The Real Money Show
The Real Money Show – November 23rd, 2013
The Real Money Show – Saturday November 23rd, 2013 with Guildhall Wealth Management and John Scholes.
The Real Money Show, a full hour of information you need and should have on gold and silver boy in a natural fancy color diamond's Guildhall Diamonds. As a matter of fact, the numbers you need to know 1-877-214-1711 and guildhallwealth.com. You can catch all of our shows by the way. On iTunes, welcome fellows, Darren, as we always start with the market update and the week that was. How was it? You really want to know? Oh, that's true. That's right. Oh. You know what? First off, as always, I want to congratulate the people that did take advantage of the market this week. We have a handful of new investors who definitely came at the right time, took advantage of some pricing in a great range this week. And week over week, not much to write home about. We're both gold and silver trading in ranges slightly lower than last week, gold down to about $12.45 as we're taping the show, and silver down to about $20.10. So a difference 50, 60 cents on silver, not a big difference. But this week, we had some news, the Fed Minutes, which give us some direction as to what the Fed in the US, the Federal Reserve, will be doing in terms of monetary policy in the weeks to come. We know Janet Yellen has been confirmed there. She's going to be taking place as the new Fed Reserve Chairman come January of 2014 and their minutes as they have indicated for weeks months now, you know, showed some inkling towards reducing tapering at some point in the year next year. And it was nothing more, nothing less, but markets jumped all over it. And of course, you take that with a grain of salt because they've said it many a times. However, Yellen, according to reports, is slightly more dovish than rockstar Ben there. So it looks like she may just ramp up kiwi if necessary, and she's definitely indicated that you're going to have to see a significant improvement before that kiwi is pulled off the table. So that's something that happened this weekend in impacted markets, as it always does. We also got to think about the Fed is buying up $85 billion worth of whatever it is, bad mortgages, bad debt bonds, whatever. So if they don't buy $85 billion and only buy $80 billion or $75 billion, is it really going to change anything? The answer is no. The stock market is moving up. It's a bubble. It's waiting to burst real estate in Canada. Same thing bubble waiting to burst. Gold and silver right now is extremely undervalued. The clients that bought in this week, what a terrific price. They bought silver in the $20, $50, $21 range, gold at around $1,300, an unbelievable price. I purchased gold and silver myself this week. I couldn't believe how low it is. The whole point of owning gold and silver, it's a hedge against inflation. We really haven't seen inflation hit. The figures are kind of manipulated every single week, every month. You have to remember they don't take in the price of gasoline. They don't take the pricing of what it costs to finance a home, what it costs to live every day. It's based on hotel rooms and used cars. I mean, that's how they come up. Really? With John, how they come up with inflation. Darren spoke, I think it was last week or the week before, every year he goes out and buys a basket of food at the supermarket of the same thing, eggs, sugar, the basics. The packaging is getting smaller, it's spending more money, or if you're not spending more money, the packaging is getting smaller or you're spending more than you did last year. I can guarantee to you that basket is more than 2% of what you spent last year. That's real true inflation. If you're not taking in the price of gasoline, not the price of housing, you can come up with all types of BS. The thing is, gold, silver is undervalued right now. You've got to be smart. 10% of the people make 90% of the money. We were talking today in the office before we came out to do the radio show. Here is the smart money. What are they doing? What are they buying? If you look at the auctions as Sotheby's and Christie's, are they buying art? Absolutely. Are they buying natural fancy color diamonds at record prices? Absolutely. Are they buying real estate, paid for real estate, not borrowed money, paid for. They're coming in and buying properties. The number to call 1-877-214-1711, Jeremy, you've got something to add. Yeah, well, I just wanted to add about where they're coming from in buying real estate, especially in Canada. Really coming from the BRIC nations, you're looking at South America, China, India, Russia. Everyone's looking to buy up real estate, and the question is why? Basically, it's because they don't feel safe having their money in the bank. They want to get it out of the country, they'd rather have it in real estate. Even if a bubble is going to burst, even if a real estate came off by 20, 30%, you know what? It's better to have your money in real estate somewhere where it's going to rebound than to have your money taken away from you, which can happen at any point now, as we've seen happen many times while balance are starting to occur. This is from the outside in, remember, we're talking about this more and more that there is this fishbowl idea that in North America, we have a tendency to want to believe that the government will save us, that will be okay, that if we just hang on, they'll figure it all out. Clearly central bankers are out for themselves. Let's be honest, it's bordering on psychotic the way they're acting. They want to take their money out of the system. They're buying huge natural fancy colored diamonds. They're taking advantage of the stock market right now, and more and more professionals and analysts in the market are saying it's looking very much like a bubble. Of course, now it's looking like a bubble on top of a bubble on top of a bubble. Fool me once, shame on you, fool me twice, shame on me. How many bubbles do you have to see before you say, "Oh, you know what? That actually is writing on the wall. I'm going to get out of the stock market." At least you said that George Bush couldn't even get through that expression. Well, you know what? It's better than Bob Ford. I'm forever blowing bubbles. These are what we call in the industry hints, and if, as an investor, I don't pick up on these hints, these are the subtle signs that I need to be