The Real Money Show
The Real Money Show – November 30th, 2013
The Real Money Show – Saturday November 30th, 2013 with Guildhall Wealth Management and John Scholes.
In your mind you'll be able to bring it back to you next week. This is the real money show of full hour of fundamentals and knowledge you need for gold and silver buoyant and natural fancy color diamonds and number you really need to know 1 8 7 7 2 1 4 17 11 and guildhall wealth dot com and catch past tunes on ice show. It's got Jeremy Paul and Darren on studio guys update. Darren, how was the week? How was the week looking? Well, actually Thursday of course was the US Thanksgiving holiday and of course that carries over to Friday for many of the markets. Now gold and silver are up on the week. We're currently trading in gold at around twelve hundred and fifty three dollars an ounce, which is an improvement of about fifteen dollars an ounce. Silver on the other hand is improved slightly more than that. We came to the show and did it last week and around 1990. Currently trading at about twenty dollars an hour. We talked about what was the up to date statistics on a few different items, one of which is very important consumer confidence. We've talked week after week after week about the state of the marketplace, what the headlines are telling us and what's behind the headlines and this is one of those measurements in the US that give us some inkling as to the direction we expect the markets to take. The month of October statistics are very confident to drop to the lowest in seven months it's been. I don't think consumers in the US are very confident what they're seeing happen with record high stock markets in the background and again that's that divide between what people are saying and the headlines is the truth about the economy versus what the real truth is and the reality is we're not seeing that kind of improvement. Now there was also again that adds to this lack of consumer confidence for those families and individuals that were now looking or able to enter the housing market, the recent spike in rates acts as a headwind so again you're getting lower consumer confidence there. Now in addition to that the economic backdrop there's plenty of tail risk as we head into the end of the year. Oil prices have been rising slightly since the summer began in reality really since the summer of 2012 slightly but due to a supply shock would literally choke the economy, the economic recovery, the little tiny bit that there is and it really isn't much to talk about. So if you see any type of news research it further try to figure it out. I saw some headlines on Friday of this week as we're taping the show this morning that we're talking about some different things that were happening between China and Japan. Those are the kinds of things that are really happening in China had deployed some planes into no fly zones, Japan retaliated and they're going back and forth. It's not the first time but when these geopolitical hotspots occur these are absolute forerunners for telling us what might happen with people who could invest in safe assets to protect themselves. The interesting thing is we spoke last week and I spoke actually about the you know the tulip mania that happened and the tulips were first brought onto the market. They were selling 3,000 times more than what they were cost so it just you know just gets back to the bubble of what's happening in the stock market when you print. You know an ounce of gold is trading around about $1,250 today. Bitcoin is trading about the same which is you know vaporware. It's just incredible. Hard assets is the way to go. When money occurs we have the problem of inflation down the road. The US has been printing like crazy. Europe has been following because they've been told what to do and they've gone on this crazy crazy thing of printing money. They've put a lot of money into the market but it hasn't trickled down. It's gone to banks that are not lending the money. It hasn't wall streets gone absolutely wild. I mean when you've got the market the Dow over 16,000 points the Nasdaq reaching new highs over 4,000. It's just incredible and you've got hard assets like gold and silver which in actual fact gold right now is trading at 1250 in South Africa they're closing mines because it costs $1,350 to produce it so they're going to start cutting down on production and you're going to see gold and silver go through flying through the roof. The number to call 1711 and online at guildhallwealth.com. I think we need to remember here that within the last year, A.B. and Ambrose defaulted on their gold promises. We're seeing more of that happening. The US defaulted on their gold promise to Germany. Germany asked to repatriate some gold and even look at their gold and they were rebuffed. So we know that there's a lack of gold out there even recently in the United States. We saw this news about Venezuela who were adamant about taking delivery of their gold when Chavez was in power. Seemed to enter into this deal with Goldman Sachs and that was put out in the news. Well, it came out that Venezuela was not interested in that deal. So we've got some crazy things happening in the news that way but ultimately we're seeing people buying physical metal. We've got a lot of purchasing physical bullion every day. More and more people are saying, yeah, you know what, I need to own a little bit of gold. A little bit probably won't be enough down the road but they're getting a toe in the water. And I think it's really important that you purchase insurance before the fire. Not after. So if you're wondering, well, when's a good time to buy gold? Well, ask me a little bit about the broad markets. You have to look for these telltale signs. It's our job as experts to do that and bring it to everybody. But the fact is there is a super economic backdrop and it's ultimately very weak and it's not happening for the housing industry. There's not a lot of recovery there. The potential for the tail risk events over the next few months