The Real Money Show
The Real Money Show - January 4th, 2014
The Real Money Show with Guildhall Wealth Management and John Scholes from January 4th, 2014.
The real money show the number one eight seven seven two one four seventeen eleven guildhall wealth Dot-com and while you're on the website sign up for the precious metals advisor free subscription to guild halls Premier market newsletter and welcome Baron first show of 2014 big show John it's a good year ahead of us I know good things are going to come for people who are smart enough to take advantage of the markets that we talk about weekend week out 2013 is gone happy new year to everybody and welcome aboard to all of the new investors from this past week we're glad to have you in a part of the guildhall family and Let me just start by saying gold right now up on the year a couple of percent trading as we are taping this show on Friday at about 12 35 to 12 40 range in silver in the 2020 to 2030 range so both market improvements But there are a couple of things currently working in favor of gold and silver for the time being every year Those who manage the major commodity indices such as like the Goldman Sachs commodity index or the Dow Jones a IG commodity index they reweight the Composition of the various commodities that comprise their respective index now some categories of commodities see decreases in the waiting for that particular index while other commodities see increases in the waiting so this is a common practice that happens every single year and It impacts the various markets for about a week or so as the index funds which are sometimes referred to as the long funds or long-only funds Benchmark against these indices and they buy or sell certain commodities in the case of gold and silver Last number of years running we had a fairly off year last year for both silver and gold So of course the expectation is that they're going to rebound this year and have good positive up years So the indices are in the buying mode now This is important longer term in the nature in the sense that the nature of the market There needs to be a level of support at these pricing levels going forward our best years in which we've seen stretches from January to spring Where pricing peaks have happened which is in oh four oh six two thousand eight in two thousand eleven have all begun with great rallies in the first few weeks Some of it predicated on this and right now the other part of the thing that we're watching in the front end of the year is the demand huge demand coming out of out of the Asian markets and You might recall we've talked about this quite a bit of demand that has been there It's soaring and whenever that gold price seems to hit around 11 80 Which is the support range for gold right now boom in comes Asian demand the buying picks up and you see volumes correct upwards So again very strong supported 11 80 and only if we were to breach 11 80 and subsequently 1150 below that would we see the risk of further downside? So you're talking Asia that includes China the world with two biggest two biggest countries really China and India East India correct It does it does include both those countries and of course still the Indian wedding season in India Demand is rampant over there and again as I said it's seemingly in that gold the magic number is 11 80 Whether it's in New York whether it's overseas markets London It seems to be that 11 80 range where buyers are coming alive and picking that up and it's been that way for several weeks now So I expect both gold and silver to hold in their support ranges gold again is 11 80 and Silver in and around about 19 dollars an ounce and I expect both to hold going forward So if we get the rest of the week that we've had already and next week We get that support in those ranges and prices hold where they are I expect the markets to move ahead here and we could get a little bit of short covering which would be Which would certainly favor a rally in both metals so the number to call 1 8 7 7 2 1 4 17 11 online Check it out at guildhallwealth.com like we we just mentioned it's 2014 the first show of the year So for listeners what ended up being the amount of gold in the futures market that stood for delivery or remains outstanding Well, that's another topic. We were talking about John. We've been covering it for the last few weeks certainly through the month of December We have in the gold market about 20.19 tons of gold standing for December contract month in total and after that which Which of course delivery has to ensue we've had about Give or take about 8.74 tons left to settle on which is about 81,000 ounces of gold that's still not been delivered now if we look at the largest three banks that hold Bullion in the New York market on the COMEX JP Morgan HSBC in Scotia We have a dealer inventory of only about nine and a half tons Which is pretty much all but spoken for with respect to what remained for delivery and they've got to settle upon that 8.74 tons Still outstanding now the interesting thing here is that in the futures market if you're in that particular arena You may know or you may be well aware of the fact that JP Morgan has all but stopped issuing deliveries They cannot get their fingers on the product. It's getting very hard very tight to get product and the balance That means the balance of that 8.74 tons is gonna have to come from either HSBC Scotia bank or a mixture of the both They only have by the way about six and a half tons of gold available. So that's a precarious situation You got about 8.7 tons still sitting there waiting to be delivered So it should be for a make for a very interesting month to see the movements of gold as gold enters the turbulent month of January So if you weren't smart enough to get physical products say from guild hall and you go to JP Morgan said I'd like my gold, please. What do they do? Well, that's something that we've toyed with for a long time I mean I've tried to write numerous articles posted all over the internet about the pros and cons of taking delivery on futures contracts Now remember the futures market unfortunate as it is is a very highly leveraged market Most people who take gold contracts, which are hundred ounces at a time Don't have the money to lay all of that out. So they cannot take delivery. They're hoping that the month fluctuates in their favor and if I'm a buyer I hope that the market goes up in price and usually what I get as a result of that is not the subsequent delivery of that hundred ounce contract Usually what I get is the premium that I make off the difference to where I bought it And where I sold it so essentially that accounts for the large majority of who's playing the futures market some might roll over into another month If I'm actually if I'm actually taking delivery, maybe I'm a jeweler or maybe I'm somebody that need gold Those those are few and far between it's it's estimated now by most analysts in the market that if as little as four percent of the entire Base took delivery of their metals. It would bankrupt the entire COMEX. You would not have enough metal to go forward Why investors don't see this why big