successful. When we look back at what the markets are telling us, and we look to those week over week indicators, one of the biggest things that I look at is the housing market. What's it doing here versus what's it doing in the US and the world over in the large, organized, and developed countries? Here we get mixed signals all the time. There's not a day that goes by, "God bless them. Some of my dearest friends are in real estate, especially in the Toronto markets," and the Alberta, the Calgary markets, the Big Edmonton markets, the Vancouver markets, but the messages being sent are mixed. They're getting some headlines that tell you the markets are still rising. You get some that are mixed, some that are down, and really, I don't have a good, clean picture of that, and it tells me that there's some confusion because some people are expecting the price to go lower, and no longer are we having an overwhelming sentiment towards higher prices. In the US, in particular, these are measurable statistics. We have this week, the housing market index, which comes out on Mondays. Homebuilders seem very confident, but not quite as much as they were during the third quarter, and the housing market, which is measured from 0 to 100 to closer to 100, the better it is, is at about 54. Of course, that's the fourth straight month in the US that that index has failed to get higher, and that's, again, a clean signal to us. Also we look to existing home sales in the US, and that appears to be slowing with existing home sales down about 3.2% in October to about 5.12 million annual sales rate, and that's a weakness for third month in a row again, and that's the key component of economic boom. We have to have the housing markets firing on all cylinders. Now, in addition to that, if you look at the, some of the very, very interesting markets, the Western markets, the California markets, Seattle markets, things like that, those Western markets were actually down 7.1%, and that's a huge drop. So that's concerned for me, as an analyst, those are again hints that I need, and they are very, very valuable. Now, in addition to that, in the US, just today as we take the show this morning, the Philly Fed Survey came out. Now, this is a business outlook survey of general business conditions, and this month's rate of growth in the Philadelphia Fed's manufacturing sector. It does not match the strong pace that they have seen the prior two months. We were down on a number of employees. The employee work week length was also down, meaning there are less hours to give to employees, and they were both off, and those are again clear economic indicators that were not where the headlines would have you believe. Now, if I look around the world, what else is happening, well, the other piece of interesting news was at the Bank of Japan, and they're similar to the FMOC meetings they have over there for their own banking officials, indicated that they are going to be leaning towards continuing this policy of failure, and they hinted at extending their ultra-lose monetary policy. So it just goes to show you that all around the world, we still have this accommodating policy for banks and large institutions, and that money doesn't get to the public, and we'll talk more about it in the second segment, but it is, again, the hints you need, because behind the scenes, what's happening is these institutions themselves, all the central banks around the world, are starting to buy gold, adding gold to their portfolios. Why do you do that? If everything says that gold should be going down, why would you be buying an asset that is losing value? It's just not true. What we are seeing over here is happening on paper. It's paper-derived selling. It has nothing to do with the physical markets, and quite frankly, when the prices drop like this, if you have been thinking about investing or you know you want to invest, you should be doing it. This is the time. The reason thing is, we have people coming to the office buying gold and silver all the time. How many people come to sell gold and silver? We've had one person. We just talked about it before. We're having lunch. It's one person a month. I mean, for every, I mean, I can't even tell you this year, there's been, what, four? For five people selling versus people buying, I mean, it's, I don't know what's happening. If you look at, you know, the job creation, you look at, you know, the unemployment in the U.S., we talk about U.S. because it reflects what's happening in Canada. If we look at great company Heinz, it's basically been taken over by Berkshire Hathaway. They're closing plants all over, well, not all over the states, but are closing down a few plants in the states. They're closing down the plant in Leamington. Now, Leamington, you know, you've got farmers producing, you know, whatever it is, whether it's tomatoes, whether it's pickles, you know, that, all that product goes into manufacturing. You take that away from Leamington, you're going to have a ghost town, complete ghost town. You can't sell to Windsor. You can sell to Detroit. There's three people living in Detroit right now. You can't sell any product. So it, you know, they come up with some silly thing about, should it be, you know, on the label, should it be in English and French? Should it be in grams and should it be in milligrams and what? I mean, this is absolute nonsense. The plant's been going there for years and years and years, and all of a sudden they want to close. My favorite person, Warren Buffett, what a grand old man he is. You know, everything is bad about gold and silver, but he's happy to take a company and slash it to death and sell off assets and close it down and get into manufacturing or cheaper manufacturing. You know, get into a hard asset, gold and silver, it's going to protect your wealth, your hard earned capital. You need to get into hard assets today, gold, silver, natural fancy color diamonds are antique cars, anything that's a hard asset. And to get into those, Darren, how do we open up an account with Guildhall? Well, it starts to give me just a call. You know, you're going to give out the numbers in a minute and I couldn't reiterate more appropriately how the timing for buying is perfect. And that's what you want to do. You're focusing on physical, not paper. You want to make sure you can touch, feel, hold the bullion in your hand, and you want to be able to have the option