The Real Money Show
The Real Money Show - November 16th, 2013
The Real Money Show will full hour of information you need on gold and silver boy in a natural, fancy colored diamonds in studio today. We got Darren Long. Hi, Darren and Jeremy. Hi, Fellows. We are set to go. As we always do, we start up with the phone number one eight, seven, seven, two, one, four, 17, 11 for investing and the website guildhallwealth.com. Go to iTunes, the catch previous shows, get more information, more information right there. Darren, the week that was the market update. What's happening? Listen, John, great week. Again, with respect to buyers coming into the market. Couldn't be happier. We stayed in a price range. It was a really respectable week. Gold is up about 1% week over week. It's trading right now as we're taping the show on Thursday on Friday at about 12.90 an ounce and silver at about $20.85 an ounce, slightly off about by 50 cents or so, but nothing major, not a really big difference at all. It was a good week. There was certainly a lot happening in the markets. We've got a lot to talk about the show today, but we want to make certain that people understand the importance of owning these two assets, gold and silver. For far too long, we have relied on misleading financial statements. We have relied on misleading analysts that have given us the wrong information and the economy that we're dealing with right now requires diversity. It requires you to be on top of your portfolio and to understand the assets you're owning. Gold and silver are only one part of it, but they are a big part in my opinion and they have a role to play moving forward. Now that being said, good week overall, but we are looking at the week ahead and some news that's coming out. We caught a little of Jenny Ellen hearing this week. It looks like Ben Bernanke is going to be taking that package to take a retirement. Is this good bullish for gold or silver? Well, for us, it's bullish totally for both metals. She will be the new Fed chairman come on January 2014. Yellen right now is the head of the San Francisco Fed and there's a lot of misinformation about her on the web out there. But the fact of the matter is that she is a career academic. She has absolutely zero banking experience or business experience. And again, it's been about well, we haven't had somebody with business experience, pure applied business experience since Paul Volcker leading the Fed almost between I think it's almost 50 years ago now. But this puts her in the same boat as Greenspan and Bernanke. And as I said, Paul Volcker, the only one being the last Fed, you know, chair to have any experience whatsoever with business. Now, with that in mind, it's important to note that Yellen has been one of the biggest proponents of quantitative easing as a monetary policy. In 2011, she stated that QE1 and QE2 would create a total of a million new jobs by the end of 2012. Suffice to say the woman does not understand monetary policy or economics as they pertain to the real world. So she's going to inherit this US dollar crisis and all of this economic troublesome out there. And she's going to probably prepare to continue to spend. Clearly, she wants to continue with the one tool that they have in the shed, which is quantitative easing. She's going to take over that policy and keep doing the same thing. What we're seeing right now in the markets is that more and more professionals in the market, hedge fund people, anyone who has any experience in the markets are coming on TV. They're coming into articles and they're all saying, it's pretty clear QE is not working. In fact, Andrew Huzar, who was working with the Fed, came out, has become a whistleblower and an apologist saying that it was the, it was the greatest backdoor wall industry bailout of all time. And then he's referring to quantitative easing. And so even he is now claiming publicly that it doesn't work and that ultimately all it's doing is fueling a massive bubble in the stock market. So any, any reference, any threat of, of tapering is, is just taper talk. That's all it is. They have no choice but to continue to do it because the last time they threatened to taper, the market got major jitters and can't and pulled off a lot. So this does, this doesn't end well. And this is why if you're, if you've been taking advantage of the stock market, great time to get out. If you've been sitting on the sidelines, this bubble is going to burst, look for quality assets like gold and silver. And if you want to find out about this whistleblower, we do have that article in our precious metal advisor. The number by the way, one, eight, seven, seven, two, one, four, seventeen eleven investing at guildhallwealth.com. Let me just ask you this there before, before you move on. Why has it been 50 years since we get so they get someone in there who's actually got some, some financial, you know, knowledge? Why are they getting these people like Bernanke and Greenspan and now yellow? Why? Well, a lot of it has to do with political pressure. I mean, it certainly has to do with the people who are running the government and running the Fed and the other Fed chairman. But I would suspect that it's, it's because they can control and manipulate these people very easily. I think that, you know, and many analysts agree that Yellen is another example of somebody who's just basically going to become a puppet to the big corporations, the big companies. And I think it's in their best interest that they keep the Fed role somewhat theoretical as opposed to practical because if you got somebody in there with business expense, what's the first thing you do? He shut the business down because he knows it's broken. It's, it's, it's been battered to hell. And I mean, there's nothing left of it. I mean, if you look at the US dollar, believe it or not, most people may be looking, let's say for example, I've been thinking about buying a gold silver for a while. My human nature is going to dictate that I'm going to wait until I see the price move up higher. I mean, nine times out of 10, that happens. We always sell more product when the price goes a lot higher. And that has been happening since we opened up our doors. But somebody who's been waiting to invest has been reading headlines and they've been misled. And if only I read headlines and nothing more, as I wrote this week in the Press, Mel's advisor, you get a whole bunch of misinformation, which probably leads me to think that gold and silver in the short term is not going to do anything. You know, in fact, might even drop. But the reality is what happened last month, in fact, in October, was that the US dollar, the index of the US dollar, which is the dollar tested against the basket of other currencies. And that particular index broke a very key support level. And again, it looks to be resuming or sure enough shortly to be resuming a downtrend in in its progression. So again, this has been happening. It's a trend. We've been losing value in the US dollar and the US purchasing power has been dropping hand over fist. Listen, the fact is, John, that people have