The Real Money Show
The Real Money Show - November 2nd, 2013
The real money show right here, a full hour of information to maximize your portfolio in the form of gold and silver buoyant, natural fancy colored diamonds as well. And in studio, we have Paul Wiseman, President Jeremy Wiseman. We have the Vice President Darren Long is back in studio with us afternoon as well. All right, you, Darren. Pretty good, John. How you doing? Good numbers you need to know 1-877-214-1711 and guildhallwealth.com. You can catch old shows on iTunes as well. How was the update from this week? Well, listen, market the week over from last seven days has been fairly consistent, pretty stable. Pricing right now is in the gold, about 13, 13 as we're taping the show and in silver at about just below $22 an ounce. So all in all, we're still trading within a band. First day notice for both gold and silver in the non-act of November month was Thursday in the futures market. So usually the price takes a hit right after options expiry on both metals, usually about four or five days prior to the first day of notice. And this is done usually to convince those who are thinking of taking delivery on their futures contracts, not to do so. However, it's getting a little bit more difficult, especially in the gold market. Now we're looking at a couple of different things in terms of market updates. And one thing that comes right to the forefront as being a very important sign, at least for me as an analyst, is the gold forward rates. Now mostly all of the gold forward rates, and this is the rates that you would charge for holding gold as a forward or expecting delivery down the road, usually are positive. Meaning if I want to take gold and borrow it, I have to pay somebody to do it. They're negative right now. Gold forward rates are all negative pretty much simply because the larger institutions are finding it way more difficult to get physical gold. We've got this on the various updates from our suppliers, at least two of them this week, that it's getting far more difficult. And in addition to that, one other key sign that tells us we're expecting higher pricing right now is that gold is in backwardation from the first month out to the third month. Now in the futures market, it can get complex. So stay with me listeners. But essentially what it means is that if I want to buy gold, theoretically, the further out I want to buy it a year from now, two years from now, three years from now, the more expensive it should be. However, when gold tightens, the supply tightens and it's harder to get, you'll find that the exact opposite happens. And in fact, what's happening right now is, if I want gold for delivery this coming month, I'm going to pay more than I am in the months outwards. So the first three months from backwardation, meaning they're more expensive than the fourth, fifth, six, and so on. And that's a great sign, very bullish. Now we still have the continuing disturbing piece of news that we were talking about a couple of weeks ago, we have major problems with a bullion in specific institutions. These are posted numbers. These are not made out of thin air. The three largest major bullion banks, which are Scotia, HSBC, and JP Morgan, their dealer inventory remains extremely tight below 18 tons of gold, which is a concern for me as an analyst, as is for everybody else that is on the inside following these numbers. We should see another chunk of gold leave because October deliveries are due, and they're going to have to be passed out. Certainly JP Morgan is going to be one of those dealers that's going to have to settle some of the delivery notices. And if we look at storage facilities, Brinks being one of the biggest, we saw not more than two months ago, about 13 tons in its registered dealer account as of this past Thursday down to 3.63 tons. So this is telling us that despite pricing being in this kind of tight range, you are seeing behind the scenes a lot of movement in gold markets. We are getting confirmation from our suppliers that gold is moving overseas, and it's very steady. So we have a lot of ounces still standing for delivery, and that for me creates a very bullish expectation. And in regards to one more thing, we had last Friday, the first week in which we saw the 50 day moving average in gold broken on the close of last Friday. I expected some weakness this week. I think Jeremy mentioned on the show last week. And of course, this is what's going to happen now. We're going to see prices go much higher in December. Remember 2010, the last time we saw this happen this time of year, the price of silver was trading in and around $24 an ounce right now. It finished the year at 30. A move similar to that right now would take us up towards $28 an ounce. I have every expectation that we could see that happen within the next 60 days. I think you're going to get a very early Christmas present if you get into gold and silver at this moment. Silver and gold is really under priced. Nothing has changed in the world. If we look back over the last two, three years, the headlines seem to have disappeared. All we seem to do is get really good data coming out of the states. But we don't hear about the bad things, which gets revised most of the time. Well, yeah, but you know, has anything happened? I mean, you know, what happened with a nuclear disaster in Japan? You don't hear a word about that. Syria, the civil war, that's off the front page. It's not even at the back page. It's gone completely. Iran, you know, creating nuclear weapons. We don't even hear about that. It's all Obamacare