because of the switch in the U.S. will be addressed. And of course, that's not going to leave people in a really good state of mind. So when we get back to consumer confidence, it's no wonder it's lagging in the U.S. But it's usually when consumer confidence starts to fall on early warning sign that equity markets are going to fall after that. Now we've hit the lowest in seven months. We're coming into December, which for the gold market is the largest of Monday night. And now we'll get the new numbers on Friday night. But as of Monday night there were 129,000 gold contracts standing for delivery. That's over 12 million ounces against what is available for delivery, which as of Monday night was about 589,000 ounces. So of course we expect the large percentage of contracts to roll over to the next delivery month. That's usually the way it happens. They are going to be out by the bigger institution to offer premiums for you not to take delivery. Believe it or not, this happens on a regular basis. It shouldn't. In many cases it's completely illegal. But it does happen. So if you look at what the market is telling us it's giving us those warning signs as to some type of event that will shake pricing and usually December is that month. So already on the front day of the month, I want to start to move up. Now if Monday continues this trend and silver moves towards $21 an ounce gold towards 1300, I expect that there will be some type of pricing change that will be fairly dramatic in the short term leading up to Christmas. For people who have been sitting on a fence wondering when it might happen. This is one of those months when if you look back and do your homework, you will be there. If you want to open an account with Guildhall it's very, very easy. We at Guildhall only sell physical gold, silver, platinum, and palladium. We don't sell equities. We don't sell ETFs. We don't sell certificates, futures, options on futures or any other paper C that's out there. We sell the physical product. You can take home delivery. You can buy the product. It's ready for you for £100 bars, £100 bars, £1000 bars. They wear about £70 so it's easier to love, you know, £100 bars. The same thing in gold. You can buy gold wafers, gold maple leafs, £1 maple leafs, £10 bars, kilo bars, and even £100 gold bars if that's the way you want to go. We also have a depository which in my mind is probably the best way to store, to hold gold and silver. You can put the product into our depository. It's safe, secure, it's segregated, it's allocated for you as well for certain clients, and it is insured. And you can buy on a telephone call. So it makes it very, very easy. And the other thing is when you take home delivery, most times the insurance companies will not insure you for massive amount of gold and silver because they expect you to have that put in vaulted or somewhere secure. The third option that we have for you is collateralized financing, not for everybody. This is where, for example, you can buy 5,000 ounces of silver today worth $100,000 and you're putting up 30 percent of the equity plus a little bit of commission and opening fees. So for about $31, $32,000, you're actually holding $100,000 worth of metal. So 5,000 ounces of silver and you're $32,000, a $6 move, for example, in the market from $20 to $26, you've doubled your money. If the market moves up $10,000, 5,000 ounces, you made $50,000 and it moves up $20, you've made $100,000. May 2011, silver went to $49. If it moved up $29 from where we are, just taking out the highs of 2011, you're going to be making over $140,000. If this is the type of money that you're looking to make, this is the time to get into silver. There are some downsides and there is some risk when you're using collateralized financing. And it's not for everybody, as I said, but if you have to go out and borrow money or you're putting on a credit card, that's not the way to go. You need to have spare cash and you should be able to get into this. Yeah, in fact, I did a couple of updates today for investors that bought 1,000 for silver. If you're a listener right now and you believe that the price of silver could venture from 20 to 30 over the next 12 months and of course you're talking to three people in this panel who firmly believe will be perhaps as high as twice as that in the next 12 months, then you're looking at an investment with all factors taken into consideration in terms of all costs and if you're leveraging that, you put in 20, you get back 40, you put in 100, you get back 200. So if you're a firm believer that over the next 12 months, the price of silver could go to $30 an ounce. That's not 60, not 50, not 40, but just to $30 an ounce. There's an outstanding opportunity for you to invest and to get a little more bang for your buck. We'll take a short break. The number 1, 8, 7, 2, 1, 4, 17, 11, online at guildhallwealth.com. While you're on the website, check out our website. We'll come back. We'll talk about what it costs to buy precious metals like gold and silver and we'll get to the question of the week as well. More of The Real Money Show coming up. The Real Money Show, 1, 8, 7, 7, 2, 1, 4, 17, 11, guildhallwealth.com. Paul? Well, I was watching CNBC this morning, 8 o'clock this morning, Mark Faber, who's the editor publisher for the Gloom Boom and Doom Report. He actually told CNBC this morning, he believes a massive speculative bubble has encroached on everything from stocks, bonds, to Bitcoin, to farmland and is attributed to the vast bubble, the symptoms of excess liquidity. Faber said that these markets, which have reached record highs, could still rise before the bubble burst. So it means, you know, you may see another 5% move up, but we're expecting a huge retracement in the stock markets. It puts so much liquidity into the markets, but who has it benefited? It's benefited Wall Street, as I've said before in the show. How many people own Apple at $550? How many shares? John, you have a Google, $30,000. There you go. So the average person can't play these