to buy both gold and silver for the portfolio. And when we come back, we'll talk more about it and seasonality. And get to the question of the week as well. You have one investing at Guildhallwealth.com. The number one, eight, seven, seven, two, one, four, seventeen, eleven. We'll take our first break. We'll be back with more of The Real Money Show. The Real Money Show, the number to start investing one, eight, seven, seven, two, one, four, seventeen, eleven. Darren, we know seasonality plays a large role in determining good and bad times to purchase gold and silver. Is this a good time? It is. And I think a lot of people get caught up by the fact that over the last 24 months, pricing has been sideways to down on both gold and silver. It's very, very difficult as an investor or a buyer, somebody who is interested in one ounce or a million ounces to sit sideways for that amount of time. It takes the wind out of your sails. It contradicts in many cases what you believed the market should be doing. And for us, it certainly makes it difficult week after week to come on and do the show and share with you the fundamental reasons for the ownership of gold and silver bullion. However, that being said, since 2008, believe it or not, both gold and silver have risen dramatically. Gold is up almost a hundred percent, silver is up a hundred and thirty plus percent. Now if I look back to 2002 when we first came onto the scene, we saw the prices of bullion reach peak pricing within six month windows in 0304, 0506, 0708, and 2010 and 11. Now if you look back and use that as a guide for what you should or shouldn't be doing, you would have to note the common buying characteristics of the marketplace. And this time of year, we always get by opportunities. You got a rollover coming into the next month, which is December in the futures market, which is a delivery month. So it's not uncommon to see lower pricing. Look it up by chart at the end or close to the end of November. Add to that the passion that people have and the way sentiment changes once you get into the largest delivery month for gold, which is December. You may well see the fireworks begin. Now if they do pick up on these little hints, right now it looks really good for us and for you as an investor, perhaps you might not be interested until it's 23 or 24. The problem is by the time you get interested and you actually put pen to paper, you get an account open wherever you invest and you actually get bullion into your account. The price could be 25, 26, you missed $3, $4, and that's how fast the market moves. So when it comes to buying, the plan that we like to put in place is one that is based around the seasonality. There are common buying characteristics. Our professionalism lends itself quite well to understanding that. And we're not right 100% of the time, but certainly seeing these things, again, are hints about where the market's going. Both gold and silver are strong markets, fundamentally both rest on very, very strong. The strongest I've ever seen of any asset I've ever owned in my entire life. And I think that most analysts when it gets down to it are more concerned that gold and silver don't pay dividends than they are about the long term gain. I could care less about what a dividend might be or might not be if it's not going to have a long term positive impact on my portfolio. If I get a one or two percent dividend on a stock that only rises one or two percent, I'm missing the boat because gold and silver can keep it up with inflation. So when it comes down to it, seasonality plays a huge role. And that's what we look for when we're buying. And that's why we get fearful and we talk about it all the time. We don't want people coming to us having thought about buying bullion at $20 in silver or maybe $1,240 in gold and then sit sideways and then not make that decision to own knowing full well they believe the price is going higher until those prices are way higher. That does themselves a huge disservice as an investor. Gildho, you really have to remember a couple of different things. We only sell physical gold, silver, platinum and platinum. We're not in the paper market. What you're seeing right now is paper being sold off. Physical deliveries, we're three to four weeks behind with our biggest manufacturers of biggest mints that we do business with. We don't sell equities. We don't sell certificates. We don't sell ETFs. We don't sell futures or options on futures. We sell the physical product. There's several ways you can open an account or do business with Gildho. You can buy gold, silver, platinum, platinum and you can take immediate delivery. You want to send home to your home. You want to bury it in the back guard and put it under your pillow. Put it under the bed. Do whatever you want. You can do that. It's not the safest thing to do because insurance companies will only ensure a certain amount of product. I think it's around about $1,500 for physical gold and silver. The second option you have is to put it into our depository, which is safe, secure, allocated and segregated for certain clients with certain amounts of product that they want to put into it. You can buy, whether it's maple leaves, one ounce gold or silver, 10 ounce bars of silver, 10 ounce bars of gold, 100 ounce bars of gold, 100 ounce bars of silver kilos, bars of gold. You can buy the physical product. You can store it for easy liquidity. You can buy and sell on a phone call. That's how easy it is. The third option you have is it's not for everybody, but you can collateral finance where you can put up as little as 30% and control 100% of physical product. Let me give you a quick example. If you were today's silver is trading in the $20 range. If you were to buy 5,000 ounces of silver, that would cost you $100,000 US plus a little bit of commission and some fees to open up an account. You can put up as little as $35,000, which will cover everything from a 30% deposit. Sometimes opening fees a little less than that probably, and now you're controlling 5,000 ounces of silver. Silver moves up $5 or $6. You basically doubled your investment. We move up $10 from $20 to $30. You've made $50,000. We move up to $49 where we were in May of 2011, made the first to be exact, $49 silver. You've got a $29 move. You're going to make $145,000 for that $30, $35,000 investment. Yes, we've come off. The market has come off. I'm the first one to say, but I still believe, and I'm putting my money where my mouth is, and I have skin in the game. I'm not one of these guys on the TV that says, when they ask a question, do you own the stock? Does your company own the stock? Does your family own the stock? The answer is no. I own physical gold and silver and natural fancy color diamonds, and everybody in my company has the same investment. We believe in what we sell. I think you're going to see $60 silver. I think you're going to see that $49 figure taken out. I think you're going to see $2,200 silver within the next 12 months, and that's my opinion. People can shake their heads, but we saw silver go from $3.80 in 2002, all the way up in 2011 to $49. Do I think it can happen again? Absolutely. Do I believe in paper currency, fiat currency? No, I don't. When governments are printing money, when we're keeping inflation down, we're not keeping inflation down, we're keeping packages smaller. 