The Real Money Show
The Real Money Show - December 21st, 2013
This is the real money show the number you need to know one eight seven two one four seventeen eleven and guildhall wealth.com We have Paul Jeremy Darren here and the queen of diamonds Nicole is in studio today. Love having your hair. Hi guys How are you good John? Good to see you. We are close to Christmas very close Right on the doorstep. Yep. You ready? Yep. Absolutely. Oh for Christmas or for the show. No, I'm not ready for Christmas at all But I know ready for the show but it looks for it either What's the what's the update? Actually, this is it. We're doing a show today Which is the 20th right afternoomer recording and the next show will be Nick's Saturday you've done the math and Sunday right 27 28 and 29. That's right Well the market this week was fairly stable in both a gold and silver with a slight opportunity for a very good buyer But both as we're taping the show a gold and silver have climbed back up price wise closing out on the Friday afternoon Here where we are gold is currently sitting in the 1205 to 1210 range while silver is up to about 1950 to 1960 in that range now physical buying in Asia is going to support gold and it did right at the $1,200 level this week there was a slight drop below and China is going to see continued strong demand and it's lunar new year in The months of January and February as I suspect gifts of gold jewelry and gold bars Which is typical in China during this time of year will be very strong now they've had a very very big appetite for gold coming into the later into this year We'll talk a little bit about it as the year progress as the show progresses, but Expect gold to maintain very strong support through 1200 for the remainder of the weekend into next week and With respect to silver I suspect that anything close to $19 an ounce is a bargain an unbelievable bargain But I do not expect that silver will retest that it's June lows We've only again in gold been below 1200 twice since June and that was this week in back in June So I don't suspect that buyers are going to get much of a break from there But we do definitely expect both silver and gold to hold in this price range Talk about market predictions weekly on the show guys Paul You stated earlier in the year and several times that you thought the price of silver stood a chance of reaching $60 an ounce. What happened? Absolutely. I felt that the market was very very undervalued. I Still believe you were going to see $50 $60 silver very very soon I believe we're going to see $2,000 gold I mean, I'm not on my own with these these type of predictions there are people that we talk to on a daily basis People that have been in this business 30 and 40 years that have been trading gold and silver and they felt that silver could reach a high of about $100 and gold could have easily gone to $2,500 Unfortunately, the Fed was printing up money at the rate of about $85 billion a year with quantitative easing We had three rounds of it It really didn't do anything for the Joe public, but it helped the banks because they were able to borrow money virtually zero and You know buy up stocks and the stock market is done extremely well But if we look where you know the stock market actually is I mean we've reached no time high in the Dow But if you go back for five years I mean it really has only just gone above where it was five years ago in 2008 if you look at gold Gold over the even the last ten years has gone from $250 to a high of two two years ago of 1930 as we're trading, you know taping the show we're looking around about $1,200 gold which is still you know close to You know 350 375 percent return over the 10-year period if we look at silver 10 years ago Silver was trading at $3.80 in May 2011 it hit a high of $49 and change Right now we're at 1950 that's still a return of 400 percent The stock market hasn't returned 400 percent. There are some stocks that obviously have but The same as I believe and the same as a lot of analysts that we're looking at believe that the stock market is over bought It's overpriced and there is going to be a correction You know they they want you to buy into the stock market. It's cheap money right was expensive money right now Last one in is the first one to get hurt So the feds decide to taper this week what happened there Darren Well with respect to the feds Paul already alluded to it a little bit But on Wednesday the u.s. Federal Reserve tinkered with a small taper and it was largely expected by a lot of analysts I myself did not expect that I'll be the first to say it But it does stand a reason that as Bernanke ends his tenure as the Fed chairperson He would want to go out with a small bang and it's exactly what he did now the Fed said it would Reduce its monthly debt purchases by 10 billion total Citing a better outlook for u.s. Jobs market, which we all know is a bit of a joke the taper reduces the 85 billion per month and bond buying Marginally the 75 billion per month or from about 19.6 billion per week down to about 17.3 billion per week I know these are staggering numbers But bear with me because it makes sense where we're heading in terms of being bullish for gold and silver now Although the move was not unexpected and therefore pretty much priced into the markets We were still surprised to see that stocks in on the u.s Side responded quite well the day of and eight as Paul alluded to earlier that the stock market hit another round of record highs With the Asian and European shares rallying also now some traders were surprised at risk assets like equities rallied on the reduction in quantitative easing Well gold came under pressure so did silver which is really counterintuitive We expected gold and silver to rally back and we didn't really get that until today So we're seeing both gold and silver come back, but again, this was due Primarily to momentum traders getting out of their paper positions. Yeah, especially man for ETFs I mean, that's right a lot of pressure in the paper markets remember it is a segregated market now There is no longer the two meaning one we have the separate bullion demand Which is physical and then we have the paper demand which is what has caused so much problems in these markets So the bullion demand from the physical side is extremely strong in the 24 hours following the announcement Yeah, we'll we'll get into more of the physical demand and talk about what what the sales have been like on the physical market But I find it interesting that we that that there's so much emphasis on what gold or silver does in When something's announced by the Fed? I remember when Greenspan was the chairman and he would raise raise interest rates a quarter point every time they they had got together Sometimes gold would go down. Sometimes it would go up at the end of the day It didn't really matter But what you have to look at is more than macro