not changed their lifestyle. One, I would have people still go out and buy all of the big screen TVs, the extra cars. You know, they want to have all those things. The only difference between now and 30 or 40 years ago is that everything we do now is is on credit versus 30, 40 years ago, where we only bought what we can afford. So when you look at the the atmosphere, the economic reality, it's in the best interest of those people pushing the paper to tell everyone that the stock market is improving, that the economic conditions are improving, because if they don't, then their house of cards fall because nobody will buy their credit or take their debt. And that becomes a huge problem for them. So I mean, you got to look at it from the big picture. A lower dollar also means, and we saw this last week, we announced it on the show, the ECB dropped their interest rates by a quarter point down to 0.25 to borrow. Their open, their open window boring is 0.25%. It's nothing's literally free. And they did that, I would assume, because they want to stimulate dollar buying in their Eurozone and they want to combat the idea that they're going to get more quantitative easing here in the US. Because a lower US dollar means a higher Euro, and they don't want that. I mean, if you look at the ECB, there's another case in point. Europe's not in good shape, man. I mean, anyone who believed they were should should be disabused of this notion because they are not, they are not looking like they're going to be able to get down the road much further either. And, and, and again, all of the experts, and every day people, we see it every day, we're starting to get very informed buyers saying something is rotten in the state of Denmark. We're just not, I don't understand it. That's the, that's the key word. I don't get it because what's happening right now is completely defying logic. And when you look around the globe and you see that gold and silver is being battered down on a daily basis, yet on the other side of that trade, China, India, Germany, Russia are all vying to buy it every time it drops a little bit. And everyone is making trade agreements to circumvent the U.S. dollar. And at, I'm reading articles this week where they're saying, China could pull the plug on the U.S. whenever it wants. It's got trillions in reserves. It can send back to the U.S. and, and basically tank the currency. They could switch over to a gold, a gold standard or some sort of backing of the currency to gold anytime they want. And they, they're making these strides to, to have these trade agreements. So it seems inevitable that the U.S. dollar is slated for a downward trend. That gold and silver will move much, much higher. It's just that if you're going to follow the price on a day to day, you're not going to learn anything. You need to get educated about it. And it's really going to bring a lot of logic back into the market. So we see a lot of people moving into the markets that are using their heads, not going with the emotion of, I'm going to jump in when it's moving. I mean, take, take a look at your portfolio. Take a look at what the losers are, what the winners are. If over the long term you've done due diligence and you know, as a Canadian investor, where your money is, which is very few of us, then keep the good money where it is, take the bad money and put it somewhere else. And that's basically what you have to do. Let's bring it back local then. If you're looking, you know, you're going beyond the headlines, like you say, Darren, how much should someone start with for gold or silver that they're going to invest? Well, again, with respect to our accounts, very simple. Number one, physical, physical, physical. We sell bullion in the physical form, whether you buy it and take it home, whether you use our depository to store it, which is safe and secure and it's a very smart way to invest, or whether you want to collateral finance the product, take it a step further and get some leverage. All of those methods are physical, bullion, 100%. What we recommend for investors is to start looking at a very small amount within the portfolio, 10% to 15%. And then if you're seasoned, you've bought a bit of bullion before, maybe move towards 20 and at the very high end, 25%, nothing more. That would be our recommendation. And when it comes to buying gold and silver, we keep it very simple. The minimums are simple 10 ounces of gold. If you're going to come into the market, whether it's taking it home, whether it's putting in depository, whether it's collateral financing, it's the same for gold on silver, 250 ounces. If you're going to collateral finance it, we'll talk about that in a minute or 100 ounces. If you're going to take the product home with you or put it into the depository, and in the second segment, we'll go into that a little bit further about how to collateral finance and what it means to have a depository account. 1-8-77-214-1711 at guildhallwealth.com. Yeah, I think it's, I really think that starting with a percentage is a good place to start, in my opinion, simply because if you look at how silver and gold have become, have been a great hedge in anyone's portfolio over the last 13 years, it just perfectly makes sense. I mean, if you were buying silver in 1999 or 2000, when the Dow was at a hike and the ratio between gold and silver was at a peak, looking at 44 to one give or take, you could have purchased basically 20,000 ounces of silver with $100,000. So if you had a million dollar portfolio, you were purchasing 10% and buying 20,000 ounces of silver. So today, that 20,000 ounces at even a price of $21 is worth $420,000. Over that 13-year period, you've clearly hedged yourself quite well against the decline in '08 and the subsequent rise. So this gain in purchasing power in gold and silver is pretty obvious over the long term. It's quality assets. These things don't go to zero. They're not subject to the US dollar and clearly that's just magic happening in front of our eyes, just big sleight of hands. So move into some quality assets. And look out, this week's news is very, very important. Moody's, one of the largest rating agencies in the world, has just downgraded four of America's largest banks, including JP Morgan and Goldman Sachs. So again, this is news. You can go find it yourself. This is part of due diligence. You should be looking into this. These types of situations serve as launch points for commodities, especially gold and silver and other types of investments that are anti-US dollar. And again, this is the type of news that can push markets higher, especially in short-term speculation, which could put fire under this marketplace. And again, these are the types of things that we look for as professionals in this particular industry. We share with our investors when they come to us. We'll take a short break. And when we come back, big story this week about storage in China about gold and silver, we'll have the email question of the week. If you want to ask one, investing@gildhallwealth.com and what do we cost to buy some gold and silver right now and inflation