stocks. So you really need to get into hard assets and you had an interesting comment during the breakdown. About PIMCO? About PIMCO, yeah. Well, they also expected by first quarter there to be as much as a 20% pullback in their account. When you get a warning from the person who controls the largest bond fund in the world at PIMCO, you listen because they're smart and they've made a tremendous amount of wealth for people based on that knowledge. And they're saying, you know, protect yourself with assets that are safe during those times. The problem is right now that there's going to be a huge, huge gap in difference between what people did in 2008 when it started. Back then, people had money in their accounts. They had great returns on the stock markets they were investing in. Housing was still on fire and they were using their houses as ATM machines. When this happens this time around, whatever money they have, they have to be smart about it. So there's only going to be a couple of places that real smart money goes. One is going to be to cash. We all know that. It's a given. The other is going to be to cash. The other is going to be to cash. The physical metal is moving. If you ask our suppliers, one of the most engaging markets right now is are the Asian markets. Europe is strong too. But in Asia, they're getting a ton of gold moved over there a month over month. And I think that movement from West to East is that fishbowl mentality. We're living in North America. We get a different type of media over there. Bloomberg is the Chinese anti and just basically saying that they buy gold because they don't see the alternative. I don't know how many people are involved in the stock market in the Dow. Yes, more people are waking up to gold and silver as as an asset, as a well, there's no other alternatives out there. Look, we're not getting the interest in our savings accounts. If you want to make money, you've got to take some risks. And unfortunately people are starting to be well, not unfortunately. People are starting to be more defensive with their stock portfolios and their portfolios in general since 2008. And while a lot of people unfortunately are bringing that trading mentality to gold, when do I buy? What's a good time? I'm waiting for the retracement. You know, we're seeing these nice lows in gold and silver for over a year and a half. You know, how long does it have to stay here and you know, it's not necessarily that people are waiting for their opportunity is that a lot of people still don't know about gold and silver. You're still only looking at just a couple percentage of people around the globe buying it. So we want to help people to learn about why you want to own an asset like gold and silver. We know that they're extremely undervalued. You have to appreciate that under valuation to be able to say, when to get in. I know it's cheap but let's get it, right? Well, that brings it back to when is the time to get in. I've always had the philosophy. It's better to be two, three weeks, two months, too early than one day too late because when you miss that boat, you say, well, I'll wait for it to come down. I'll wait for it to come down. Meanwhile, it starts to take off with people that have been sitting on the fence. We brought a lot of clients in over the last 20, 50, 19, 50. It doesn't matter. If you're holding gold and silver, you don't day trade it. You don't day trade your house. Why would you day trade a hard asset like gold and silver? You take it, you store it, you put it away and guess what? It goes up. I always tell the story. You know, if you took 10 years ago, $10,000 of cash, put it in a coffee can and buried it in the back garden or whatever you did with it, what would it be worth today? $7,000 from the same $10,000 and bought silver was trading at $4. $2,500 is a silver. You would have had $10,000. Even that $2,500 is a silver. That $20 today is worth $50,000. Now, if that doesn't make sense to you, don't even listen to this show. Switch it off because we're here to make you money and to get you into an investment. The same thing with natural fancy color domes, which we're going to talk about a little bit later. You have never ever dropped in price. Do you have to smash your head against the world to realize that this is a great investment? 1-877-214-1711, guildhallwealth.com. Darren, you're talking about seasonality and trends in the market. Can they benefit people? They heard people should they watch them? They should. In Germany, it's just picking up on it a moment ago. And basically, if you look at the markets, what they've told us is that this stretch from market to market for investors to be buying precious metals because generally speaking between January to March, we've had this seasonality where every other year, every other couple of years, we ramp up in the fall and see a peak in the spring. And if you look at a chart, which is beyond the headlines and you've got to do this to do your due diligence, you'll see that in 2003 going into '04, 2005 to '06, 2007 to '08, 2010 to '11, we've done it for ourselves. And again, if I look back to 2010 and we're Jeremy and I sitting here twisting people's arms to try and get in the market at $18, it finished that year at $30 an ounce on its way to a spring high of $49 an ounce. And again, those trends are very clear. They're in place and they're easily seen by a person who takes 10 minutes to look at a chart. Well, speaking of charts, I do always, while we do run into charts, we learn something from watching gold and silver chart, which still amazes me. I'm not quite sure what you can learn by following the price every day instead of actually learning the fundamentals. But what we are seeing, especially in the last year, is a much more educated client. They understand what they're buying. They're happy to buy it. They feel protected once they buy it. And they're looking for more out of their market. They just take it blindly. They went to their bank and said, is this silver? They said, no, absolutely. If you