picture and the macro picture here is the money supply is growing whether it's reaching the masses is Another story for another day, but ultimately the balance sheet is growing every single day on the Fed Whether they printed one trillion dollars this year or nine hundred billion. You're splitting hairs at that point So the the market should be looking more towards what is going to be the long-term Ramifications of all this money creation out of nothing value has to be made somewhere Gold and silver have secured value for thousands of years So you have to look everyone that that gold is being vilified no doubt about it Silver is being vilified no doubt about it and that goes against all the fundamentals However, everyone is being told to get into a highly overextended stock market the strangest thing is though the feds on the books now They've got four point one trillion dollars. They've bought in bonds and mortgage debt Darren explain what a trillion dollars looks like well a trillion dollars quite simply put we cover an entire football field the entire the entire property of the White House and It would be stacked about six foot high in hundred dollar bills on skids I mean if you can imagine that in your head. It's a tremendous amount like some of that. It's it's enormous it would dwarf a jumbo jet airplane for Pete 60 amount of money it is many times over and You know the fact that the Fed is announcing this taper is nothing It's really only Ben Bernanke looking at trying to make it a clean exit or a clean getaway He'll be remembered as as an evil person believe me History is not going to treat him very well. He's going to be remembered for you know Taking everybody they were on the cliff. We were going to fall over the world was going to come to an end financially And he was the Saviour like all they did was actually just print money and print money And the only people that got the benefit of it was the banks It didn't flow down to you know general public the banks got out of trouble, but even in Europe I mean they just got downgraded it, you know in Europe to right now Nothing is really changing the world if you look at what's happening in the economies Is Europe really any better is Greece still going to be looking for money? Absolutely, it's Portugal doing very well. No island just paid off a debt But they're not any better off if you look at Spain terrible So if we look at the US it looks rosy they're talking about six and a half percent unemployment come this month 28th of December. I think there's a hundred and forty eight or a hundred and twenty eight thousand people are going to go off the Unemployment role because their 99 weeks are up now. They're going to go from the unemployment to welfare They're never going to find a job because they're going to get that paycheck and food stamps I'm not saying that that's bad that you know, we should look after people, you know that need it But the economy is not that great in the States and they make out that it's just wonderful You need to be in hard assets. You really have to protect your hard-earned Capital your hard the money that you make a guild hall. We sell physical product Darren was talking about being traded this month. They sold off actually this week they sold off ETFs To take the losses on the ETFs because they you know a lot of these Wall Street companies made money in the stock markets So they needed those tax write-offs and they pounded down gold and silver a guild hall. We don't sell equities We don't sell certificates. We don't sell ETFs. We don't sell futures or options and futures a physical product You take a hundred ounce bar of silver and drop it on the floor. It makes a claim that is real money So if you want to open an account or want to do any business with Guildhall, even though the prices, you know I think right now an unbelievable Time to get into the market silver trading in 1950 gold's just over, you know, twelve hundred dollars You can buy it gold and silver you can take it home for a media delivery You can buy gold and silver and you can put it into our Depository, which is safe secure and insured or you can even you know go into collateralized financing where you can put up as little as 30% and Finance 70% and we'll talk about that more in the second segment John, why don't you give out some information and some numbers the number to start investing like Paul said 1-8-7-2-1-4-17-11 and guildhall wealth.com Darren, do we still have a lot of gold standing for delivering the futures market this week? Well, you know, I've been on this about it this week and we I mean this month actually and we've been talking about it at great length The truth is right now. We do we actually have as of Thursday night about 69,000 ounces or about 20.8 tons of gold standing for delivery in the US futures markets for the delivery month of December Against about 15.2 tons of available gold. It's very scary. The implications are far-reaching for the gold market I've not seen it like this this late in the month in a long time and Right now it doesn't look like a lot of these physical buyers are rolling over into other months or taking premiums to walk away And I mean if I look at it Paul was just talking about how to open an account For a thousand ounces of silver, we could collaterally finance that account and literally a client for about 7200 US or maybe thereabouts around 7500 Canadian could own and control a thousand ounces of silver you get you get as little as a seven dollar eight dollar move You've doubled your money basically and that could be very easy in these types of conditions I've seen many a time since I've been at this firm Periods where in five or six days you get a four or five dollar move in the price of silver and you know what most people do John Unfortunately, they call you back you advise them you tell them the markets gone way up You don't want to miss the boat and they say I'm gonna wait till it drops And before you know it it's two or three dollars higher from there And then before you know it's spring hits and the price is forty nine dollars an ounce, you know And that means a lot of people are gonna miss the boat So while thinking about it right now So long as you're convinced of the same long-term fundamental picture as we are at Guildhall You should be adding stacking silver right now gold right now natural fancy color diamonds right now We'll take a short break the number to call one eight seven seven two one four seventeen eleven online a Guildhall Wealth.com when we come back we'll talk about an article that you wrote actually Darren that and as an investor Newer otherwise what are my chances of getting some physical gold and silver with Guildhall? That's coming up on the real money show the real money show the number to start investing one eight seven seven two one four Seventeen eleven you want to go online? It's guildhall wealth calm catch old shows