The Real Money Show
The Real Money Show - December 28th, 2013
And welcome to The Real Money Show. I guess this would be the last one for the year, guys. 1-877-214-1711 guildhallwealth.com online to check it out. And I'll tell you right now while you're there, sign up for the precious metals advisor free subscription to Guildhall's premier market newsletter. Hi, guys. Darren, you guys have been talking about the fundamentals of precious metals, but your favorite metal has been silver, correct? It is. Absolutely. Today, I understand we're going to discuss the idea of why silver and why gold, kind of silver and gold, one-on-one for our listeners, right? That's absolutely it. Let's break it down, my friend. Break it down. Well, if you look at it, listen, about 90% of investors buy stocks, real estate, or interest-bearing instruments. Less than 10% really, truly, ever buy real physical silver. I mean, we reach thousands of readers and potential investors monthly, yet this is miniscule compared to the 70 plus million investors in the US and Canada alone. My point is very simple, John. If you're looking for an undiscovered investment item, silver, gold, and natural fancy colored diamonds fit the bill. Now, because silver is an item known since the dawn of civilization, most people naturally hold very strong preconceived notions about it. For example, just about everyone is aware of or has some opinion of the dramatic price jump in the 1970s through to the 1980s, and the Hunt's Brothers episode when it comes to silver. But very few have taken the time to study silver closely. It's easier and less time-consuming to rely on what we call superficial opinions for those headlines we've discussed for so long. And unfortunately, that's just not usually the path to investment success. Now, if we look right off the top of the bat at the historic ratio between silver and gold, it's been about 16 to 1. That means for every one ounce of gold, you've had 16 ounces of silver in value. And again, it goes back to biblical times where they were essentially pulling one gold ounce out of the ground, and for that one gold ounce, equivalently, they'd be pulling 16 ounces of silver out of the ground. Now, silver is relatively cheaper, and it's ranged from about 32 to 1 to 90 to 1 during this bull market since 2002. Right now, that ratio is fluctuating between about 58 to 65. This means that silver is currently undervalued, and it's cheaper than historic norms. And it's a better investment, in my opinion, although I love gold, and I own it, if you want to buy low and sell high. - Well, Jeremy's been tight. Well, Paul said this in the past, and you as well, the uses of silver, everything from palette converters, flat screen TVs, tablets. You even mentioned wallpaper at one time, which I thought was the most bizarre reference. - That was probably one of the new usages this year. They're using it to put into wallpaper because it blocks Wi-Fi signals. So there's always new usages for it every day. It's one of those elements that has the most amount of patent pending attached to it. So when it comes to solar power, health, medical usages, water purification, all of these type of things. So one thing's for sure, we live in a technological age, and silver goes hand in hand with that. And I think that plays into the whole supply demand aspect fundamental that we're looking at. And on that note, I think it is interesting to look at the supply and the demand together. This year in the coin sales, if you want to look at the Canadian Mint as an example, sorry, the US Mint, we can see that this year was over 40 million ounces of silver were sold. This is higher than it was in 2011 when the market hit an all time high, or not an all time high, but very close to that all time high of $48 an ounce. If you look at even where it was back back in 2008, net net eagle sales from the US was below 20 million. So to see it up in the 40 million mark is absolutely massive. It's also important to note that within the last five years, the US and Canada have become net exporters of silver and gold. They're not bringing anything in. They're selling more than they can produce every year. And what we're seeing is every time the market goes down, for example, we're seeing US gold eagle sales skyrocketed back in April when we saw some pullbacks in gold and silver. Anytime we've seen some pullbacks in metal, we've seen an absolute massive migration of gold from west to east, and we feel that that's going to be a major theme continuing into the new year. So this physical demand is very, very important. Obviously, it's not hitting headline news, but it is very important. And then you want to match that with the fact that most mining companies across the board cannot make money on silver below $21 an ounce. So we have to add that into the mix, that it's very difficult to make money in it. Demand is at all time highs, and the physical market is moving from west to east. So these are stories that we've been tracking for several years and will continue to do so. And I think as you're also looking at mint sales both in the US and in Canada, you want to note how much money is being put into gold and how much money is being put into silver. Typically, you want to consider the difference between the amount purchased and the value purchased. So what we're seeing is that the amount of money being put into silver is actually getting very close to one-to-one with gold, which means ultimately that people are buying over 50 times more silver than gold. Remember that ratio right now, we're trading that ratio is above 50 to one. - At that rate, silver is going to become rarer than gold down the road. Historically, the ratio is 16 to one in terms of availability. But right now, people are buying just as much money worth of silver that they are of gold. These are spectacular numbers to be looking at if you're considering an investment. If you want to know if something's undervalued, it costs more to mine it than the prices today. There's not enough supply in North America to meet the demand that's coming out of North America. All of the bullion on any drop in this market is being met with heavy, heavy buying. And when you look at the amount of money going into silver that's going into gold, you're looking at a number that's very close to one-to-one in terms of value. This is an incredible opportunity that one should look at more closely. - The other thing is as well, you have to, at Guildhall Wealth, we are in the physical gold silver platinum and platinum. We only sell the physical metal. We don't sell securities, we're not in that business. We don't sell