as well? 1-877-214-1711 and guildhallwealth.com. The real money show continues. The real money show, the number to call, start investing easy. 1-877-214-1711 and guildhallwealth.com. Guys, we have a big story this week. We left off our first seminary to break about storage in China for gold and silver. Yeah, it's a big story. We talked about it in the Press Mills advisor, the idea that for every buyer, there's a seller every winner, there's a loser, and Paul talks about for everybody's fortune. There's a misfortune. And what people don't understand nowadays is that sometimes we look at a market, we read the headlines and we think, "Hey, that market must be falling apart at this point," or we think that, "Oh, it's another day of downside pricing or consolidation, and this market is in for us." Once we thought we were going to invest, we no longer think we're going to. But the truth is, this article that we have here this week speaks volumes about what is happening in a different part of the world and their opinion about bullion. And in China, they've opened the largest private gold vault, which now at today's price has a capacity for about $82 billion worth of precious metals. Now, keep in mind, China is on a buying spree. They've just bought JPM's landmark former downtown Manhattan headquarters. It was once, obviously, the stomping grounds of David Rockefeller. And the current location of the firm's mass of an arguably largest in the world gold vault, which again, this article is from zero hedge, first demonstrated, is located just next to the gold vault of none other than the New York Fed. So they've got huge storage capacity. Now they are moving to hold it. You don't do that unless you expect the prices to go higher, unless you expect a whole lot of people to be buying up that resource and there be a need to store that resource. Not only that, but the fact that JPM Morgan sold this massive empty vault is also an indication. When you read between the lines that they don't have a lot of bullion left, we're seeing the comics being depleted on a daily basis, seeing the LBMA being depleted. So clearly, there is this move from physical bullion from east, from west to east. And this is again, a big indication of for every buyer. There's a seller and for every winner, there's a loser. Ultimately, understanding the fundamentals in bullion is what's going to make you an educated investor. Take out that emotion of waiting for the market to rise. Because if you do wait for the market to rise, you're going to miss a big, big chunk of money being made and protected. Any ideas? I mean, you've probably never been there, but just to give a ballpark as far as measurements, how big of a vault are we talking here? Is it the size of a hotel or the size of a small storage space? Well, this would be this would be similar to if you've ever been into a larger American bank, the old school banks or big buildings where you walk in and there's multiple half dozen or a dozen tellers and it's a long stretch, marbled walk for. They have the big one wall vault. It would be a room probably about four times the size of that would be it would be able to fit somewhere in the neighborhood of around 2000 metric tons of of product. This would all be skidded and we'd be shelving. But if you've been to the mint, perhaps you've seen their storage facility, it's fairly large. The Canadian mint, that would give you some insight on that. But if it was China alone that was doing this, it would be an interesting story nonetheless. But if it was only China, we might say, "Hey, well, it's just one country." But the fact is, we work with a company that helps us to deliver product around the world called Melka Meat. They just open up a vault in China also, another one. And they're increasing their storage facilities around the world. Big name in the storage facility section. But again, if you look at it, this is not surprising at all. This is the Chinese bastion of capitalism. It's happening there like it is anywhere else in the world. And it's incredible. And they're the biggest debtor to the US. They're the ones buying all the bonds, which they've stopped doing. They're buying all the bullion at this point because they're hedging against that eventual collapse in the US dollar. Maybe the every day Joe on the street doesn't want to look at the monetary policy. But the monetary policy in the US is create money out of nothing that has no value. And every central bank around the world knows it. They're either a part of it and can take advantage as long as they possibly can until the party ends. Or they're going to get on the other side of that trade, which is we're going to hedge ourselves against that eventual collapse. Now, is it going to happen tomorrow the next day, a week, a month, a year? We don't know. But you cannot keep creating money out of thin air and pulling the wool over people's eyes while none of it trickles down. It's only going to the to the very wealthy. It's only going into the stock market and ask anyone who's invested in the US stock market, not a lot of people. So our employment goes down or unemployment continues to rise. The situation in the US does continues to decline. You can people are starting to wake up to the logic. But we feel the longer this goes on like this, the more it's going to snap. The quicker it will move up and the quicker things will will unfold. So you want to be a well ahead of that curve. Clearly, China and other central banks are getting well ahead of that curve. One eight seven seven two one four seventeen eleven guildhallwealth.com to start investing. What is the is there account minimums with guildhall? How does that work? Well, for for one of our investments, which is financing, it would be 250 ounces of silver and basically at today's price, you're getting in for less than four thousand dollars Canadian. So if you're looking to take advantage of this market, that would definitely be one place to look without having to outlay a lot of funds. Of course, there's also the depository where we're offering secure storage. And I think that's really a good place to put your bullion as well. We just had a client of ours talk to us about certificates. And he mentioned that he tried to cash in his certificates and the bank said, well, we can't cash you in. We can give you the cash and you can buy your bullion. So that's that's very interesting that that this is what it's coming down to. Clearly, the bank already has the bullion and they're willing to, but they don't want to just cash it. They want you to pay for it, which means you're losing. You're losing margin on that. That doesn't even sound legal. Why? Why would they do that? Why can't you? It's totally legal. The banks are allowed to sell certificates. They don't have to be backed by product. They claim to be backed by product, but we don't know for certain. There's no way. I mean, unlike the banks, firms like ours are subject to audit. I mean, we get our product and we get it audited and we pass that along to our clients. They know it's there. They go to see it. They touch it. It's can be serialized