic for the change in mentality towards import exports. It should help our boost our manufacturing sector, which is a good thing, but the reality is we've hit just this week a four and a half year low against the US dollar. Naluni has been on a downward pass since about late October of last year when the Bank of Canada basically shifted policy gears by dropping any mention of interest rate hikes after about 18 to 20 months of saying they were going to raise interest rates and they haven't done it. The Canadian currency has dropped more than 7 percent since then. Again, that level is something that is going to be super positive for gold and silver because people, when they fear that the currency is not going to do well, they need the alternative currency so they move to the real currency, which is the tangible gold and silver. The other thing that's really interesting is what you get is what you wish for. They wanted the Canadian dollar to be lower for exports, but that doesn't help choke public because now, you know, how much lettuces and avocados do we grow in the winter in Canada. Everything is imported fruits, vegetables, and you're going to be paying more. You're paying more. Everything's gone up wheat, sugar, flour. All these commodities are heading upwards, which is going to cause inflation. Gold, silver, in my opinion, is such an unbelievable asset. You've got an opportunity to buy silver gold at a discount price. May 2011, silver was trading at $49. Gold was trading at $1930. You're getting it today for $20. Do we think it's going to go back up to $50, $60? Absolutely. Yes, in my opinion, I think this market is going to just keep on moving up. When countries print, print, all they're doing is confiscating your wealth. They're creating paper. It's nothing. It's paper. We order gold and silver every day from our distributors, the distributor for the Royal Mint. We are back ordered. We don't get our product next day. It doesn't come through the door. If you order 5,000 ounces for us to put in delivery into our depository or for you to take home, we have it in stock. We have to replace it. It takes two, three, four weeks to get our product in. What does that tell you? It tells you that there's a lack of product. You need to get into hard assets. You need to own gold and silver. You can own it through Guildhall. You can take it home, home delivery. You can put it in our depository. And if you want to take a little risk, you can use collateralized financing. The number one, eight, seven, seven, two, one, four, 1711, the website, guildhallwealth.com. Jeremy? Yeah. We're always got our finger on the pulse looking at what the other analysts out there are saying. And really, across the board, everyone is saying that the price is slated to move much, much higher. There's talk about short squeezes. There's talk about gold eventually hitting up to about $2,000 or higher this year. It's a very good time to get into the market. That goes without saying the price is low. But there has to be this mentality that has to be changed in terms of people waiting for the higher prices. You wait for the higher price. Again, you're going to wait for the price of silver to get to $28 before you decide to get into the market. That's when the market's going to start moving quicker and quicker and quicker. By the time you book your order, the price will probably be $30 plus the exchange plus premiums. You're looking already at $35 an ounce when you could be buying it at $25 or $24 Canadian depending on the product. So I think you want to get in early. You want to establish those relationships early. If it's something that you have been thinking about, maybe it's time to put a toe in the water. Think about even doing something like the depository where you can have maximum security and maximum liquidity and maximum flexibility where you're owning your product. It's outright. It's allocated. It's segregated. There's no counterparty risk. This is about the best way to store bullion that we've ever seen and we offer it to our clients. It's very similar to when people think, "Oh, you know what? I'm going to buy it and put it in a safety deposit box." Okay. Well, it's in the bank, but it's uninsured, but it's safe. How would you like to have it that safe but be able to have it insured, which it's not in the bank, and have the ability to buy and sell on a phone call, and maybe also get some extra information on the market while you're doing it? That's what the depository does. If that's something that interests you, give us a call as well. If this is something where you're saying, "You know what, guys, I think you have my attention here, but I still need to learn more. Give us a call. Join the precious metal advisor. We send it out every week. We get you information on the market. Give you our best articles that we've read that week. Darren writes an article every week, puts his heart and soul into it, and he's been doing it consistently for about five, six years. It's a great product, a great way to learn about the market, so you can sign up for that on our website as well. 1-877-214-1711 on the website at