The Real Money Show
The Real Money Show - December 14th, 2013
The Real Money Show with Guildhall Wealth Management from December 14th, 2013.
this is a real money show, a full hour of information you need on gold and silver boiling a natural fancy colored diamonds, the number you need to know one eight seven two one four seventeen eleven and guildhallwealth.com while you are there a couple clicks of the mouse sign up for the precious metals advisor free subscription to Guildhall's premier market newsletter now fellas this is I guess the unofficial Christmas show and I thought of something absolutely perfect for you guys just for you Darren the occasion that just might sum up the way we're feeling in the show today everybody. Come on you know it is your pal burlives. Perfect set in a tone for the new year too. How do you measure it's worth by the ounce I think Darren that's it Paul's not a burlives fan a big burlives fan right here I am I know you are Darren give us the market update my friend how to look how it does it look well right now we're we're trading a good range for both metals the week over week not much change but we did have some dips some buyable dips during the week it's 1237 gold as we're taping a show on a friday right now in 1974 silver silver through the week did peak above $20 and gold did peak above 1250 and both pulled back for really nice buying opportunities but gold found strong technical support at around the 1200 level which the yellow metal reached earlier this past week on speculative or short covering and physical demanded China premiums in China this week they've risen and this week we're we're quickly approaching the Chinese new year so expect to see more demand stories about gold in China and you're going to see some more stories about the premiums rising on spot pricing for gold in China now gold is down in London after retreating from about a three-week high on speculation that the u.s. Fed is going to taper and the u.s. lawmakers also reached a budget agreement that avoided a government shutdown so this funding expires on january the 15th by the way the deal that they put in place is going to be fairly bullish for gold and silver and it's extremely modest in size both republicans and democrats unveiled the agreement together to reduce this federal debt they have by about 22 and a half billion over the next 10 years and they hope to free up about 63 billion is what they had purported to try and free up but i'm just going to run i mean go ahead he nuts it's 17 trillion dollars in debt well that's that's the next point right yeah 22 billion that's it it's nothing in the grand scheme of things and support and remember that because the federal reserve is printing nearly 20 billion every single week so it's nothing in comparison to what it should be the u.s. national debt is now over 17.2 trillion and counting to rise it's about 55 000 for every single man woman and child in existence in the entire u.s. and they have unfunded liabilities paul points us out all the time for social security medicare medicaid of between 100 to 200 trillion it's staggering in terms of numbers and counting and it suggests the last that the u.s. politicians are they're simply rearranging chairs on the Titanic these are not going to be feasible long-term possibilities for the economy possibly pay that debt off they can't you know the government doesn't produce it's not manufacturing anything it's just collecting taxes and that's why the they should be anybody that is thinking about buying gold or silver should be completely weary of the total big global economic picture and anybody that thinks because of these debt numbers that the price of gold or silver could really substantially drop from here they should be thinking twice because it's just not going to happen these numbers will not allow it to occur well it's not just that there there is that floor for for bullion because i was explaining to someone today it it didn't get cheaper over the last three years to mine bullion it just it pricing costs of doing business have only gone up inflation didn't disappear over the last three years so it's only costing more to pull it out of the ground and yet we're seeing anecdotally more and more reports of lack of bullion available for refiners and in fact this year as we're coming to a close we've seen just as much buying in the physical market in the u.s. and Canadian mints as there was in 2011 so the bull market is very strong i think it's just a case of people they they see something they're saying i don't get it i i don't get it that's the phase we're in we're in the i don't get it phase there's something that's that's not nagging at the back of everybody's head it's sort of that um what is it in movies a suspension of disbelief that's right there's something about what's going on where they're no longer believing the story but they're not quite at the point that the chinese and the indians are at where they're saying i i don't believe it and i'm buying gold it's smoking mirrors or buying physical product though that's more specific absolutely right uh new uh you uh you uh you we prime a ui baleon agreement new rules for it or rules for it anyway i'm glad you brought that up actually john because that's important this is a topic which has been near and dear to us for some time now that the the whole discussion surrounding bailins and what that means to people we've talked about greece and we've talked about cypress and other places in the world where this is occurring and god before we went on air paul and i were just the commenting in fact paul was telling me do you know how many people are actually leaving certain places around the world anything brought up ireland it's reported that 10 000 youth are leaving ireland every month right now well they can't they can't create job i mean they're creating a thousand jobs basically a week or a month but it's not enough to keep the young people going i mean the unemployment rate you know ireland just got off they paid off some dead or you know the did the austerity plan they're still banging trouble i mean they got right now their unemployment rate uh as i'm looking is 12.5 if you look at the you know we're looking at unemployment as well in the states i mean the unemployment figures came out yesterday 68 000 more people went on unemployment in the states yet everything is just so rosy there everything is wonderful um if you really want to look three days after christmas people that were on unemployment that lost their jobs in the states they had 99 weeks to be to claim unemployment three days after christmas there's going to be hundreds of thousands that get off the roll so where do they go they go to welfare so these figures never show up you really got to look at what's