in the vaults. But when Jeremy was talking about collateralized financing, it's important to point out that this is just one way that you can invest in this marketplace. And we would like everybody to take a look and see what they can fit into their portfolio. It's a smart way, but it's only one way. And again, it's the concept of other people's money. Yes, I may be able to buy $10,000 worth of bullion, but if I only put up 30% of the value, I still own and control that same 250 ounces of product. Let's say, for example, but I don't instead, I don't instead have to pay for the whole kit in the bootle. Maybe I'll lay out two or three or 4,000 of it. And then I go and I own that investment and I benefit from the gains, but I only put out a minimal amount to do it. Now that being said, that's one approach you can take. The other is to just have a depository account. You can pick up 100 ounce bars of silver, very simple, very convenient, six and a half pound bars. And you can put them into your account. You can come and go as you like, buy and sell as you like. Add to that, maybe some gold. Again, you can add maybe a one ounce bar of gold once you've met the minimum. And of course, you can increase that over time. And before you know it, if adding by a month to month to month basis, you're probably going to have a very nice little portion of great insurance for your wealth. And that's one of the ways people do add bullion to their portfolio. And getting back to this anecdote about the certificates, look, it's most likely a case of the bank not really knowing whoever the teller was or whoever our client spoke to, not knowing what they were doing in the bullion market. I mean, banks are offering it, but they're really just trying to offer some way for you to get exposure to that market without actually focusing on it. Clearly, many of the banks are not experts in bullion and don't really have anything to gain for being in that market. So by buying bullion in a depository that Guildhall offers, you are getting that expert management along with it, where people actually are engaged in that market. One eight seven seven two one four seventeen eleven guildhall wealth.com and also on that website, you can sign up for the precious metals advisor that you talk about this all the time. What is it and why is it an invaluable tool for clients or potential clients? Well, the precious metals advisor is our weekly newsletter that goes out via email to thousands of people across the world. And we have been doing this since about 2005. It's an invaluable package of information. It includes articles of the week, which we are constantly putting together for our clientele. It includes a diamond of the week, typically something that we have that we believe is really, truly good value. Of course, it includes a chart of the week. And then, of course, we also put in the weekly updates on the market and a piece of writing, which I usually do, which is part and parcel with the precious metals advisor. Now, this is given to our clients and to potential clients on a trial basis for a year at a time 12 months. And if they make the decision to become a client, it's theirs forever. Again, I believe that this is something that's invaluable to have in terms of staying up to date on the information and its value. It's completely packed full of great information. And this week is a perfect example. We were talking about the concept of how there is a buyer for every seller. There is a winner and a loser. And again, I understand that two years of sideways motion in gold and silver can test the most patient of investors. But I think that when it comes to gold and silver, what the people don't know about gold and silver could really hurt them. And one thing we talked about was the demand that's going on over in Asia. You see, predominantly, a lot of the investment that's occurred here in the West has been paper investment. It's I've gone and bought an ETF or I bought a stock of some sort. I've invested in what I think is gold and silver, but it's just paper. So it's leveraged itself up dramatically. And at one point, many analysts said as much in the gold market as 100 to one, meaning for every one ounce of physical, there was 100 ounces of gold on paper. And now the effects of deal averaging where people are selling off their paper instruments mean that countries like China and others like them, Thailand and various other European countries, they're taking advantage of that deal averaging, and they're converting that paper into physical and having it shipped over there. So clearly, what you're seeing is there's a market that's defying logic and people have a choice whether to go along with the defying logic or to use logic and hedge against it and be prepared for every bubble has bursted. You've seen the tech bubble. You saw the subprime. Many experts and analysts are calling this current bubble that's happening in the US worse than subprime. So we really have to think defensively. And what we're looking at is again, starting with about 10 to 15% of your portfolio moving into some physical bullion. And I think the gains to be had the opportunity is huge. Silver, just to move up to $40 an ounce, which we've clearly seen and any expert in this market says that's inevitable. You're looking at double your money and that could happen within six months, 12 months, a year, two years. It's an incredible opportunity to not look at. And you know, so many times you've mentioned before yourself, Paul and Darren, that the uses of silver is really everywhere. I think you mentioned one time, it's even in wallpaper somewhere. Yeah, it's incredible to get into that discussion because we look at silver from a historic perspective and think, hey, jewelry, we think silverware, we think coins, photography is another area that people were once more familiar with, but certainly with the advent of digital photography. That's gone a little bit by the wayside. However, fast forward to 2013 and silver is in so many things. I mean, it's in iPads, iPods, it's in computers, it's in cars, it's in clothing, it's in washers and dryers. I mean, it's amazing. Digital cameras. All electronics, right, pretty much. Athletic ware to bacteria. So many medical usages all the time because it absorbs bacteria. You know, that saying born with a silver spoon in your mouth, that's because it literally absorbs bacteria. So it's used in so many medical usages for bandages and you're starting to see it in soaps and toothbrushes and things like that. So transition lenses, it's really a modern element that that's used all over the place and even blocking Wi-Fi and wallpaper. So so many usages. So many usages. I saw another one for cloaking against against radar. Really unbelievable things that can be used in. It's like the WD 40 of Boyan. You use it for everything. That's it. That's it. That's right. That is water purification. We'll take a short break. The number to call you want to start investing, which would be sage advice 1 8 7 7 2 1 4 17 11 Guildhall wealth dot com. We'll take a short break when you come back one of our favorite