certificates, that's paper. We don't sell ETFs, again in equity. We don't sell futures or options on futures. We sell the physical product. There's several ways you can deal with Guildhall. You can buy gold silver platinum and platinum. For immediate delivery, you can take it home, bury it in the back garden, put it under the bed, do whatever you want to do with it. Put it in a safety positive box. The problem is 1,000 ounces of silver weighs over 70 pounds. To get a safety positive box, it's very heavy and the banks really don't want you to do that. And insurance-wise, insurance companies don't like to ensure gold and silver if you're holding it in your home. So the second thing that you can do is put it into our secure, safe, insured depository, where you can actually sell on a phone call. That's the other downside about taking metal home. If the market starts moving up and you start seeing $40, $50 silver and you have 5,000 ounces of silver and you want to sell off 500 ounces. - You're a work. - You're a work or you're a surgeon in the middle of an operation. You're going to drop everything to try to run somewhere to go sell your product. You can sell it on a phone call with Guildhall. Third option you've got is collateralized financing where you can put up as little as 30%, finance 70%. It's not for everybody, but you're controlling if you buy 1,000 ounces of silver, you're controlling 1,000 ounces of silver by putting up 30%. So, John, why don't you give out the numbers, let people call us. If you want an information package, if you want to get our precious metal advisor, if you want to get onto our mailing list, give us the numbers. - The number is 1-877-214-1711 online. It's Guildhallwealth.com. - I always find it interesting. Being that we have a depository, one of the things we experienced this year is a lot of people were getting into the market. They see the lower prices and they want to take advantage. But what we're also seeing is that people are still extremely new to this market. They still bring to this market this stock mentality, trading mentality, a lot of people who've taken advantage of the depository. I wouldn't say a lot of people, but some people have taken advantage of the depository. Look at the cost to store it because ultimately, bullion is something that you have to pay to store. It doesn't give a dividend. So in some ways, it's not optimal in the sense that you do have to pay for that security of it to own it as a hedge against inflation, to secure your wealth. There is a cost involved. And what we've noticed is some people said after six months of storage cost, I want to take the livery. No problem, we go through the process. And it's interesting to see when you show someone the actual physical product, because we've also had people come to the depository throughout the year, and when they see their physical product, they go, ah, I get it. I understand this is an asset. This is real. I can put my hands on it. And once they realize that they're taking home, what in weight equivalent is a very large dog or a small child, they kind of say, oh, you know what? Maybe I shouldn't have that in my basement. Maybe if I do want to go and sell that eventually, I don't want to have to drag it like a dead body and put it into the trunk. I want to just pick up the phone and sell it and call someone like Darren and just say, hey, Darren, it's your friend, I want to sell my bullion. That's a very interesting way to describe it there, Chair. But that happened today, actually, on the way down to do the show, I dropped some bullion off to a client and it was in a large bucket and it was 700 ounces of silver and seven ounces of gold and-- That's over 50 pounds. Yeah, when she received it, she couldn't do anything with it. And I said, I told you so. I'd be too scared to put that in my house. I should put it in where she works, but yeah, it's in a big bucket and it'll be put away. But I mean, if you're looking at it, there are a lot of fundamentals at work in this marketplace. And when I consider it, I look at silver and commodity terms and namely, does its current price accurately reflect its current supply and demand? Is the price under over or is it fairly valued compared to current or future supply and demand? And this for me is the very essence of all of the investment analysis I do. I see very little chance that silver is ever going to be restored as a monetary metal. That's going to be something that will be done for gold. And that will be something that we see long-term, probably for gold, backing a currency somewhere down the road. But what's unique to silver, it's that its demand has exceeded its supply for the majority of the last 30 years. So when you know that and you can actually see that on paper, it's not something that's just hogwash. It's really, truly exceeded its supply for 30 years. That means there is no stockpile of gold anywhere in the world. No central bank has a major stockpile of this stuff sitting around. When the mints are producing their coinage and the bars that they sell, they're going into the marketplace to acquire that product. Two of our major suppliers supply the Canadian mint. And I mean, that's been happening since about 2005. So looking at the behind the scenes, things that are happening, the Eastern nations, primarily the Asian countries, they've gotten ahold of this and they've taken it to the bank. They are buying, buying, buying, and we'll talk about it later. But over here in the West, we're seeing deleveraging happening out of the paper products. That's the right direction. It's certainly going to be an event that drives price long-term. But we are only now just getting to the tip where people are starting to understand the reality. And that is you have to buy physical, has to be able to be touched, tangible product to assure that we can take it out of the market and that nobody else ever gets it. - We'll take a short break. The number 1-877-214-1711 online at guildhallwealth.com. Precious Metals Advisory should sign up for that while you're online. The subscription to Guildhall's premier market newsletter. This is The Real Money Show. The Real Money Show, the number to start investing 1-877-214-1711 online at guildhallwealth.com. Darren, what makes silver shortage of supplies so special? - Well, what makes it so special is how it was satisfied, John. If you look at most of the silver inventories that have been consumed over the past 60 years, they came from government holdings. The cumulative amount is staggering. It totals near about 10 to 11 billion ounces. This means that approximately 150 million ounces of silver came