happening um we a guildhall you know this is the real money show we do with real money as far as i'm concerned gold and silver is real money natural fancy color diamonds portable wealth it's real money when you're looking at paper trades there's a really interesting article on king world news this week and uh it's explains about paper trading how gold silver how it's hypothecated which means it's actually turned over not 10 times not 40 times a hundred times it's worse than the subprime where nobody knows who's actually least the gold who's got the gold where it is like germany for example asked uh for their gold back physical gold physical gold from the bank of new york fed darron it is it was from the new york fed that's correct you know they're told it's going to take seven years to get their gold back uh from the new york fed to farce it's it actually is two airlines backwards and forwards to get it done um but seven years to get your gold it means you know you got to understand it's not there it's been lent out it's been leased it's been hypothecated over and over um you know you look at all these banks they're getting fine four billion nine billion thirteen billion nobody goes to jail if you did a crime or i did a crime you know would have the cups on us pretty quick if they could it the least they could do is drop their fees yeah you know i wanted to know what i said on it i went into the bank today to certify a check for somebody they said it's ten dollars oh you're not a client 20 dollars 20 dollars to certify a check for somebody to kind of to go check it up on a bank and punch it with a it's irritating right it's inflation that's what it is but we know that the result of all of this is that we as consumers have believed in our systems far too long and we were just talking about bailins the EU just this week they ushered in a brand new policy regarding bailins or bailouts if you want to call it that right it's bailouts is the official word but the new system is going to take place in 2016 and you're going to see that it's going to require all shareholders and bond holders and now depositors people who have money in the banks to suffer a haircut or be burnt or have a little piece taken away anybody who has over a hundred thousand euros which is you know in the neighborhood of what a hundred but a hundred and forty thousand u.s. dollars they'd be bailed in after shareholders and bond holders so first the shareholders take a cut then the bond holders then the people who have money in the bank so they're going to just take your money so that's what happened in Cyprus that's right you know early part of this year they confiscated anybody that had over a hundred thousand euros in their account they took 20% right off the top then you weren't allowed to take the most you could take out I think it was three hundred or five hundred or a thousand euros it was actually five six thousand euros was the most you could put on a credit card I mean if you're a business you're done how do you survive you know so I was just going back to Ireland you know when I'm just talking and this is the best of the austerity bunched they're you know with the IMF they've paid off some debt and they're doing all types of things and they're still banging trouble so what about Greece what about Portugal what about Italy you know it's they're getting worse and worse but if you look at all the figures everybody's doing great but it's the same as Wall Street Wall Street has done extremely well anybody the hedge funds have done well not all the hedge funds if they went short they got killed but the hedge funds have done extremely well Wall Street has done well when you can borrow money as you know virtually zero from as a bank and lend it out with no risk or go into something and make a couple of points you're doing extremely well this is what I was getting at when these banks they do all types of skulldugary and then just get fines of three million five million nine I mean a bank of America is already they'll pay them time and time again because they don't care well not if you can get away with it's like getting away with it it's incredible you need to get into a hard asset you do and protect your wealth at Guildhall I don't want to get off the subject we specialize in physical gold silver platinum pladium you can buy the product outright you can get it for home delivery immediate delivery you can put it in our depository which is safe secure insured we have segregated and allocated we also offer collateralized financing you can use collateralized financing where you can put up as little as 30 and you're actually controlling a hundred percent of the product so let's for example we have right now a special where you buy a thousand ounces of silver we have a one-time commission this allows you to buy in and out as many times as you want for a 24-month period for one commission you can buy a thousand ounces of silver you're looking around about ninety six hundred dollars us if you don't have ninety six hundred which is about ten thousand one hundred ten thousand two hundred Canadian five hundred ounces is going to get you in for five thousand dollars a thousand ounces as I said will cost you around about ten thousand silver right now is trading and at twenty dollars give or take if you're putting up ten thousand dollars a ten dollar move in the market right now silver from twenty dollars to thirty dollars you've doubled your money goes to forty dollars you've made twenty thousand dollars if we go up to forty nine dollars where we were as may first in two thousand and eleven you're going to make a thirty thousand dollar profit my opinion I think you're going to see sixty dollar silver within the next twelve months this is the way to go if you have spare money it's not for everybody if if you have to borrow the money from a bank or you're going to put it on a credit card it's not for you if you have five ten thousand dollars this is one of the best investments that you're going to make right now one eight seven seven two one four seventeen elevens the number to start investing right now is gold going back up there and silver going back up we expect that both will and we expect that those support levels are going to hold that I mentioned earlier twelve hundred and gold and nineteen and silver and we're looking for two crosses in silver above twenty fifty two closes above twenty fifty and in gold we're looking for two closes above twelve fifty both of those would from a analysis standpoint be great signs in terms of a bullish move forward and I do expect that coming into the close uh... december the thirty first for the year both metals will be higher than where they are right now we've seen a little glimpse of that earlier in the week and late last week and I