institutions don't know this I'm sure they do But as to whether or not they're willing to take a chance and risk going full-on at the feds In the US who who primarily end up controlling these prices by way of fluctuations in the amount of money They print and other subsequent things that they do. I don't know your guess is as good as mine What do you think is gonna happen with the world economy 2014 it's been bumpy ride right from the last several years? Well, listen when it comes to the world economy I mean despite the the prices of gold and silver following during 2013 the story seems to be demand for the physical metal itself. I mean is is this a trend? I mean is it gonna continue? I mean it's gonna be very interesting to watch I mean it was gold first annual drops since 2000 and gold and silver's worst performance since 1981 and 1984 respectively now China we know is set to become the world's largest buyer of gold In 2013 the numbers have still not flooded out completely But we know that from what we've been reading the headlines are telling us that that's the case We'll delve into that as you know We do and the ramifications of that is that we're going to continue to see very high demand and it remains to be seen if that high Asian demand in places like India and China if that will keep the markets buoyant We expect that it will but it will take the act of the Western markets also Beginning to speculate again in both gold and silver to move those metals forward Anticipations are very high for price increases this year and I suspect that both gold and silver will see fairly decent rebounds during this year and if I'm right in my my Expectations by spring we should see a decent rally in both metals that would put buyers right now in the market that are looking To get into this market in great position to take profit off the table 1-877-214-1711 and online at guildhallwealth.com. What metal you think is going to be hotter in the short-term silver or gold? It's a great question John But you know what to be honest with you the the two the more speculative of the two metals is silver It still remains the more undervalued metal of the to the ratio between gold and silver has not really tightened that much Meaning in the last quarter of the year silver didn't explode Per se in fact we had a Rangebound trading so I would still put my bets on silver I like silver for so many reasons as you know the fundamentals Definitely support long-term higher prices and I think that from a rally perspective Silver is bound to catch up in surpass it. It has been that way since 2002 anyways since Guildhall opens its doors But reality tells me that I have to to go with my gut instinct and based on what I'm seeing in the research I'm doing silver is your winner. You got to take it Should people be adding gold and silver to their positions already or waiting for the price to settle somewhere? Well with respect to price we're rangebound and we're certainly near the lower end of that range Which is a good thing and we certainly don't have much in the way of Concern about buying or seeing the markets drop that much lower I mean, this is a market which has been toyed with long enough and I think investors for the most part that are not going to Participate in the rally they've left the market. I mean they've shaken all the loose branches from the tree And basically they've all fallen to the ground So right now I think is a great time to start adding the portfolio if you take for example the front end of the year This is a great time to readjust Don't necessarily just by default go running to your bank your local institution and and start throwing money at your RSPs It may not be the way to go in fact if you look at RSP performance Although there is somewhat of a rebound year you still haven't recovered from the losses of 2007 2008 2009 2010 Most people are still still certainly in the in the red when it comes to those years So don't necessarily look for that to be the way to go Ultimately what you have to look at is where we're heading in price wise And I think with respect to buying you always want to think about cost averaging taking 10 to 15% of your net portfolio is a good place To start if you have a hundred thousand dollar portfolio you take ten to fifteen thousand dollars put it in the physical metals It's what we do and I mean, it's what we're good at at Guildhall and it's easy to do for that dollar amount What kind of what amount of gold and silver we talking physical in physical products for an investment of ten thousand dollars? I mean, you're looking at basically In gold you can I mean again what we should do is we should discuss the ways you can open up an account with Guildhall The the way to do it is threefold one you can take home delivery. It's physical We don't delve in paper markets. We don't have commodities futures trades. We don't have options on futures. We're not dealing in ETS We're certainly not dealing in equities But with respect to that you can take it home number two. You can store it with us do the smart thing. It's insured. It's stored It's segregated. It's allocated you can have the serial numbers on your bars with with with meeting the minimum requirements for the amount You're buying and it's certainly something that you can buy and sell very quickly You can't do that when you have it at home Unfortunately, and you're gonna be responsible for your own insurance Which can make that an unsafe bet. The third way to invest with our firm is clockwise financing And that's really where you're gonna take and get the maximum bang for your buck. Let's say I wanted to lay out You know twenty thousand dollars instead of doing that I could lay out eight or nine thousand dollars get the same thousand ounces of metal and And then babe basically I'm still earning from that so we can discuss that further on the next segment But for about a ten thousand dollar investment, you know with respect to to silver in particular you can get give or take around about let's say maybe four to five hundred ounces and In gold you would be getting around give or take about Maybe about eight ounces eight to nine ounces of gold and that's physical I mean, it's the only way to go and remember when you take it out of the market Nobody else gets the right to have that product when you remove it when you own it You're the only person who owns it. Nobody else shares it. It's not hypothe cated It's your product yours only and you get to make the decisions on it It's it's you really have ownership of that metal, right? You do you can touch it you can feel it you can see it You can you know you can put it under your bed you can keep it into the pository do what you want with it But the end of the day nobody else gets the right to do anything with that except for you It seems like other than the weight of the metal and actually the insurance Problem that you might have storing it at home It seems like ease of access if you want to turn around and sell your metal It's you it's a phone call right if you store, you know what when we come back Let's start with that because I think that people underestimate the importance of Buying