to market every year for 60 years, above and beyond what was mined and recycled. This exerted a tremendous influence on the supply and demand fundamentals, as I'm sure you can appreciate. Now, because governments are not-for-profit organizations, the silver was just dumped in what is decidedly basically a non-free market fashion. No regard was given to the price, and that's why if you look back historically, a lot of people say, well, what happened to silver when it was two bucks or three bucks or five bucks, ages ago, decades ago? But whether it was disposed in common coinage or donated through giveaway auctions arranged by what was backed in the silver users association or more recently through central bank leasing, the common thread to the government silver disposals was that the price was not a factor for the sellers, but the big government dumping of silver, it's gone, and it's been since about the start of the 2000s that this has happened. Now, billions of ounces of government silver are evaporated. The US government's inventory of five billion ounces 60 years ago is zero, and that's what makes silver one of the best investments of all. Silver won't be coming from government ever again. - It's clearly undervalued. I think of anything that's less than $20. A couple of magazines, a lattes, you're talking about a resource that's incredibly rare, and this is extremely undervalued, but there's a problem with value investing. You have to have patience with value investing, and look, we could sit here and gloat about the fact that silver moved up from two, three dollars an ounce to as much as $48 an ounce between 2000 and 2011, but the fact of the matter is that $20 an ounce, it's incredibly cheap. The question is, the physical market is clearly moving east. The Asian market or Albrecht nations have no problem buying it at a low price, but it has been vilified by North American mass media. - Or high price. - So nobody wants to touch it. They think $20 is too expensive, or $1,200 gold is too expensive, not if you compare it against the debt in the US of over 16, 17 trillion, not if you compare it to the balance sheet of the Fed. So when you think about the fact that it is undervalued, you have to not think about not necessarily the timeline of when you expect it to move up, because if you expect it to move up within six months 'cause you're trying to buy a boat or something, it's probably not the right investment for you, but if you can put 10, 15% of your net worth into it, because you know what the value is, you see the fundamentals that are going on, you're gonna put your money into it, you're gonna say, you know what, when it runs it runs, and one thing we can say for sure, the longer it goes sideways like this, the more of a chance that you're gonna see gap up in the market, the gaps up in the market. We've seen it time and time again, where the market's going sideways, we're all all to sleep, and then boom, the market takes up $2 within a week. We saw the market move up basically over a nine, 10 month span, over $20, which was a massive move. In 1980, we saw the market move up in three months, it went from $5 to $50, so this is a market that can be absolutely explosive, and if you're not in it, if you didn't buy a ticket, it's just gonna be another lost opportunity, so if you have the time, if you've been thinking about it, learn more, get onto the precious metal advisor, if you do like the market and you've just been waiting for a time to get in, the question is, how much more of a blue light special do you need it, but at $20 an ounce, you need to think, okay, it's time to put some into the market. - Remember, sorry, I was gonna say the number 187-7214-1711, is this something like Paul the color diamond where I could buy my silver now and keep it for 40 years? - Yeah, I mean, you don't day trade your house, I mean, if you go and buy a terrific piece of art, you buy one day and wanna sell it the next, I mean, you have it, it appreciates in value, it's an asset, somewhere down the road, if you wanna sell it and take the profit, you do. The thing about buying gold and silver, when the prices are low like they are today, if you have money every month or every two months, you should be buying and cost average, it doesn't matter if you bought it at $21 silver and it drops down to 19, buy it at 19 'cause eventually it will go to 50, 60, $100, it's gonna happen. In my opinion and the opinion of a lot of people that we do business with, they've been in this business 30 and 40 years, they can't believe how silver and gold is so undervalued, but it's like anything else, it's better to be, whether it's a week, two weeks, two months, I don't care if you're two years too early than one day too late. When you're too late, you miss the boat, you say, well, I should have bought it at 19 and now we're at 27, I'll wait for it to come back down to 19. It doesn't happen, the lows keep getting higher and the highs get higher, so you gotta get into gold and silver and platinum and play them in a natural fancy color diamond. Now, don't sit on the fence, if you've been sitting, if you've been waiting, you're looking to say, well, maybe I'll wait 'til the RSP season, don't wait, get into the market now, silver's trading at 19.50, gold's trading at $1,200, what better time to get into the market? At Guildhall, we offer the physical product, you're not gonna get paper, you're gonna get the physical, you're gonna get the hard asset. We don't sell certificates, we don't sell securities, we don't sell futures, options on futures. We're not in the ETF business. We're in the physical business, you can buy the product, you can take it home for immediate delivery, you can put it in a safe, secure, depository that's insured, or weave it off of collateral financing. - And one of the questions we get asked a lot is there is a difference between what's called the spot price and what you actually pay for it because the spot price is the futures trading price, that's for paper, that's for futures contracts, that's not for deliverable product. Now the product comes in various forms, you can buy it in large forms like 1,000 ounce bars, you can do 100 ounce bars and we're talking silver, 10 ounce bars, five ounce bars, one ounce wafers, which are very difficult to come by, and then there's also the one ounce maples. The smaller the product, the higher the premium on that, so the more divisible it is, the larger a premium you're gonna pay. But you do have to realize that there is a premium involved, you can't buy it at that price, so oftentimes, especially with new clients, you end up sort of discussing, people