suspect that the same will be uh... the same will be said for the weeks to come and especially if you're an investor you've been thinking about it for a while you've been saying hey I really got to wait and see it's got to convince me I got to see those higher prices I wouldn't sit around and wait because once january starts that first four-month stretch is the best that we get in the metals market if you look back at the last ten years uh... history will show you that the cyclical nature of the market is at its best from january uh... until may so you want to take advantage of that you want to put something into the market and you want to get the ball rolling now you can do that right now one eight seven seven two one four seventeen eleven online at guildhallwealth.com while you're there remember to sign up for the precious metals advisor free subscription to guildhall's premier narkin news item when we come back we'll talk about which metals better should you have both can you do self-storage at home in your own safe or a gym soccer is a better alternative I'm sure there is the guys will fill us in more of the real money show coming up back with more of the real money show the number one eight seven seven two one four seventeen eleven online at guildhallwealth.com I want to talk about the depository jammy yeah well the the fact the matter is is we do live in a post-mf global world where people are concerned about banks either confiscating their wealth um bailins etc or finding out that the bullion isn't there we have heard we have had uh uh reports coming in where people were told by by their banks that certificates aren't really bullion but they could sell their certificates and buy the the bullion now whether that was the teller not understanding the industry that's sort of what you get from from the banks but what we offer is an ability for people to buy and sell physical bullion allocated and segregated on a phone call for example we had a client come and visit their two one hundred ounce bars yesterday at our depository and was thrilled by the the whole process and is certainly going to continue purchasing but that's a sort of service that we're offering the ability to allocate your bullion and again we live in that post-mf global world where people are realizing that the bullion that they had was not what they had and so people demand more and because they're demanding more we're offering more of course if you want to take advantage of the market you can also look at the finance position and think about collateralized financing now you get more for your buck right there but is silver a better buying gold it is because it's undervalued in terms of the long-term picture the previous high of gold was 850 an ounce which was reached in january of 1980 at that time silver reached a high of 52 and the ratio between gold and silver was 16 to 1 at this particular moment in time gold is trading up near 1240 and it represents great value however if i look at silver at 19.75 76 cents as we're doing this show right now that ratio has widened to as much as 60 to 65 to 1 during the last right now as we're recording right so i mean it's widened dramatically and in that span of time we've got more gold above ground than we had back in january of 1980 that's not to say that more people aren't using it because they are more people are investing more people are buying it but it's more above the ground however if you look at silver where there was about three and a half to four billion ounces above the ground in january of 1980 now in 2013 it's reported that there is less than one billion in fact it is argued by many analysts that there is less than a half a billion ounces 500 million ounces in total available to the whole world to invest we have to take physical in order to prove them right and we have to do that on a regular basis when you're a buyer of metals the interesting thing about the ratio you know for five thousand years in a biblical times the ratio was 16 pieces of silver to one piece of gold right now we're trading at 62 to one ratio if it went dropped down to 32 to one ratio just right now overnight silver would be 40 dollars an ounce if we went back to 16 to one ratio it would be 80 dollars right this minute and that's where it actually should be but it is suppressed and we know that we know the markets have been manipulated and yet it's still in the last 10 years have gone up 400 percent even though the markets we know have been maneuvered you need to have some gold and silver in your portfolio whether it's 10 percent we recommend 15 to 20 percent the price is right now at you know 20 dollar silver 1240 dollar gold is really really cheap i think in the new year especially you know everybody's nervous about the tapering i think you're going to see the market just skyrocket 1 8 7 2 1 4 17 11 online at guildhall wealth dot com i think there's no doubt if you look at the the financial landscape right now i think you have a very compelling case the fact that silver specifically is incredibly undervalued twitter trading over 50 dollars an ounce i think even silver wheaten is trading more expensive than than silver you look around and you just think about what 20 dollars is these days and you understand the fundamentals and you say wow this is an incredibly undervalued commodity now with anything undervalued you have to be willing to have patience in order to capitalize on that and so if you're putting in more than 15 20 percent and you're getting overweighted in your portfolio you're going to no wonder you'd be frustrated in the market in the last year and a half that the market hasn't done a lot but if you think about it again china uh vietnam south korea uh india russia everywhere around the world they're buying and happy to buy silver at the lower price here whereas in in north america people are fearful of that trade and i think it's important to take be counterintuitive take the stance of buying when everyone else is fearful and not get into the market when we break through 25 dollar silver and it gets on fire and by the time you actually buy in it's already 35 dollars an ounce you're a hundred percent correct for the simple reason my philosophy has always been it's better to be whether it's one week one month three months too early than one day too late how many people miss the boat and then say well i'll wait for it to drop it doesn't matter whether it's a stock doesn't matter whether it's gold or silver once you know they miss the boat they don't get into the market right now people are getting into the stock market at the highest price last one in first one to get hurt the market is going to come off and people that have been talked into it right now are going to start feeling the pain gold and silver very undervalued