want the real thing, you got to sell it. And then we'll sell you the physical. That's a promissory note. At Guildhall, we offer a depository where you can literally have allocated bullion. If you're looking at over a thousand ounces of silver, those serial numbers are on the bars. You'll get that statement every month. You want to visit people. It's very important since people are becoming more educated about this industry and about owning gold and silver that you want to have allocated bullion wherever possible. And again, it's great to see that people are being more educated. It's great to see that people are getting into the market. If you're not sure about the market, if you're not sure about the costs, it's always better to put a toe in than to dive in and then you're thinking, oh, I'm going to put all of my money into it. No, no, no. Start with 10%. Take a nibble. Take a nibble. The interesting thing is one of my guys that works for me comes running in the office the other day. You know, Goldman Sachs or somebody else says, you know, silver is going to drop down to a silly price and gold is going to drop down a silly price. And I said, yeah, they can say whatever they want. I'm just reading a piece while we're recording this search amid price slump. You know, they bought 20.6 tons in gold reserves in the first three quarters of the year. That's an awful lot of. That's a lot of product. So where everybody else is selling off, they're smart enough in the same in Asia and China. They are buying the product. They're putting it into their central banks. They don't want paper. They know the U.S. is printing. They know Europe is printing. They know Great Britain is printing and they know Canada's printing. They know Australia's printing. All these countries are printing. They want to have their money in hard assets. They know that gold and silver is going to go up. It's going to be a great investment for them. 1-8-7-2-1-4-17-11 Guildhall Wealth.com on Liner. What's it cost to buy? Plain and simple. Well, not so plain and simple. You know, this is where we see a lot of confusion, especially for people coming into the market at that time. There is a spot price of gold and silver. That's the futures price. That is not the price that you can actually purchase your bullion for. When we go to purchase the bullion, we're buying it from the wholesaler. And there's always going to be a premium on top of that bullion. So you're looking anywhere above 5% once all of your costs of doing business are put in. And remember that bullion is valued in U.S. world's reserve currency, just like oil is valued in U.S. so too is gold and silver. So you do have to keep that exchange in mind. Now, don't let those costs scare you. That's that there is no free lunch in this world. You do have to buy a ticket to ride. And if you've made the right decision, if you're not just following a chart and saying, "Let's jump in." If you understand the fundamentals, those costs become you. You're happy to get in. You realize, "Hey, to buy it gold at $1,400, Canadian is no sweat." We've seen it as high as 19. Silver, same thing. What's the big deal to buy it at 23, even though it's trading just over $20 an ounce U.S. Because once it goes up to 30, 40, 50, you've made a lot of money. So, yes, there's some costs involved. But give us a call. We'll walk you through those costs and break it down for you. We're very proud of this week on 100 ounce silver bars. Minimum purchase three bars. So, you've got to spend, you know, around about $6,500. There is no commissions involved. It's a spot price plus about a dollar. So, that's for fabricated products. I don't think we've got probably the cheapest product out there. But it's a minimum, three 100-ounce bars. You're looking at around about $6,500. And it's a lot of money, right? Like I said, ticket to ride. Good Beatles reference, by the way, Jim. Well played, sir. Before we take another break, I talk about Ben Bernanke, Darren and Jenny Ellen coming in, tapering. This is going to be a big thing. I think that it's impossible to taper and I'll tell you why. If you look at the headlines, they're all telling us that the expectation of taper is fairly great. But if you look at the largest buyer of U.S. debt, which is going to be a big deal, and they own 1.3 trillion worth of U.S. Treasuries directly. This is why the taper talk to me is totally nonsense because the fed is buying about 70% of all issuance of treasuries leaving about 30% for private buyers. If the Chinese back back away, then surely others are going to do it as well. But who will be left to buy that stuff? Nobody. I mean, there's just nobody left there to buy that debt. Nobody wants it. And knowing that, how it's going to be a big deal, is it going to be a big deal? It's going to be a big deal. It's not going to be a big deal. It's going to be a big deal. It's not going to be a big deal. It's going to be a big deal. I think it's going to be a big deal. It's going to be a big deal. I think it's going to be a big deal. It's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. I think it's going to be a big deal. When it comes to selling your diamond, one thing you have to remember is depending on how much you invested in the first place, money does make money. If you're starting with an entry-level diamond, you're going to need to hold on to that diamond. Think like a studio apartment. You're going to need to hold on to that for more than four to five years to really see the type of returns that take six months. You know you're going to be able to make money on that diamond right away. As far as selling commissions goes, we have to adjust for the amount that the diamond's being sold for. We want the client to make a lot of money, and that diamond that client is selling is going on to yet another Guildhall diamond client. So Guildhall is making sure that the prices remain great for everybody involved, and so our company's going to be really happy. You got a diamond of the week this week? What do we got? Several