guildhallwealth.com. Darren, something you know, Jeremy just mentioned about the security. A couple weeks ago on this show, you mentioned some of the difficulties with just trying to go summer with your silver and trying to get our gold. It was scary. It's scary. Do you even consider keeping in the depository, really? When you get subpar businesses that they are happy to sell to you, coins, bars, and you've been buying from them for a while, watch what happens when the market starts to fall. You're in the middle of a fall. The market's tumbling may be down three, four percent on the day, a big drop for silver. And all of a sudden, the spot price is $20 an ounce, and that store knows they're going to buy the product from you. And to do it, they're going to risk taking a loss because the price is in the middle of a tumble. Watch what they offer you for a price. It's probably going to be two or three dollars below spot. And that happens on a regular basis. I can't tell you how many times my largest client, when he came to me, he used to keep bullion in other places around the world that he had bought and stored it in. And he said, never, never did he have any luck getting anywhere close to the bid price of silver when he was trying to sell. And that's because they don't want that risk. But what Guildhall is connected to is the largest distributors in the world. We're connected to the businesses that are able to provide and buy back the bullion and distribute it throughout the world, which means that is going to give the best level of service possible to people interested in buying and owning physical precious metals. There's no secondary to this. There's nobody in Canada right now with respect to our depository that I can safely argue has a better setup, a better way or more liquidity. It's just simply not there. And the other thing that we also offer, I mean, some clients would like to keep their product if they're in the US or even if they're in the Canada, they particularly don't want to keep it in either country, if they want to put it in Singapore, if they want to put it in Switzerland, we have the ability to do that for them, which is an incredible goes into safe, secure depository with the numbers as well allocated, segregated, and you get the numbers of the bars. But the numbers of the bars are limited. You have to put in a minimum of 10, 100 ounce bars. It's a great way to store your bullion. I think that we've seen it time and time again with our clients, especially the larger clients who understand, look, I'm going to have this bullion. I want to make sure it's safe, secure banks. There's limitations, unfortunately, with safety deposit boxes, as we were mentioning before, you need to make sure that where you're storing your bullion has insurance. It has an ease of liquidity. And when I say ease of liquidity, I mean the ability to sell on a phone call within seconds and get my money the next day. That's what you're looking for. And that's what Guildhall certainly offers. And I think it's certainly something that if you're thinking about getting into this market, yes, there's costs to doing business. But in terms of storing and ensuring your bullion, the percentage is that the market has to move are minuscule for what you're getting. Just unfortunately, bullion, you have to pay to store it. It's not a stock. It's not a piece of paper. It's actually an asset. And if you want to make sure that that asset is there when you sell it or there when you take delivery, there is a small cost, obviously. But give us a call. We'll walk you through the details as we do. Of course, we can set up meetings to view your bullion any time that you desire. Anytime you want to take delivery, you can do that as well. If it's something that interests you, give us a call. If you're new to the market, you can always sign up for the precious metal advisor as well. And as a little incentive, if you're going to put into the depository, it's a minimum of two 100-ounce bars. We're also giving away a silver maple leaf with every purchase of 100-ounce bar. You order 10 bars of silver. You're going to get 10 maple leaves completely free of charge. It's a great time to get into the market. That's for delivery or for to put into the depository. Unfortunately, we can't do that if you're going to do collateralized financing. But again, we have a one-time commission which allows you to trade, as Darren said previously, as many times in and out as you like, without paying a nickel more in commission. What a way to go. The whole structure, as much as I hate the expression, it's a no-brainer. Really, you should jump all over. The number is 1-877-214-1711 online at guildhallwealth.com. And the other thing that you guys do better than anybody is natural, fancy color diamonds. We'll look into that with more of the Real Money Show. And back with more of the Real Money Show, the number to start investing in gold and silver, natural, fancy color diamonds, 1-877-214-1711 online at guildhallwealth.com. I love talking about diamonds, guys. This is the natural, fancy color diamond segment. What have we got? Well, a really interesting