The Real Money Show
The Real Money Show - November 9th, 2013
This is the real money show, full hour of information and investing ideas and information you need to know on gold and silver bullion and natural fancy color diamonds. And welcome back guys. Good to having studio Darren Long. We got to Paul Weisman, Jeremy Weisman as well. The knowledge bounds. How was the week that was my friend? The week that was kept gold and silver in a trading range right now as we're doing the show gold is around 1285. So not a significant difference from last week at about 1310 silver at 2150. Again, not a significant difference from last week. Again, buying opportunities have been very, very good this week. And we've had a lot of buying. So congratulations to new clients. We did a seminar not too long ago out in Calgary. We want to welcome aboard the clients that have come into our firm from Calgary. It's great to have them aboard and the week that was boy, boy, boy, the market has been very, very indecisive. The broad market stock markets. Again, you saw this week that the US stock market hit yet another all time high and I can't but help thinking that we've done show after show talking about the importance of understanding what is driving that stock market. And it's nothing more than the printed dollars that keep coming out week after week, month after month. So again, our expectation is that you cannot survive on that alone. You saw the IPO for Twitter this week, a company that's never generated income. And of course, in the first day of trading jumps from an opening price of 26 to almost $50. And of course, as we're taping a show somewhere in that range. But I'll tell you, the week that was for gold and silver was fantastic. We got incredibly important news out of the New York market from the CFTC. That's the commodities futures trading commission about a couple of very important issues that have been sitting by the wayside through the courts. Again, back in 2010, when the regulations changed for trading in the broad markets, it's called the Dodd-Frank bill that came in and ushered in a new era of regulation for the stock market, which was done so to prevent a repeat of 2008. One of the side parts of that particular document happened to do happen to cover what is called position limits. This is the amount of buying or selling that anyone entity can do in a given day, week or month in the futures market. And when it relates to gold and silver, this is a key component of why some have argued allegedly that some of the larger institutions, banks included, have potentially been manipulating gold and silver pricing for some time. Now, listen to me, when I tell you that this has happened despite the fact that the price of silver has gone up some 390% in less than 11 years. And while silver has done that, gold has risen some almost 300% in the same time span. So despite that alleged manipulation, both have risen nicely and you've made nice returns. If you've held on to that in the physical form, at least. So again, looking at these markets, same things happen in week over week. People are being lied to. The headlines are ushering in all kinds of new promises about the economy rebounding. But again, you have to look behind the headlines. Well, there seems to be when we look at this market in the last 10 years, of course, we see that there was more of a speculation approach to this market pre 2008. And I think given that since 2008, central banks have all become buyers, net buyers of gold. And what we see is that people are looking to be a lot more defensive with their portfolio. So what we've been seeing over the last year or so is we're seeing a lot of the smart money coming into this market. We don't see the fear trade right now. We don't see the greed trade right now. We see smart money coming into the market, whereas the last time in this market, when we saw some major moves up, I think that those were precipitated by greed. I think this time, it's going to be a lot by fear. I think that when you look at all the news around, we see people comment us every day saying, I'm not sure where to put my money. I want to be defensive and I want to own assets that are real. One eight, seven, seven, two, one, four, 17, 11, Guildhall wealth dot com to start investing. Now, if you look at the news this past week, you'll know that it's fairly obvious Europe is once again in bad shape. And what could this or should this do to golden silver prices? I'm going to jump in. Yeah, absolutely, Paul. In Greece at the moment, they've got a 24 hour strike. They're not doing very well. In Portugal, they've got a transport strike, train strike. This is the austerity plans that they've put in place in Europe. They're not working in France. They're not working in Greece. They're not working in Portugal. Germany's always done very, very well. Italy's picking up a little bit. They just dropped, the ECB just dropped a quarter percent on Thursday, the rate. It's now a quarter of a percent. I mean, that's cheap, cheap money to borrow. I mean, that's why the stock markets are being fueled. While these countries are printing money, whether it's the US, whether it's Great Britain, whether it's Europe, they're printing money, when you print money, you're confiscating people's wealth. You're diluting people's wealth. They're capital on a daily basis. I mean, I'm excited today. The US came out with the job creation. Supposedly, they created a lot of jobs. And all of a sudden, gold and silver dropped. I clapped my hands and I said, thank you. I got an early Christmas present. I loaded up the boat this morning. I bought silver at $21.40. What a bar goon. An unbelievable price to get into this market. Gold trading at $12.85 on a head fake. You know, we have a saying, we used to have a saying in England, I'm originally from England. Never kid a kid a kid. This is what it is. You've been kitted. You took a head fake. You know, the markets, I was watching CNBC this morning. There's guys that have $185 billion management. Where did they put the money? You know, they put the money in a one thing, one day, press a button in out. You make 20, 30 cents and you're done. Gold and silver is a hard asset. You don't day trade your house. Why would you want to day trade gold and silver? It's a long-term hold. I've been in this business since 2002 when silver was $3.80 gold was $250. Let's take a little example. I have two grandchildren, one's five, one's seven. Every birthday, I give my grandkids an ounce of gold. Now, the first ounce of gold that I gave my grandchild was seven years old today. It was $550. Then it went to $850. It went to $10.50. Went to $12.50. Went as high as $1900. So my two grandkids have 12 ounces of gold. Even at today's price of $1,300, it's still substantial. If I gave them $500 a year each on their birthday, they'd have a total of $6,000. So what is the better investment? Would I put it in a bank at 1%, 2% and with inflation, I'm actually losing money? Gold, silver is one of the best investments that you can