10% of the people make 90% of the money. What do the other 90% do? They live paycheck to paycheck. If you're looking at retiring, you're looking at putting your kids through university. When they get to $18.19, it costs money. To go and buy a pair of sneakers for a kid today is money. Everything is money. You need to protect your hard-earned dollars. What you need to do is get into a hard asset like gold and silver. Forget the head fake. Forget what's happening in the market, in the stock market. Because of the $85 billion a month that the Fed is putting into the market, that is not trickling down to Joe. It's going to banks, it's going to big hedge funds that are, you know, haven't John? Google's $1,000. How many shares you got? Zero. Let's look at, what's the other one? Apple. You know, $500 a share. How many shares you got? I have none. All right. We're looking at penny stocks then. We're looking at the $3 stock that we hope is going to go to 10. How many people can buy a $500 stock or a $1,000 stock? So let's look at gold and silver. Silver trading at $20 today. Ten years ago, if you would have took $10,000 and put it in a tin can and buried it in the back garden, what would that $10,000 be worth today? Seven? Eight? Possibly. If you would have took the same $10,000 and bought silver at $4 an ounce, even at $20 an ounce, that silver is worth $50,000, $5,000, $0,000, $50,000. Your paper money, I don't care whether you put it in the bank. If you put $10,000 in the bank, you've got two, three percent interest. You'd have $12,000, hurrah, a great thing. You'd have $50,000 in silver. If it was in gold, it'd be the same value. Now, if we were to look two and a half years ago, that $50,000 would have been $125,000. I'm sorry it came off. I apologize for the manipulation. I apologize for people selling off their gold and silver, but that's not gold and silver. That's paper. Gold and silver, people that own the physical product, they don't sell, they hold. They know they've been through these markets, whether it was in 79.80 and we can go back and look at history and history repeats itself. If you look at 79.80, silver went from $2 to $50 in 90 days. Gold went from 100 to 80 in 90 days. Did things change? Was there a war in Iraq or not Afghanistan? It wasn't the Americans that were there, it was the Russians that were there. Were there lineups of the pumps for gasoline? And it was nowhere near the price of oil today, $95 a barrel? I think it was $50 a barrel and everybody was in panic stages. Nothing has really changed. History does repeat itself. So you need to get into hard assets. Don't get yourself involved in bubbles. The stock market is great. It's paper. It's paper. It's paper. Last one in, first one to get her. There's so many people that got her in 2008, 2009 are still sitting on the sidelines. They're not putting their money in the stock market. Who's put the money into the stock market? Hedge funds. I read this week, hedge funds that went short the market, three of the biggest hedge funds have failed, lost a fortune and they were making an average of 20% a year they've gone out of the market. This market in the stock market is ready to fail. It's going to bust. Are the banks being bowed out? Let's look at Goldman Sachs. Let's look at JP Morgan. JP Morgan's just paid $13 billion in fines for doing skullduggery, $13 billion. Tap on the wrist, $13 billion and they're still making more money. It doesn't make sense. Be prepared for things to blow up. Be prepared to get into the market, own some gold and silver. If you can buy gold today under $1,300, it's a complete steal. If you're buying silver at $20, what a steal. What a price. I'm happy to pay $20. I was happy to pay $35 six months ago. Why wouldn't I be happy to pay $20 today? Get into the market. Give us a call. Give out the number. Well, you mentioned $2,200 a short time ago. That would be something to see for sure. 1-877-214-1711gildhallwealth.com. We'll get into our diamond segment very shortly, Natural Fancy Color Diamonds, the other half of the investment that you do so well right here on The Real Money Show. The Real Money Show, the number to start investing, 1-877-214-1711 and guildhallwealth.com. You can also go to investing@gildhallwealth.com. If you want to ask a question which we have right now, we promise a question of the week, Darren, what do we have? Well, this is, we don't always get everybody's last name, but this is Caitlin from Edmonton. And her question of the week was that she read an article somewhere on the World Wide Web, obviously, about yellow diamonds. And her question was, am I right to assume that in the last year, some vivid yellow diamonds have gone up more in value than some pinks? And that was her question. And the answer to her question is, absolutely. It has become near impossible to locate vivid yellow internally flawless diamonds of the caliber that we're used to having at Guildhall. Now, that is to say, that is all four C's taken into consideration by both Paul and Nicole, the two experts in the office that know more about colored diamonds than anyone I know. And when you're looking for those diamonds, the problem is you got to go and ask people if they have them. Once you do that, the floodgates open and you end up paying more at wholesale. So we like the sellers to come to us. We like to wait for inventory to be available. And Paul, as he's always said, sees numerous types of diamonds on a monthly basis, a few, a few of the 30, 40, 