and selling do is it more important to buy at a low price or is it more important to sell at a high price? What are the intricacies of buying and selling and am I going to lose money if I'm not positioned properly to sell my product? And that's a great question. We'll take a short break the number one eight seven seven two one four seventeen eleven and guildhall wealth calm Lots more of the real money show coming up and more of the real money show the number to start investing one eight seven seven two one four seventeen eleven online at guildhall wealth calm well You're on the website sign up for the precious metals advisor the free subscription to Guildhall's premier Market newsletter Darren. We were talking now before the bake about the advantages of storing with Guildhall's it relates to buying and selling gold, right? Yeah, it's not a day that goes by John that I don't hear from somebody That gets gassed on buying or selling the wrong way I mean there's so many firms out there that don't give you the right information You think you're getting the right information But again, if you don't delve behind the headlines behind what just the front page of the website says then you're not getting the true Information first off there is a variance on buying when you're buying there are premiums involved in buying gold and silver Doesn't come for the spot price. It's showing on the TV screen every day Somebody has to make that product and they get charged for it and when mints are involved like coins There's a higher premium on coins the rule of thumb is the larger the piece of metal that you can afford to buy at one time The lower the premium should be well machining. That's right. Of course So if you're buying a hundred ounce bar versus a thousand ounce bar the thousand ounce bar is gonna be cheaper per ounce You're buying a hundred ounce bar over. Let's say a one ounce bar the hundred ounce bar is gonna be cheaper per ounce But that being said every firm charges a premium. It's made up of a couple of different things It's the factors that are affecting the market and that given day market demand and supply for that particular product is it available? Is it readily available? Is there a back order for it if there's a higher demand for it? There's gonna be a higher premium cost coming from the supplier. We use the four two of the four largest suppliers in the world Four metals and as a result, we get really good premiums. We do have competitors, but remember Beyond that what am I getting when I park my assets with a firm like Guildhall? Well, in most cases if I don't go to Guildhall, I'm going to a coin seller or I'm going to just a place that just sells bullion doesn't do anything else. I'm just getting the buying and selling that's all I'm getting and Many cases it surprises me John because you know human nature is has been this way for thousands of years Look when I pull into a gas station and I see that the price of gas is one twenty one even and across the street The gas station over there is one nineteen nine. It's one one hundredth of a penny less expensive But everybody's lined up with a great deal. It's a great deal, but you know what people don't consider is I got to buy thousands of leaders of gas to make a difference It cost me that much more just to drive to the traffic to get to that gas station So unless it's a significant savings it wouldn't go there But with Guildhall what you don't get at the other places is service beyond that and one of the things that we often find ourselves talking about with people who have already bought is What is your plan for selling because it's one thing to buy at the right price We've talked about the importance of buying now And that's for mom's dad's doctors dentists investors and non-investors alike They're all in the same boat when it comes to buying you want to buy at a cheap price now's the right time to buy I'm telling you that in my history as a person in this marketplace nine years of expertise This is a good time to buy both gold and silver and be averaging into these markets But what you're not getting with these other firms when you go and buy and you save you know on a ten thousand dollar order You save you know fifty dollars or a hundred dollars What you don't get is the service and the service is simple you get a row of experts everybody that's on the show on a weekly basis You can speak to Paul German myself Stephen Nicole everybody at our office you can speak with at any point in time if you have questions and you want to ask anybody on our panel about them You can speak to them. That's included in that price. What's also included in that price is the advice about selling now What people don't think about Johnny today buy their bullion. They take it home with them They put it in the sock drawer. They bury it in the backyard and they never ever think about selling But when it comes to selling one thing is true It's anything but easy if it's not stored properly if I have that bullion. It's at home Let's say I have four or five one hundred ounce bars There's a good chance that in order to sell that I'm gonna have to have an intimate knowledge of the person I bought it from so that they trust me like a bank or I'm going to have to have an essay and That means that I have to have that product randomly sampled to make sure that the purity is Unchanged it means that my silver is still pure and my gold is still pure and that is advice That is priceless because most people don't think about it and when the price hit the high point in the spring of 2011 so many people came running to our firm saying oh my god I can't sell. I can't sell over the pants down there's absolutely they had gone and made these 10 20 30 hundred thousand dollar investments And they had no idea how to sell it They just figured it was as easy as walk them back into the place that they bought it from in addition to that They were gassed on the selling price. So they didn't get what they were told they were gonna get That guild's hall. We lay it out. It's transparent. I'm happy to tell you what spreads are when you're buying and when you're selling I'm happily I'm happy to tell you exactly what to expect. But on the selling side I can't emphasize how important it is John to make certain that you're prepared to sell and if you're not holding your bullion in a Secured depository like the one that we have at guild hall You don't have that ease of liquidity. You don't have the ability to pick up the phone and sell quickly Like a stock like anything else timing is everything Absolutely in spring of 2011 the price of silver the intraday high was forty nine thirty now Most likely very few people are gonna be a student enough to sell at that near high But during that day we sold we had people selling we had automatic triggers that got people out of the market And in some cases people were out of that market until the price hit at least $28 an ounce Versus people who took it home and thought you know what I bought it for the long term. I'm not gonna sell it And that could be the wrong thing to do. We're not advocating nor am I advocating that we buy in self frequently not