make not right now. And as I said, I clapped my hands this morning. It went on sale, $21.30, unbelievable price. You should be calling us to get into this market. Now, at Guildhall, we only sell physical product. We don't sell paper. We're not selling equities. We're not selling ETFs. We're not selling options or futures and options. It's the physical product. You can open an account with Guildhall. You can take delivery. You want to pick up the phone. You want to buy 5,000 ounces of silver and have it delivered to your house. Good luck to you. It's 350 pounds of silver. What are you going to do when you want to sell it? Get a wheelbarrow and take it to somebody and try to sell it. You can have a depository account where you can take that same 5,000 ounces of silver. Put it in the account, have it stored, have it secured, have it insured with Lloyd's Alundant and we can even allocate and segregate that product for you. Or you can even open a collateralized finance account. But if you know, if you get back to that original point, it is so important to understand where that economy is going in Europe because the ECB is certainly a very, very large entity and they are destroying the wealth of their individuals. Essentially, these low historic interest rates are nothing but a sham. They are there so that the big institutions can take advantage of cheap money, nothing more, nothing less because that money is not getting down to the little guy. And we have always maintained that gold and silver are event driven markets. This is the spark that could ignite the gold and silver market. And as a result, I already expected December to be a very, very big month for gold and silver. Now this just totally seals the deal for me. So December, expect fireworks in both gold and silver. You want to get on the straightaway one, eight, seven, seven, two, one, four, 17, 11, guildhall wealth.com. Jeremy, I think the other problem with a low interest rate environment across the globe is that savers now have to take risks. They have no choice but to take a risk. There was a time I can remember a time where you could put your money in the bank and and get a decent rate of return by doing nothing just by saying to the bank, I am going to give you money and you get to do whatever you want with it because they do things and you're going to give me a decent rate. Now, if you want to be a saver, the only way for you to do that is to put your money at risk. So as soon as you put it somewhere, it's at risk. And I think that's why we're seeing the popularity of gold and silver continue to climb here is that people realize, okay, it doesn't give me a rate of return, but neither do interest rates. It doesn't give me a dividend, but I can see the track record over the long term here. And I realize that it is a great way to conserve wealth and build wealth. So I think we're seeing that growth in popularity because people are looking to be more defensive, but there's also an immense amount of opportunity when you're looking at a couple of assets that are extremely undervalued. And the small gurus in the business always say, you know, you should have 15 to 20%. Gold and silver in your portfolio. You can't have everything in the stock market. You can't have everything in the real estate and you can't have everything in cash. If you've got money in the banking cash, you know, you want to go buy a GIC, put a half a million dollars in, they give you 1% and you're going to lose 2%, 3% with inflation. You know, your money's going to get eroded just by inflation. Gold and silver is a hard asset. Natural fancy color diamonds, another hard asset. Natural fancy color diamonds never dropped in price, you know, in 40 years since they've been keeping records. These are the assets that you need to be in. You work hard for your money. You know, if you're looking at retirement, you're looking to put your kids, you know, through university, you need to protect your wealth. You know, everybody has life insurance, health insurance, car insurance, home insurance, but you have insurance to protect your capital, to protect your investments. You know, gold and silver over the last couple of years, 19, didn't actually, in 2011, silver hit a high of $49. Gold was $1930. We got whacked. We got whacked down 40%. Silver's trading today at $21.47. While I'm trading the show, you know, we're up 7, 8 cents. Gold's just moved up a couple of dollars. This is an unbelievable time to get into the market. You need to own gold and silver to protect your capital, ensure your capital. You know, even though we've come off a little bit, everything, you know, comes off a little bit. Nothing goes up in a straight line like a rocket ship. And this is a time to get in. Gold is cheap. 21, 1286, 1287, silver trading at 2150. Coolers. Coolers for an investor care. Coolers for the precious metal advisor. This is a newsletter that we send out every week. Darren, you work on it every week. Tell them about the precious metal advisor. Well, it's certainly partly I would write on a weekly basis as it is since 2005. My thoughts on the marketplace and Jeremy and I developed the the precious metal advisor into something that we send out, including charts, a diamond of the week and my take on the markets on a particular topic. This week, it happened to be inflation. That article is getting posted and published in a lot of different publications now. And it's it's something that we take great pride in doing. And we love to share it with anybody who's interested in having it. And of course, all they have to do is is contact us. They can email us or they can sign up for it on the website. Darren, before we take a quick break here, just briefly touch on how listeners buy buoyant right now and open an account. Well, it's very straightforward. You just give us a call first off. And once you do, you're going to make the decision, how much do I want to invest? What percentage of my net portfolio is it? And what products do I want to own? Once you determine that, you can then decide on what choices you have to open up a depository account. It's very simple. We can do it right at the depository if the client's interested in being there or at our offices. And this is physical bullion in the form of gold, silver, platinum, palladium, whatever you'd like to own. And you can put it in there again with no leverage. The second option is collateralized financing. And what I'd like to do is give an example when we come back from the break of how collateralized financing works and the cost of buying if you're not using collateral financing, we can put them together and show clients potentially how that would work for them. 1 8 7 7 2 1 4 17 11 guildhallwealth.com to start investing right now. We'll take a short break. Come back with the question of the week. If you have one, by the way, investing at guildhallwealth.com. And what do we cost to get some gold and silver happening and maybe touch on inflation as well? This is the real money show. The real money show continues. The number