50, 60 diamonds we see every month, a few of them meet the criteria for Guildhall colored diamonds. And you've got to remember the ones that we don't take go to someone else. So we're looking for quality. We're looking for the clarity, the color, the cut and the caraway when we purchase a diamond. The interesting thing this week, I'm just going to get off the subject of colored diamonds, but Max Kaiser and King world news and Mark Faber from the doom gloom report. They're all talking about buying gold and buying diamonds as a hedge against inflation and a long term hold to protect your capital. So that's an interesting thing to start off with. Now natural fancy colored diamonds, ever since they've been keeping records for the last 40 years, I'm going to make this very, very quick and easy for the people that are listening for the first time in 40 years since they've been keeping records of never dropped in price. This is through recessions, through inflation, through deflation, all types of problems that have happened in the world. They have never gone down in price. The type of diamond that we sell at Guildhall wealth and Guildhall diamonds investments normally double every four to five years. That's in a yellow vivid internally flawless of over a carrot, beautiful clarity, beautiful color, beautiful cut, whether it's a cushion cut, whether it's radiant cut and emerald cut. These are the type of diamonds that double in price every four to five years. Argyle pinks, they're doubling now every three years. The Argyle mine is going to be closing in 2018, 2019. They produce that actually one tenth of the world's pink stones that comes out of their mine is one tenth of one percent of their diamond production is pinks. And they produce 70, 80 percent of the world's diamonds. So the diamonds that come out of the Argyle mine in Australia, they're getting less and less and getting harder to find, yet we've got markets opening up China, India that want this product. As China becomes more wealthy, they want what we have in the West. So when you have the diamond show or the jewelry show in Las Vegas, one of the bigger shows in the world, they're paying exorbitant prices for product. One of the biggest shows is in Hong Kong. We can't even buy the product because everybody is bidding 20 and 30 percent more than what the product is. The Argyle tender this year, there was 50 odd stones. We bid on six or seven stones. We didn't win one stone. We bid as high as 30 and 40 percent more than we did last year and never won a product. Yet I've got people calling me offering me product. There was only 11 VS quality Argyle diamonds in this year's tender and we bid on seven diamonds. We never got one of them. Last year we got three stones. We have an Argyle from last year's tender. It's a .81 intense VS quality stone. I think it's on for close to $300,000. We've taken 15 stones that are on our website that we've had up there for almost a year. I can tell you right now, we've had those stones reappraised. We're going to be changing the prices. This is an opportunity to get this year's product at last year's prices where automatically you're going to make 20 to 35 percent on the stones that are up on the website right now. Next week, the prices are going to be changed. So look out. Go to our website. Guildhall diamonds and you're going to see prices jump up incredibly blues. Next quality. They're doubling every two years. We have a couple of stones. We have a 107 fancy internally flawless blue stone. It's about $300,000 in change. That stone could easily be worth in two years, $500,000 to $600,000. Reds we had a red up on our website, it's sold. It's virtually impossible to find a red. 30 years ago, you could have bought a one carat red for $30,000 a carat. John, what do you think it's going for today? 50. Try 1.8 million. How well? To 2.3 million if you can find a red of VS quality. That's what's happening in the market. Ten years ago, you could have bought a vivid yellow internally flawless for $7,500. Try $35,000 to $40,000 today. That's a wholesale level. That's a stone that's worth $70,000. If you go to our website, you will see diamonds. We've got the biggest selection of internally flawless yellow diamonds around the world that you will ever see. These are diamonds that have been handpicked. There's about 12 of these diamonds that the prices are going to be going up next week. Get onto the website. Go to Guildhall Diamonds. We even have a calculator, which is an unbelievable product, where we've been so, what's the word, conservative, we've punched in 12% a year on a colored diamond. You're going to buy a diamond for $50,000. Put it in. See what it's going to be worth in five years, 10 years, 15, 20 years. If you're looking to retire, you're looking to put your kids through school. When they reach 18, 19, this is the investment for you. If you're sick of the stock market, you're sick of looking at your portfolio, you throw up on your shoes every month when you get your statement and see that you're not making any money because you don't own Google and Apple and some of these shares that are selling for $500, $600, and $1,000 because not everybody has that type of cash. At auctions today, we're seeing colored diamonds. There was a pink just when on an auction, they were trying to get 60 million. You know what it went for? 80 million. Now who's buying that? Not everybody's got that type of pocket change, but people with money today know they have to buy diamonds of exceptional quality and ticks out property because they're worried about paper money. They're worried about printing fiat currencies. They know the Fed is printing, Europe is printing, England is printing, Canada is printing. They're either going to run out of ink or they're going to run out of trees because there's so much printing. You need to protect your capital. Trust me on this, you will make money buying gold, silver, and a natural fancy color diamonds. Go to our website, Guildhall Diamonds. Look at the diamonds. Every diamond comes with a GIA, that's a Gemology Institute of America. That's the certification of the stone. Every stone comes with an individual appraisal, not my appraisal, not a jewelry store's appraisal, an appraisal, which is a replacement value. So if that diamond is stolen or lost, the insurance company has to replace it. If you're buying a diamond and we give you an appraisal of $60,000, you may