on iTunes to catch up Darren you wrote an article called financial media laughter tears frustration and exhaustion Basically you take on two major measurements of the u.s. Economy which got published on a number of really good bullion websites this week Give us a brief summary. Well, basically, you know that I'm a fan I've talked at length about the difference between what the financial headlines say and what the reality is behind the headlines And there are many examples of that throughout the year that we have discussed among them inflation and where it's really at what the amount of printing actually is and what the true debt is two of my favorite measurements however of how an economy are doing are housing and Employment and those are two very big statistics that give us an overall good snapshot And in this essay basically what I tried to accomplish was to chew to chew down a couple of different very large macro points And a few small different segments here and one was unemployment now if you look at employment they have reported that it has been Consistently dropping unemployment that is and it's gone from about a high of just a little over eight percent at the peak of the Financial crisis down to seven percent more recently and the truth is that if you look behind the numbers the numbers actually prove A different story one of the main reasons that an unemployment number has been falling is because more and more people are Falling out of the realm of the actual statistic being measured meaning. They are no longer looking for work Yes, they're capable. Yes, they could get a job and they may be working, you know for cash under the table We don't know but they no longer get measured and that happens in droves and droves and droves Paul alluded to it last week and he'll probably talk about it again today But in the new year, we are about to see a few hundred thousand that have been receiving social benefits social welfare or different types of Assistance in the US fall right off the table and that has been delayed and of course What's going to happen as a result as you'll see unemployment drop because of it now if you look at a couple of charts that I love looking at one is called the civilian employment population ratio, which is made available by the St. Louis Fed It's it's something that's published. It's public information It's in the public domain anyone can go and see that's free of charge and this is actually a chart which shows us what the percentage of People is that are participating in the workforce now it has fallen dramatically since 2008 is everybody can appreciate from about 65% down to around 58 59% now that's not a big number, but in terms of the total population people no longer looking for work That's a huge number and it's held for about 50 months in and around that 58 or 59 percent So despite unemployment dropping the level of participation and the actual employment force has not risen meaning We're not creating new jobs in the US We're merely using the numbers and massaging in the right way to give a headline that suggests that the economy is getting better In addition to that if you were to go back and look at the participation rate as it stood in 2008 and use the same mathematical equation Unemployment all of a sudden jumps from where it is at seven percent to eleven percent and of course you know full well that they're not going to allow that to happen because that would mean a major problem in the Economy and they don't want that to be the case now if you tie that in with the housing sector Which is talking about what is happening? Maybe many of our listeners will recognize this month was a month full of headlines about housing starts in the US Being very good in the month of November in fact the highest in five years However, what they don't tell you and you need to go again behind the headlines is that in fact the majority of houses being bought Right now in the US are being bought not by first-time homeowners Not even by guys like us or you John or anybody else that's looking to speculate Maybe have a second house or piece of real estate No, in fact the majority of homes are being bought by big institutions Look up black rock and find out exactly how many homes they buy they have built a six billion dollar portfolio as of this year on The expectation that real estate in the US is going to rally they are buying the homes Speculative big institutions like JP Morgan are buying homes and they are getting into the real estate game faster than it's ever happened before now What does this do it massages the numbers the headlines tell you one thing what behind them are another? What what it what it demonstrates in many respects is this? Break between Wall Street and Main Street that Wall Street's getting in on the real estate hoping that they can continue to create the effects of Good economy if they mess with the numbers they can create the effects of a good economy But at the end of the day you're still looking at a cracked mirror of Wall Street and Main Street Wall Street making all the money and Main Street doing all the suffering So you it's curious to see what the Fed will do and they get their unemployment numbers to where they want them to be But they they find out that those are all just illusionary numbers. Anyway, what happens then do we continue doing QE QE was was brought in in 2009 here. We are 2013 we're still doing quantitative easing and let's be honest even if you take it down ten billion dollars It's still much more today than it was three four years ago So I'm curious to see how long the the U.S. can can keep this facade of Power and behind their their money because remember fiat money is just the full faith and credit backed by the United States And the Fed is losing credibility daily the other thing is as well if you look at the trade No, that's much the trade deficit We look at the budget deficit total deficit of the U.S. Government right now sits at 17 trillion dollars in the first segment Darren told you what a trillion dollars looks like It's an incredible amount of money that's 17 trillion dollars of Debt that the U.S. Is carrying that's that's supposed to be on the books if you look at off the books There's another hundred eighty trillion. There's going to be passed on to kids future kids grandkids their grandkids Because of Medicare and Social Security You can own the the U.S. Government is not in the business of manufacturing. They don't You know get money by manufacturing goods. They get money by collecting taxes and they're spending quicker and Printing more money than they're collecting taxes if you've got right now six and a half seven percent unemployment Which is really eleven percent unemployment or even higher and then you've got so many people on welfare You can only subsidize so much. There is one in six people in the U.S. Are on food stamps It's incredible one in six. That's about