times of the show. That's when we get into natural fancy color diamonds. The real money show right here continues. The real money show right here 1 8 7 7 2 1 4 17 11 Guildhall wealth dot com to start investing in gold and silver boyan. And this part natural fancy colored diamonds like an article I want to quote a little piece from a Jeremy Jeremy and read it to you. Ready for this? I'm ready. The bidding lasted about five minutes before the strike of the gavel followed by cheers and applause. Yeah, that was luckily Isaac Wolf, which is a New York based diamond cutter bought a 59 carat vivid pink internally flawless blasted through records. They were expecting 60 million a little plus and it sold for 83 million in five minutes. So this person obviously knew what they were going after and this is another example in a long line of examples of how colored diamonds are really coming to the forefront and their value continues to increase and people continue to pay much more over the the going rate to have these diamonds. And this this this news piece was picked up not only by Bloomberg and BBC and the star, but every major newspaper. And it was really interesting. I was driving home and I caught a bit on the BBC. They had the business reporter on there and they were comparing it to the art market because along with this diamond and another diamond which we'll talk about in a moment, there was a very famous Francis Bank and painting that was sold. And that sold for in the hundreds of millions, but they were saying is the diamond market catching up to the to the painting market because people are willing to pay hundreds of millions for for famous paintings. She said absolutely. And it she does not see a ceiling for this market. So she's echoing what we've said that clearly there's no ceiling to this market because there's a very very much a limit to how many of these type of diamonds are out there. Now what's interesting about this particular pink is we often talk about the fact that pinks aren't typically internally flawless and they're typically not vivid. The reason these ones tend to be is because they're so massive. They're so big to begin with. I think this diamond was originally over a hundred carats that to cut it down to that size, you can you can actually make it a vivid and actually make it into internally flawless. It was 80 million dollars. And it was 80 million, 20 million over over what they were looking at the US US. You put that into perspective. I mean, within five minutes, you're holding a single gemstone that will buy the top three floors of the Sierra Hotel, South New York. Absolutely. Insane. Not only completely. Yeah. And beyond the fact that they renamed it, obviously that diamond, the now owner of that diamond, all he has to do is sit and wait because they can put that into auction a couple years from now. And most likely, it again, it will break. It'll break records. People are not buying these because it's fun and not paying 20 million over the initial price within five minutes because it's fun and just let's go spend money. Yeah, they're not getting money directly from the Fed. I imagine there were probably a few investors involved in this, but they're buying it because these type of diamonds are making for great investments. The other diamond was an orange diamond of VS Clarity, a pear shaped 14 carats, estimated to sell for about 20 million. And that sold for 36 million. Well, this is going to raise the entire game in all colored diamonds. It does. In addition to that, we had the Argal tender auction, which was just completed at the end of October at the beginning of October. And of course, the prices there reached record highs also. And we have been relaying this data to our potential clients and clients that are owners of pink diamonds as well as thinking of buying pink diamonds. And again, these prices don't just serve to reflect new pricing in the pink diamond market. This drags up all prices of colored diamonds because as you know, these are markets which are very sensitive because of their rarity. And again, even if you look at a yellow vivid diamond, one care plus, the prices for those diamonds have in some cases gone up every single bit as much as a pink diamond over the last year. And it's amazing to see that the wealthy have been on a buying spree and have known this for some time now. And now the average person through Guildhall diamonds has the ability to own a diamond and appreciate and see that appreciation. You've got to get entry level. You have to do it. Start now. Absolutely. Yeah. And the entry level, in many cases, just like real estate, just keeps moving up. But looking at someone putting in over $50 million into a diamond, they're happy to put that money away. You know, liquidity, being what it is, they're not concerned about that. They're concerned about knowing that that that money in that diamond, that concentrated wealth is literally money in the bank. And we've we've gone to our dealers many a time where they've shown us beautiful diamonds that that okay, maybe not as that as big as that, but that the minute they sell it, they feel naked. What are they going to do with the money when they sell it? So they do tend to price those type of particular diamonds a little higher. And diamond market is an un-manipulated market. It is what the market is willing to bear for these prices. And we see it year in, year out with the with the Argyll tender, which sure, that's 90% of the world's pinks. But you're only talking about 50, 60 of the best pinks available. And the market year in, year out, people are willing to spend 30% plus more than they did last year to get their hands on those diamonds. That trickles down to the rest of the market. But when it comes to buying diamonds, not every diamond is created equal. Not every diamond is an auction record-breaking type of diamond. You really need to be looking for quality. And that's something that Guildhall works very closely with its clients and its dealers to make sure that everyone is getting one eight seven seven two one four seventeen eleven Guildhall wealth.com. I don't know anybody who can afford an 80 million dollar diamond. I'm sure you guys don't know directly somebody, but it's, you got to understand though, with a trickle down effect, I mean, it's, we're not talking necessarily guys like the Saudi prince or Warren Buffett. I mean, Jerry Seinfeld could afford an 80 million dollar diamond if he wanted to. And these guys are getting a beat on this stuff and they're buying it, right? Because everyone's learning the value of it. It's a huge price to pay, but there's a lot of people who could afford that diamond. There's a lot of baseball players that could afford that diamond. And it's a finite amount of supply, right? And it's tricking down into the yellows and the smaller diamonds that we could afford. And let's not forget that we're, that happened in New York. And it just so happened to go to a New York buyer. Sorry, no, it didn't happen. It did happen at Sotheby's, but it was to a New York buyer. But we're competing against Asia and and and the Middle