only pay $30,000, $35,000 for that stone. But that insurance company will have to pay you $60,000 because good luck trying to go out and find a diamond that meets all the criteria, those four C's. And there's a fifth C. You have to remember that it's a currency. It can be sold in any currency, whether it's sold in US dollars, Canadian dollars, euros, sterling, yen, it's currency. It's portable wealth. And that's what you have to remember. Guys, anybody want to add anything to that? It's something that the wealthy have known for a long time, and they've been buying up these diamonds. And when you see these auction prices from an analyst perspective, I mean, it's brilliant because these drag the wholesale per carot cost of all these diamonds higher. And as a buyer, I can't wait if I own a diamond and I own several, if I own a diamond, I cannot wait to see the headlines in what the actual prices are because, and again, you have to congratulate Nicole because she came on to this very show and predicted that the selling price would be close to 80 million. It was 74 million plus the buyer's premium. So that is the highest price ever paid per carot for a pink diamond in the history of pink diamond. And that was the orange one. That is right. Also the orange diamond that went not too long ago for a very, very hefty pricing against that has all-time historic high for orange diamonds. And the reality is that when you look at these, they are telling you something. Again, we're on the theme of hints. We talked about it in gold and silver. This is what private wealth is doing. It is diversifying out of paper and public wealth into private opportunities. They are taking diamonds, putting them away, storing them, setting them, wearing them, whatever they want to do with that diamond. That's up to them. They are all going to put in 10 or 15 or 20 years, mark my words. It's not only kept up with the pace of inflation, it's blown it away. It's given them a return because of the rarity of the diamond. You're holding something that only a handful of people in the world actually have or have ever seen. And when it comes to what the future holds for colored diamonds, one of the most common questions we get asked is what if they find a mine? Well, there's businesses out there that pour billions of dollars into mining projects every year. And nothing. There's nothing. There's no mine in the world whose primary product is a colored diamond. The thing is as well, I mean, these diamonds were created billions of years ago. We're interested in the secondary market. The biggest question people ask is, what do I do with a diamond when I want to sell it? Who am I going to sell it to? I'm the happiest person when somebody comes back to me and says, I would like to give you back the diamond to sell because I know I picked the best diamond for them. I'm not going to have a problem reselling that diamond because the diamond is exquisite. It's got all the characteristics. It's got the color, the clarity, the card, and the carrot way we've gone out and purchased. So we will advertise that diamond. We will memo. We have clients that collect all types of diamonds. As soon as we put a diamond up on the market, it normally gets snatched up really quickly. But I want to get to two diamonds that I have this week that are just incredible. We spoke about yellows and we've spoken a little bit about pinks and blues. But there is a color which is bluish green. It's like aqua. They are the most magnificent stones. We have two. One is a .35. It's a fancy, intense bluish green. It's actually over $100,000 is the price. But it's on for $66,000. You will not see this diamond anywhere. And we have a large, larger one as well, actually the diamond is $110,000 of praise. We have it on for $66,000. We also have a .61 fancy, which is a little gray below in color because it's fancy, intense, and vivid. But it's a .61. It's a price at $115,300. It's on for $69,000. These are one of a kind gemstones that have an amazing return. This type of stone is going to double two to three years. And we love to find it. We've only found, maybe since we've been in business, five or six of these type of diamonds. And we have two on the website right now. And I am so proud of Nicole because she found and picked these two diamonds. And we've seen other bluish greens and greenish blues, but they don't come anywhere near the quality and the cut, they're both incredible. Go to the website, Guildhall Diamonds, look at these two stones. This is such a treasure. This is such a wonderful investment, something that you can put away for five, 10, 15 years, and you are going to get one hell of a return. So go to guildhalldiamonds.com. Look at these two stones. They are just magnificent. 1 8 7 7 2 1 4 17 11 and Guildhall wealth.com. We've got about a minute till we take another break. Paul, tell me something. If I don't have $80 million to buy these one of a kind diamonds, where does your average guy get in? You can get in as low as 12th. You can buy one carat or bar the 1.10 fancy internally flawless yellow stone, a starter stone for about $12,000, a great stone. In actual fact, my daughter got married in June. She got engaged and we got a 1.06 yellow internally flawless fancy. We put it into a ring. Once we put it into a ring, it was appraised at $25,000. It's a starter stone for $10,000, $12,000. We will always take a stone back like this and upgrade you to an intent to a vivid. It's like property. You know, how many people would have loved to have bought a house 10 years ago that was $500,000. Today there's $800,000, but they didn't have the money. And now you can afford to get into that $800 because you bought something for $500. This is the time to get into a natural fancy colored diamond. We only sell the best. We guarantee the diamond. We give a 10 day money back guarantee and every stone we sell is the most beautiful stone. You're a Canadian company, and that's really, really important. You don't have the problems with going across borders and taxes and different things. Call us. You'll have nothing but fun. 1 8 7 7 2 1 4 17 11 is at number guildhallwealth.com. We'll take a short break. Come back with among other things where we think the golden silver prices heading say in the next 24 months. This is the real money show. The real money show, the number to call to start investing. Do it now. 1 8 7 2 1 4 17 11 and online at guildhallwealth.com