forty eight million Or on food stamps how many kids in the U.S. Go to bed hungry every night. It's incredible This supposed to be the richest nation in the world. It can't manage the business of running a government right now They they're waiting till February otherwise. We're going to get this ceiling again about a budget Everything that you read is not what it is. I mean the Emperor's got no clothes I mean it's as simple as that a little kid saw the Emperor and said the Emperor's got no clothes We're telling people and some of the smart people that sooner or later. This is going to come crashing down You need to be in hard assets. Why do you think at auction colored diamonds as an example a diamond? That's with a reserve of sixty million dollars. Not everybody's got sixty million dollars to spend is going for eighty million dollars It's just incredible what diamonds are fetching at auction one antiques are fetching what antique cars Anything of value oil paintings a guy for a hundred and thirty million two hundred million people do not trust Fiat currencies Jeremy was talking about paper money when you keep on printing and printing you are Conversating people's worth a guild hall. We encourage people to own gold Silver and natural fancy color diamonds If you want to buy gold and silver you can take it home for a media delivery. It's a great Thing to own if you want to something that's secure, but you don't want to put it in your house You're worried about you know being they've been stolen or robbed You if you're buying silver is quite heavy. You don't want to put it in the safety deposit box You're better off putting it into a depository like we have available to you that is safe secure It's insured or as Darren spoke about in the previous segment you can even get into collateralized financing You can buy a thousand ounces like let's give you a quick example if you bought a thousand ounces of silver today It's going to cost you around about twenty one thousand dollars with commissions Not everybody's got twenty one thousand dollars to spend but if you use collateralized financing you can put up as little as 30% You're putting up about seventy five hundred dollars total and you're controlling a thousand ounces of silver Let's look at the market if silver was to move up seven dollars and fifty cents You've doubled your money if it only moves up three dollars and seventy five cents You've got a fifty percent return if it moves up a dollar eighty seven. You've got a twenty five percent Return on your money. This is not rocket science. This is an unbelievable time to get into the market and make some money for yourselves I said in the first segment and you asked me a question. You said that I thought silver was gonna go to fifty sixty dollars I still believe it. That's my opinion. I think gold's gonna go to two thousand dollars It's a matter of time when the stock market which it will come off. It will correct. It's at an all-time high It has to come off. It has to retrace and this is the time to get into gold and silver and a natural fancy color diamond One eight seven seven two one four seventeen eleven online for more information go to guildhallwealth.com Darren we're gonna see price inflation. We are gonna see price inflation John We are we are a step away from doing a January report which I've done every year on Price inflation of just the normal goods that you and I take home in the bags to eat and I'm already starting to look at things and being amazed. I will admit one little thing that I Have a tendency to do is to drink energy drinks and I don't drink coffee. I don't drink tea I don't drink much pop and really that's my caffeine fix So every now and then I have an energy drink I was just looking at the one in particular that I like the most and I won't say the name But from last year to this year, it's a 13% jump and call on 13% jumping price And I and I will I will make the list available But it is trending that way and you never get the true You never get the true snapshot if you're only thinking that inflation is rising one or two percent There's not the price coming up is the package shrinking sure how often do we see that? We've got some exciting as well. I know it's almost what's that today the 20th as we're recording the show Isn't that five shoplifting days left? We you don't have to shoplift what you need to do is if you want to buy a gift and you want something that is gonna Move up in value in my opinion We have a little special if you want to buy one ounce of gold We'll give you a one ounce maple silver maple leaf with it as a little Christmas gift from Guildhall So give us a cool John give us the numbers if you want to buy 10 ounces of gold you'll get 10 one ounce maple leaf silver 1 8 7 2 1 4 17 11 Guildhall wealth calm you catch old shoes shows rather an iTunes as well We don't want old shoes old shoes. No stinky stinky. Oh no Jeremy question for you though. How much gold or silver should someone own? That's a that's a mouthful. I think that people should have start with 10 10% of their net worth 15% depends how you're how you're organizing your portfolio, but I do think a percentage is a good good way to go especially as a hedge We were discussing if you're financing it, you know if you're financing silver today and buying a thousand ounces That'd be just over twenty thousand dollars So if your portfolio is a couple hundred thousand dollars You're looking at ten percent if you wanted to use financing You'd actually only be putting in five a little over five percent into your portfolio and market moves up ten dollars And you've doubled your money. That's that's a great hedge in your portfolio. You've just gained five percent So can silver move up five dollars in the next year? I think so. We're looking at at very low supply Extremely large demand will go into these as you continue to listen to the real money show or you can sign up for the precious Meladvisor will give you those type of fundamentals that you need to know in order to in order to safely and Confidently invest in these markets. I think if you're just going day-to-day and watching the price I think you'd be Disappointed with what you see but what we see when we look at all the fundamentals. We're extremely excited But we're watching those every day. Most people don't get access to that So give us a call and we'll give you access to the precious metal advisor Well, Paul's always said you don't day trade your house. Why would you do with silver and gold? Well, you know, this is Jeremy was saying earlier. You should have 10 15% in your portfolio I still love gold and silver actually my granddaughter is in the studio with us today and Mike and every birthday. I give my granddaughter and my grandson an ounce of gold I've been doing this for seven years, you know when we started gold was trading of five hundred and fifty dollars It hit 1930, but even at today at