right now great time to get into it as i said before we sell the physical product we don't sell paper we're not into equities we're not into ETFs certificates futures or options on futures is the physical product whether you buy one ounce bars maple leaves whether you buy 10 ounce bars a silver 100 ounce bars a silver same thing in gold you're buying the physical product you can take it home for immediate delivery you can open up a depository account which is one of the best ways to go if you're not a trader where you're not looking to get in a you know sell some of the product when it moves up drop sell you know buy it back on the dips then the depository is the perfect place for you but you can still sell on a phone call the third way is to use collateralized financing where you're putting up as little as 30 percent and you're financing 70 percent financing is not for everybody there is a little bit of risk involved but the price of silver today price of gold today is very inexpensive i can't see it coming off from where we are much further than we've been the upside looks the great potential for a thousand ounces of silver we're offering this this week an unbelievable deal we have a one-time commission for 24 months you can buy in as many times and sell as many times as you like without paying a nickel commission a thousand ounces of silver is going to cost you around about ninety five hundred ninety six hundred dollars us for a thousand ounces where we are right now in the market 1975 the market moves up ten dollars ninety moves up nine dollars and fifty cents to twenty nine and a quarter you've doubled your money doesn't stop you taking your money off the table if you've bought a thousand ounces of silver and you financed you can sell off some product now you've got paid for a product with no debt you use collateral collateralized financing to your own purpose you know using somebody else's money to make money is smart but it's not for everybody again we have gold silver platinum palladium and i would like to congratulate everybody this week that you know we had an offer this week and last week when you bought three one hundred ounce bars to put in the depository or you could take it home we had unbelievable prices we sold an awful lot of silver and gold this week and the same thing on diamonds and we're going to talk about that in the next segment but you've got to look at the marketplace you've got to look at the real money you've got to look at the the amount of countries that are printing money printing money is confiscating your wealth it's like you know every time you you've got a bottle of scotch and you've got a half a bottle of scotch and if you have a cleaning lady comes in and has a nip at that bottle and she tops it up with water sooner or later that you know scotch is going to be diluted and it's the same thing that's happening with money my cleaning lady doesn't uh do that thankfully thankfully does not because you do the cleaning you're lying to us no not at all i i do hide my scotch believe me one eight seven two one four seventeen eleven the number uh guildhall wealth dot com dern is there uh a supply concerns when it comes to gold silver 20 tons versus like the standard 21 yeah there are some supply concerns we talked about it last week and last week it was that there were about 20 tons standing for delivery in the futures market against 23 tons that were available this week in fact the total dealer inventory of gold for sale remains dangerously low it's at 20 tons right now and the total amount of deliverable product that is standing for delivery for the month of december as we're taping the show while this is as of thursday should say uh these numbers are one day late is uh 20 tons so what they have is completely sold out so the only thing that can happen is that those contracts can be settled either by rolling over to another month and let's say going uh uh you know betting for another month again uh you could certainly be bought out i suppose by by being paid a premium to accept delivery uh of course you can also be paid out in other ways but ultimately yeah that's a very very uh bullish for us because not only are we seeing very little in the way of uh product that's available we're seeing the demand side of things the dynamics change where once about maybe six seven eight months ago we had seen for the last two years banks uh JP Morgan uh et al uh all shorting the metal and expecting the price to go down we have now for some time at least a couple of months uh seen those banks go long so they are all holding the hope that the price of gold goes higher and that's extremely bullish for the case here and of course when we see the smart money which unfortunately still remains the banks because they're on the inside when we see them expect the price to go higher you have to take their word for you have to jump in and this is kind of analysis and inside information that you're going to be given when you're parked with Guildhall wealth management of course these are the banks that you have to really dig deep to well actually in this case you don't have to dig too deep but you do have to do some digging to find out that they're net long on gold and taking delivery of everything whereas when they were short gold they were trying to get people to not take delivery of their bullion of course these are the same banks telling you that the price is going to move down so they're they're taking the side of the trade that's saying gold is is headed higher and they want the the bullion in their coffers uh when it when that happens given the uh global economy guys up with the gold standard that sounded good back in the 70s any chance of getting back to that anytime anywhere well i think i think the problem right now is credibility and i think that around the world the us is losing credibility in its fiat system if you look at a long-term chart the us dollars done nothing but fall since it went pure fiat and there's going to have to be something down the road that's going to bring some some credibility back into the into the money system gold has always done that it's always created discipline among central bankers and clearly central bankers have have zero discipline at this point and and let's be honest but you know if you look at governments around the world they've become completely obese and there becomes a point where they just aren't mobile anymore they can't stop drinking triple-sized coaks you know they just can't adding you know stop funding things and and it's getting out of control and the problem is the worse in debt they get the more they're going to come after their citizens to help fund these problems so unless you're going to get smaller government which is just it's natural for them to want