diamonds. We're actually excited. Last week of the week before we said that we put into reappraisal 15 diamonds that were on the website that actually got appraised last year around about from October November of last year 2012. So we reappraised them. Five of the diamonds customers have been calling and they purchased the diamonds where the diamond was appraised at around about 30,000 and it jumped up to 40,000. Pink diamond that was actually on for about 85,000 went up to 107 just in one year. So we're really excited. What we're doing is we've got about 10 diamonds left that we had appraised, but we're going to hold the price till the 15th of December. After that, it's going up on our website at the new prices. So not only have you got a spectacular diamond, you're going to save a ton of money. You're getting this year's product at last year's prices. So let me give you an example. We have a 1.63 vivid yellow internally flawless. Now that 1.63 last year was appraised at 105,000 and we've got it on the website for $68,250. Sounds like a lot of money it is but that diamond today as of November the 12th was appraised at 141,500. That's, you know, $36,000 increase, which we've been saying on some of these vivid over a car and a half. I've been going up as much as 35%. So you're looking at a diamond just appraised at 141,500 and you're going to pick that stone up for around about $68,000, virtually 50% discount. Now that might seem ridiculous that a vivid yellow can go up as much as 35%. In fact, it did surprise us a little bit but we're surprised every year by how well these diamonds are getting reappraised and you have to understand it's coming from two sources. We talked about the pink diamond being sold in Sotheby's several weeks ago. People are paying literally $20 million over and less than five minutes to buy an asset like a colored diamond. Now there's a very special color diamond but it proves the point for the whole market. People are happy to overpay. People are, it's a market that it, just like buying in a condo building, hey, if someone's willing to buy a higher pay more for that condo, guess what? Prices all over that building are going up. It's what the market will bear and if the market's willing to bear $20 million we go to buy from them. We're always replacing our diamonds at much higher prices. Every year it's the same thing. Appraisals go up, auctions go up, our dealers prices go up. We're just following along with the market. If the market was unwilling to pay that, guess what? Market prices would go down. But when there's such a limited number of vivid yellow diamonds of VS pinks, you know that you're creating a price structure that can only go up to about a year over year. More and more people are getting into the market. I just got, as an example, just received the Tiffany's catalog for the holidays and in the mail and lo and behold, the first three pages of the catalog are all colored diamonds. They're pushing colors first, then the whites. Well, another example, you know, I showed you a vivid that's gone up basically 35%. Another stone, another diamond, beautiful diamond that's going up a lot. We sell three grades of diamonds, fancy intents and vivid. This is an intense yellow internally flawless. Last year, this diamond was appraised at $38,000. This year, November the 12th, the diamond is appraised at $46,000. So that's up, you know, 20%. Whereas not a vivid, it's an intense, but that stones up 20%. And that's on our website right now for $21,750. That's over 50% discount again on that one diamond. The number to call one, eight, seven, seven, two, one, four, 17, 11 and online at guildhallwealth.com. Now, we're not going to show any, we're not going to discuss any more of the reappraisals, but we are going to say that those aren't one offs. Those aren't two offs. This happens on every one of Guild Hall's diamonds year over year. And it, I even had a client recently where I mentioned to them, oh, I believe it should be reappraised around this, this time when you get it. And when we got the reappraisal, it was much higher. Our appraisals, they are conservative as well. We always think that they're going to be very conservative when they come back. So we're always pleased when they're much higher. Congratulations to all of our diamond clients who've already purchased. You have to understand this market is like a real estate market that can't go down. There's a very limited amount of land. They're not going to build up on top of a diamond once it's been sold. So it's very difficult to get into the market. If you're waiting for a pullback, you know, what often, what we see often is people will get into the market once they see the reappraisals, once they believe that once they can understand how much it's going on. I want to mention one more diamond, which is an incredible diamond. It's actually from the 2012 Algao tender. Now Algao tender in 2012, there was 55 pink diamonds. Out of the 55 pink diamonds, there was 11 V.S. quality. V.S. means there's a very slight inclusion, you know, so the diamond is a pretty good diamond. We were able to actually get three diamonds, which two of them have been sold, and we have one left. It's a .81 fancy intense V.S. II. It's an emerald cut. In my opinion, the appraiser is under appraiser. They appraised it at $420,000. We have it on our website currently at $275,000. It's tough to even find an Algao tender stone at any time. This is from last year's tender. It's a V.S. It's a .81, which is, you know, 80% of a carrot. It's a magnificent stone. We have it on for $275. The new appraisal is four. It was appraised at $350 last year. It's now $420,000, which I think is a very, very low appraisal, and it's going to be going up after December the 15th for $315,000, and I won't take a nickel less than that, because I know how hard it is to replace. This year's auction, this year's tender, stones went for 30 to 35%, for S.I.1, S.I.2, and I.1 stones, 30 and 35% more than it went last year. So what is a V.S. worth of this quality and clarity? What