thing happened. They just discovered a 29-carat blue diamond in the Cullinan mine. They're estimating once they cut the diamond and have been made into a couple of different beautiful pieces and there'll be a few little satellite pieces left over. That is going to go for a million dollars a carat. I think it's going to go a lot higher. I was in New York last week and I was fortunate enough to purchase a stone, which is a 0.46, just under a half a carat. It's a fancy internally flawless. Blue. Blue. Now, it's a fancy internally flawless blue, which means it has no inclusions. To find a blue diamond with no inclusions is really, really rare. At auction, even on blue diamonds, whether it's Sotheby's or Christie's, for every 112 Picassos that go into auction, there's only one blue diamond. So it tells you how rare these diamonds are. It's actually, the diamond has just been put into appraisal. So we will have the appraisal early next week. But this is the diamond, for me, the diamond of the week. It's a pear-shaped. It's a stunning little stone. As it's a 0.46, just under a half a carat. You're looking to get a steal on this stone and round about $100,000. In my opinion, this is a type of diamond that can double every two to three years. So it's something that if you're interested in, get on the early list. As I said, I haven't got the appraisal back, but I know what I paid for it. I know what these stones are going for, and especially the blues. We have a blue stone as well, diamond. It's a 107 carat, fancy, internally flawless as well, beautiful stone. But you're looking over $300,000 for a stone like that. And we're featuring those diamonds because of the blue diamond that they discovered might as well be start looking at what these blue diamonds are actually worth and what they're fetching. And if you look at the return on these markets or the past performance, you can see that blue diamonds are one of those type of diamonds that are, if it's a quality blue diamond, of course, you've been seeing returns well plus 35% a year on those diamonds. One year? In one year. You have to understand, in diamonds, pricing is reflective of rarity. So the more rare the diamond, the more expensive it is. If it's a vivid yellow, that's going to be more expensive. If it's got more inclusions in it or less clarity, it's going to be less rare, less expensive. It all is rarity equals price. And blue is really only second to red in terms of rarity. And ultimately, if you look at the ratio, every one in 10,000 diamonds, mine is a colored diamond. Every one in 10,000 of those colored diamonds is going to be blue. So it's extremely rare diamond to find. And there are only a few hundred of them floating out in the entire world right now. So to have a blue in your collection, in terms of rarity, in terms of being able to boast that you have something so exquisite, something gorgeous. And also because of the return that you can expect on a blue that Paul was just mentioning of that magnitude and such a gorgeous diamond, it's a 0.46 carat fancy blue and it's a pear shaped diamond and it's internally flawless. So this is going to be a diamond which should, over the next three to five years, double easily in price. How about just hang on there for 25 years? Seriously. You're talking about being for education. Absolutely. Kids, you're talking about having a retirement plan, you're talking about being able to buy that cottage up north. I mean, there's so many things that I think about when I'm buying a diamond and I own them. So I mean, these are the things I'm using them for. You can use them for the same things. 1-877-214-1711 or on the website guildhallwealth.com, Jeremy. And it is the absolute rarity that if you're looking for a place to park your money and that's safer than a bank per se, you know, a lot of the problem, and I say safer than a bank because a lot of the problems that we're hearing from our customers is that they don't like the idea of just leaving a bunch of cash in the bank. It's not getting any interest. Obviously, it's losing value against the US dollar. You're not saving anything. And when you think about inflation and you think about the higher costs of living and higher costs of energy, et cetera, you start to think of different ways to protect your money or to build some wealth. And obviously, there's a difference between saving your money and investing your money and gambling with your money. And the stock market is not a savings environment. It is a risky environment. And that's why most people, like myself included, hand it over to some expert and hope for the best that they can give me some sort of return. In the industry, quality colored diamonds are known as money in the bank. When we go to a dealer and they show us something that is so extremely rare, that term is heard time and time again. That is money in the bank. In fact, Paul was telling me I should let him tell the story, but he was saying, you know, when he goes to New York, the dealers will talk about diamonds that they just put in a safe and never have any intention of selling because that's money in the bank. And once