day trading your house Paul says you're not day trading your house Why would you day trade silver and gold the idea here is to simply take advantage of these price peak points? It's to get to the market when the going is good or before the going gets good Take a little profit off and use that profit put a little bit back in the pocket and then use a little bit of it to get back Into the market and bulk up your metal holding so if you had a thousand ounces of silver now you got twelve hundred ounces of silver 1,400 ounces of silver and I've had many clients come back to me time and time again and add to their stack they pick up ounces here They pick up ounces there they add you know Maybe they had a thousand ounces to start with and before you know it They've been in the market for 24 months and now they've doubled their position now They may have brought more funds to the table But in many cases they've done nothing but buy and sell at the right time You don't have to be perfect and Guildhall's not perfect. I don't want to leave that impression But when you're timing this market it helps to have the proper liquidity you got to be able to buy and sell it at the right time Well, it's like you and Jeremy and Paul have always said it's better to be a month earlier than a day later this stuff, right? So it's always been that way and it remained to be that way the number one eight seven seven two one four 17 11 online for purchase as well and to check it out guildhall wealth calm the precious metals advisor That is a free subscription to Guildhall's premier market newsletter I want to bounce back to the world economy and where you think it's a going as far as it refers to silver and gold in the future anyway Well again 2013 is an interesting year because we've got numbers in so far from a couple of well one of the main I mean the Perth mint is a large mint the US mint the Perth mint the Canadian mint Those are your three big mints with respect to bullion production Those mints produce a lot of bullion. They take a lot of bullion out of the market They put a lot of bullion into the market now the the Perth mint has reported a ton of Chinese buying has occurred during 2013 and Both the Perth mint and the US mint saw huge increases in demand for physical gold coins and bars The Perth mint of Western Australia reported that they saw a significant increase in sales Despite the falling prices on paper of both gold and silver gold sales for the Perth mint Which refines most of the bullion from the world's second biggest producer Australia climbed 41% last year? That's a huge gain. That means Ten years or more into this bull market one of the world's largest mints had 41% increase in demand Telling us that we're nowhere near a bubble. We're nowhere near peak demand for this particular Asset and if you look at their sales sales of gold coins and minted bars totaled 754,000 ounces in 2013 Up from 533,000 ounces a year earlier according to data from the mint now silver coin sales They served 33% to about 8.6 million ounces from six and a half million ounces in 2012 and now gold bullion sales expected gold bullion sales expanded about 12% to 58,944 ounces in December alone from 52,000 in November and About 51,000 seven in December 2012, which is according to data from that mint now if you look forward The 2014 year it looks fantastic Yes, it's going to require the Chinese demand to remain high and the Indian demand to main high But one thing that we have going for us is that both economies seem to be firing Both economies have a middle class that are interested in owning these two assets And both are going to be going forward very big buyers Now if you look at the economy in the broad sense That's not you know beat around the bush on the entire the entire system from top to bottom is built on credit Never forget that credit can evaporate literally overnight Um, you know think of of things that we've seen in the recent past like credit Anstalt n ron ltcm Lehman brothers. I mean look at greece cypress detroit I mean detroit. I mean who's next you know, it'll be spain this year They could be a real big problem this year But the the effect is that the us government itself has had its credit line shut off We haven't seen the ramifications yet because the fed has stepped in as the buyer of first Last and any resort now how long does this music continue to play once credit gets withdrawn and becomes unavailable somewhere Important the answer is it doesn't I mean we don't know what's going to be the fallout And we have witnessed an entire year where demand has grossly outstripped supply and existing inventories Were bled fiercely to meet the demand in the bullion market and that to me spells one thing long term spells Catching for investors who are smart enough and wise enough to own the assets now we were talking earlier john about What $10,000 would do for me? Yeah, let me give you an example of the other route You can take when you're owning and i'll use i'll use uh silver for example If you want it to colloquially finance a thousand ounces of silver Normally it's going to cost you around $21, $22,000 right now to go and buy a thousand ounces of silver And that's 65 pounds of metal for those that are keeping track However, if I wanted to use the system of colloquial financing put in place by guild hall Exclusively by our firm. I could choose to put up about give or take eight to nine thousand dollars Minimum outlay. I still own and control a thousand ounces of silver except now when the price goes up Instead of it needing to go from 20 to 40 to double my money It only needs to go from about about up about eight dollars an ounce back up to around the 27 28 dollar 29 dollar range Now is that possible? I think it is. I think it's more than possible in fact I think that that's something that the market's capable of doing this year alone But don't take my word for it watch the markets if you're somebody is sitting on the fences as paul always said The only thing you're going to get from sitting on the fence is splinters in your backside And unfortunately, that's just the truth so many people pass up good opportunities Because they cannot be contrarian. They want to wait until the market moves They want to see higher prices and inevitably they end up buying at the wrong time This is the right time to own uh silver and gold and precious Natural fancy colored diamonds 1 8 7 2 1 4 17 11 and guildhall wealth.com. You mentioned potential What kind of potential does it have? I mean paul's mentioned several times on this show that within the next two years He's still calling 50 or 60 dollars silver really, you know Well, the reality is the next rally is going to take us past the all-time high. There's no doubt about it I've I've considered this at great length. I've done a million chart entries I've looked at the fundamentals. I mean remember what gold and silver have working for them They both have four major fundamentals, which we'll talk about in the last segment today Working for them the us dollars expected to drop in value. We do have long-term inflation expectations We have all kinds of unsettling news out of the