to start investing as you should 1 8 7 7 2 1 4 17 11 and guildhallwealth.com. You mentioned Aaron before the break, the question of the week, if somebody wants to send one in, very simple, investing at guildhallwealth.com. Can I read the questions? Did you hand it to me? You sure can. This week question from Carl in Toronto says, why is physical buoyant better than paper buoyant or some type of certificate to invest in? That's a question we get very frequently. I'm going to give way to Jeremy. He's going to discuss that. Okay. Thank you, Darren. We have a positive pocket. That's right. No, there's a there's a there's a few key differences. One is certificates are a bit of a bit of a problem. One, you're locked into the amount that you purchase. So if you buy a 500-ounce certificate, you're stuck with the 500-ounce is buying and selling. So you can't sell or buy incrementally, which is an issue. What's great about something like a cert is it answers the question, how do I carry around hundreds of pounds of of bullion? But on the other side, you also have the fact that if you want to take delivery of it, ultimately a certificate is nothing but an IOU. So, you know, it does become problematic down the road. And as well, you're locked into banking hours to make those trades. So it's no different than having it stored under your bed. There's also ETFs, which you're essentially buying into, again, physical bullion that that you can never take delivery of. You have you don't actually have access to the bullion. So I find that problematic in the sense that you're essentially allowing banks to invest in the bullion, but it's never it's never yours. It's someone else's liability. And when we look at the ETF, especially in the last pullback in gold, we see that there was a lot of redemptions. And that gold was going all around the world to people who were purchasing it or owed it from other exchanges. So that that's also problematic. Buying physical gold guarantees that you are taking that bullion out of the market. There's so many different ways to get in this market. And so many of them are act like like a pressure cooker, a steam valve on the pressure cooker, taking those funds and divesting them into something that isn't the actual bullion. So buying the bullion is key. You're taking that out of the market. You're helping your cause. You're keeping the demand high. You're keeping the supply limited. And it's helping create more gains down the road. But you also have to consider security. You also if you're going to buy 3, 400 ounces of silver, you want to make sure that that can be insured. You want to make sure that it's secured safely. And you want to make sure that the ability to liquidate that bullion is very, very easy. And I think that's the only problem with having bullion at home is you have to secure it. You've got to ensure it somehow. And you have to think about your exit strategy. Yeah, that's a real big point is the exit strategy. And people that say, well, I'm going to store it at home. You subject to home invasions. There's a lot of, you know, when things get tough, a lot of things start to happen. Needy people do a lot of desperate things. Desperate people do desperate things. When you own physical product and, you know, during World War II, they had a saying, you know, loose lip sync ships. And, you know, people say, well, I got this. I got that. And all of a sudden you get robbed and they don't understand how it happens. You need to keep your product safe. You need to be able to put it in a depository where it's safe, it's secure, it's insured, it's segregated and allocated if that's the way you want to go. A good haul, you can take home delivery anytime you want. The problem is you're going to buy a thousand ounces silver. It weighs around about 68 and a half pound. So 5,000 ounces of silver is close to 340 pound. That's a lot of silver to haul. You know, when you actually even pick up a 100 ounce bar that weighs almost seven pound, it's heavy. It's like buying barbells. I mean, I get my exercise every morning picking up a couple of 100 ounce bars of silver and lifting up and down. It's heavy. So how much can you put in a safety deposit box? Unless you get a huge safety deposit box. For $35, you're going to get a little box. It's okay to put a few coins or some paper, but you cannot put a thousand ounce bar of silver in a safety deposit box. So it's very affordable to put it in our depository. You were talking about collateralized financing. That is one way to go where you can buy and control whether it's thousand ounces of silver, 5,000 ounces of silver, 10,000 ounces of silver by putting as little as 30% of the value of the silver and 70% is actually collateralized financed. It's a very simple strategy. I mean, when it comes down to it, the idea of using somebody else's money to become more wealthy or return investments, of course, that's the strategy that the wealthy use every day. But the idea is not to invest outside of your means. You always invest within your means. Always keep or maintain the ability to own your bullion outright, which means if I want to invest in $100,000 worth of bullion, I should have roundabouts $100,000 worth of people. Even if they don't want to use it all. That's right. And now I may lay out 30 to 40,000 to own the same $100,000 worth of bullion. I control it. I get to say what I want to buy and sell incrementally in one ounces in both gold and silver, but I'm getting that leverage. And that's something that can supersize my return on the way up. You got to catch the wave and move up with it. But if it did happen to drop, there's no worry as long as you're holding back some of that money that you could use to pay off that leverage. So there's always a great range of choices and options when it comes to that. And this is another way that people can invest. Now, we were talking about the cost of doing that. Let me quickly tell you about what it is. 1,000 ounces of silver today. If I was going to own it in the depository, would cost me approximately 2,400 Canadian per bar for a 100 ounce bar. I'd take 10 bars. And of course, if I wanted to go a step further, I could just simply say to own 5,000 ounces in the same example, would cost me around about 125,000 roughly. If I wanted to use collateralized financing, however, instead of laying out 125,000, I may well have that, and I may want to own 1,000 ounces, which would all come in 100 ounce bars, which is a smart way to do it. I could also just simply invest in 1,000 ounce increments, collateral financed. And that, instead of laying out 24 or 25,000 would be around 85 to 8,700 Canadian right now at market pricing. So I'm holding back all that money. It's mine to do what I want with. I can put it into maybe something else that's short term or medium term to gain back a little bit of interest to put against the interest I'm being charged. And of course, if I wanted to have five or 10,000 ounces, again, we would take that number of, let's say, 8,700 Canadian multiplied by 10 for $87,000 Canadian. I have 10,000 ounces. I'm controlling it. The beauty is whether you buy 1,000 ounces, 5,000 ounces, 10,000 ounces, it really doesn't matter. But let's take an example. 