are always looking for the cheapest way to get in, one thing that they have to realize is that silver's already very cheap, and then of course, there is a premium that has to be paid on the physical product. Now in our depository, we go one extra step, which is if you're gonna store your bullion, you can have it stored, allocated and segregated, so we're one of the very few firms out there that will actually provide you with serial numbers on your bars and you'll receive the serial numbers every month when you're receiving your statements, so it's one of those things that if you're looking for that security, that accounting aspect to your product, you definitely wanna consider the depository. - And we also offer in Toronto, you can store in our depository, you can even have a facility available for you in Switzerland and in Singapore, so some people wanna keep their product offshore, it's available to you. - The number one, eight, seven, seven, two, one, four, 17, 11, guildhallwealth.com, Darren brass tags, wanna get into the, how do I open account, I wanna get in, now, what do I do? - Three ways, I mean, as Paul was alluding to earlier, you can take home delivery. Number two, you can store it with us in a depository, which is a very smart way, an efficient way to do it, ease of liquidity, buying and selling on a phone call, you have all of our expertise at your fingertips, and if you wanna take that a step further, you can store the product again, it's physical, and you can use some financing. Up to 70% of the product, if you wanted to buy 1,000 ounces in an example and have it stored in our depository, that with an outright purchase is gonna be roughly 21, 22,000. If you wanted to use the financing method, you're still gonna control that 21, 22,000 worth of silver, you're still gonna make the decisions on buying and selling, but you're only gonna lay out around 7,500 to do it, and that's the added value of that extra tier of service that we offer. That's not for everybody, there are risks in investing at any level, which we're always happy to go over and review with client-wise, but when you look at what the long-term potential of silver and gold are, it's very difficult not to wanna dive right in, and every week we have hundreds of people that are contacting us, talking to us, and asking us questions about these markets, and it's fantastic to have the opportunity to put people in the right space at the right time as far as their hard-earned money is concerned. - Question for you, Jeremy, you mentioned a short time ago, the wafers are hard to come by. Where's the leap-off point as far as the amount and why are they hard to come by? - Part of it is because it used to be that there was a lot of product around. We would be delivering, sorry, receiving deliveries of product, and we'd be getting Johnson and Matthew bars that could have been from the '60s, '70s, '80s. There was a time up until about two, three years ago where product was coming from everywhere. There was lots of bullion available everywhere, and you could get one-ounce wafers, no problem. Today, we're finding that even through our suppliers, everything is back-ordered through mints and through major refiners, and any product that we're receiving is really has been minted within the last six months to a year. So all of the products brand new, and as a result of that, there's just not a lot of smaller product available. - This was a little work involved. I mean, it's easier to fabricate a thousand-ounce bar, or a hundred-ounce bar of silver than it is to fabricate one-thousand one-ounce bars, and you're gonna pay a premium, and the manufacturers are so busy. They're working basically 24 hours around the clock, producing the product to get out to dealers, and we would a product every single day from several different wholesalers, and most times we're back-ordered two, three weeks, as much as four weeks getting our product in. I mean, it's always coming through the door, but we're back-ordered. The last thing they want to produce is one-ounce wafers, when they can produce one-hundred-ounce bars, or ten-ounce bars or thousand-ounce bars. - And right now, a lot of production is slowing down, because remember, about 70-80% of the silver being produced is coming as a by-product of copper, gold, zinc, and lead mining, and the reality is that when you get low prices like this, it's not encouraging development at all. That's what we talked about in the show, and another show last week, about how many great companies out there have cash in the bank, zero debt, and are bringing product out of the ground, yet they've lost as much as 90% of their share value. Now, that being said, that is a recipe for long-term success when you can identify that which is of value, and go after, be contrarian, don't fall in line with the flock, and get money into these markets today. - 1-877-214-1711 online at guildhallwealth.com as well. Jeremy. - Yeah, you know, just being that it's at the end of the year, and we're being a little retrospective, I think it's very interesting to look at mint sales again, just before we go to break. You know, in 2008, when everything was collapsing, we had a lot of people that had followed the bull market up from 2002 all the way through 2008, and total mint sales in the US was less than 20 million. Now, when silver was peaking in and around $48 an ounce, the market was peaking just below 40 million ounces sold that year. Today, we're trading below $20 an ounce, have been in the low 20s for most of the year, and mint sales were surpassed 40 million ounces. That tells you something. That tells you that what people think in terms of the credibility of the currencies, credibility of central banks, they're looking for alternatives, and they're finding it in precious metals. Clearly, a lot of that demand has coming from China, India, Russia, Brazil, all around the world, but we're also seeing it from the mints at home. So I think you wanna see that as an indication that people are starting to restructure their portfolio, they're looking for something solid, they're looking for a place to store their wealth. - Well, take a short break, I wanna start investing, you can do well. Now, 1-877-214-1711, and online at guildhallwealth.com. While you're there, take advantage of the precious metals advisor free subscription to Guildhall's premier market newsletter. This is The Real Money Show. This is The Real Money Show, the number to start investing 1-877-214-1711 online at guildhallwealth.com. Great part of the show where we talk about natural, fancy, color diamonds. Nicole, you're here joining us. Give us a recap, what's the