we're also seeing beyond just valuations increasing all the time is, we are seeing the popularity of colored diamonds coming to the forefront. Is it still a best kept secret? I do believe so, but we are starting to see more people getting involved, whether it's in the industry or more people learning about it, coming into the colored diamond market, but it's very important to buy a diamond of absolute good values, criteria, that you're not just buying, you know, there are the four C's to consider, and you don't want to buy something that's going to be limited on one of those four C's. There is also more to just a G.I.A. You wouldn't date someone who's just good on paper. You know, you've got to meet them in real life, and it's the same thing with diamonds. You have to see them. Different cutters will create a different type of product. We're very happy with our dealers and the type of product that we've been seeing. In fact, in many cases, we can just look at the diamond, feel the diamond, and we know pretty much who produced it, who the cutters were. So it's very important to make sure that you're getting the highest criteria when you're buying that diamond to get the type of evaluations that we're seeing year over year. The other thing is as well, I mean, you know, I've spoken about diamonds for 275,000 appraisals for 145,000. We have fancy diamonds, yellow internally flawless, a 1.16 carat. We have 1.18 carat for as low as $12,500. So you're getting into a stone that has praised $22,000, $23,000 for as low as $12,500. And this is a great starter stone, an investment stone. If you even want to put it into a piece of jewelry, we can help you design it, and we call this wealth to wear. It's a great opportunity. As I said in one of the previous periods that we were taping, that in 40 years since they've been keeping records, natural, fancy colored diamonds have not dropped in price, never dropped in price through inflation, stagnation, all types of Asians, whatever you want to call it. But they've never dropped 12,500 as a starter. You want to get in, beautiful time to buy a Christmas present, Hanukkah present. You can get into this and get a starter stone, and you're going to make money. Say just a scenario, Paul, if I get $12,000 stone, which is pretty much, you know, that's affordable for a lot of people. That's for, you know, my daughter, your daughter's first birthday. They go to college in 18 years. What do you think that stone's going to be worth? They tend to double every four to five years. So if you're looking at a stone for 12,000, you could be looking at 50, 60,000 dollars, you know, 15 to 20 years down there. That's awesome. And we can give you, we have it on our current website, which is actually changing on Monday. Your guildholddiamonds.com is, we're launching a brand new website. We have, on our current website, a calculator, but we can give you predictions and recommendations of what stones to buy. The number to call 1-877-214-1711 and online at guildhallwealth.com. I do find it a shame that more people aren't taking the diamonds and doing something with them to show them off, because to put them in jewelry is spectacular, especially when they're internally, the yellows, for example, are internally flawless and have great symmetry. They really should be shown off. I've seen lots of engagement rings and talked to a lot of friends. A lot of my friends are getting engaged around this time and the type of money that they put into buying a white diamond versus what they can do with a yellow diamond. They can get a yellow diamond that's really going up every year. You know, that's a great investment for your future family and your heirs. I'm surprised more people aren't putting them into jewelry. They're so spectacular. Those big half million dollar diamonds, those are your suggestions just to put away and put them away and keep them away. They're all made into a piece. They put them into a safety deposit box and they bring them out when they go into a ball or a gala or whatever. But you know, if you're buying a diamond for twelve, five to twenty thousand dollars, it's great to put that into a piece of jewelry, because once you put it into a ring or a pendant, what that's going to do is increase the value of that diamond. For example, if you were to buy a house and you renovated, put a brand new kitchen or a bathroom and it always puts the price of the house up. It's the same thing with a diamond. 1-877-214-1711 Guildhall-Wealth.com While you're there, check out the Precious Metals Advisor. In fact, sign up for a free subscription to Guildhall's Premier Market newsletter. The Real Money Show, the number 1-877-214-1711 and Guildhall-Wealth.com While you're there, check out past shows and iTunes. Sign up for the Precious Metals Advisor free subscription when you go to Guildhall-Wealth.com. The most important thing is when you're buying a natural fancy colored diamond is knowing who you're doing business with. Guildhall diamonds, we're a family business. We are excited about what we do. We search out the best product that we can possibly buy. We go to the shows. I travel all over the place buying a lot of diamonds. I turn down an abundance of product, which obviously other people pick up. We're a member of the NCDIA, which is the National Color Diamond Association out of New York. If you want to check us out, please call them and I'm sure they will give you a very, very good reference. It's important when you deal with a company that, A, when you're buying a diamond, it comes with a GIA. GIA is a Gemology Institute of America. It is the classification certification of that diamond. We'll tell you everything about the diamond from the size, the color, the clarity of the diamond, and so on. We also give you an independent appraisal. Now, the independent appraisal is there so you understand what this diamond is appraised for replacement value. It's not the retail value. If you go to a store, whether you went to Tiffany's or Graf or Cartier, you know, they charge pretty