while you're there, sign up for the precious metals advisor free subscription to Guildhall's premier market newsletter price over the next 24 months. What do you guys forecast? Well, in gold, I would expect at least $35,000 an ounce. Wow. That's how I'm investing now, plain and simple, 35,000 an ounce. No, you know what, we joke around about it because we get the question asked so many times a day and week, but the reality is we've never ever shied away from what our long-term expectations are, which is the next 60 month window should produce a price in gold somewhere between 32 and 4000 is our expectation. And in silver, we would suggest that we were going to land based on a ratio of somewhere between 20 down to 16 to 1. We would expect the price of silver to land somewhere around 150 an ounce. And I know that's hard for people to look at and believe, but based on historic pricing, based on the fundamentals in this marketplace, which are the strongest I've ever seen. And I wrote this week in the special metals advisor that it's important again on the theme of looking beyond the headlines to realize that nothing has changed. Yes, the price of both gold and silver is for the moment a tad bit lower than it was a couple of months ago. Yes, the highs of both metals have come and gone and we've since seen a pullback. And yes, it's very difficult as an investor to have the patience in time that it takes to sit sideways in a market before it benefits you when you see other investments around you making money. The problem is that the change that we could see happen in the economies around the world, these changes and Jeremy talked about it early with the bubble on the bubble and the bubble. These changes can happen at a moment's notice. They can happen on a whim. And within a few days, you can see big dumps in the market. And again, it's the scariest time I've ever seen. It's a huge science experiment. And I've got to tell you this week, I wrote in the pressure mills advisor this week alone, we saw both the Dow Jones industrial average in the US and the S&P 500 hit yet again all time highs. Now, what they don't tell you is that this is not much higher than it was in 2008 before it fell apart. So it's only gained back and then a little bit more of what it lost when 2008 happened. However, those came and went. And by the headlines that are getting strewn out there about the magnitude of these situations, you'd think I was Buzz Aldrin sitting up near the moon watching the Dow and the S&P fly right by me like a rocket ship. But the reality is the headlines don't do a good job. You got to have the due diligence. You got to dig behind the lines, gold and silver is something that everybody can own. If you're looking at the stock market right now, not everybody owns a stock market. I certainly and I consider myself to be somebody on the inside, I have not made back the chunk that I lost in 2008. Now, granted, I've gone in other directions and made a ton of money in other directions, especially with fancy colored diamonds in particular, silver and gold. Those are my mainstays in my portfolio. But what I lost in those other assets, they are something that I am frustrated about and I have remained frustrated about and ask yourself, who has made the money? When these stock markets go to all-time highs, who's making the money? I know it's not the average investor on the street because the average investor on the street is petrified to put his money in anything. He still thinks a real estate is a great investment. You know, markets can't keep going up, up, up, up and up without a break. And we haven't had that break here in real estate, especially not in Toronto, especially not in Ontario, especially on Canada and all the major markets. We have not seen a major break. So for me, if I'm looking at a long-term investment, it's not going to be real estate right now. Now, that being said, there's exceptions to every rule. But when I'm looking at hard assets, I want to add gold, silver, physical, bullion and natural, fancy colored diamonds. Now I was reading an article this week on Zero Hedge. It's a great website. This is the type of website that really does a good job at delving behind the headlines. It's called Zero Hedge. Type it in. It's called a guest post. The five economic big lies the government is telling you now, of course, this has to do with the U.S. and, of course, deals with some of the things that we talk about on here every week. But it's important to hear from other people's perspectives. Now, one, they talk about the lie of employment. The unemployment rate has been steadily going down. Now, that's what the headlines tell you. But the reality is, according to the official government numbers, the U.S. unemployment rate, which is at 7.3%, is not a truthful number or statistic about the employment situation. In fact, what it's saying is if you look at one of the easiest and one of my most favorite charts when it comes to employment, it's called the civilian employment population ratio. It's a mouthful, but basically what it is is it's showing you the ratio of people who are working age that are actually in the workforce. That number pre-2008 was about 64 and a half percent. The number post up to 2013 right now is sitting just about 58% and it hasn't climbed in four years. So we are in the reality of things not seeing a significant gain in the important areas of employment. These are people that have career positions. And that whole thing about having four, five, six or seven careers in your life, that's blowing up right now. It is true that more and more people are going to have dozen or maybe even more careers during their tenure. Now, another fallacy that they talk about, another reason why we buy gold and silver is because of the long-term expectation of long-term inflation. You cannot print the amount of money that has been printed by the governments around the world without the expectation that at some point that money hits the ground. And when it does and the average guy starts reinvesting in his business, growing his investments, what's he going to do? He's going to start borrowing again. We can't get away from that. It's human nature and it's how the banks push us to make more money. Now if we measured inflation, the way that they measured inflation up until the Carter era in the US, guess what it would be at right now, eight to 10%. Now if inflation was