to grow bigger the problem is the credibility on the money so gold backing any currency is going to be very credible for whoever comes out with that is it a good system look there there's problems with but with all systems but the point is having discipline and right now the fed is buying bonds to help keep long-term rates low so that they can service these debts it doesn't matter if it was a hundred trillion if it costs nothing to service the debt if you had a credit card that had 1% you could have a lot more debt on that well what happens when the interest rates start climbing well what happens if the u.s. stops buying treasuries so that's the the conundrum that they're in right now and i said conundrum not conundrum does you see conundrum last time that's right that's an inside joke in guild hall that's correct actually i mentioned an article before on king world news uh it's a must read it's by john Hathaway he's the senior managing director of top bill asset management and it's going to really tell you what's happening in the market it's just an incredible incredible piece of information we'll take a world news king world news yep does john Hathaway we'll take a short break the number one eight seven two one four seventeen eleven guildhall wealth dot com while you're there make sure you sign up for the precious metals advisor free subscription to guildhall's premier market newsletter the other half of what you guys do so well natural fancy colored diamonds we'll do a whole segment on that next and more of the real money show the number one eight seven seven two one four seventeen eleven online and guildhall wealth dot com casual shows on iTunes as well Jeremy we're into diamonds natural fancy color diamonds yeah you just coming off the heels of talking about precious metals because there was uh that major um auction a few weeks back that's actually made a lot of headway into the bullion side of the business when we're watching listening to analysts and reading all of these articles we're starting to see that natural fancy colored diamonds is really hit the radar of a lot of wealth management companies and analysts looking into basically anyone looking to protect their wealth looking to put their money into hard assets so that it cannot be confiscated by inflation by governments by banks or whatever what have you so we're really pleased with uh with with the diamond industry right now and diamonds as an investment especially if you're going for the top tier diamonds which are investment grade that's what we offer at guildhall it's been an incredible month for guildhall we've sold probably more diamonds in the last month than in a in one shot people are really starting to catch on to it however we do have that special where we were talking about some diamonds that did stick around over the year that we that we have had reappraised we've sold uh over over half of the diamonds that were reappraised there was 15 diamonds appraised we actually sold nine of them um there's and we actually said that we would do this up to the 15th which i didn't realize was a sunday until the reappraise all right till the you know well no we're going to do till monday uh there's six diamonds left um that we've got at the old prices now the new appraised prices um as an example um one of the diamonds that we have uh was a two carrot fancy intense now that stone was originally appraised at 87,500 we had it on for 52.5 the new appraisal price is 105 uh you know that's up 15 or 17,000 dollars the new price on the website is going to be 63,000 we're going to change that next week that's actually tentatively sold we've got a we've got a 1.62 vivid if it's a cushion that stone last year was appraised for 107,000 dollars it's on our website for 64,350 uh the new appraisal on that stone is 144,000 dollars it's jumped up 35% vivid internally flawless i'm going to tell you almost impossible to get and find i sold as i said nine or ten diamonds from what we had i'm trying to replace them i got in i was able to locate one vivid internally flawless stone and i'm paying ridiculous price for it uh from what i paid last year. Vivids every whether it's the cutters and polishers or even the dealers they're taking those vivid internally flawless stones and pushing them to the back of their safes you know why because they can get 30 35% more for that diamond 1 8 7 7 2 1 4 17 11 guildhallwealth.com so uh yeah paul go ahead sorry well again you know we have a six or seven diamonds left that we had appraised it was from last year they've increased an average from whether they're intense from 20 to vivid up 35% you have to remember gildhorde diamonds we only go out and buy the best quality that we can lay our hands on from cutters and polishers i was offered seven or eight stones this week and i i actually bought two out of the seven stones because they just didn't meet our criteria color is very important you know is it an internally flawless stone that's also important in a yellow but it's the cut i don't want to buy a stone that's got you know seven eight extra facets in it that's not a good cut stone let somebody else have that and they can put it into a piece of jewellery we're selling our stones for investment purposes and the type of stones diamonds that we buy really go up in value very very quickly Jeremy you want to answer me well we we have a very tight relationship with with the suppliers cutters polishers and they know what we're looking for we've we've uh been working on on the relationships for for years and years and and they won't bring something that they know where we wouldn't accept um it's easy to buy something on paper um but looking at it in in reality can often be a very different thing it's kind of like online dating just because someone looks good on paper doesn't mean in reality there's a real picture exactly or or you know as an example just because you spent a hundred dollars on a nap a valley wine doesn't mean you just bought an incredible uh cabernet you still have to taste it and find out so what we do our our suppliers know what we're looking for they know our exacting standards they know that it it can't just be good on paper it has to have good quality production when they when they've cut that diamond and every diamond that we have you know it's a shame that they don't come out of the boxes and go into jewellery to be shown off because they are so beautiful so people have been very pleased with their diamonds we're happy that people are looking at this as a as an alternative as a way to simply put their money away um depending on whether they're putting it away for for five years 10 years 15 years i think seeing the the reappraisals has really reinforced the quality of the collection across the board when you're having 15 diamonds