news? - Well, I just wanted to give a wrap up on 2013. We saw a lot of awareness for natural, fancy, color diamonds, just through investors, through headlines, particularly with auction records being smashed this year. We just had a couple months ago the vivid orange, the largest vivid orange ever sell at auction, and it went for $60 million, which is a huge record breaker. So we're just seeing a lot of investor demand, particularly in emerging economies. And we're also seeing the prices increasing. Our suppliers, our cutters are asking for more for the color diamonds. We're seeing reappraisals as much as 30%, and just a lot of awareness and a lot of growth in this area. And we're seeing that there's diminishing supply, particularly for the quality of goods that we look for. So we're finding that V.S. and pinks are incredibly difficult to procure. Internally, flawless and yellows are becoming such a challenge to find. So a lot of dwindling supply and increased demand. Going forward in 2014, we're gonna continue to see the same trends. You know, we do see a lot of growth in emerging economies, but here in North America with more awareness and people just tiring of volatile markets and looking to diversify their portfolios, we're seeing a lot of growth in this area. The other thing I wanna caution against is that we're seeing more and more synthetics, treated diamonds coming to market. So it's very, very important that you're buying and looking at natural, fancy color diamonds because there is no investment opportunity with synthetic diamonds. So I just wanted to bring that to the table. So in terms of wealth to wear, we're just seeing a lot of interest in people wearing their investments. And it's not just now wearing a single color. People are combining multiple colors into pieces. So it's very exciting on that end 'cause I enjoy the design aspect. The interesting thing about natural, fancy color diamonds, they range in color from yellow, pinks, blues, greens, purples. Blue greens, red, you know, which are very, very rare, very, very expensive. There are diamonds on the market which are really promoted but they're not investments. They're called champagne, they're called cognac, they're called chocolate. It's for jewelry. You might as well buy a costume jewelry because that's as loud as they're not gonna go up in value or even things like black diamonds. Somebody asked me the other day. It's a piece of charcoal. It's not an investment grade that we would even touch with a barge pole. Our clientele is looking for something special. They're looking for a product that's gonna increase in value. You know, whether you're holding the diamond for five, 10, 15, 20 years, whether it's for retirement, whether it's for your kids, you know, school education, this is a type of investment of the quality that we buy at Guildhall Diamonds that double every four to five years. Yellows, the vivid, the internally flawless, as Nicole said, have gone up as much this year of 30, 35%. We just are not, you know, anybody, our cutters and polishes that have the product, they've cut from rough diamond into the most magnificent diamonds, they're not wanting to sell. They take the diamond, they cut, they polish it and they push it to the back of the safe. Why should they sell it to us this year at 10 or 20% up when they can get 30, 40% more for it next year? - What I've seen happen this year is we've seen some new players come into the game on the popularity of the fact that it's such a good investment. Of course, one has to be wary of that because they're bringing in product that isn't of the quality of the type of diamonds that we have. We've seen a lot of awareness. I think the auction records this year were explosive and that brought a lot of awareness to the market. But we're also seeing the market being very difficult to procure the type of product that we're used to having. So we're having a tougher and tougher time of replacing diamonds that get sold. Competitors don't seem to have it. We're taking longer times to replenish the inventory. And I think that's also commenting to the fact that it is such a market that's growing rapidly and we are competing very much with the Asian market to get these diamonds. Obviously in North America and Canada, they understand value and we're happy to bring those values to our clients and help them to make money in these markets essentially right away. - What Jeremy is alluding to is that when we're looking for the highest clarity grades, when we're looking for the most saturated colors, these are standards indicative to Guildhall and we won't waver on these standards. So if you're looking out there in the marketplace and someone tells you for instance that an SI diamond, which is slightly included, is an investment grade, it's not. And so we stick to our standards. They're very important to us because it's not just because we're snobby. It's because we know that that's gonna bring you the investor, the very best value and make the most money. That's what this is all about is making you money. - The other thing is John, every diamond that we sell, 'cause one of the questions that we get a lot is how do I sell my diamond? Where's the secondary market? Well, when we go out and procure these really high-end, high-quality, best of color, best of breed, best of cup, best of clarity diamonds, eventually I'm happy to get these diamonds back because I know how hard it's gonna be in the future, whether it's five years, 10 years, 15 years, to be able to get this quality. So the clients that have purchased our diamonds will be happy to take those diamonds back and resell and market them for you, whether it's through our client base, whether it's through our website, whether it's through our seminars, we will be happy to resell these diamonds. And it's like real estate is no different when if you buy a home in a really good area, your real estate agent, if he's a good agent, is gonna be knocking at your door sometime down the road and saying, I've got a client that's interested in selling, would you be interested in moving if I can put you into something else and get you a great price? And this is exactly the same thing when it comes to investment diamonds. A Guildhall, you know, we only sell fancy and tense and vivid diamonds, every diamond we have comes with a GIA. I am extremely proud of my daughter. She is a GIA diamond grading graduate and it's an asset to have her on board when we're picking diamonds. It is incredible for me to have that kind of tradition also being passed down. Every diamond we sell comes with an independent appraisal. In case that diamond is stolen