middle east and we still have awesome supply and demand fundamentals So going forward. I suspect that silver on its next peak whether that comes in spring of this year Or within the next 24 months is going to beat. It's all time high It's all time high is 52 dollars an ounce and mark my word This is a day. You'll look back if you're an investor and say that's a smart move I made the right decision for me for my family for my future We gotta take a quick break But before we do just want to ask you one final question You don't have to watch too much tv read too many newspapers to realize that the chinese love gold the us hates it Who's right? Well, listen for me. It's it's the chinese they understand what's happening There's a magnitude of credit floating around we're at the worst that levels in history We've printed more money than I can count You can't fathom what has been put out there in terms of paper And I got to tell you the people who own the hard assets have always been winners Whether it's real estate whether it's art whether it's natural fancy colored diamonds gold silver These assets have stood the test of time. Look at classic cars How many people nowadays buy A brand new car domestic car and put it in their garage and say and you know what in 60 years from now boy Oh boy, that's gonna be worth a whole pile of money. Nobody does that at least it But the the reality is that if I look back at what was being built in the 1560s those were when cars were really built well Well, this is the same right now. We're seeing that same exact period of time It's a renaissance in the gold and silver market and natural fancy colored diamonds And before everybody knows about it before 20% of the investing public grab hold of this and drive it higher Be one of the first take a chance and put some of your money your hard-earned dollars into real tangible assets like gold Silver and natural fancy colored diamonds And we'll talk more about natural fancy colored diamonds love this part of the show the number though 187 214 1711 and online at guildhallwealth.com while you're at perusing the website Make sure you sign up for the precious metals advisor the free subscription to guildhall's premier market newsletter This is the real money show 1 8 7 2 1 4 17 11. That is the number to start investing The website is guildhallwealth.com Jeremy. This is part of the show. I love this is the diamond segment Natural fancy colored diamonds is welcome Jeremy. Thank you. Thank you and it's been a very successful past Month for colored diamonds. We've seen we've sold A little over 15 diamonds in the last month A lot of that was due to the fact that we had some diamonds reappraised and people were taking advantage of that offer that we were selling at last year's prices However, we were also getting a lot of diamonds reappraised from last year and again as always very pleased with the results seeing Anything between 15 to 20 gains on appraisals year over year. So Constantly impressed with the type of quality of returns on these type of diamonds Which are extremely rare out of the 15 that we did sell in the last 30 days We've only been able to replace at this point about four and of course, I believe one was sold Already so we're trying to bring some new product online, but it is very difficult. These are extremely rare diamonds That's good news though. You can't replace them just like that right? That's all that's not what you want to hear This stems back as far as I would think June of this year when Jeremy and paul traveled to los vegas to one of the world's largest diamond shows That we all as a firm go to every year and I think you know, Jeremy be the first to tell you it was increasingly Difficult to secure somebody on a floor full of hundreds of suppliers that had vivid yellow diamonds It was incredible and you know, Jeremy you can attest to it. You were there. Yeah, it's always very difficult to find diamonds of A very good quality and we're talking internally flawless diamonds diamonds that have very good symmetry Diamonds that really show off good color. So these are these are the qualities that you want when you're looking for a diamond That's going to protect your investments and protect your wealth and of course that's why most people are buying these these types of colored diamonds They're looking for protection. They're also seeing that when you're seeing 15 20 Increases year over year. Why because of the supply because of the rarity? You can look at the long term more easily as a part portion of your portfolio. You can say you know what It's very easy to put $20,000 into a portfolio knowing that in the next 20 years. That's going to be worth 200,000 plus potentially and of course knowing that these diamonds are so difficult to procure It helps with that as well and essentially people are looking for quality. They want quality investments They want, you know, if you're going to buy a home you want a quality home You're people are people are I think done with throwaway things and I think part of the beauty of diamonds is that you can have stalks Stalks being one of them. It's you know, we don't know how high the stock market can go But it's had very good performance in the last couple years Most a lot of analysts are looking for pullbacks of course on on the stock market But again, it comes back to quality and quality gives you the results And I think that's why people are really enjoying colored diamonds and of course the you know We did launch a new website with the diamonds look great on the site It's really easy to see what you're looking to purchase And so I think people once they come in and they can see how beautiful the diamonds are in real life They fall in love quite quite easily The key next is you need to move up You want to if you can get into a fancy try to get into intense if you can get into an intense Try to get up to a vivid. It's a lot like real estate. You buy your studio apartment You move up to your two bedroom you move up to a house and eventually you're going to downgrade That's when you're looking to cash in and and that's why these diamonds are great for retirement So if you are looking to retire 10 15 even 20 years out from now This is the perfect type of investment and as someone who is getting married very soon I can tell you I'm pushing hard to make this Equally diamonds in in the sort of as part of the family for the portfolio And I'm very pleased to be looking to do that. Don't do it. Oh wow Wow Wonder don't do it silly don't do it nice guy. I'm happily married man This is long as listening to the show actually Jeremy you guys have mentioned it on several occasions Paul has you know, there's white diamonds in this color diamonds fancy color diamonds investment grade You talked about iF the abbreviation internally flawless. Where's the cutoff line for guild hall? It's it's very high. It's a very strong cutoff Basically, we are looking for internally flawless diamonds We're looking for diamonds that have very strong color So we don't buy fancy light will as far as yellows are concerned. We'll only go fancy Um certain diamonds will have dictate certain sizes So with yellows, we