5,000 ounces of silver, silver is trading right now. As we're recording the show, we've moved up actually about 12 cents. But let's talk about $22 silver. You know, 5,000 ounces of $22, a $5 move, you've made $25,000. Is that the type of money you're looking to make? If it moves up $10 to $32, you've made $50,000. A $20 move in the market would only take us to $42. And you've made a chunk of money. If we go back to where we were in May 2011 at $49, and I believe very strongly, in my opinion, we're going to see $60 silver within the next 12 months. So this is an unbelievable buying opportunity. If you're sitting in the stock market and you've got some real dogs there, you know, whether it's Blackberry that you've paid $100 for or whatever it is, or still holding on to Nautil that's disappeared right off the market, or you've got stocks in mining stocks, mining stocks, gold stocks have been really kicked to death. Whether it's Barrick, whether it's Kinross, I'm not even going to talk about the Vancouver market where, you know, you could have had a stock for $4 and it's worth $0.12 today. Nice. There's lots of stocks like that out there. But take your money that's not making you any money, put it into a hard asset by gold, by silver today, whether you want to buy it physically, take it home. There is some downside to taking it home. If you want to buy physically, put it in as a depository. If you're a little bit of a risk taker and you want to put it into collateralized financing, you can buy by putting as little as 30%. You may want to put 40% and finance 60. You may want to put 50/50. Take the risk away completely. But get into this market. Silver has gone on sale. As I said, recording this show right now, we've moved up 17 cents since I've been on the year. One eight, seven, seven, two, one, four, 17, 11 and guildhallwealth.com. Before we take a break, Dan, we talked a little bit about inflation. We touched on the fact that we're going to talk about it. This is one of the fundamental reasons as to why somebody should invest in gold and silver. Tell listeners more about that. Well, listen, when we talk about investing in gold and silver, there are four main fundamental reasons we like to be in these assets. One is the expectation that currencies are going to depreciate in value over the medium to long term as long as this world is in the slump they're in. Of course, a product of that, a byproduct of that, is the fact that they're going to continue to print the Dickens out of all these currencies, the US dollar being the largest, the second and the greatest fear from that printing is inflation. Of course, I wrote about it this week in the Pressional's advisor because it's near and dear to me. Every year, and I'll be doing it this year again, I go out in January and I buy the same basket of goods. It's 20 some odd goods. They're on my list, written at home. Same brands, same everything from the same store. I've done it four times. I've never really written about it. I've talked about it on the show, but this year I'm going to do an extensive write up about it. And every year, that basket of goods has cost more than what they are telling you in terms of pure inflation. Oh, God, smaller products. In fact, we use one very good example. I won't name manufacturer, but they sell premium orange juice. Again, that's the one that used to be a two-liter container. Believe it or not, when I started doing this now, it's 1.79 or something like that. So they're shrinking their packaging down. And another culprit of that of making it look like you're getting more is the chip industry. They do the same thing, tons of air. Lots of air, right? Absolutely. But I mean, one of the things that we don't take into consideration when we're talking about core inflation, believe it or not, are food and oil. Two of the most incredibly inflationary things that affect our day-to-day life. And I was reading an article the other day, when I wrote about it, it was interesting because this article was basically saying, "Hey, there is no inflation. This is just deflation maybe. We're closer to deflating." And I thought that that was odd because I look around, I talk to my friends, my colleagues, my clients. And the last time I checked, it costs them more for everything that they use day-to-day than it did a year ago or two or three or four years ago. And I don't mean by a little bit. I mean by a lot. And to isolate that, my example, I read an article by a gentleman of the name Jim Rogers, who some of you may know, he's a famous investing guru and very smart, my opinion. And he's talking about the U.S. marketplace. And he says the following, "The price of nearly everything is going up. We have inflation in India, China, Norway, Australia, everywhere but the world's largest economy, the U.S. Bureau of Labor Statistics." Of course, he's being sarcastic. I'm telling you that they're lying. Go to a restaurant in New York or grocery store and tell me that there's no inflation. In 2001, it cost $9 to go to the top of the Empire State Building. Now it's 27 to go to the 86th floor or $44 to go all the way to the top and 67 to go express all the way. The Museum of Modern Art in 2001 was $10 to enter. Now it's $25. A cab from Kennedy Airport to Manhattan in 2001 was $30 plus tolls. Now it starts at $52. So I mean-- It's like going to the Bahamas. Do you want to go in that parasailings? A dollar to go up, $49 to come down. That's right. You got to remember, the average person that we're dealing with here is a middle-class investor. And that is the exact class of people who are getting pinched, hand over fist. And when it comes to their wealth, it's being eroded by this silent killer of inflation. And people don't realize that. And we use oil as an example too. In 2008, barrel of oil jumped by July to $150 per barrel. We were paying a buck 35 to a buck 42 per liter. And we were livid every night on the news. It was like Rob Ford for Pete's sakes, you know? But now we look ahead to 2013. A barrel of oil is in the low 90s, mid 90s. The price of oil has actually come down 11%. We're paying $120 to $122. And it's nothing. We still have inflation. It's extremely inflationary. And we don't stop to think about it because that wealth is coming directly out of the same paycheck we've made that has not kept up with that inflation. So it's something that we use to justify buying assets like gold and silver because they protect your wealth. We'll take a short break. And when we come back, we'll get into a really excellent part of the show. That would be natural, fancy colored diamonds. Love this discussion, something else you want to use for a companion investment with your gold and silver buoyant. This is the real money show, the number one, eight, seven, seven, two, one, four, 17, 11, and guildhallwealth.com. The real money show, the number