sitting at eight to 10%, and Paul said and alluded to earlier in the show that I do a shopping spree every year, it's a bucket full of goods. It's the same list every year, your milks and tea and butter and eggs and bread and all kinds of sorts of everyday staple food items. Every year I've done it. It's gone up and this year I'll post it again when I do the pressure mills advisor in January. But again, inflation is all around us. And these are again hints as to why long-term pricing for gold and silver will be higher. We know it's coming. We've seen it happen and nobody in their right mind, if they understood the real truth behind those headlines would be betting against gold and silver long-term. So although I certainly don't think this is something you decide upon lightly, you don't speculate with your house every day, you don't buy and sell it, why would you do it with gold and silver? It's Paul's. He's had that same coin. It's famous. But the reality is we are sitting in a time and space in which it is very difficult to make a real return on investment and gold and silver, color diamonds could be one hell of a way to make that change. And you've got to remember at Guildhall, we only sell the physical product. We're not selling you vaporware. Vaporware is paper. Whether it's ETFs, whether it's securities, whether it's certificates, futures, options on futures. You're buying the physical product. You can take it home. You can have it for a media delivery. You can store it with us in a safe, secure, insured location. It's our depository and we even offer finance where you can finance up to 70% of your investment. As an example, if you were buying silver today and you wanted to buy 5,000 ounces of silver, it would cost you $100,000 plus a little bit of commission and opening account fees. Instead of putting up $100,000, you keep back $65,000, $68,000. You put in $32,000, $33,000. You're still controlling the same 5,000 ounces, a $5 move in the market or a $6 move and you've doubled your money on a $30,000 investment, a $10 move. You've made $50,000, a $20 move. You've made $100,000. If we go to $49 where we were, May 1st, 2011, at $49, you're going to make $145,000 profit. Is that the type of money you're looking to make? Then this is the investment. You don't have to put in a buy 5,000 ounces. You can do it for a thousand ounces and put up $78,000 and still control a thousand ounces of silver. If you have $10,000 cash spare, well, you're not borrowing it on a credit card. You're not going to the bank and they're going to line a credit. You have $10,000 or you're in the stock market and you've got some dogs in your account. Sell off the dogs. Take the loss. Get into an investment. Right now, silver's trading at $20. As I said earlier in the show, I think you're going to see $60, in my opinion, within 12 months. If it goes to $50, shame on me. But guess what? I think this market is going to move up and it's a great time to get into the market. One, eight, seven, seven, two, one, four, seventeen, eleven, and guildhallwealth.com has started investing. There was an article about the U.S. mint halting coin sales in December. Is that true, Jeremy? Yeah. They've already broken the records that reached highs in November, sorry, in 2011. So having broken all those records at all time highs for mint sales, they are going to be halting sales early December. So the last three and a half weeks of December, you won't be able to buy any mint coins. You'll be able to purchase them for January. So I don't know if that's because they don't have it, which through the constitution, they're supposed to constantly supply it if there's a need, or they're trying to keep those numbers down so that it doesn't get out of control, that they've already broken those highs. So this is a telling situation that people are purchasing silver. They don't care what's being told on the mainstream media. They don't care what the government is saying. They don't care about tape or talk. They're saying they're very limited choices in terms of where to put your money and they're putting their money into silver every single day. It's the same thing. You look at gold today and it's under $1,300, what an absolute steal. You know, a couple of months ago we were as high as $1,900. Today we're at $1,300. If it only goes back to where it is, you're going to make an unbelievable return. And it will go back to where it was. You know, gold and silver has the tendency to come off and then move back up. You know, in India, they love gold. They love gold more than curry. It's something to get into. You know, it's a buying season. You've got to get into gold and silver. Make the investment. You're going to make money. Just be patient. You know, it won't turn over in a day. But if you hold it for six months, a year, two years, three years, you're going to get an unbelievable return. Darren, give us your final thoughts. Well, again, going forward, I think that this week's going to be interesting. Some telltale signs about what direction we're going to be heading in. But I think, again, this is coming upon a delivery month in the gold market, the biggest of the year, it's usually a very high demand market. And before I leave, I like to remind everybody this time of year, it's getting cold. Please remember to give to your local food banks. Keep those people that need help. Keep them happy. I have one thing to say, Jack Walsh, who used to be the chairman, president of the Board of GA, he came up with some figures where they created unemployment in the States just before the election last November. And he said the figures were phony and they're just coming out and showing that the figures are phony. They manipulated these figures. It helped to get a bummer in. You cannot believe everything that comes out on data in the U.S. There's a lot of head fakes. You've got to get back to basics. Gold and silver's been around for over 5,000 years and will be around for another 5,000 years. It takes blood and sweat to pull that out of the ground and it is real money. The name of this show is The Real Money Show and we believe in gold, silver and natural fancy colour diamonds. Number 1-877-214-1711 guildhallwealth.com while you're on the website, reading what you should be reading. Take advantage of the precious metals advisor free subscription to Guildhall's premier market newsletter. This has been The Real Money Show. [BLANK_AUDIO]