high prices because they're in pretty high-end exclusive locations. We don't have to do that. So we just give you the appraisal that is a replacement that gets lost or stolen. We give you a 10-day money-back guarantee. So, you know, if you want to go and get that diamond reappraised, and please, if you do buy a diamond, you want to get it appraised, don't deal with somebody that's never seen a color diamond because you're wasting your time. You know, there's a couple of good people out there, Harold Weinstein, EGL, which we deal with. So it's important. We're a family business. We're here in Toronto. You don't have to go across borders, and if you want to bring something back, you're not happy. We only need happy customers. Every diamond that we go out and purchase, I know eventually I'm going to get back. How many people, stores or whatever, say, "I'm going to get my diamond back." I'm happy to get that diamond back because I'm going to resell it. It's going to appreciate it. We've gone out of our way to find the quality, so I'm always going to want that quality. We're no different to being in real estate where we sell a home, you know, and we know as people progress they're going to move into a better home, a higher price home. You know, we don't expect you to buy a house on forest hill on your first time out, but you know, this is an opportunity to buy a stone. If you want to upgrade, we're happy to take that stone and put you into another diamond that's going to appreciate even more. If you want to get into, if you bought a fancy, you want to get into a tense, if you bought an intense, and you want to get into a vivid, you bought a vivid at a carrot, you want to get into a two-carrot, we will help you get into that. 1-8-7-2-1-4-1711, Guildhall wealth.com, dare to take us through our gold and silver before we wrap. Well, again, week over week, there was a slight improvement in both pricing for gold and silver. A lot of the headlines this week were stifled simply because it was a short and trading week. We had the U.S. Thanksgiving holiday in Black Friday and let me remind everybody that as I read the early headlines, what they are telling us, and I just read something in the break by Reuters that the shopping sprees are not going to be making people or retailers very happy. So far, it doesn't look like they're hitting their numbers or, again, certainly shortcomings there. But with respect to silver and gold right now, we talked earlier in the show about a couple of really important topics. One was seasonality, which I have pushed on this show far too many times. As Jeremy has reminded me of this very day. But, again, with respect to understanding the opportunities that are presented before you, sometimes if you're a long-term listener, you've heard us say buy gold by silver, and we've said it no matter what the market conditions are. Well, the fact of the matter is that for the last 24 months, we've been ramping up for this moment. We strongly believe that the first quarter of 2014 is going to be a very memorable one as far as market downturns are concerned in the equity markets, meaning that where you've put your stock market investments, you could be in for a very big shock. It's a commonly held belief that we're in bubble territory both in the U.S. stock market as well as a couple of European stock markets. And it's also a commonly held belief that this time around when the stock market does take a tank that many people are going to turn to safe haven assets, which are going to be hard assets first and foremost, and cash. That is likely to happen sooner than later. And usually the type of launch events, the type of things that we look for that tell us, or for Warner's, the price is going higher. Even this weekend, an Emily Carl Picchu went for over $3 million. So people are buying hard assets. You know, you can't be scared of the market. I'm buying gold and silver. To me, it doesn't matter whether I buy it at $20, whether I buy it at $22 or $23. In my mind, I know I feel it's going to go to $60. That's my opinion. I've seen this market go over, you know, we've been in business since 2002. I've seen silver go from $3.80 to a high of $49. I've seen gold go from $250 to $1920. History does repeat itself. If we go back to $79.80, you know, when silver went from $2 to $50, gold went from $100 to $80. Nothing really changed. There was a war in Afghanistan except Russia was there. There was lineups of the pumps for oil. You know, we have got a little bit of problems with geopolitical in some of the Arab countries. You know, the US dollar is strong. You know, they make you believe it's the strongest currency. In my opinion, it's the worst house on the, or is it the best house on the worst street. I mean, that's what it is right now. The yen is very weak. Canadian dollar is getting beaten up. It's around about, you know, $0.94 right now to the dollar. And they think that's going down to 98.90 cents. I mean, they push it down. It's amazing how much verbiage and headfakes can push gold down, silver down, currencies down. And if you look at the economies, if you look at the states, are they $17 trillion in debt? Yes, they are. You know, has anything really changed in Europe? Have we heard anything about Cyprus? Do we hear anything about Greece? Do we hear anything about any of these countries? Yeah, there's stock, Greece, stock market just dropped another 4% yesterday. You know, I mean, it's bad what we hear. You know, since Russia got involved with Syria, it's not even on the front page. No headlines. Does it even exist? I mean, it's all about how wonderful the stock market is and how everybody is doing great and Apple's doing great and Google's doing great. Well, the average person on the street is living paycheck to paycheck and they're not really getting ahead. So they don't want to hear about it. So our average listener is in an entrepreneur, is a worker, you know, that makes a living. It's got kids going through universities somewhere down the road. They're looking to, you know, for your retirement, you need to get into a hard asset. To buy gold at $1,250 right now is an absolute steal. To buy silver at $20. They've given it away. I mean, it costs right now to mine gold $1,350 and it's trading at $1,250. Three mines in South Africa have already cut, you know, what they're producing, the production. If they start cutting production and all of a sudden the market starts joining up, you're going to see moves of $200, $300 in gold. You're going to see silver jump to $3 a day. We've seen it before. History repeats itself. 