and they've all moved up consistently and we're we're there to show people that transparency i think that's proven a lot of credibility to this market and we're very pleased with everyone that's purchased and congratulations again to all of to all of the new diamond investors the thing is as well is on our website we've probably one of the only companies and not only do we show the gia which is a gemology institute of america that is the certification of that diamond we also put an independent appraisal uh on the website so you know what the diamond is appraised for its replacement value not the retail value retail value could be another 30 40 percent you know if you're going to one of the you know name brands whether it's cardia tiffness a rock and mortar store right now um you know and they're whether they're in a you know on blue street rodeo drive you know madison avenue in new york wherever you go uh worth avenue you know in palm beach you are going to pay a premium in one of those stores for the same diamond that we saw obviously these stores go out and buy the best quality diamonds the same as we do the key thing is well that when we buy a diamond we know somewhere down the road we're going to get that diamond back because if someone's going to invest for five years 10 years 15 20 years we want that diamond back because this inventory is drying up absolutely drying up so when that happens we're going to be happy to get the diamonds back and the people that all the diamonds are going to make a very very nice profit we charge 10 percent on the profit you make not on the total sale like an auction house the charge is 15 percent as much as 20 percent not only does they charge a person that's selling it they charge a person that's buying it we only charge 10 percent on the profit so you bought a diamond for $50,000 you've held on to it you know for 10 years that stone can easily be worth $150,000 you're going to make a $100,000 profit we're going to take a fee of 10 percent and i think that's pretty fair on the profit only and that's the way we do it so we're happy go to our website guildhalldiamonds.com we haven't even put up we just launched it the new website last week we've got it you know we've sold a lot of product and you will see as we sell a diamond it shows sold i mean we haven't had a chance for the diamonds we sold Thursday and Friday to put sold up but they've been sold next week we're trying to put as many diamonds up as we can we know it's getting near Christmas not only is this a beautiful gift that you can give to your loved one it's an investment that's going to keep on growing you mentioned this before 1-877-214-1711 guildhallwealth.com you don't choose the diamond diamond choose you which is why if you're that serious making an appointment to actually physically sit and see the stone is key right well that's the key i mean most companies you know have the bait and switch they've got on their website hundreds and hundreds of diamonds that don't exist every diamond that we have up on the website exist we have it we own it and it's available to you you need to make an appointment you need to come in to see us it's getting very near to Christmas this is a perfect gift to give to someone even if it's not a gift it's a gift to yourself if you're looking to retire you know whether it's in 10 15 years down the road if you're looking to put your kids through university what a wonderful way to do it my i have two grandkids both own diamonds both on gold and silver my kids own gold and silver everybody my company owns gold silver and a diamond we all have skin in the game we're not like one of these analysts that you know you see on CNBC or any other program in Canada they all talk about the stock market and when you see the boxes do you own the stock no do you because your company i know there's your family on the stock no we own the product we're happy to be invested in this product i believe very strongly in gold silver and natural fancy colored diamonds it really does come down to making a common sense decision especially when you're looking at your portfolio and to balance that portfolio one thing that i love about colored diamonds is that although you may look at the uh selling features of that diamond down the long term road and the lack of liquidity that you might get initially because it does take time to sell a diamond there's no compromise in price we don't one day say hey we're going to have a diamond put on the website for 25 000 and then in six months from now all of a sudden we'll say hey it hasn't moved let's put it down to 21 000 it never goes down in price never we've never ever taken a diamond put it up on the site and discounted it and then posted a different lower price on the site and on the other side of that is what you gain for that lack of liquidity is lack of volatility so for investors who are scared out of their brains to go into the stock market to buy those penny stocks or those small to midterm uh companies and to get in a mess like they did in 2008 or if they're fearful of putting money into the rsp's or areas that just haven't turned a profit for them and they're going to do the same thing over and over again this is the perfect alternative for you this is money that can be put into this it's uh it's a market which is very safe in terms of its long-term track record there's never been a drop year over year on the value of colored diamonds 40 years in 40 years on these types of diamonds and when you look at the long-term picture for them nobody in this office could be more ecstatic about how that is uh is showing itself it's going to be incredible to see what these vivid yellows and the pinks and blues how especially the Argyle pinks where the mines closing in 2018 absolutely uh we've got four V.S. Argyle diamonds which the V.S. quality is the hardest quality to find in an Argyle pink um i've been trying to buy a V.S. or any V.S. Argyle pinks for the last month and a half and i can't find a one diamond and if they are they're offering them like two to three times what i was paying three years ago um you know there's SI1 and SI2s and i1s to me that's not investment grade that's nice for a piece of jewelry or if you want to be you know taken off by somebody on the telephone that's not what we do well what we what we do find with our diamond clients is that they often become collectors they're looking to end up with the collection um we've had a few clients in the last few weeks uh looking to purchase a couple diamonds and all have gone with one pink and one yellow so they they're already starting a collection and that's why we've also brought in and we do feel that the bluish green diamonds and the green blue diamonds so modified diamonds in in the blue green range are going to