East all around the world and the populations growing. And it's not as though these diamonds are coming to market in a flash flood. Most of the kimberlite pipes have have already been explored and exhausted. And even if you look at the argon mine again, producing, right? Yeah, if you look at the argon mine, they've already done the open pit mining. They're going deep, deep down now. The deeper you go, the smaller the diamonds, the less there are of them. So there is a supply limit. And the demand just keeps growing because clearly just beyond being beautiful, there is that rarity factor. And I think that's really appealing to a lot of people. So the way most people start in this and in this type of market is you need to gain some knowledge. It's very new to a lot of people. So you have to start gaining some knowledge. Like I said earlier, there's a difference between just a color diamond and what's known as an investment grade color diamond. So it really starts with, you know, you can ask us for our buying guide for color diamonds. Also, you can book an appointment to have a one on one consultation to view some diamonds in your price range, as well as learn as much as you can. The other things that you want to look at, I'm not trying to take up too much time here, Darren's got some things to say. But it's very important that you go with a diamond company that is a member of the NCDIA. It's a it's a small self policing community when it comes to colored diamonds and we look out for our own and being part of the NCDIA is a big part of that. Also having a GIA member on staff is also very important. What that what that means is that a GIA someone with a GIA degree knows how to view the diamonds that that just because it looks good on paper. What are the other qualities that they're looking for in the diamond and being able to purchase that quality. So it's very important to have that purchaser that that other examiner on on staff to view the diamonds exactly. Right. If you have an email question anytime for the fellows here on the show, simple investing at guildhallwealth.com. I'm going to throw one at you right now. This week's question from Terrell Sharma. Toronto says why have colored diamonds are such a great investment? Haven't I heard more about it, which is what we just spoke about? Well, it is. That's the key, right? I mean, you don't when you're looking at investments of this of this nature, one of the things that's prohibited the average person from getting in is the value of those diamonds. Typically, when you're hearing about Sotheby's and and the other auction houses when they're talking about colored stones, they're talking about stones that are in the millions and millions and millions of dollars. That precludes the average person or go not to mean people are going to report that that's an investment for the average person. However, that's changing dramatically. And one of the things that's changing is you're getting businesses that are starting to diversify from from doing other things into colored diamonds as well. The unfortunate thing about that is that although we're happy to see that growing because it does mean that we're going to get more demand for colored diamonds, we are also seeing a number of companies that are cropping up that are not bringing real true value to the buyer. And in fact, this week, it's amazing. We had a phone call from a gentleman and one of the competitors downtown Toronto, they look great. The website looks fantastic. They've got diamond inventory on there. Probably most of it isn't their diamond inventory. They're borrowing it from somebody else. And somebody calls up and says, Hey, I went down to this. You're not going to believe what happened. I said, what's that? He said, I went down to this guy, I called him up main appointment, and it's a little tiny showroom in his apartment. I said, what do you mean in his apartment? He's got like an office and then it's an apartment kind of. He's like, no, it's above a store. And it's like a like a little commercial unit. And there's no signage except for a little sign at the front that says what it is. And he's got a whole bunch of diamonds in his apartment. Would you buy a Glock? Yeah, this is like, you know, like, what are you going to do when you want to sell it? I mean, what kind of, you know, you're going to, you know, you're not going to get value out of that. Ultimately, there's growth comes with with pluses and minuses. And one of the growths, one of the good things about the growth of this industry is more people are starting to learn about colored diamonds. You see a lot of major retail stores starting to feature colored diamonds as part of their collections that they offer. The downside, of course, is that anyone who's purchased a white diamond before has had the experience of, I kind of know the four C's. I'm going to buy this and touch wood. I ended up with something that's going to keep its value or go up in value. And I think that the downside of the growing aspect of this is that a lot of people are getting caught off on buying the wrong type of diamonds because they're just, they don't know enough. So while you still need to get educated about this market, it's not a brain surgeon type of market to learn. It's very easy. As I said, as I mentioned, you can get our buyer's guide. You can have a one-on-one consultation. And we can help educate you in the market. We try to educate first before people make their final buying decision. Yeah. And I think, like you said, with more and more, you know, I don't want to call them second rate dealers dealing now with colored diamonds, the quality might not be there. So it's going to get tougher to separate the wheat from the chaff. So a company like yours is going to be key because you get the best of the best. It does. And when you go into something like this and you make that purchase, you want to make sure you have expert opinion, expert advice and expert feedback. And also, the liquidity means everything. Jeremy couldn't have said any better. You have to be parked with a firm that's going to be able to sell the diamond for you. It's got to be in Canada. Because if you got to deal with border crossing and packaging the diamond up and shipping it here and moving it there and then not being, not being able to hold your diamond and worrying about it because it's in the U.S. and you're hoping it gets sold, but you don't know. I mean, that's ridiculous. So you got to work with somebody using Canada, a company that has a trusted name in Canada. And for us, that's Guild Hall. Anybody with a shred of intelligence isn't going to Joe's hot car lot to buy a Bentley, right? No, it doesn't happen, right? But you know, the starting point as well is learning the type of potential that exists in this market. And those auction records, again, it's not a one-off. This is time and time again that this is occurring. So you want to first explore the opportunity, then you can start to learn more about it. And then when you finally feel very comfortable, you know, you can make your purchase. 