won't go below a carrot and pinks We will go below a carrot because they are very rare And of course you also have to look at in a way the producer the manufacturer It's there there's the diamond on paper You can find all the aspects that you're looking for on paper, but it has to translate into reality I can make it not myself, but you could have a cutter create a diamond that's internally flawless and well balanced But just doesn't have the fire doesn't have the brilliance. And so you have to have that with the diamond That's where having someone like nicole on staff a gia graduate who who can look at the diamonds and and see certain things That a lot of other people are going to miss it's very important to have that on on staff So we also over the years we've gotten better access to diamonds, you know, if you're a newcomer to the business You're not going to necessarily get a dealer's best product coming your way Well, it would be the the starting point for someone who maybe they've invested with you already with gold and silver and bullion Now they're looking to move out to a colored diamond. Where would you start them? It It depends on the budget of course diamonds can start just above $10,000 about 11 12,000 What I often tell people as I was just mentioning earlier is if you can move up to the next level do your best to do it because The diamonds don't go down in value. We've got a over a 40-year track record where the diamonds just have not ever Receded in price. They've only increased in price So if you can move up slightly so for example if you can get up from 14,000 up to 21,000 to get from a fancy to an intense Try to do it. It's gonna it's gonna serve you down the line Now that's something we can help of course with gilt all if you've bought a fancy and three four years later You want to try to move up into a larger diamond or a more expensive or a more rare diamond That's something we can certainly help you do. So we're not going to challenge pocket books But it is just like real estate if you can Just move up a little bit. It's always going to help so try to do that with diamonds as well Jeremy I'll ask you this what makes what makes it different to go and buy a diamond a colored diamond a guild hall Why would I want to do that? Well, I think the first thing is that the quality of of the selection You don't have to guess which I think is very important in terms of being able to make sure that that diamond Is quality and is going to get the returns that you're looking for? So number one our collection isn't large, but of course every single diamond is investment grade So I think that's that's a huge difference between us and most other companies out there number two We're a member of the ncdia. That's also very important. It's a small select group. There's only about 30 wholesalers in there And retailers. There's I believe three Members in canada. That's one of them. So what that is is it's self-policing It's a very small network of diamond dealers and retailers looking to make sure that that Promote the the colored diamond industry. So we're they're a bit of a watchdog as well So it's very important that whoever you're dealing with if they're part of the ncdia That means they're they're in the clique As well having a gia member on staff is also key It means that you have a professional who can look deeper into the diamond into the certificates and make sure that the quality is there And because these diamonds are so difficult to procure We're more than happy to be part of the sales process when it comes time to resell that diamond We want to be a part of that process. Now that doesn't mean selling the diamond a year later You wouldn't flip a studio apartment and hope to make money There is a certain amount of time that that a client will hold on to the diamonds But when the time is right, we are more than happy to keep maintaining our quality by help selling diamonds to clients We've sold in the past two and I mean a lot of people asked john about the Methods we use to sell the diamond. We have a client this week that actually wrote in an extensive email and asked a number of questions some of which Jeremy has touched on but The importance of understanding the difference is like the importance of understanding how You might get a wholly different experience in buying gold and silver from a coin dealer versus from guild hall what you do when you're buying might be Very similar amongst a myriad of different suppliers including colored diamonds But the quality of the product you get and the gain you get Are not something that you can see and necessarily the very first day So when it comes to picking out those diamonds because nicole is spending so much time and paul and jeremy and i are spending so much time Going around the world and sharing that expertise With the people supplying diamonds We're almost hands-down making certain that if there's going to be a gain in the market It's going to come on one of these types of diamonds that we have offered on the website In addition to that the difference between us and another place is that We have that expertise and we're growing that expertise. We're not stopping the learning experience Nicole is constantly upgrading her skill sets She's currently doing it right now as we speak in upgrading some of the aspects that pertain to her gia certification And that's ongoing and will continue to be and that's because we expect or have a very high level of expectation Of excellence in in in our entire firm We expect everybody in the firm to be knowledgeable about the product to understand what it is they're selling and how it can Impact an investor's portfolio and I think that in this day and age there is a huge mentality the shift that's happening People are getting away from necessarily putting countless percentages of dollars into their normal paper assets And they're looking for these opportunities diamonds are private People don't know about what that means and they are something that can be passed down through generation to generation Let alone being put away for that individual themselves But there's a number of factors that are Coming to the forefront now that are not being realized by other people who are selling colored diamonds It's it's certainly not as exciting as the stock market You don't get to watch the prices move up and down, but on a annual basis when you see the increases in the appraisals Clients become very happy. It is generational wealth And of course if you're putting just a portion of your portfolio into it If you've got a million dollar portfolio and you're looking to buy say a 0.5 carat pink diamond That's a type of diamond that isn't just going to get 20% a year You're looking more to 35 gains every year on that type of diamond So to hold on to a diamond like that for 10 years out of your portfolio It's not just a hedge. It becomes a it becomes a money maker. So um a lot of times in the industry they'll call diamonds like that money in the bank and it becomes difficult as As the the purveyor of them to want to sell them in some ways because once you sell that diamond You have to find a way to replace it