you sell it, you're naked. Now you've got to find a new place to put it. Those are the ones Paul always tries to get to sell. But you know, like Jeremy said, I was, you know, I was one of our dealers and they've got a red diamond. They bought it actually at the Argyle tender. It's a two and a half carat diamond, a pink and Argyle, actually it's a red that's going to be worth an absolute fortune. They pay two and a half million dollars for it. They're not in a hurry to sell it. They put it in the back of the safe. There's two or three people that are partnering it. They're going to double their money in two to three years on this stone if somebody wants to buy it. You have to remember at Guildhall, every diamond we sell comes with a GIA, which is a Gemology Institute of America. That's the classification, the diamond grading of that diamond. It tells you everything about the diamond, the color, the size, the color, the clarity, the weight, everything about that stone. The next thing, you know, we offer is an independent appraisal. Our appraisals are not BS. Their appraisals are the replacement value. If that stone diamond was stolen or lost, the insurance company would have to pay you that amount of money. We don't sell it that appraised value. We discount down 40, 50% from that price. We don't have a fancy store, whether it's on Bloor Street, Rodeo Drive, in Los Angeles, or the win hotel in Las Vegas. We don't have to pay those high rents. We offer our clients unbelievable prices, unbelievable signs. I was in New York last week. I saw 100 diamonds. I purchased eight out of 100. Somebody else is going to buy those other 92, not I. Let somebody else have them. And what Paul's talking about in terms of the website, showing the GIA, showing the appraisal, showing the prices, all of this transparency is an attempt to help the potential buyer who is, for lack of a better word, uneducated about the market. I can't tell you how many times I'll have a client show me, hey, look, this pink diamond is going for 3,000 and yours is 30,000. Why is that? And you look and you say, well, because that says treated on it and there's no GIA, which is because it's a treated diamond. And so there is a lot of lack of information out there that if you're getting into this, it's not that difficult to learn once you've acquired the four C's and that's something we can definitely show you. Just give us a call. We have a buyer's guide on colored diamonds and we'll show you that. We're also a member of the NCDIA, which is all about promoting natural fancy colored diamonds. And it's a small clique of wholesalers and retailers. But this is all about putting your money where it's very safe and you want to buy quality assets to do that. We've attempted to purchase only the top quality colored diamonds to give to the to not give, but to help investors continue to make money in these markets. We've been very pleased as we've watched the appraisals go up anywhere from 12% to well over 35% every year. And I think that this point for six fancy blue I F pair, which I when I pulled that out of the little package, it comes in. I was stunned at the beauty of this particular diamond, even as a fancy. Normally, fancy's come off as watercolors. This diamond had so much fire and beautiful color. It really held the color that I was very impressed. I don't know if it's because it was a haircut or it's just cut so beautifully. You don't see fancy's that strong in color, although it's a fancy still, but these diamonds you can expect to see very good returns year over year. And to the mention, as you were saying, John, you'll want to hold on to it. You know, we tell clients, really, if you want to maximize your return, you got to hold on to it for the long term, because you start to get that compounding return. If you're looking at sell a diamond after three years, that better be one rare diamond. And I'm talking a one care at red or a half care at red or a blue massive blue diamond where it's going up 50 or 100% a year where after two, three years, sure, but you're looking at a very high end market half a million plus to get those returns quick. So you need to hold on for the long term. Darren, I want to ask you about selling it a sec. First, I want to mention something you mentioned brilliance and something we talked about at length last week when Nicole was your website Guildhall Diamonds. If you haven't gone here, this is like Lego. It is so easy to use. If you bounce over to the second tick on the top band of the collection, go down, shows you all the colors and then you can just peruse, including that diamond, I guess you're talking about Paul the point for six. Yeah, absolutely. Like this is the four six million on the website. It's not there. Yeah, but it will be a beer up next week. But you know, the 107s up, as I said before, that stone had diamonds actually on for 380,000. It was appraised at over 550. I think it's under appraised. That type of diamond, in my opinion, is a $700,000 diamond. If you were going into Tiffany's card here, graph jewelers, that's what you're going to pay for it. It's so easy to use this