or lost, that's what you're gonna get paid out. - The number you need to call is 1-877-214-1711 and online at guildhallwealth.com. Nicole, you brought to an interesting list with you the 10 steps to investing in natural fancy color diamonds. Information you need to know. - Yes, this is my list. This is the list that we go by and this is the crucial list. So if you have a pen and paper handy, grab that. If not, you can always get in touch with us and I can send you the full PDF. So the number one thing that you should be looking for bar none is color. Color is the most important thing to look at when you're investing in natural fancy color diamonds. So you wanna look at the hue, which is the color. You wanna look at the tone, which is the level of lightness and darkness and you wanna look at the saturation and that's the amount of color in your diamond. The more color, the more the value. - Would be vivid. - Yes, gotcha. - We sell fancy and tense and vivid. It's not to say that fancies aren't gonna bring you value. They are, but intense and vivid bring the most value. But if you're a new investor or you don't have as a large budget that will get you into a vivid, a fancy is a phenomenal way to get into the market. And the thing is you wanna get into the market because diamonds that we were selling last year are fancy. Last year this time, you could get one for $10,000, they're now 12.5. So it's very important you wanna get in. So if a fancy is what you can get into, great. And then you wanna look at good even distribution of color. So it's not gonna bring you much value if you have an intense or vivid, say, but the color is only concentrating in one area of the diamond. It needs to be evenly distributed. And that's where you need to speak to an expert because they can tell you about light leakage. They can tell you about good color. They can advise you on the most saturated color. And what we do at Guildhall, I talk about this all the time, it's 'cause one of the things I'm very proud of is the way my father selects diamonds and that he picks fancies that have the most concentration of color, intenses that look like vivids, et cetera. So color is everything. Now when you're looking at white diamonds, there are value factors to consider which are called the four Cs. So you're looking at your color, you're looking at your cut, you're looking at your clarity, and you're looking at the carrot weight. White diamonds, you're gonna pick a value factor that's important to you. You might say, like clarity, I want a diamond that is free from any inclusions or blemishes, or you might like size. But with natural fancy color diamonds, color is the most important value factor. Okay, then you wanna get into cut. So cut refers to the actual shape of the diamond, whether it's a pair, whether it's a radiant, marquee, et cetera. It also refers to the symmetry and polish. So a well-cut diamond is what's gonna bring out that color. So it's so important to have a well-cut diamond, and the polish and symmetry has to be there. It has to be beautiful, it has to sparkle, it has to fire, it has to have brilliance. If it's dull, if it's flat, if it has too many inclusions, it's not gonna be a good investment. So there are also with cuts, certain cuts that will maximize the color. So if you're looking at yellow, for instance, you wanna look at a radiant or a cushion that's gonna really bring out the color. So that's important with cut. And then you wanna look for a company that provides a GIA grading report. This is essential when you're purchasing a diamond, because GIA is the world's foremost authority on diamond grading. So we use GIA, I'm a graduate of GIA, and we're very proud to be an alumni of GIA. And it's important to get a full GIA grading report. Many companies will offer a dossier, which is a half report. The grading report gives you all the characteristics of your diamond. It will talk about the proportions, the cut, the origin, the clarity, the color. It also has the symmetry. It also has a little plot at the bottom of the report that is your diamond. It shows you exactly where there's any inclusion. So for instance, if it's a pink and they don't really come in internally flawless, and you have a VS diamond and say there's an extra facet or a natural or a little crystal, it's gonna show you exactly where on that diamond on the plot of the diamond where that inclusion is. So if you ever are curious, if you take your diamond and say to be fixed, if it's in a piece of jewelry and you wanna recognize your diamond, it's actually a good way to recognize it's like a fingerprint of your diamond. So you'll know exactly where that inclusion is. And then there's a little diagram and it tells you all the dimensions. It gives you the table percentage, the total depth percentage, et cetera. So you need a GIA grading report. The other thing to look for is to know the four Cs, which I just mentioned, which is the color, the clarity, the caret weight, et cetera, but don't be obsessed by it, okay? Because the most important thing, again, is color. So you need to be aware of all of these things, but when you're working with your diamond professional, they'll be able to tell you all the attributes that make this an investment grade. So know them, but don't get hung up on it because you might be hung up on clarity, for instance, and you're looking at a green diamond that is not gonna be flawless. So if you're looking at a VS diamond, which is very slightly included, that's gonna be good for that color. So it's important to trust the person that you work with and that's why it's good if they have a GIA background. So it's also important to belong to the NCDIA. This is the Natural Color Diamond Institute of America, Association of America, rather, and they are a very elite group to belong to. They're all about promoting natural fancy color diamonds, the beauty of diamonds, and really letting people know about these diamonds because they're miracles of nature. Diamonds have color diamonds have gone through the most arduous of conditions to be brought to into this world. Billions of years ago, they can never be recreated. Their temperature just simply can't, the earth can't get hot enough to ever create these diamonds. So we only have what's above ground and what's left in some of the mines that are closing soon, like there are gold mines that's closing in 2020. So they're so rare and they're so precious. So this organization is very much about promoting the beauty. And they only let in few people. They have to be a very trusted company. You have to have integrity, you have to have ethics. We are honored to be part