to start investing one, eight, seven, seven, two, one, four, 17, 11 online at guildhallwealth.com. It's all about the diamonds fellows. Great part of the show. What do we got? You're going to start off or I can start. I'm the reader. I got to tell you, I'm, I'm really excited. We just, we have a lot of product. Not that we don't sell product, we have a lot of product. We have a very, very large inventory. Our collection is a wonderful collection of yellows, internally flawless. Our gold pinks of VS quality, blues, green blues. It's an unbelievable collection. We were, Jeremy and I and Nico actually were in Las Vegas in June at the jewelry show. And we went to one of our largest suppliers dealers that we buy a lot of our vivid internally flawless diamonds from. And we said, you know, we don't see any product. He said, well, I really don't have to sell any product because the vivids I can push to the back of the safe and they're going up 20 to 30%. We just got an insider report on vivid yellow internally flawless stones over a carrot, carrot and a quarter, carrot and a half, two carrot stones are up this year alone, 35%. Wow. That's on cost. I just put an order. I just received an Argyle pink. It's a small stone. It's a point 31. Intense. Argyle pink. I'm now paying 85% more than I paid two years ago. So what this urged me to do was to look at our inventory. And we had about 15 diamonds that we haven't sold in a year. So every year we get our stones reappraise. So we're putting these diamonds to get reappraisal. We haven't changed our prices on the website, but I know for a fact on these 15 diamonds that we have just got a reappraise, they're going to be as much as 30, 35%. You know, this is what's great about this market. It is, it's still quite new. A lot of people are getting involved in it every day. They're starting to learn about the investment they're inquiring into the investment. What is it all about? People still really only know about white diamonds and when it comes to white diamonds, they're really just go into a store or go online and cross their fingers and hope that what they bought is something good. And from my experience in looking at the retail sector, you really have to know your four C's and really know what you're doing to get something that's of value. It's very similar in color diamonds as well. Not every diamond is created equal. And just because it's a yellow, it doesn't make it investment grade. So what we do at Guildhall is we make sure that all of the diamonds that we have are investment grade. So when you're purchasing a diamond, if you want to own a color diamond and you're looking to get that diamond from Guildhall, it's an investment grade diamond. The other thing we notice about this industry is that there is no volatility. And as Paul was mentioning about the pricing of certain diamonds, in this case, intense pink diamonds, the prices are always climbing. So you need to get into the market and it doesn't seem like there's a rush to get in because it's not like silver and gold where it's moving constantly, where you can get jazzed up about a price moving up one day. And so you say, okay, I'm going to get off the fence and get in. However, the price is quietly moving all the time. And if you have an intense yellow, for example, and you've held onto it for a couple of years, you want to think about moving up to the vivid. If you have a vivid yellow, you want to think about moving up into a larger vivid yellow or getting into a green, blue or blue, green or getting into pinks and starting those collections. What we've seen is, is that people who purchase diamonds and own diamonds, once they get into that market, they want to own more of them. So it's a great market. We're really excited to be a part of it. We we keep our standards extremely high, the criteria very high. So you don't have to worry about, did I get the right one? Did I buy one? Oh, geez, I hope that one has something about it that that's going to be worthwhile down the road. Any of the diamonds are worth it. You just have to come see them and let the diamond pick you as Jeremy said, you know, a guilt or we pick out and see we select the finest diamonds that we can actually purchase. The four Cs are important. Color is the first thing that we look for. The clarity, which means is it internally flawless? Is it VVS 1, VVS 2? The cut is really important. Certain cuts of diamonds bring out the color, the scintillation, the fire in the diamond. And of course, the carrot weight. When we sell yellow diamonds, we only sell a carrot. And above those are the diamonds that are most desired, most wanted. When you get into our gold pinks, our gold pinks tend to come into smaller sizes. We only normally sell a quarter of a carrot up. Those are the type of stones we sell, we only sell VVS. Very hard to find. This year in the Argyle tender, there were 60 odd stones, 11 stones with VVS. Everything was SI1, SI2, I1. For the amateur, you don't want to touch those stones, even an Argyle tender, which they're very desirable. We only sell VVS quality. Everybody wants to know the magic question. I'm buying a diamond. Well, what happens when I want to sell it? Well, we've created a secondary market. Our website, we sell all over the world. We send out emails. We market the product. We charge a very small commission on the profit only, not on the whole price of, we're not like an auction house. The charge is 10, 15, 20 percent on the total price. We only charge a small commission on the profit that you make. Every diamond we sell comes with a GIA, which is a Gemology Institute of America. That tells you everything about the diamond. We give you an independent appraisal. We give you a 10 day money back guarantee. Everything that we do, we're a Canadian company. We hope that you hold onto this diamond for five, 10 years. And eventually, you want, we want you to bring it back to us, because we know what a great diamond we've sold you. We're happy to get it back. Well, when it comes to these specific types of diamonds, we get people coming all the time and saying, yeah, I don't see a lot of these out there. And that's the key to the question Paul was, was posing there is just like the dealers who are taking these vivid yellows and putting them to the back of the safe, you should be doing the same because that's money in the bank. Those diamonds could be moving up well over 15 percent a year in some cases. And they're extremely desirable. And more and more people are getting involved in this market all the time. We know that because we see more diamond companies coming along all the time. Product is not the same type of criteria that we have, of course. So by buying the right criteria, putting it at the back of your safe, you're taking out that supply that is so difficult to get a handle on. And so the demand is constantly growing in this market. And we do that secondary market where we're constantly helping people to own colored diamonds. And more and more people come to the table every day. So we're