We had a red diamond we sold last year that was irreplaceable. We were not going to replace that diamond We might we might get the opportunity to help resell that diamond down the road But there's no way we're ever going to replace that diamond. So These are so rare. It's it's important to to get the knowledge and of course you can contact us for that knowledge We do have a buyer's guide for colored diamonds We do have a newsletter which we can continue to educate our clients and potential clients on But it's a fantastic investment. It's it's one that has an amazing track record And uh, we encourage people to learn more about it or to get started and continue to move up from there Something I know Nicole has preached about several times in the show and the fact that it's okay You found the diamond at guild hall you like it's got the fire the brilliance you love the diamond You don't necessarily have to put this thing into a little velvet satchel and and slam it into a safety deposit box There's wealth to wear too, right? Of course and uh We often see them loose in in the case And once you put it into a setting it really shines it really Sets a new light on the diamond which you just don't you just cannot appreciate as much when you're seeing the diamond loose Especially when you can put it into a setting and put it into daylight put it under Um, you know incandescent lighting and and you just see it and it gets out there and it's it's beautiful. So it's You know, we wish more people would do it. It's funny that a lot of people don't really know the value Of colored diamonds. There's a lot of retail stores selling quote-unquote colored diamonds But they're they're not actual fancy colored diamonds. They're colored colored diamonds. Yeah, so um You know and and those that that do see colored diamonds don't really know what they're worth Uh, so it's it's you're part of a club when you when you own a natural fancy colored diamond and put it into a setting So we call that wealth to wear enjoy it for the next five 10 years Um, you can always change the setting you can always take it out of the setting Um settings are very subjective as well. So first and foremost you want to pick that diamond The stone itself in addition to that one of the things that is really a standout for our firm Against other firms that don't typically do this and i'm talking 90 of other firms that don't do this is that Every diamond we have posted on our site. We've already taken to an independent appraiser, which means we own the diamond We couldn't get it appraised unless we brought the physical stone there You're going to notice when you're surfing out there when you're searching and researching colored stones That many in fact most of the sites that you're looking at will not have an independent appraisal Attached with the diamond let alone the gia This is because the majority of firms carry an inventory of diamonds for which they don't own It's called memo in the industry and it basically means that they have access to the diamond and that they could bring you the diamond But in many cases 10 or 12 or more firms are all highlighting the same exact diamond So if you come across two places that sell the exact same diamond It shouldn't surprise you one bit. That's standard practice So you want to avoid that by going with a firm that has ownership of those diamonds that you can come sit down to Uh touch feel and see that diamond in addition to that We were just talking about a john before this segment started There are a number of diamonds that are on our website that meet uh all kinds of different Budgets, but there are also a few that we have a certain degree of interest in ourselves and i own Diamonds jeremy owns diamonds paul of course owns a lot of diamonds Uh and nicole as well, but one diamond in particular that i was looking at this week that i'm amazed has not moved yet Is a 3.02 carat radiant mix cut intense yellow internally flawless now it's it's radiant cut So it's it shows the light very well. You'll be so impressed with the color of this particular diamond It's three plus carat. It's enormous a big boy. Somebody who puts this on their fingers a very special woman Don't go swimming. That's absolutely But again The the appraised price of this diamond is 145 000 and the askin price is 87 000 Canadian It is a tremendous bargain in my opinion. It's sitting on the website right now It most likely just not has is just not found the right buyer as of yet But again, it's sitting there and i look at it every week I love this diamond is absolutely gorgeous and I think jeremy would agree and and these diamonds do find homes We sold a quite a few of very expensive diamonds last year One carat vivid blue half carat vivid blue two carat princess cuts. Wow sold the red We've sold some large pinks. So the you know these these diamonds don't uh, they're not hotcakes They they are for uh, discerning clientele, but they do find homes and this is this diamond is is very much a hero diamond It's the type of diamond that you'd see Showcased in a in a magazine for carat. Yeah, uh for graph. These are these are this is a type of diamond that uh is really a hero diamond So, um anyone looking to own that is is owning something Particularly special who is buying well as a lot of people buying I mean if you look at the population of people who are investing in diamonds, it's small to begin with that's granted I mean less than 1% of the population is going to be exposed to something like this Yet, but in terms of the demographic. I mean it's mom's dad's it's women. It's men business owners Uh people who are have been in the same career for 10 15 20 years solid nine to five people These are uh one or two Types of of demographics that are coming to us and saying hey, we're sick and tired of the same old thing That's the common uh, that's the common theme so we get the people who have lots of money the wealthy who Been on buying sprees for maybe decades when it comes to color diamonds, but we also get our fair share of people who are just saying Hey, I've only got 10 to 20 000 so really I'm limiting the amount of the upper echelon that I can buy What can I get in this price range? It's going to still give me a great return and keep Uh keep me safe and and there's a lot of diamonds on our site in that price range So the the difference in the demographic is tremendous But the one common theme is that they are sick and tired of the same old same old money printing Excuses and being lied to by the people they've trusted forever and maybe that's going to change But right now it's the reason why people are flocking to alternative assets hard assets that are tangible We're going back to old school to the way it used to be when we had money in our pockets We didn't play around with plastic all the time and this is certainly one of the assets that were part of that mentality 1-877-214-1711 and online at guildhallwealth.com. What do you see the trend for 2014 Jeremy? I think we're going to see a more of what we saw in 2013 Which is I think that any diamonds that do go up for auction I think you're going to see more record breakers or this being