1-877-214-1711. That is the number to start investing in gold and silver, boy and ant, fancy color diamonds as well. Guildhallwealth.com. And while you're there, sign up for the precious metals advisor free subscription to Guildhall's premier market newsletter. Take a short break and more of The Real Money Show coming up. The Real Money Show, the number to start investing 1-877-214-1711 Guildhallwealth.com online while you're there. Sign up for the precious metals advisor free subscription to Guildhall's premier market newsletter. Darren, we've talked as far as it's concerned with the gold and silver belt seasonality this time of year off and being a good time to buy. Is that just this year? Last year? Is it a trend over decades? Well, it is. I mean, if you look at the, in particular, the fall season, we would say this time of year represents some of the strongest buying months for gold and silver in the past three and a half decades. And I mean, I agree with all my colleagues and the analysts that I follow about that. And it's not a development that's just happening over the last 10 years. It couldn't be more the truth. We've had really bullish fundamentals. They haven't changed. So, I mean, to see the price of gold and silver drop, there can be other reasons why in the short term, you see that type of pricing change effectively, though the fundamentals that are underneath all of this market have the strongest they've ever been. But weakness in October, November has been followed by gains throughout end of November, December and right through to March. And we know, we needn't look any further than 2008. Gold had fallen about 22% by October of 2008. And I would assure you that if I look back into the Google search, the headlines would be touting that gold's over the bull broke or that it's become bearish or that you should get out of gold and sell. Silver was even worse. It had dropped by 43% by the end of October, only both of them to see them gain tremendously in the next six, seven months. And I mean, this is the cyclical nature of the market typically over the last 30 years or so. We've seen the best buying opportunities present themselves late summer, early fall to mid fall. And that means right now when you're seeing these prices sit stagnant, nobody else really has that appetite for gold and silver. This is the opportunity where if I'm an investor and I'm looking at the long term picture, I'm pouncing on those prices. And again, if you look from the last time this happened, not only in 2008 did silver and gold rebound and gain back everything that they lost, but they ventured all the way up within 30 months to 2011, gold reaching a high from a low of 650 all the way to a high of $1923 and silver from $8.50 to $49.30. So these are metals which are explosive from time to time. They are event driven markets. And again, if you're buying them now while the price is cheap, you're looking as a long term investor to gain that added advantage of being able to say you did that. Is there Christmas buying? There is some Christmas buying it tends to be more in coinage and small bar form. I have a lot of clients who just pick up small amounts of metal to share with the family. But this is a perfect example of what you can do. If you're a potential investor or if you're thinking that you'd like to get somebody in your family into gold or silver, I mean, we do have account minimums, but we will always have a little bit of product on hand. So I mean, you know, there are certain exceptions to every rule. If you think you have a family member who would benefit from having gold or silver in their portfolio and you've been talking to them and telling them trying to get them to buy, sure, get them a Christmas gift. It's a no better way to get them introduced to the metal to hold on to it, to feel it and see what it feels like. And again, perfect, perfect example of somebody who starts small and maybe ends up buying a really big amount. And ultimately, just getting back to, should you put a toe in the water? Should you get into the market at this time? You know, if you have the, if you know the fundamentals, it makes it a lot easier to take that quote unquote leap of faith, if you will, for the fact that right now it's counterintuitive buying. Your, your, the sentiment is very low. The price is very cheap, but you're looking at a quality asset. So you definitely want to get in on, on a quality asset when it is low before the price takes off. And as Paul's always saying, it's better to be a month early than a day late in this market. The fundamentals are on our side. It's just a matter of time, especially since the sentiment is low, you know, the markets just looking to catch a bid at some point. And it doesn't take many black swan events to push this market up. This market did a, a, start a massive climb on the back of QE. QE's been able to taper talk and talk their way out of, out of, into the markets moving up at this point. But that seems very limited. As, as we mentioned earlier in the show, many experts agree that this market is looking toppy. It's looking like a major bubble that's about to explode, that this party is about to come to an end. And when that happens, you're going to want to have quality assets in your portfolio. So 10% is a great place to start, maybe even go up to 15%. So definitely look to dip a toe in the water for financing. You can get in for about 3000 Canadian at this point, a little over, or you can look to own your bullion and have it stored, secured, easy liquidity in the depository as well. Like you've mentioned so many times, I know Paul has it say, you know, it's getting into precious metals in this regard. It's like buying your house, you're not buying your house to flip it tomorrow. It's a long term investment. So on that premise, what do you see in the next 24 months? With respect to silver, I would expect silver to reach in the neighborhood of 60 an ounce or higher in the next 24 months. With respect to gold, I would expect gold to hit in the, in the neighborhood of about twice what the price is right now. Give or take in that, in that range. There was a major gold trader in an interview or in an article this week who was, who was saying that at some point in 2014, he expects that that gold will be knocking on its all time high around eighteen, nineteen hundred dollars. And in that regard, silver always plays catch up with that, with the ratio and at a ratio of, you know, between 35 to 40 to one, you're going to be seeing silver north of fifty dollars. So the, the potentials there, I think clearly the market is lulling a lot of people to sleep. That said, we get people every day calling and we're really seeing two camps. We're seeing the rational people and then you're seeing people with, with all due respect, I'm watching the price. And there's very little to learn from watching the price. You've got to know the fundamentals. You have to know, are you buying it because you think the US dollar is going up or because you think the market, the US dollar is going down. If you think the US dollar is going to lose value, you need to buy an asset that's going