here to help continue that. We want to continue to sell good, good, good type of, of diamonds. So we depend on our, on our clients. The thing is as well, the quality that we sell is an excellent quality. If you were going to go and buy a Rolls Royce, would you go out and buy a brand new Rolls Royce with a scratch and dent? I mean, you don't do that. I mean, it's when you're selling quality, you want to sell the finest product. And we're happy to get this product back somewhere in the future. Most people that sell diamonds, they will say to you, we sell diamonds. We don't take them back. We don't resell. We do. I don't want anybody else's diamonds. I had a couple of calls this week. Some people called me a woman called me every week, every world this week. She had a 22 or two, sorry, a two carat, white diamond, K quality. I mean, you know, we wouldn't touch that with you wouldn't even see that in the most stores because most stores sell, they start off a D E F. They sell G and H. This wasn't as a VS quality. She paid $22,000 for the diamond. I actually took the, you know, the air out of her cells, the wind out of her cells, that says worth about $6,000 touch. But pay 22,000. If she would have paid 22,000 dollars 10 years ago for a vivid yellow diamond, that diamond today is worth 50, 60, 70,000. But the point about that story though, obviously we're talking about a white diamond there. And we were talking at the top of the segment that most people know about whites and across their fingers and hope that they got the right thing. And it doesn't take a lot of research. It doesn't take a lot of knowledge to be good at being able to understand the criteria and the quality. We do have a guidebook that people can have on request. We'll send it out, show them the fundamentals in the market, show them what to look for, and then obviously show them what Guildhall does in terms of helping that client from the beginning to the end. Again, you want to remember too that the importance of due diligence when it comes to investing in a colored diamond, you're going to hear many people offer you colored diamonds and many people around the world. You can buy colored diamonds from many different places. The problem most often is exactly what Paul isolated a minute ago is the fact that you get excited about buying. However, you never discuss selling and the idea that one company is going to be there in 50 or 20 years. I mean, you know, slim chance for many of these startup places. What are the family business? The family run business. We're Canadian firm. So there's no duty across the border. And again, when it comes to buying, you have to remember you have to be prepared to talk about the exit strategy as well. That's what it makes the difference between us and a firm that doesn't treat this as an investment. A lot of our clients, it's fine if you want to wear it as a piece of jewelry or something that's an investment that's wearable. But a lot of our clients simply want to put it into a safety deposit box, look at it the odd time, show a few family members. And then when they're done with it and you've got to return on investment, bring it back to us to be sold. And that's exactly what we expect. Nothing more, nothing less. And as this market progresses, I think we sometimes, we are guilty of not putting enough perspective into the value of diamonds today. And the reality is gold, silver, great investments, color diamonds right there with gold and silver. And I'm extremely proud. My daughter, Nicole, who's vice president of the diamond company, she is a GIA graduate. She's a diamond graduate, diamond, great, and graduate. Go to any jewelry company, even the finest jewelry companies. Go to any company that's selling diamonds and see if they even have a GIA grading expert on their books, working for them, working, working close them. The answer is no. We're also a member of NCDIA. That's the National Color Diamond Association in New York. There is a total of only three members in the whole of Canada that belong to the NCDIA. There's about 40 members. It's a very close-knit community. We only sell the finest quality diamonds that we can get our hands on. We sell, I see 30, 40, 50 diamonds a month. I turn down, 40 of them. Somebody else is buying those diamonds and reselling them. It's not the quality that we sell. So it's really important. We are not the cheapest out there, but we are not cardier. We're not Tiffany's. We're not graph jewelers. We don't even have stores on fancy high streets or malls. We buy the product, we buy the best product, we add a small mark up onto that diamond because we want to sell that diamond and make you money. Down the road, you want to bring that diamond back, you're going to be happy to pay us a small commission. We're happy to see that diamond. So it's really important. Canadian company, we are a family business. We have diamonds on our website. Go to Guildhalldiamonds.com. You'll see diamonds from $12,000. You can get into a carrot 15 or a carrot 16 fancy yellow I.F. And I challenge, we have more internally flawless yellow diamonds on our website than anybody around the world. And we've gone out and picked this, hand picked this collection. Every diamond that I buy is a diamond that I own. We have the diamond in stock. There's no bait and switch. We won't show you one diamond and say, well, we don't have this. It's not a picture of something that we don't have. Every diamond we have on the website, we own it. And again, if you want to learn more about it, you can contact us for our guidebook on investing in colored diamonds as well as you can also book an appointment. If you are looking seriously at a colored diamond, we can also work on the budget and present a few diamonds that would work within that framework. So definitely give us a call and we'll start teaching you about the market. The real money show, the number to start investing in golden silver boy and fancy colored diamonds as well. One eight seven seven two one four seventeen eleven guildhall wealth.com. Guys, you know, we're we're so far away from Christmas at this point. But as of last week, within frequency range of us, there's several stations that are spending Christmas tunes. I've been listening, I'm guilty. Now, of the five or six tunes that I've been hearing over and over again, they mentioned back in the old Christmas chair. So I talk about the kings and giving presents. Guess what the presents are? Every time you bring a present to a king, it's always silver and gold. Of course, that's why we've got three wives man. We've got three, we've got two or two wise men in our lungs. But Christmas tunes, really? November. I always have trouble with that Christmas time. I go away. I'm booking a restaurant. I always say, I need to make a reservation wise men as they say for three, you know, very nice restaurant. Anywho, let's get back. I just want to just finish up on diamonds. We have, as I said, I just put 15 diamonds in for reappraisal. If you go to our website, Guildhall Diamonds, and you