of this organization. There's only three other companies in Canada, all of Canada, and we're part of this group. So we're very proud to belong to this company. And when you're looking for a color diamond, it's important to look for a company that belongs to the NCDAA. - We'll take a short break, and the number you need to call 1-877-214-1711 online at guildhallwealth.com. And we'll return to Nicole and more of the top 10 things you need to know when investing in natural fancy color diamonds. This is the Real Money Show. And more of the Real Money Show, the number 1-877-214-1711 and guildhallwealth.com. Nicole, diamonds recap the top 10 things you need to know for investing in natural fancy color diamonds. - Okay, so number one, the most important is color, color, color. You need strong color, good color saturation. And then the next step is to know the four Cs, but don't be obsessed by them, okay? Because color is the most important. And rely on your diamond expert. They're gonna tell you about the value factors that are gonna be important to each diamond. And then you need to have a diamond grading report, preferably a GIA grading report. GIA is the Gemological Institute of America. They are the foremost authority on diamond grading. So it's important to have a full GIA report. The next thing is to make sure that the company you're working with belongs to the NCDAA, which is the Natural Color Diamond Association of America. A very, very incredible group that supports the promotion of natural fancy color diamonds. So I wrapped up those ones. And then number five is anything edible sounding is non-investment. Paul touched on this before. You hear a lot about champagne diamonds, cognac diamonds, chocolate diamonds. It sounds so alluring. But that's like, like Paul was saying, costume jewelry because brown diamonds, they're still color diamonds, but they're just not rare. And that's why we always say, it's just not an investment. They're just not rare. And you also want to have a company that has a money-back guarantee. We offer a 10-day money-back guarantee. It's very important because you need to make sure that you've bought the right diamond. Sometimes people do change their minds. Well, I have many more, including the last few, but if you would like the full list, please contact us. You can send an email to info@giltalldiamonds.com or give us a call and I will send you the PDF personally, along with any other information that you're looking for. What an old radio pro. She leaves them wanting more. What a veteran. Of course. The other thing I'd like to do is to congratulate all of our clients, the purchase diamonds this year. You did extremely well. We're so pleased to have you on board. You know, the information that we send out to you is up to date. One of the key things as well is, one of the client purchases a diamond from Geord Hall. They also get on our list, it's an early list. Jeremy, why don't you tell them about that? Well, we have an emailer that goes out to our clients. We find that a lot of our clients become collectors of colored diamonds. So we want to make sure that they get first in line choice, first write a refusal on new diamonds coming in. So for example, the three diamonds that we are discussing, we're going to present those to our clients first before they do reach the website. So once you become a diamond buyer, you're going to get full access VIP treatment to additional diamonds coming out. So it's a great feature to have, great thing to have for diamond clients because what we have noticed is a lot of diamond clients become collectors. And that's another thing that's great about Nicole. She does really help clients to round out their collection. Oh, you have this type of yellow. Let's go for a pink or you have these type of shapes. Let's move into these type of shapes to make sure that people who are starting to craft their collection have a nice full rounded collection. And not every diamond that we have goes up on the website. I mean, we get product in and it gets sold sometimes before we even have a chance to put up on the website. As Jeremy says, we send, we talk to our clients, they're always interested in new product and we actually give the prices a little better than goes up on, that actually goes up on the website. So it is keen. So again, I congratulate everybody that purchased a diamond this year and I want to wish everybody a happy new year and a prosperous and healthy new year, which is really, really important. - It's nice. I want you to get a diamond from Guildhall, you're part of the family and you A, because you get the advanced warning of new product, you get the pick of the litter and you've got what Paul said on the five points that you made out of the tendacle. Those are key when turning around and wanting to sell the diamond back, right? - Well, the other thing, yeah, the interesting thing is, well, you know, Nicko mentioned the four C's. There is a fifth C. You know, natural fancy color diamond, they're a currency. You know, they can be sold down the road in every single currency, whether you sell it in euros, yen, sterling, US dollars, Canadian dollars. You know, they will go up in value. Natural fancy color diamonds tend to double, you know, every four to five years and it's a great, great investment. The other investment that we love, really love to death is gold and silver. And, you know, this show is called The Real Money Show. We've been on AM640, I think close to five years now. We've enjoyed, you know, working with AM640 and bringing our clients into this investment of gold and silver. At Guildhall, we offer not only the physical product, which is gold, silver, platinum and platinum. You can buy the product outright for immediate delivery. You have the opportunity, if you don't want to store the product at home or put it in a safety positive box, remember 1,000 ounces of silver weighs over 70 pound. You've got to have a sizable safety positive box to put it or it's quite dangerous to leave it at home. There's a lot of home invasions, things are stolen, you know, you don't want that to happen. So what you need to do is put it in a safe, secure, insured depository. And again, for easy liquidity, you can sell and buy and sell on a phone call. How easy is that? You know, the market starts to run up, you've got 5,000 ounces of silver, you want to sell off 10% 500 ounces, it's a phone call. You can have your money next day. Try doing that with a bank. You wait a week, 10 days with stories. With us, you get your money the next day. - The number to start investing 1-877-214-1711 online at guildhallwealth.com. Jimmy, look back