twelve hundred dollars Seven-year-old kid has got seven ounces of gold worth, you know Eighty-four hundred dollars if I had a give a 500 on a birthday should have had thirty-five hundred dollars Plain and simple. You're a good grandpa. Let's just say it very true We'll take a quick break the number one eight seven seven two one four seventeen eleven and online at Guildhall wealth calm This is the real money show the real money show the number one eight seven seven two one four seventeen eleven Guildhall wealth calm While you were there on the website sign up for the precious metals advisor free subscription to Guildhall's premiere a mark in newsletter Nicole in studio Queen of Diamonds is back. Good to have you back in studio. All right. Thank you And I'm here with my little protégé. I see she's off for Christmas holidays lovely Remember those days finally. What have what have you got for us today? Well today? I have some great Christmas ideas with our wealth to wear collection So I wanted to just talk about a few of the items because not only are they investments, but if you haven't picked up Christmas present for your sweetie. We have Perfect beautiful jewelry. So I wanted to start with a gorgeous pendant. That's on our website when you go to the wealth to wear collection Paul actually helped design this this pendant with his wife my mom and yeah, and it's it's a beautiful 121 yellow diamond and it's encrusted in a double halo of diamonds and then the veil Which is the little clasp that sits at the bottom of the chain? That's also encrusted in white diamonds and then the chain has some embellishment as well So it's an absolutely magnificent piece It really really makes a statement and that we have on for fifty five thousand dollars And the diamond being a VS one is still investment grade diamond So you get to wear it and enjoy it and still have this beautiful diamond accruing and value So that's a beautiful piece and then if you're looking for something a little bit More budget-friendly. We have some beautiful floral pendants Diamonds that I helped design and they're just so pretty they're little daisies and they're about 12,000 dollars The pricing isn't on the website But you can call us and we can give you the independent appraisal as well that they came in around $20,000 and that's a gorgeous piece as well because it's just under half a carrot and it's an intense diamond and VS quality So again, it's still investment grade I mean a lot of our diamonds on the site that are loose are over one carrot But something small independent like that. It's still gonna accrue in value Maybe not at the same rate as a one carrot Sometimes we you know we get in a package When I buy a package of diamonds it comes with some diamonds that you know point five three point five five Where you know the cutter and polisher wants to give us the diamonds and we won't really put it up on the website because we tend to go Internally flawless for investment over a carrot in yellows But these diamonds have such unbelievable depth and color that I can't resist like for example, I bought this diamond That I put into the pendant. It's a VS one. It's but the color is so deep It's almost like butternut squash so it made me buy the diamond and to put in a piece of jewellery is just exquisite But I'm exciting as well excited because we had it just an unbelievable last one or two weeks Clients have been buying diamonds and congratulations to everybody the board of diamond We spoke about the week before last and last week about how we had 15 diamonds reappraised And in actual fact, we sold nine of those diamonds Uh to our clients great. Oh 10 sorry. I'm begging upon 10 Within the two-week period before we changed the price and we did change the price of four or five of the diamonds already Because I've just brought into the studio three diamonds that I bought this week That I've just had reappraised or appraised. I should say Uh, and let me tell you about these stones because they're just beautiful. I've got a 107 fancy vivid Internally flawless, but it's a marquee cut nickel. Won't you tell what a marquee? Absolutely. This is one of my favorite cuts. I love Marquise because if you think about a football, that's kind of the shape where it's pointed at the top pointed at the bottom And it's so unusual and it's so rare and it's so elegant So I tend to favor pairs and ovals and marquise shapes because they're different now with yellow diamonds We traditionally look for radiance and cushion cuts because they maximize the color But the benefit of a marquise is that it's different So anytime you get a different shape like a pair oval or marquise that holds the color well because traditionally these shapes don't always Hold the color evenly then there's a premium on these cuts So I I personally love this cut very very much it jumped out at me particularly in combination with the vivid Color grade because it's so highly saturated and it's just exquisite The color is so rich and like Paul was saying golden and it's just really really beautiful And the thing is that one of my suppliers bought in actually 12 diamonds For me to look at and now that the 12 diamonds is we we actually purchased three So the other nine diamonds went to somebody else. No you're discerning. That's why Every every diamond we sell has to meet a criteria. It's all about the color It's all about the cut and the clarity and obviously the caraway The other diamond one of the other diamonds i bought in and and if you want to know the price calling on monday Uh, we'll be happy to discuss the prices with you Another diamond i brought in was a one and a half carat 1.5 Natural fancy vivid yellow internally flawless now this stone has Unbelievable scintillation what that means is the colors come off of this stone reds and blues and greens when you're underlight Yeah, Paul is is a big stickler for the scintillation and the scintillation is the patterns of lightness and darkness So in the trade we call it the sizzle. So when you put this diamond in front of the light it looks like it's in a pan sizzling with color It's just sparkling. It's radiating color Fire are the flashes of light that come off of the diamond when you move or the diamond moves And this diamond has it all on top of great color. It's got the brilliance. It's got great fire and it's got great scintillation Is that this one sitting right beside me? So you can see it glimmering and sizzling and the light there That one there And then we have one more other stone that we also brought in it's a 1.53 It's a fancy intense and it's an internally flawless and it's a radiant cut again a magnificent stone now The the type of diamonds we sell our fancy intense and vivid This stone is an intense, but it was borderline vivid. So it kind of caught my eye I like the stone and it is significantly less expensive than buying a vivid But it's still and a very expensive stone