click on the GIA's, you'll see some diamond appraisals that if they were from last year, you can guarantee those those appraisals will be coming in with a new price. We're we're not changing the price till we get the appraisals in maybe another week or two. You have got an opportunity to get a diamond, not only at a great price now, but you're going to save another 10, 15 to 35% on that diamond. So be smart. If you're looking for retirement in the next five, 10, 15 years, you're looking to put your kids through score, you look into, you know, get the wife something really nice for Christmas and surprise her with something that's going to go up in value. White diamonds, 10, it's an impulse item, they look nice, but they really don't go up in value. Natural fancy color diamonds, 10 to double every four to five years. It all depends the quality and the quality that we have does that. So look at a natural fancy color diamond. Go to Guildhalldiamonds.com. The number to start investing one, eight, seven, seven, two, one, four, 17, 11 Guildhall wealth.com. We touched on earlier, citing Darren about inflation. Give me more on that. Well, it's one of the fundamental reasons we invest in all of these assets, whether it's colored diamond, whether it's gold, silver, platinum, palladium, all of it is pointless. If we don't understand that inflation is actually a silent killer of our wealth, and what the governments have been able to do successfully is rather than show us an economy that's improving, they keep running headlines through their media that they own. That is certainly trying to lead us to believe that it is. And the picture that they paint is one of stability. And some would even argue that there's a risk of deflation out there, although I don't believe it. Governments are able to continue on printing and keeping the purse strings as loose as possible because they can paint this picture. And we're in the middle of a very wicked science experiment, and we're the guinea pigs. And we have no historical empirical database for this to judge from. So when it comes to inflation, please understand that year over year, the easiest way to go about combating the effects of inflation, meaning that I'm getting less for that same dollar a year from now than I am now and so on and so forth is by owning hard assets. It could be real estate. It could be gold, silver, it could be colored diamonds. We're not giving the specific advice of what to exactly buy, but gold and silver certainly over the last 10 years has done extremely well in the face of inflation. You know, leading up into the early 70s, obviously, the U.S. was mired in a war in Vietnam and they were printing a lot of money. And up until that point, you could you could bring in your U.S. cash and take gold. It was as good as gold as the quote goes. And France wanted to take back their debts in the form of gold. And of course, they had the London gold pool at the time, which helped set the price of gold and keep it stable at the 35 price point for a couple of decades for a few decades. So they closed the window and they said, okay, we can't, we can't give the gold because we can't raise the price on gold and we can't, we don't have enough gold to give at $35 an ounce. So they just give cash. And then there's a famous quote that it's our cash, but it's your problem. And that set off the 70s bull market in precious metals. You know, if we were sitting in 1976 and the price of gold was $100 and we said, oh, you know, within four years, it'll be 850. You would have thought we were absolutely crazy, but it, but it happened. Now, the same thing is sort of happening again. Only now you see that countries around the globe, the outside perspective Germany asked for their gold back, couldn't get it. So now they're left to their own devices to get their, their gold and gold represents sovereignty. You know, during World War II, Winston Churchill sent all of all of the gold of England over to Canada to protect it against Hitler. So it is, it represents a country sovereignty boxes and a couple cigar boxes. China is buying, is buying literally tons and tons of gold all the time to hedge against the dollar, the US dollar. They're, they're getting rid of their treasuries. The, the majority of treasuries right now are being bought by the US. So the world looking in sees what's going on. They understand it. The smart money is moving into gold all the time. Every dip you see in gold, it's being purchased. No one's getting into a panic. China, India, Russia, all these countries and central banks are buying gold. So the smart money is clearly moving in. They understand it's an asset. They understand it's a great way to hedge against devaluing dollars, which is the only place this can really lead to down the road with this low interest rate environment and constantly creating money out of thin air. Well, I always say, you know, when you see like today, this morning gold came off almost $25, it's back up a little bit. Silver came off as well. You've got to remember for every seller, there's a buyer. Physical market is completely different to the paper market. You know, we're back ordered. We order product every single day from our wholesalers, biggest people in the business. And it sometimes takes as long as three, four weeks for us to get our deliveries. We're ordering every day. It's coming in. It's coming out of our holdings and putting into people's accounts or delivering it to them, whatever. But it's taking time to get product. You know, for every misfortune, somebody makes a fortune. For every winner, there's a loser or for every loser, there's a winner. There has to be that way. So we love gold and silver right now. As I said, which since we've been on the show, we're up about 15 cents on silver. Gold's up about $2. I think this is one of the best opportunities. This is an early Christmas present, Hanukkah present, whatever present you want to take. This price is an incredible price. You need to get into this market. You need to own a hard asset, whether you take delivery, whether you put it in the repository or whether you use collateralized financing. You've got three different ways to get into this market. Very easy to open an account. We can get an account open for you within 24 hours. All you have to do is get off that fence, pick up the telephone and make the call. 1 8 7 7 1 8 7 7 2 1 4 17 11 guildhallwealth.com. I wanted to just challenge people out there that are thinking about buying bullion because as well as the people that we want to congratulate for coming into the market this week. And that was quite a few. We also want to challenge the people who are thinking of buying bullion. One of the things you have to understand is that part of the due diligence process is when you're working with a firm like ours and you start to learn all about the depository or collateralized financing. Do I get to see the bullion ever? When I have a depository account, which you can come to the repository to do, you get to see the bullion. You can