be very popular we feel that it's still one of those type of color diamonds that while they're extremely rare people don't have their eye on them as much so we feel that there's a bit of a pathway there to be able to pick up those diamonds and round out a collection uh Nicole's trying hard to bring in um orange diamonds uh to help our clients round out their collections of course we brought in one yellow orange and i believe it's on hold already so one of the the things that you get when you are a client is that you're going to have access to the latest diamonds that we're bringing in inventory so it does help to to you know have have be a member be a buyer uh own a own a color diamond you'll have access to to what we have it's something like Paul you always say don't day trade your house you wouldn't do with diamonds right you don't have to i mean you can sit uh i mean we were in Las Vegas in june and we went to the jewellery show and we saw there's when you go to the colored diamond section it's very small basically it's the members of the ncdia we're a member of the ncdia national color diamond association um very small you may see a total of you know maybe 20 25 people whether they're from israu antwerp new york uh selling colored diamonds we couldn't find too many if diamonds in in vivids and intents last time you know in in june but one of our main suppliers said i don't want to sell my vivid diamonds i can take and put them at the back of the safe i'm going to make 20 to 25 and 30 percent a year without selling them if i have to sell them you're going to come to me when you come to me the price is higher than when i have to go to you right and that's what's happening right now in the marketplace whoever's got the vivids doesn't want to sell them they don't have to sell them they know they're going to get orders for them and they're going to fetch the prices this is what's happening in algao pinks in the vs's you cannot get it the price has gone ridiculous in the last two three years ridiculous si1 si2 i1 algao pinks you're going to find in smalls 0.22 0.24 0.27 you know small stones in si1 si2 try to find a vs we have on our website we go to guildhall diamonds there's a 0.53 vs intents there's a 0.59 vs intents in an emerald we've got a 0.81 a tender stone from the 2012 tender we're actually that's one of the stones we've just had reappraised it was appraised last year at 350 it's appraised this year i think it's 425 or 450 very low because the tender prices have gone crazy we're actually going to be putting that stone up i don't have any problems selling it and we won't sell it below the price that we think we can get for it but it's not that that these diamonds are in a bubble it's just that the the supply is extremely low it's not increasing it's not like there's going to be a flood of internally flawless yellow diamonds coming to market that's just not how it works but the population is growing demand for the market is growing awareness is growing awareness is growing the the the idea that oh you mean an investment that's experienced zero volatility well of course when you've got such a limited supply the demand is always there and when the demand is growing guess what it you know it's not a bubble it's just that there's a very limited supply so the interesting thing john as i said this article by john Hathaway and king world news i mean part of the you know of the story is money printing by world central banks it would seem as propelled the prices of all things rare now natural fancy color diamonds are extremely rare the list includes fine art vintage wines antique sports cars um it is front page news that the flood of paper money has enhanced the quotation of almost any tangible asset perceived to be scarce in supply and that's what natural fancy color diamonds are they're scarce in supply it takes three billion years to create a diamond i'm not talking about white diamonds white diamonds there's tons tons and tons the beers have enough diamonds to fill an english double deck of bus you know so that's going to take a while for that to dissipate but colored diamonds another story for every ten thousand carats of white diamonds mine there's only one carat of yellow of color that's right yeah doesn't mean it's an investment grade to find an investment grade a fancy vivid internally flawless one carat you've got a minor million carats a white to one carat of a yellow vivid i f let's look at prices ten years ago you could afford a fancy vivid i f seventy five hundred dollars today you're looking at thirty five thousand to forty thousand for a quality stone i'm not even going to go into the pinks blues incredible reds are doubling every year you know thirty years ago you could order one carat red for thirty thousand try to find one for a million eight to two point three million today not a bad investment most people know about real estate most people know about stocks because they have mutual funds there's a no brainer you go to the bank somebody says to you you're passive aggressive you're going to get an rsp yeah get this one you know most people don't care Darren has a thing when he does a seminar he says ask a question how many people out there know what stocks in their mutual fund nobody nobody you know you may find one you get a financial planner and advisor to show but the rare number ninety nine percent of people and we've done you know dozens and dozens and dozens of seminars and never have i had a majority of the audience say they can tell me fifty percent or more of the companies they hold in any fund that they own for sure and that's a scary thought because it tells them Canadians don't know where their money is going and i mean this is why assets like this they're they're right front page for me as an investor and that's why i would encourage you both to own them now because they're easy to manage they're easy to watch and it's easy to see the value grow and that's all the hallmarks of investment even if we look there was a pink diamond that went into auction it went on for sixty three million dollars was the reserve it went for eighty million way over while anyway give out the number let's get people excited that you know a few more shoplifting days to grow is a shoplifting or wow days to christmas this would be a fantastic gift one eight seven seven two one four seventeen eleven guildhall wealth calm we'll recap precious metals and color diamonds more of the show coming up more of the real money show we get to one more segment here one eight seven seven two one four seventeen eleven online guildhall wealth calm is the website while you're there make sure you sign up for the precious metals advisor freeze subscription to guildhall's premier market newsletter darren ball park how much gold silver should