is a beautiful stone 1.53 is a stone that will make a beautiful beautiful ring or a pendant Um, you can see john the colors that are coming off of that stone right now are just incredible The thing is unbelievable. Yeah, and the benefit of this one in particular is anytime you reach over 1 and 1/2 carat you're now jumping into what we call magic numbers, which is every quarter carat So to have a diamond at the just over the 1 and 1/2 carat mark that makes a very good investment piece What's the shape call? That's a radiant. Oh radiant is is a square basically with rounded corners It's as awesome as what it is. Yes, and will that holds the color the best Now something this size you you would take and you'd put into a safety deposit box and heirloom keep it forever You can make this into jewelry if you can make it into jewelry, which is what we call wealth to wear And we work with the most talented designer in toronto that just works exclusively with color And he's just incredible all the details that are that he puts into each piece just on the back and and every bit of Of the setting is just remarkable But even if you're not putting it into a piece of jewelry, which we call wealth to wear You can still put the stone away whether it's for five years 10 years 15 years Natural fancy color diamonds tend to double every four to five years our vivid diamonds have gone up Really really higher in the last six to nine months Our suppliers are putting the prices up as much as 35 on vivid diamonds They are so incredibly hard to find now for example argyle pinks They're doubling Really about every three years blues are going up. They're doubling every two years and reds Seem to be doubling almost every year if you could even find a red Um, you know 30 years ago. You could have bought a one carat red for 30 000 Today you're looking at two two million two point three million if you can find a carat in a vs quality in a red diamond There's almost impossible to find so if you're looking to retire whether it's in five years 10 years 15 years 20 years Or you're looking to put your kids through, you know school university This is the ideal investment that you can make whether you buy a fancy we start off around about 12 000 a carat Um, or you buy an intense which is a great stone great starter stone intermediate stone or whether you get into a vivid in the yellow Argyle pinks. We're having an awful time getting vs quality. That's what we sell vs quality in argyle pinks I can get si one. I can get si two and i get i one But they have a lot of inclusions and they are not investment grade So we sell vs quality. We have a point five three a point five nine and a point a eight one Up on our website argyles that are impossible to get and the prices are going through the roof If you want to buy a for example, we have a tender stone It's a point eight one if you want to make an investment and I have one that I own there's one up on the website I think we've got it on right now For you know, it's 275 for 350 thousand dollars. I'm not sure even what is going up The price keeps going up. That's the type of stone that you can put away for 10 15 years And you're going to get a seven figure return on this type of stone The number one eight seven seven two one four seventeen eleven online a guild hall wealth dot car In actual fact as well that i'm very fortunate my daughter is in you know is in my company She is a gia graduate. She's a diamond grade and expert and she helps with every stone that we pick She knows the stones. She knows the dimension She knows what color to look for the cuts and you can't put a price on that type of experience And that type of knowledge, you know, you have to have extents to extensive courses to become a gia graduate It's not just something that they give you a diploma nickel. Why don't you tell what? You know, we do for our clients when they purchase a stone Absolutely. Well first it starts with the process what you were just explaining And it's we start by looking at a gia grading report and gia is the world's authority on diamond grading And we will look at the dimensions. We'll look at the plot on the gia report But it's so much more than that We have to examine the diamonds and we have to see if it has the right brilliance If it has the right fire and that comes from the way the cutter has arranged the facets in the diamond You know, we will see a lot of diamonds that though the dimensions look right on paper When you see it in person, it doesn't have those qualities and we call that a gilt-haw color diamond A gilt-haw color diamond has to be beautiful. It has to be the highest saturation So for instance, pal has such a good eye that he'll get fancies But they're bordering on intensives, intensives that look like vivots and vivots that have the most color So it's very important when you're looking for a diamond and you're looking around on websites First of all the color, it's hard to tell, you know on websites We try to to we go to great links with our photography to make it as As real as possible on the website that it translates But you really do need to see them in person So we always encourage clients to come into the office and have a showing and you know We'll teach you how to use the loop and what to look for But it really comes down to what a gilt-haw color diamond is and that means exceptional color extraordinary cut and the proportions have to be right So that the the light hits the diamond in the right way to return light to your eye And that's what makes it sparkle and give it that that gilt-haw flair So that's what we do for our clients and then on the other side of it We also make sure that our pricing is competitive. We're not a store So we don't have all the retail overage and overhead rather And we pass that on to our clients because it's important that you see the return And if you're paying too much out the gate, it's going to take you too long to realize that return So that's very important for us as well We also offer an independent appraisal with every diamond and this is what the replacement value is So if your diamond is lost or stolen, you know what the replacement value is. It's not a retail appraisal It is an independent appraisal. We also offer the gia grading report and that's very important A lot of companies will offer a dossier report, which is a half report And that doesn't give you all of the information you need that as well I could tell you that I've seen these diamonds on the website in this entire segment I had the three of them sitting beside me. These things are incredible You need to come by and see these diamonds and make the investment for sure The number is 1-877-214-1711 gilt-haw-wealth.com Online we'll be back with another segment of the real money show And more of the real money show the number 1-877-214-1711 online gilt-haw-wealth.com While you're there sign up for the precious metals advisor