this or that being sold for very very high prices I think people are going to continue to go after Larger diamonds because they know that it is money in the bank. They're happy to put the money out in the line Grab the get gather the investors together and let's all make money. I think you're going to see a lot more of those happening I think the smaller investor if if the last six months in particular has been any indication I think the smaller investors coming towards color diamond saying I am going to look for alternatives now Maybe they've done well in the stock market the past couple of years. They say you know what? This is all pumping money into the stock market This can't go on indefinitely. I'm going to look for something of quality I'm going to look look for something that's concentrated wealth That is discreet and I think you're going to see more people flocking into the market We've seen it for the last several years It's just content the momentum's just been growing and growing and I think you're going to continue to see that momentum growing and which What that's going to end up creating is you're going to see more and more shortages of supply and it the vivid diamonds Internally flawless diamonds are going to become increasingly more difficult to procure 1 8 7 7 2 1 4 17 11 online at guildhallwealth.com We'll take one short breakup and wrap up for this week The real money show the number two invest 1 8 7 7 2 1 4 17 11 online at guildhallwealth.com Will you stop by there pick up the precious metals advisor free subscription to guild halls premiere Market newsletter guys transfer the upcoming year for gold silver diamonds. What do you say? I think given that last year we did have a pullback in both gold and silver after 12 consecutive years of increases I think that the the bottoms are pretty much set in this market And I think that people are really looking at that value I think you're going to see people really start to jump in on this market and say you know what? One year of correction. I like the bottom I'm going to dip in and start getting and we we've already seen the beginning of that trend towards the end of 2013 where a lot of people were what we call cash sales buying the physical bullion and taking it home And I think that people should also think about proper secure allocated storage I think that if you're looking to own anything more than a thousand ounces of silver that you can look to have it allocated Segregated no counterparty risk and that's something that we offer at guildhall So definitely give us a call and we'll we'll go through the details on that That's something you went on about earlier during about having and trying to you know get it out there and sell it Who do you go to you know people? Yeah, I've tested and make sure they're great. It's scary to keep it at home Really, it's not a wise thing. It's a huge misunderstood part of the process and when it comes to selling I mean, I don't have any more incentive than to be As open and honest with our listeners as possible It's not easy to sell bullion if you're holding it at home unless you have an intimate Relationship with the person you bought it from unless you know the company that you bought it from They don't make it easy, especially when the market's running because when it gets volatile and the prices rise Rapidly you're going to want to try to capture every bit of profit you can and in doing so You're going to be going back to those little guys in the corner streets who are selling those in the first place And they're not going to want to give you that because they know at any given second This market could implode and if they're going to buy that back from you, they got to make a profit off doing that So this is a huge risk And it never fails people who decide they're getting into the market for the first time They're just starting to purchase some physical bullion. They they go to purchase. Let's say 600 ounces of silver 700 ounces of silver and When they go to take it away, they realize just how heavy it is And they they just you know and and and you say well, you know, we do have the deposit story for that You know, listen, it's tough to it's tough to say okay. Well, I'll we'll put it there then but But it's something to consider off the bat knowing that you can have it allocated segregated. You get your serial numbers. It's titled Knowing that you can buy and sell on a phone call and it's secured It's certainly one way to go if you're once you've sort of dipped your toe in the water and you want to get more into the market Now you've got to think about the security cost of doing business are extremely low for for what it is And uh, and I think given the fact that last year the market did dip This year. I think you're going to see more printing of money more inflation interest rates could go up Uh, you're going to see a lot of events occurring As we did last year, but I think you're going to see more black swan type events And I think people are going to really seriously start to flock into precious metals I think silver once it gets above 25 I think you're going to start to see silver mania start to kick in a little bit And we want to remind everybody of the promotion we have on this week Buy a hundred ounces of silver in a hundred ounce bar form and you'll get one Uh, Canadian silver maple leaf free for every 100 ounce bar you buy and that's continuing on going Well, just touch base with us. Let us know we'll be happy to do that for you Just before we wrap up guys. I know you mentioned it's back in the first segment But just go through quickly again collateralized financing because I think that might be a good thing for people getting in right Well, if you wanted to own outright a thousand ounces of silver today, it would cost you about 22,000 You can make that same exact investment control it and gain the same amount From it by putting up as little as eight or nine thousand That's the power of collateral financing. It means that you're using somebody else's money to leverage that investment And when with respect to the market going forward instead of needing a 20 dollar move from 20 to 40 You need to vote an eight to nine dollar move from where we are now Up there. So I mean collateral financing is something we'll happy to discuss with you and again give us a call It's going to be an interesting year. We just got in the first show of 2014 We'll uh, we'll wrap it for now the number to call 1-877-214-1711 and online at guildhallwealth.com While you're there take advantage of the precious metals advisor The free subscription to guild halls premiere market newsletter. This has been the real money show What if you could have a streaming service that added new shows and movies every day 365 days a year Tune in on monday and watch traumas like fight night the million dollar heist Tuesday watch reality shows like top chef canada and wednesday enjoy comedies like ted and it just keeps going and going Every single day no matter when you tune in there's always new entertainment for you to discover Stack tv new shows streaming every day try it free applicable membership required restrictions apply