website. Darren, question for you. How do you sell? Well, selling is easy. I mean, when you're ready to sell in a time, the amount of time that we deem is appropriate to turn over a good profit in the diamond. Remember, no investment goes up the exact same every year. One year, you might get a market in which blues rise 40%. The next year, you might get a year in which they rise 35. And the third year, you might get 70. You just don't know. But we have an estimation guide with our brochures and what we talk about in terms of investment return. And when it does come time to sell, you've held that diamond for five, six, maybe 10 years, you're going to call us up. You're going to get a contract in place, which initially is going to be about a six month contract in which we'll exclusively market that diamond for you. We incur the cost of marketing that diamond. In some cases, we need geo target, particular audience for that diamond. We may have pushed it out to different parts of the world. We may show it on the real money show. We put it up on our website. We may send out flyers. There's a lot of ways we target the audience for buyers, but it couldn't be easier. We're going to take 15% on the diamond when we sell it, which is a normal fee that any auctioneer or any other seller would take. And when we come to finding a buyer, we're going to handle the transaction for you. So we'll be able to get it shipped for you. We'll make sure it arrives safely in that you get a check back in the mail after it's sold. Recently, just had a client who brought back their diamond, had bought an intense yellow diamond a few years back. And he really wasn't prepared to hold on to it for as long as we might recommend. He ended up making a very nice return, nine and a half percent per year over three years on a fancy intense diamond. And again, that's right in line with what our expectations were. And that's also factoring in what the amount was that we took back a small commission for selling the diamond. He's ecstatic and I'm expecting a referral back from him and also a compliment in terms of a written reference for our company. So it's exciting to see that. He's just one of many. But when the time does come, the selling part couldn't be easier. And the thing is, we don't have a problem taking the back. You know, you talk to most diamond companies that sell diamonds and you want to return something. You know what their answer is to you? We sell diamonds. We don't buy diamonds. We don't mind taking back a diamond and putting it on our website because the diamond that we've sold you is such a great diamond. I've gone out of my way to purchase the best of the best quality. So I'm happy eventually to get it back. I'm like a real estate agent. If I've sold you a home, five, 10 years down the road when you want to sell that house, I've got built up client base. I know who's looking for a similar home that I can place somebody. I can place these diamonds because they're such great diamonds. We have lots of collectors. Even if I wanted to put them back into the wholesale market, into the dealer market, because we sell at a very fair price, we don't, you know, overcharge anybody. And we're very, very fair. But the quality is the key thing. You know, when you're buying a diamond, it has to have the four C's, the color, the clarity, the cut and the carrot weight. And there is a fifth C that's really important when you buy a natural fancy color diamond. It's a currency. It can be sold in any currency. You know, right now the US dollar is strong, the Canadian dollar is weak. But, you know, if you're selling a diamond, you know, you're getting, you're getting a great, great price if you're doing a US dollars. If you wanted to sell it in yen, you wanted to sell in euro sterling, it's available. We can sell these, sell it into markets because we do sell all over the world. The number 1-877-214-1711 are online. Their website guildhallwealth.com. And as I mentioned, go to guildhalldiamonds.com to really see exactly what we're talking about when it comes to natural, fancy color diamonds. Take a short break and we'll wrap up and get into more of gold, silver and natural, fancy color diamonds right here on The Real Money Show. And more The Real Money Show, the number to start investing is 1-877-214-1711 online, their website guildhallwealth.com. You guys have discussed a lot about seasonality, a precious metals. What role could that play this year? Well, if we recap what we were talking about in the show earlier, we've had a couple of years where the prices of silver and gold have really done nothing. Now, in the big huge picture, that's the cycle that we've been through. Seasonality, if you look back at the charts, tells us that we've had these troughs or periods of consolidation in the metals markets, which have allowed investors to re-establish positions, get recharged about their sentiment towards these metals. And as world events develop, these metals take on a whole new life and start to charge up again. If you look back, the very first cycle started in 2002 and ran up until about 2004, and I would say about 50% of that move