at 2013, your thoughts on the market. - It's been a very interesting year. We've obviously seen a lot of physical bullion move from west to east, especially on drops in the market. There's been a lot of speculation as to interference in being run in the market in terms of manipulation. And I think that'll come out more towards 2014 and on. You have lots of scandals that have occurred within the last year. We had MF Global, which was taking from clients accounts. You had other hedge funds, which couldn't bring the physical metal. They couldn't deliver the physical metal. They defaulted. - Lots of insider trading people go into jail. - Yeah, the LIBOR scandal, et cetera. What you're seeing overall, I think, when they tie the bow on 2013, it'll show the year where credibility started coming majorly into question. It's curious that people are still loving the stock market, but that's an indication of that euphoria before the collapse. Again, what we've seen is physical metal has been a very, very strong demand. Whether the market came down, whether it was moving up, people were taking physical delivery over and over and over again. The COMEX inventories have fallen off a cliff and they're having a very difficult time delivering that product. We're seeing a very low supply, very huge, continuing huge demand. We've already talked about the fact that US Mint, Canadian Mint, were at record levels this year that were higher than 2011. And more people are buying, putting as much money into silver that is putting into gold. I think, again, just looking back, I think the credibility of the US Fed is being brought into question. And I think people are starting to look for alternatives and they're expecting more from those alternatives too. They're not buying certificates. Even though the ETF moved up, they're looking less and less at the ETF. And we're seeing more and more people demand the type of investments that Guildhall supplies, which is depository, allocated, physical, segregated bullion. And they want a place to store it and have safety outside the banks. - One, eight, seven, seven, two, one, four, 17, 11 and Guildhall wealth.com. - Yeah, Paul. - The second thing is with our depository, we get clients, whether they have two 100-ounce bars or 10,000 ounces, that want to come to the depository and visit their product. Jeremy, tell me. - Yeah, we've had a lot of clients come and visit. And one of the things that is parallel between them all is the fact that they're all sort of new to the investment. They're used to investing in stocks and whatnot where there's nothing to see. And so they come with a healthy skepticism. And once they see how private it is, how secure it is that the ounces that they're being shown are the ones that are the serial numbers correlated to what's on their invoices week and week out. They become very satisfied clients. They get it right away. And we've talked about this, that some clients are new to the market. They say, "Oh, I'm gonna take delivery." We have clients buying physical bullion all the time and we see the same thing over and over again. Wow, that's heavy. - Literally, that's the other thing is as well is people are becoming aware of hypothecation. And that's where institutions take the product and they refinance it over and over and over. When you buy from Guildhall and you buy 2,000 ounces, 5,000 ounces and you want those bars and you want those numbers, those go into a secure lockbox. Nobody can touch that product. You want, if you've got 5,000 ounces and you've got the number of those bars and you want to sell 500 ounces, 5 bars, you have to give us the numbers. We have to authorize it with the depository for those bars to come out. So it's safe, it's secure, it's insured, it's the way to go. We even offer for people that want to invest outside Canada, they want to go into Singapore, they want to put in depository in Switzerland, we can offer that for you as well. So again, at Guildhall we sell, we offer and enable you to buy a physical product, whether you want to take it home, whether you want to put it into depository or whether you want to use collateralized financing. And I think moving into 2014, it's going to be a very exciting year. We've gone through almost two years of consolidation in the silver market where clearly silver's being traded lower than what it would cost to bring it out of the ground and the supply is dwindling, the demand is massive compared to where the price is. So I think that the longer this market goes sideways, in conjunction with the fact that the Fed is continuing to create a lot of valueless money out of thin air. I think this is going to be a year where a lot of things come to head and I think that you're going to see a lot of gaps up in silver because ultimately the market is as unsustainable at this low as the stock market is unsustainable at the high unless they continue to print QE, which again, in the future is completely unsustainable as well. So people are going to look for value in money and as they've been doing so in 2013 for gold and silver, I think they will continue to do so in 2014. But I think they're going to be rewarded this year with much, much higher prices moving forward. - And we're all not just gold bugs with gallons of water hidden away and tins of meat and whatever it is. Our client base is doctors, judges, policemen, entrepreneurs. The whole range, the whole walk of life, invest in gold and silver. Only 3% of the world's population actually invest in gold and silver. That's amazing. 97% invest either in real estate, in paper products, stock market, bonds, whatever. Only 3% are in gold and silver. Do you know what a 1% increase to 4% would do to the price of gold and silver? 2014 is going to be an incredible year. Again, I'd like to take the time to wish all of our clients, future clients, very happy, prosperous and healthy new year. - Looking forward to it? You want to start investing now? It's a good time. Don't have to wait until 2014. 1, 8, 7, 7, 2, 1, 4, 17, 11, online at guildhallwealth.com. The precious metals advisor, take advantage of that when you sign up, free subscription online at the website. Do it now and enjoy the new year. We'll be back in 2014 early with another edition of The Real Money Show. What if you could have a streaming service that added new shows and movies every day? 365 days a year. Tune in on Monday and watch traumas like Fight Night, The Million Dollar Heist. Tuesday, watch reality shows like Top Chef Canada and Wednesday, enjoy comedies like Ted. And it just keeps going and going every single day. 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