be brought out on a tray. It can be held. It can be touched. That's cool. Ask that of any other firm that you're working with. I don't care who it is. When you go to buy bullion and you're not taking possession of at home, ask them, can I come and see my bullion? Put my hands on it and touch it. And if the answer is no, don't touch them. Run. And that's the key. You have to understand that. When you get the story, you know, I want to take delivery of my bullion. Well, it takes a week to get it out. You can have your bullion tomorrow morning. Not on a Saturday morning, but money to Friday. You call us up on a money and say, I want delivery. I want to see my bullion. We will make an appointment for you to see it. If you want to pick it up that day and take it with you and put it in your car and take it home, you can do that. Or if you want to liquidate it, the funds are available literally the next day. Yeah. We can sell it. We don't make you wait a week either for your money. You sell a stock. How long does it take for you to get your money from the bank? In some cases, five, six days. Yeah. You want to cash in your RSP? It takes a week, 10 days to get your money. Doesn't happen with us. You want to sell your bullion. You will have your money the next day. Or the bullion, whichever you want. It's not a certificate. When you go to the bank and you've got 5,000 ounces of gold and they give you a certificate and you go back to the bank with this certificate and say, I'd like to get my gold, please. You get a funny look, a strange look on their face to say, well, we don't have it. We can give you the cash. We can sell it. We can do this. You want to be dealing with somebody that has the product, can sell you the product, give you the product. You can take it home, put it in the depository. If you really want to go collateralized financing, it's available for you. So be smart. Get off that fence. There's only one thing you do get sitting on a fence. You get splinters in your backside. So decide if you've got stocks that are not doing any good, liquidate them. Get into something that's going to start making you money. 1 8 7 7 2 1 4 17 11 gillhallwell.com last few minutes here. Darren wanted to touch and recap on some things we started at the beginning of the show. And one thing we talked about last week you didn't touch on yet was Middle East demand. It's a huge topic. I mean, we did talk about it last week. And of course, this week, again, more news that India is going to up there buying of silver coming into the 2014 year. Again, we're looking at China and India being the big buyers this year of gold. And of course, because of import taxes in India, some of that gold buying is gone off the wayside and it's developed into more silver buying. But the Middle East is an area where if you look at the headlines and you read between the lines and you get to know what's happening like we do on the inside, you'll see very quickly that those are centers which are blowing up for demand. And of course, they too are having their own set of difficulties in acquiring physical product. Many Middle Eastern countries are dying to open up exchanges, but they can't because they don't know how to get the bullion there. They can't find a way to get bullion into storage. And I don't think people really understand the difference between paper and physical in that sense. A lot of what happens in the markets worldwide, especially in the largest two London and New York happens on paper. And sometimes that market really doesn't have a necessity to have the physical bullion there because when you're flipping a futures contract, all you're doing is making a difference between the buy and the sell. If you're on the pro side, you win. If you're on the losing side, you're just coughing up the difference. So really, when it comes down to it, we want to take bullion out of the marketplace. Jeremy alluded to it earlier in the show, the importance of understanding that when you're buying physical bullion, it's unlike any other thing you can do when it comes to buying silver gold because you're actually taking it out of the market. That means nobody else gets to buy it. Nobody can lay claim to that one ounce that you now own. And that's a hugely important factor when you are looking at physical versus paper. So although I'm not certainly giving anybody financial advice as to what stocks or anything like that to buy, that's only one part of your portfolio. And when it comes to buying physical, you have to look at how you can get the actual product into your hands. So when it look at Middle East and when you look at Asia, they've they've caught on, they know what's happening. And that's what they're doing. A lot of buyers in the Eastern Middle Eastern and Asian countries are taking their bullion home. They're putting it in storage vaults. And that is one of the fastest growing businesses relating to commodities over there is the storage and vaulting business. So and it's an incredible story to be told. And it's impacting the prices over there. And the other thing, when you own bullion, I mean, you really don't have to look at the price every single day. You buy it, you leave it in the storage facility in the depository. Over a period, it will just keep going up. As I said to you before, you know, I give my grandkids gold on their birthdays. Another quick example. If you would have took 10 years ago, $10,000, put it in a coffee can and buried it, you'd have $10,000 buying power today would be $7,000, $8,000 maybe. If you would have taken silver, which was trading at $4 and bought $10,000 worth, it would have been 2,500 ounces. Silver's trading around about $2,150 today. You was still had about $54,000 today versus $10,000 in notes. It protected your buying power. So whatever you've done pretty well, if you're looking to retire, you're looking to put your kids through university, get into some gold, silver, natural fancy color diamond, you're doing yourself a favor and your family a favor. We use all kinds of forms assurance. We use life, health, car, home, Paul says it every day. I use bullion, gold and silver. Jeremy uses it, Paul uses it. And I hope we're not alone. The number one eight seven seven two one four seventeen eleven guildhallwealth.com. You can email questions to the fellows as well at investing@gildhallwealth.com. And when you stop by the website, make sure you sign up for the precious metals advisor, the free subscription to Guildhall's premier market newsletter. This has been The Real Money Show. What if you can have a streaming service that added new shows and movies every day? 365 days a year. Tune in on Monday and watch traumas like Fight Night, The Million Dollar Heist. Tuesday, watch reality shows like Top Chef Canada and Wednesday enjoy comedies like Ted. And it just keeps going and going every single day. No matter when you tune in, there's always new entertainment for you to discover. Stack TV, new shows streaming every day. Try free, applicable membership required. Restrictions apply.