happened in the last four to five months. So generally speaking, these cycles do take a long term, but it happened again in '05, '06, '07, '08, and it happened again in 2010, 2011. I remember Jeremy and I sitting here doing countless shows in the fall of 2010. The price of silver was around $18 an ounce, and it was about September or October. And we were just absolutely adamant that the price was about to advance. And it moved to 30 by years end in December of 2010, and it moved to 49 by spring of 2011. Again, a big chunk of the move that happened occurred in the last four or five months. Now, if this is exactly what is about to happen, there's a reason why. I'm sitting here on Friday, it's late in the afternoon, and here we're seeing the prices of gold, even since the show started to rally into the final couple hours of trading up until a little after five o'clock tonight. Price of gold is trading at $12.70 right now, and if it closes there today at $5.15 and holds, all heck is going to break loose. Because from a technicality standpoint, that's where you get momentum traders interested. When it's breaking these key resistance levels, and it won't take much for silver to follow, silver is now back up above $20 an ounce. It's gone up since we've been taping the show about 30 cents. And ultimately, we're seeing that fluctuation occur simply because people are looking to jump the gun early in the Sunday night trading in the Asian market. So I expect that this seasonality will hold true this time around. The cycle will repeat itself, and smart investors will get their very first chance to liquidate and put money aside. That is the cycle that we've done. Remember, buying and selling in gold and silver is not something like day trading. You don't, as Paul's always said, you don't day trade your house. You would never think of day trading gold and silver. You hold on to it. And once or twice a year, you're going to be given real good opportunities to take part in some selling and repurchasing. And by doing so, what you're hoping to accomplish is simply to add to the pile, you're looking to make the stack of product that you've acquired bigger. So that long term, you've established a full position. And if you are using collateral financing, which is again, the concept of other people's monies where I'm putting down 30% or more of the value of the metal I want to invest in. And I'm owning and controlling all that metal. This concept really, really is a smart way to go. The buying and selling concept, because you're over the long term going to be getting rid of debt, increasing equity, and moving towards a position which is outright owned. At that point, you may well decide, hey, collateral financing worked for me. I'd now like to take a big portion of that, take it home, put it in my pocket. Maybe I'm going to move some ounces long term over to depository. There are all kinds of ways to approach this. And all of them are very smart ways to do so. The interesting thing is that in the early '70s, Nixon took the gold standard off. Gold was trading at $35 an ounce. You know, today, we're trading at $1,270. That's not a bad move up. But there's a lot of real estate owners and people that invest listen to this show. In the early '70s, you could have bought a single family home in Toronto for around about $44,000, $45,000. At $35 silver, that would have took 1257 ounces of silver to buy that home. Today, that single family home is going for about $450,000. Nice profit. But it would only take you 354 ounces of gold to buy that home. The same 1257 ounces would be worth $1,596,000 today, where the home is worth $450. You would have been up, you know, a million dollars by owning the gold rather than owning the home. You can't live in gold. But as a second investment, you know, people do rent our homes, you know, they invest in condos or whatever. This is a great opportunity at $1,250, $1,270 gold. Right now, I think, you know, over the next 10, 15, 20 years, you know, people, the pundits are calling for as much as $10,000 gold. Now, we say that. People look at us like crazy. We've been in this business since 2002. Silver was trading at $3.80. You know, people bought silver, snuck home, never told anybody. You know, when it went to $49, they told all their friends and neighbors, they were heroes, how smart they were. Unfortunately, you know, gold and silver had sold off down to as low as, you know, $18 silver, as low as about $1,100 gold. We've gone back up. We can, there's more upside than downside in the market. If you look at the stock market, we spoke about it earlier, the Dow is down an awful lot today as we record in the show. It was down yesterday. There is a correction coming. When the stock market comes off, gold and silver goes up. Printing money is confiscating your wealth. I can't keep on telling people that this is what's happening. They're diluting your wealth by printing. Get into gold and silver. You need to have 15 to 25% of hard assets in your portfolio. Whether you want to take the product home, you can buy it from us. You can take it home for immediate delivery. We have available our