i buy right off the top 15 to 20 percent is what i would put you in i mean that ranges some people at the firm think 10 percent uh 20 percent something 20 to 25 but 15 to 20 percent is where i would start somebody and that's of your net worth so if you have a net worth of a million dollars you should have thereabouts around 150 000 to 200 000 park and bullion and natural fancy colored diamonds that's a good starting point and that's a good point at which you'll have a comfortable position developed now with that being said this has been a great week john i gotta tell you congratulations to everybody that bought this week it was a great opportunity that we had the last two weeks to get in on some hundred ounce silver bars as well as to uh congratulate all of the buyers for colored diamonds unbelievable what a month and hats off to Jeremy and Jeremy had a great month in particular a really really good in um group of clients that i think you're going to be really happy Jeremy so i bet you they're going to be definitely buying more but again uh this this week we had gold uh right now as we're taping this show at around 12 40 an ounce and silver at around 1980 an ounce those are good numbers we were higher on both metals earlier in the week and both metals are holding good support gold at around 1200 and uh silver at around 19 and both should stay we believe that two crosses in in silver above 2050 and we should be off to the races uh towards i would anticipate 23 dollar range well we've got the Fed meeting on the 17th yeah we do and everything is kind of put laying back a little bit but i think you're going to see this market take off it you know we've seen uh several years ago all the way up to New Year's Eve where the market was just going crazy and i think it could happen again very quickly they can it's an event driven market the slightest bit of news that would be in the favor of higher gold and silver prices would definitely have an impact in a very short period of time and most people will miss the boat i guarantee you as we approach into the year john uh the best time to buy is now it's not tomorrow or three weeks from now it's now and if the price does dip a little lower hold a little back you know take an opportunity to cost average that position ladder in that's absolutely it doesn't pay to be the second in command in new career though but one of the things is interested in north korea was supposedly selling their metals to china and did you read that this week i did which i thought was an interesting article when you talk about china though and this is something jeremy says every week i mean i don't know what stopping people from getting on board and buying physical gold and silver here china has been all over like a hobo and a ham sandwich forever they're all over it they do they and you know what just because they treat it differently they think of gold uh as a cultural item and it represents wealth over here that's just in beaver well scary as that that's it and the other problem is that over here the idea of what is representing what is representing wealth is more along the lines of paper related so we think of stocks as wealth or we think of other different assets that are on paper as being wealth there they've always maintained that the physical asset is wealth and gold is wealth well i was talking to a new client today and he was telling me um about some um frenzy has in the u.s and he was talking to them about gold and silver and they said not that this is a you know a piece of the pie of of the type of mentality but they said no i'm not going to buy it until it's much higher until it's more expensive and because i think it has more it's worth more when it's more expensive that's mentality it must be the momentum play i don't want to buy it unless i see it get over 25 then i'll believe it's moving higher and we talk about that on the show seeing is believing however once you finally believe it's too late look at what you've missed if you're if you're buying above 25 dollars you're not going to actually get into the market till it's 28 29 then you're going to quabble about the price and look for the cheaper place to buy at meantime the price has already moved up to 30 dollars and by quabbling and looking for a cheaper place or what not you've already missed more more money being had in the meantime you could have bought a thousand ounces at 20 dollars and at 30 dollars you've already doubled your money so you know why not put a toe in the water you know maybe not start off with 15 percent maybe start with 5 percent look for some dogs in your portfolio and say you know what it's time to move on or look for some things you've made some great great profit on in the stock market time to get it out look for something that's undervalued let's quickly give people the deal the week opportunity the week we touch base on depository buying but this is collateralized financing it's other people's money put up as little as 30 percent of the total value of the metal you want to invest in you can do a one-time commission and that will be good for up to 24 months of trading that means in and out is frequently or infrequently as you like one commission flat rate and you'll be able to buy and sell that for a thousand ounces of silver you're looking right now at an outlay of about nine to ten thousand and you will be controlling that full twenty two thousand dollars worth of metal as we speak so good opportunity for you and again that's the deal of the week we also want to say a quick thank you to the bistro on avenue road lu nemes he's the founder of st louis wings and his bistro on avenue supplied the lunch for today with some chicken wings so thanks very much lu i noticed you took full advantage mike did you guys get any Jeremy ball easy now of course every time completely addictive and uh the best part about that deal is you don't have to log to silver home you can keep it with you guys that's right you can store it through us and that is the best thing to do creates liquidity it creates the ease for you to buy and sell you get the expertise of the entire team at guild hall not just one person and we'll be holding your hand every step of the way especially for those who are risk adverse and this is new to them we will show you the steps and give you some guidance it's a lot of fun and when the market moves there's no better way to make money in my opinion start moving start buying it is the season of giving give it to a friend give it to a family member one eight seven seven two one four seventeen eleven guildhallwealth.com catch other shows on iTunes and make sure you sign up while you're online for the precious metals advisor free subscription to Guildhall's premier market newsletter. This has been the Real Money Show.