your free subscription to guild halls premiere market newsletter Darren question, what are your thoughts about where the broader markets are at this point in time and it could be heading for another recession possible? We think that it's possible, but also you'll remember if you've been a long-term listener of this show then you'll know we Held to the belief that we've never really left the recession Things have gotten better in certain areas. That's for certain But because the effect on the Canadian marketplace was so much different than what the effect was on the US marketplace It's a different set of circumstances here But if I look at that broader picture it always goes back to the world's largest economy and for me the US economy is is is tipping back into recession again right now as we speak corporate profits are at record highs and I believe they're set to fall stocks are extremely overvalued and all these add up to a real problem for long-term investors Today if you look at the classic method of valuing stocks, which is the PE ratio of the profit to earnings ratio It's comprised of market cap relative to earnings if earnings are at record highs today and stocks are already overvalued I mean how high will PE's be when earnings begin to contract with stocks at these levels You don't have to look too far to guess what's going to happen We've seen a recent spat of terrible results from corporate America in the last few months alone We've seen disappointing earnings at Caterpillar, Microsoft, Google Discovery Amazon win win casinos win resorts and casinos I mean the list goes on there's dozens and I literally mean dozens of ways That the headlines have attempted to craft a better view of the economy Then what is the reality? You can you can look at assets. They've written down They've altered depreciation methods. They've manipulated bad debt expenses in accounts receivables The game they've gained the closure of deals. They've taken one-time charges They've utilized derivatives and they've used these mark to model valuation of assets and the list goes on and on and on But if you look at the market as a whole You'll see it's safe to assume that because these numbers have been so massaged We expect that there could be a fall from grace so to speak Look at the mining stocks. I mean look how they have been taken behind the shed and had the living daylights kicked out of them Well, they have and I mean if you look at it. I have a list in my office right now, Paul We've discussed this we certainly don't give advice on stocks and any of that kind of a thing We we stick to the bullion into natural fancy colored diamonds all physical assets But I have a list in my office that's a mile long of companies that have lost 90% or more of their stock value Have cash in the bank zero debt and our polling product out of the ground that list you gave that gross I'm really shocked by google and amazon Yeah, that honest. Yeah, well, they have they've lost money. Absolutely. They have not had great reports You know, and that's that's a that's a it's a state of affairs I mean the way they report it is is sometimes different the way they tell you or highlight certain parts of the earnings is different And they certainly key in on certain segments of those reports to make it look as though It's good, but earnings can be manipulated any number of ways but revenues they cannot Either money came in or it didn't but with that in mind we've in the last few quarters We've seen revenue misses that you know beyond their merc moles and coars claw rocks and mcdonald's a lot of this money is kept off Sure, it is. I mean it's on their figures, but it's kept off sure if they had to bring that money back into the states They would be tacked at an unbelievable rate So again, you can massage any figures you want It's like walking into a warehouse And you know, you got the auditors coming in and you got empty boxes on the shelf on the high shelves and you're pretending there's merchandise in there Um, it's smoke and mirrors. I mean I said before I just believe Uh, this is like the the emperors got no clothes the us market Uh, the stock market obviously is due, you know, due for uh to come off And the last one in when you're you're buying in stocks at the highest possible price is the first one to get hurt Canadians tend to own a lot of you know small stocks. I mean how many people do you know Uh that own a thousand shares of google trading at almost $1,100 or you know Apple stock, you know, can you own a thousand shares of apple the only people that own these stocks are hedge come hedge funds And big mutual funds the average investor You know tries to buy a stock for $3 five dollars and these are the stocks that have been pounded down to 12 cents I mean that is the stock market right now. So We believe hard assets is still the way to go. You need to own gold and silver It from where we are right now silver trading in 1950 gold trading just above $1,200 I think this is an unbelievable buying opportunity. All you have to do is have one thing it's patience You just need to sit back by if you're buying on a weekly or a monthly Period you're buying the product. You're going to cost average. You're going to make money in these markets I've seen this market over You know, we've been in the business since 2002 as I said, I've seen silver from $3.80 go to $49. I've seen gold, you know as low as 250 and go to 19 $120 I still believe we're going to see 50 $60 silver in the very near future I wish I had my crystal ball wasn't so cloudy and I could give you a day and a date When I think it was going to happen But the way the us economy is the way the stories come out We get more head fakes from the us fed than you get in a hockey game I mean every story every week every figure that comes out is always altered. We don't know but I can tell you right now You know the fed they knew the figures that you know what was happening. They knew this week the GP went up To 4.2 or something the 4% as we can read yeah, they knew the figures were were there Um, so again, somebody let the cat out of the bag stock market went up 300 points It's the Christmas rally. I'm waiting for January I can't wait to see what's going to happen in that first quarter the second quarter with the retail sales that good Is everybody is the actual? Joe public waiting for boxing day sales Are they waiting for you know to reduce product even on this weekend? They're going to be shopping Retailers are dropping their pants. They're dropping the prices like crazy I mean if you look at gold and silver one thing's true They are in competition with one very big asset and that is fiat currency paper money And the feds know it The higher institutions know it the central banks know it But yet they are themselves deemed the smart money because they're on the inside They know what's happening in the markets. You know what the trends are in