depository where you can put it into safe, secure, insured with Lloyd's and London. Not some, you know, company out in boondocks. This is Lloyd's and London. Your product is absolutely guaranteed. And you can use collateralized financing where, you know, again, we can put up as little as 30%. We have a one time commission offer when you buy through collateralized financing. If you want to go into the depository, minimum order is 200 ounces. That's 2, 100 ounce bars, 200 one ounce maple leaves, 20, 10 ounce silver bars, whatever you want to do. It's a minimum of 200 ounces. If you buy 2, 100 ounce bars, you will get a maple, silver maple leaf with every 100 ounce bar you buy if the same applies to if you want to pick it up and take it home. Let me ask you this, Darren, the number by the way to to start investing 1 8 7 7 2 1 4 17 11 online at guildhallwealth.com. We have this information. You give out this information as people learning this buying with you guys. Why is the media still still kick the, you know, what out of gold and silver like the redheaded stepbrother? They don't understand it. What is their problem? Well, one thing is that media has changed. It's transformed itself over the last two decades. Media has become big business and the majority of media is owned by interests that are in the big institutions. And lo and behold, they support a political agenda or a money agenda, whatever the case may be. It's in their interest to support the things that they know will support their own agendas. Supporting gold and silver, tangible assets, physical assets that don't pay dividends. You can't live in them. Like Paul said, you can't eat it. And you know, the reality, well, you can't eat silver, can't you? I mean, that's the middle of life, but they do rent it in the form of leasing. That's an upgrade. But that's it too. Right. But the reality is, and we don't condone the act of doing that, but the reality is, you know, you have ultimately a very limited scope of knowledge out there in the media place. And when they go to their go to analysts, these are all guys which are and ladies which are touting stocks and why not? That's what they sell. They're at the end of the day, they're salesmen. And I mean, that's that's okay. That's what they do for a living. But it's important to look behind the headlines. I wrote an article not too long ago that got published all over the place called financial media, laughter, tears, frustration, and exhaustion. And it kind of categorized all the emotions I feel when I read the financial media because it really does a disservice to understanding what it is we face and the challenges that lie ahead. Number one, they're lying to you about what the true statistics are. There are reasons why we wouldn't want to invest in gold and silver. And none of those reasons are existing in this day and time. In 10 years from now, I might turn around and as a niche firm, we don't have to buy gold and silver. We don't sleep with it at night. We're not telling you that it's something we're going to love no matter what happens. Yes, you own it for the long term and you can have it for the rest of your life. But ultimately, in 10, 15, 20 years now, we may be selling stock, we don't know. But right now, this is one of the best and most effective ways to protect and ensure your wealth that I have ever come across. And if you hold it for the long term, my expectation is that you'll be well rewarded. Now, remember, when you're looking into buying by physical, it's got to be something that's tangible that you can hold in your hands. Stay away from paper alternatives. They don't impact the market. If you buy a stock, it's not impacting the price of gold or silver because gold and silver is traded in the futures market. And it's physical. It should be physical. And we don't do do futures or options on futures. We're not in equities. We buy the physical, tangible, holding your hand real hard asset. And the thing is, if you've been looking at this market and you've been sitting on the fence, yes, for the last few years, we've actually been going sideways. We're seeing an increase in the price of gold. We're seeing silver moving up. This is the time to get in. You're better to be, whether it's one week, one month, too early than one day, too late. Because when you wake up one morning, you'll see silver trading a $23, $24, a $3 jump or in gold where you'll see a $40, $50 jump where people will woke up, smelt the roses and realize that this is money. This show is called the Real Money Show because what we sell is real money. Gold and silver and diamonds is real money. Darren, wrap it up. Well, listen, I just want to remind people it's cold weather. We've had a real bad spell of cold weather. You see somebody out that's having less luck than you out in the street left there, support them, support your local food banks and give them a little something if you got a little extra. The number to start investing if you're on the fence like Paul said, get off the fence and start now. The number is 1-877-214-1711 or the website is guildhallwealth.com. This has been the Real Money Show.