1 8 7 7 2 1 4 17 11 and guildhallwealth.com. Well, listen, if this is a sign of things to come, Paul's exactly right. I expect that by the first quarter of next year, with a little help from a weakness in the stock market, with a little help from weakness in the housing market, that people are going to start looking beyond the headlines. And this week is a perfect example. We talked about the demand overseas for gold and silver. Paul talked about Russia, 20.6 tons of additional product in the first three quarters. China's looking at hitting 200 tons this year of additional gold in their stockpiles. And if you look at what is happening over there, it makes no surprise that over here we look at headlines about the stock market every day and headlines about business ventures and perhaps, you know, big mergers and things of that nature. But over there, they're reading headlines like the world's largest jewelry group, Chow Tae Fook, jewelry group limited, established in 1930, saw sales jump to 49 percent during the first half of 2013. That's the world's largest jewelry distributor, of course, maintains majority of their offices in Asia, but that is the world's largest. And if their sales are up 49 percent, I wouldn't hesitate to guess that a large portion of those sales come from color diamonds. And the other thing is as well in color diamonds, we're getting calls, you know, because obviously worldwide on the internet, but we're getting calls from Indonesia, all types of places that are looking to get diamonds and especially the quality that we sell. Tell me more about the precious metal advisor, why I need to subscribe to that. Well, number one, it's free. For a year's time, if you're considering it. Well, that's nothing called me expensive. Well, yes, what is cheap is always expensive. But the fact of the matter is that for one year, 12 months, we will give a person that's interested in looking at silver and gold or color diamonds, the right to have this as an e-mailed newsletter free to their inbox once a week. And of course, it's prepared by our team. It has my personal take on the market space. It has also the diamond of the week. It has a chart of the week. It has some market analysis. And in addition to that, some suggested reading, some suggested articles that came through during the week, and we do the work for you. And to have something like this, generally speaking, investors would be paying upwards of about 250 to 500 a year easily for it. We'll give it free to anybody that would like to have that. And again, we have a special on 100-ounce silver bars, mint-conditioned bars. Minimum order is 300-ounce bars. The bars are actually -- when there's no commission involved, we're actually going virtually at spot plus about a dollar. And for fabricated bars, that's an incredible price. So there's a minimum, three bars, three 100-ounce bars. I think it goes to the first 100 customers that we have 30,000 allotted -- 30,000 ounces allotted for this special. >> Sam, by 100, why is it an advantage to keep them on site or at least at the depository? >> Well, with respect to the depository, number one, you're getting safety. If I take these bars home, and 300 is now beginning to become a nice little stockpile, I run the risk of having somebody else know about it or leaking that out. When it's safely stored in a depository, where I can go and view it any time I want, it's my product that's not getting shared around. If I want title, I have over 1,000 ounces, I can have title to that product as well. So you'll get your serial numbers, and that's very invaluable. There are only a handful of places that do it in all of North America where one of them. And that is extremely valuable as an investor. In addition to that, when I have my product there, it's as little as a phone call. It takes a few seconds, and I have sold my product. >> Yeah, but as I said, I brought in -- there's a total actually of 50,000 ounces, but it's minimum, three 100-ounce bars at this ridiculous price. Call on Monday for prices. It's going to be a dollar actually over basically the spot-house price. >> Got about a minute left. Maybe go through again with collateralized financing. >> Jeremy. >> So if you want to take advantage of the market a little bit more, or you say, you know what, I don't want to put in 25,000 by 1,000 ounces, you can use collateralized financing. A little less cost involved to purchase the bullion because you're not taking it out of the depository, staying with the financer. And so 1,000 ounces of silver you could purchase all in for approximately 10,000 Canadian right now, between 8 and 10,000 depending on your equity at the beginning. And of course, every dollar move up, you're making $1,000 on the bullion. So a $10 move, you've made 10,000. So silver only has to go to $30, $31 an ounce, and you've literally doubled your money. So it's definitely something to think about. If you love the price, think about financing your bullion. And of course, give us a call. We walk through all the ins and outs of using this type of account. So definitely give us a call and we'll walk you through that. >> This could be the time for you to invest. In fact, it would be a smart time whether it's precious metals or natural fancy color diamonds. The number 1, 8, 7, 7, 2, 1, 4, 17, 11 and guildhallwealth.com online. While you're there, sign up for the precious metals advisor free subscription to Guildhall's premier market newsletter. This has been The Real Money Show. You You