place Paul just alluded to that fact when they talk about decisions being made Knowing full well, they're going to have a good report about GDP But the reality is we always have to look behind those headlines We have to ask ourselves where that GDP growth came from who's pushing it? We know it's not the little guy. We certainly know there's not growth in the business sector for Entrepreneurialism We know that we're not seeing the mom and pop businesses flourish like they were post or prior to 2008 But if you look at the big situation here What it is is there's a tremendous growth and a tremendous increase in debt It is an interesting point You know the car sales in the states, I think about 16 billion 16 million this year Every car that is manufactured in the states has to have a catalytic converter Catalytic converters you need to put either play diem or platinum Yet play diem and platinum haven't gone through the roof stock markets gone through the roof But not play diem and platinum nor is gold nor is silver. It's actually been pounded down we Believe and you know the gold and silver and platinum and played and you know, they're all precious metals Silver is a little different. It's not only a precious metal It's used in everything that's virtually manufactured today Whether it's a hybrid card whether it's a you know, whether it's a flat screen tv Whether it's your cell phone whether it's a microwave oven. There is silver But it's not A type of silver that you can recycle, you know, it may when it gets to a hundred dollars an ounce You're going to have somebody in a third world country picking it out with a pin of everything that's in, you know, in old computers But right now it's not But you've got to look at where the markets are you've got to look at your future you work hard for your money You have life insurance health insurance car insurance, but are you ensuring your capital? Silver and gold silver's from its highest down almost 60 percent gold is down about 40 percent What a bargain what a time to get into the market and make money I you know and the other thing is as well if you're looking for a last-minute gift, you know a guild hall We sell physical gold silver platinum played in You can actually take a media delivery if you're looking to put it in the repository We offer safe secure and insured a facility for your collateralized financing We offer that too But if you're looking for a last-minute gift if you want to buy an ounce of gold 9.999 pure gold We will give you with every purchase a one ounce silver maple leaf you want to buy 10 ounces You're going to get 10 ounces of 10 one ounce maple leaves with that order and our prices are extremely good We compete with everybody out there in the marketplace the number one eight seven seven uh two one four 17 11 guild hall wealth dot com i just read moments ago blackberry down another four point four Million or billion or some crazy number that's very simple You don't have to look far into that case if you don't change with the times you fall by the wayside And that's the fact the reality is today that technology grows faster never And if you refuse to accept the change in that pace You fall by the wayside you become irrelevant and that's what's happening but uh with respect to what the assets are and what the markets are telling us Don't be fooled. If you are sincerely looking to invest hard earned money Uh, and you are looking to do it in a smart way It's not the only way but it's certainly one that has had tremendous success over the past decade It's a long term never measure a commodities value by the short term It's not the smart thing to do when you buy gold and silver It's not to be bought today only to be sold tomorrow You're looking at a long-term picture and you're adding this to your portfolio Whether or not you're buying today or tomorrow or three months from now Ultimately, that's going to be up to you and your own pocketbook. We're not here to test that but That being said The best investors the ones that have made the most in this market with guild hall have been contrarian investors They don't wait for the flock of seagulls to come along and uh and and and and snap up these high prices They buy when there's nothing there when nobody's interested when the price of silver is 19 Measley dollars an ounce and price of gold is around 1200 Those are true bargain basement prices and they look really good in a long-term portfolio. And this is why you know And if you look at china and you look at india, I mean india has got right now a tariff of 10% import tariff on gold Um, there's more smuggling going on in india I mean, you know do the indians like gold. Yeah, they like it more than curry. That's they've always loved gold It's something that they know is has true value Chinese they love gold. I mean, you know, they buy 100 ounce bars and they melt it and sell it in grams It's always been value and they realize that it's real money You know out in the east they really don't trust fiat currencies. They really don't trust paper They looking for hard assets gold and silver Natural fancy colored diamonds is the way to go Question for uh for reese your boy Your favorite gold silver diamonds. Come on reese dairn son diamonds You've got him well-trained my friend said he loves diamonds my daughter loves diamonds and gold so do I there you go You want to get on board 1 8 7 2 1 4 17 11 online at guildhallwealth.com You can catch older shows on iTunes. Nicole your daughter's here as well. How about I I'm imagining diamonds would be her favorite Yes. Thank you It's slowly becoming mine as well. I've just seen the three that we're sitting here for half the show guys If you want to invest you should start now really again that number 1 8 7 7 2 1 4 17 11 guildhall wealth dot com and when you do it when you're dealing with guildhall as well chon I mean, we're a family business. You know, we've got our kids grandkids and my grandkids in the studio If you're looking at the next generation of you know, my son is in the company My daughter's in the company my son was in the company And these are the kids of the future that are going to be in the company If you ask my grand order what she wants to be when she grows up One of the things she wants to be as a diamond expert That's great. I mean, it's it's just wonderful that the tradition will carry on You should be in the company of some wise investing and you can do so with gold and silver boy in a natural fancy colored diamonds A number 1 8 7 7 2 1 4 17 11 guildhall wealth dot com while you're online to sign up for the precious metals advisor Free subscription to guildhall's premier market newsletter. We'll do it all again next week Tune into another edition of the real money show and it's christmas and the three wise men the three wise men bearing gold silver and natural fancy colored diamonds 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