to protect against that. Do you think that there's inflation or deflation? If you think that, that the inflation or deflation is going to occur big time, whether you think that bubbles are going to burst or that the Fed is going to fuel major inflation, which we already see around us. Darren's going to go do his, his Christmas, his annual shopping, shopping for, for groceries and see how inflation's going. We all know there's inflation, gas prices are up, groceries are up, going to the movies is up, buying popcorn at the movies is up. So, and I didn't go to the movies this week, but I'm sure it has gone up. It's never down. Exactly. It's never down. So if you think that inflation is with us or that it's higher than what the government's saying, then you should really be looking at gold and silver. If you think that there's going to be a major political fallout because of the monetary policies that are occurring around the world right now, we would like to call that geopolitical unrest. Then you really want to be looking at gold and silver. These are the fundamentals driving the market and we haven't even talked about supply and demand and especially on all the industrial usages with silver. That's just scratching the tip of the iceberg when it comes to fundamentals. Watching the price, how are you going to learn any of that? You can't. So, you got to get the precious metal advisor. There's plenty of books now on investing in precious metals. We've got a precious investing in precious metals guide, an article that Darren wrote. So, there's lots of ways to learn about it. It's important to learn about it rather than just watching the price. 1 8 7 7 2 1 4 17 11 guildhallwealth.com. You know on the website, you know the number. Now they've decided to invest. What's the first thing they want to ask when they make that phone call? Well, they want to touch base and obviously with Jeremy, myself, Paul or anybody in our office who are all experts at handling customers and they want to ask first off, how do I start? And that's simple. You get the paperwork and you review it. You do your due diligence to know what is involved in buying metals and then you ask the questions. If you already know that you want to invest in most people do by the time they call our office, it's very simple to lay it out for a person. Perhaps it starts with budget. What are you looking to spend and how can we give a specific type of product? Maybe they want silver 60% of it, silver 40% of it gold. But either way, we're going to put that together and we're going to give them a consultation that will take them through every single step of the buying process. We will show them product. They will get to hold product. Very cool. Very cool. And absolutely. I mean, it's nothing better than holding a beautiful, beautiful 100 ounce bar of silver that shines like you would not believe. But again, with respect to diamonds, you may want to see a diamond. All of those things will be accomplished there. And then of course, we're going to look at what we should put into that portfolio, how much money we should be spending and which way we might want to invest. Do we want to own it outright? Do I want to take it home and add it to bullying? I've already started home, maybe, but that could be something that's not very safe. So do I want to open up a depository account in which case, let's say I wanted to put 20 or $30,000 to depository, let's meet at the depository and let's fill out the paperwork right there at the depository. We'll get your metal in there. You can see it, touch it and see what it looks like in the depository. And if you're really, you know, skeptical about owning physical product, that's the place to start. And then maybe if you're looking for a little bit more of a bang for your dollar, you want to leverage it a little bit, you know, and if you want to take that 10 or $20,000 and press your luck a bit and you think the market's going to run higher, this is a way you could get into collateralized financing. You could get a lot more happening for your dollar. And of course, as long as you understand the risks involved, this could be a really, really explosive way to get a good return on investment. In some cases, we have seen with these cyclical trends, John, we have seen the market run $6, $7 in a couple of weeks in clients be able to boast that they're walking away with not a not 20 or 30% return on their investment in a very short period of time. But in some cases, 50, 60 and even a hundred percent. Wow. And you know, a rationality in a market can only last for so long. And all you have to do is look at look at the bubbles of the past, the recent past to see how long they last. How long did the tech bubble last? How long did subprime last? You know, these bubbles don't last for a very long time. And you know, some people were calling for the peak of the market with the subprime collapse a year before it actually happened. Okay, sue them for being for being wrong for for eight months to 10 months. Eventually, they were they were correct because they were looking at fundamentals, looking at rational logic in the market. And it seems that this can be an amazing opportunity to get involved in some precious metals. You want to be you want to be first to the party. And you also want to look again, logically at the fact that China and India laugh, lick their lips. They're they're they're, you know, rubbing their palms every time the price comes off a little bit. They're happy to buy on the dips. They've got to know something that the rest of North America is being shielded from. Clearly, it's not making headlines. I mean, Darren was talking about the downgrade in some of these four major banks in the US. That's not making headlines. You got to go beyond that. But we we're in the fishbowl in North America. The rest of the people are outside looking in. So they see what what's going on with QE. They see how irrational it is. And it all these type of parties come to an end. They're called bubbles bursting, need to get a hedge, start looking at the precious metals and put in a small portion. Just to close out because I know we're about to end the show, I want to remind everybody, this time of year gets very cold for some people. And if you do have an extra buck, go to your local food bank and buy them something, you know, put some food on the shelves because I know everybody could use a warm meal these days. And we can certainly divvy up enough money to do that more often. And the money does go further than actual products in this case as well, because they get a lot more buying power for their dollar. If you're not convinced as well, a nice companion piece to some gold and silver buoyant is always a fancy color diamond. Keep that in mind if you get a give them a call the number one eight seven seven two one four seventeen eleven and guildhall wealth.com while you're there signing for the precious metals advisor, free subscription to Guildhall's premier market newsletter. We'll catch you next time right here on The Real Money Show. 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