now. Yeah, we don't hear that, you know, Greece was banging trouble. I mean, they got so many handouts from, you know, all the different agencies. We don't hear about Greece. We're not hearing about Cyprus. Cyprus confiscated 20% of people's wealth. We don't hear a thing about that. They've just created a bad bank with RBC in London, 38 million pound. They've taken in bad debt and put into a bad bank. Wouldn't you like to have a bad bank? I'd love to have that. Sure. Just take all your bad debt, shove it in there, and not have to worry about it. Thank you very much. So this is going to be an opportunity. And I'm, as I said, this is a great opportunity. I'm buying gold and silver myself right now, silver trading, you know, just under $22. Gold is around about 13, 13, 13, 15. This is such an unbelievable time to get in turbulent times. You make lots of money. Well, I think as we're going to get back here to what the significance of these numbers that Darren's discussing here, and I think Darren, just before we go into the significance, we should repeat the numbers of what we're seeing. But I think that you have to look from a larger perspective here and see what's going on. There's clearly a bubble being created in the US stock market due to quantitative easing, which the Federal Reserve has their back against the wall. They have no other choice. They know they've admitted it that they can continue to do this to infinity and beyond. It's all at the sacrifice of ultimately the US dollar. Everybody's seeing the bubbles. They're all talking about it on CNBC. We all know this is unsustainable. We all know this going to come to a head. Bubbles you never know until they burst. This one is clear as day. And what I think you are seeing is that people are buying physical assets, mainly China, bringing in tons and tons by the day almost. And all you're waiting for is this is a really simple opportunity. Buy a physical asset that cannot lose its value. That the last time the bubble burst in 2008, silver went from $9 in 2008 to a high of $48 over a two and a half year period. That's what you're looking for. Look for the value. Buy the value. Buy the asset that has a 5,000 year track record against fiat currencies. And that's what China is doing. That's what central banks are doing around the world. So as we get to Darren's numbers here, I think it's important to think about the bubble will burst. And where are you going to be? Are you going to put your retirement into the stock market? Or are you going to look for something that's more protection? And when the bubble does burst, you have so much opportunity. And you're in the right asset that's going to take off at that point. The number one eight seven seven two one four seventeen eleven and guildhallwealth.com to contact them anytime to start investing. Well, listen, the numbers are there and for anybody that wants to take the time to look and we actively hold the hand of every investor that wants to come into our firm and tell them this story and how great it is and how unsuspecting investors really don't know the truth about silver and gold. And so this is this is a really, really important time. And if you look at it from the perspective of the futures markets where we derive spot pricing from that gives us all of the numbers in terms of where we know deliverable product is sitting and how much of it is there. The gold market for me is a scary scenario right now. And again, if you look at what I'm telling you, one of the major dealer vaults is Brinks. Not but two months ago had some 13 14 million tons of product in there down to less than four as of this week. And I mean, nobody ever brings that headline out. It never goes to the forefront. And I think what everybody does is play this game of hide hide and go seek, you know, where they don't want to give up these headlines and these types of things because gold and silver are not the stock market. They don't represent paper investments. They are not traditional in that sense. But again, when you comes down to it, we are seeing a ton of product that is standing for delivery and people are not getting their product. They're being coerced into taking money alternatives to pay for these things instead of taking their product home with them. If I was in the market for a futures contract and this is not something we do at Guildhall Wealth Management nor do we recommend it. But if I was sitting there watching this happen, it wouldn't take let's say in the silver market, but more than what five or 10 billion dollars, which is not a lot of money to rock the market literally shake the very foundation of what is happening. And the price could literally overnight jump tremendously could be a hundred percent jump in less than a month if that happened. But why would you want to do that if you're a buyer of silver? You'd want to continue to accumulate at the low prices that they're giving you. That's right. So the smart people are doing that. I have customers doing all the time. Nothing has changed in the usages. The usages of silver have gone up tremendously. Silver is used in virtually everything, cell phones, iPads. I mean, as Apple's selling more iPads and iPhones than they've ever sold before, before has silver in it. If you look in a platinum pladium, platinum pladium goes into catalytic converters. They're selling more automobiles than they've ever sold in a long, long time yet platinum and pladium hasn't even moved hardly. Gold again, the same thing. It's a hard asset. A Guildhall, we specialize in physical gold, silver, platinum, pladium. We don't sell certificates. We don't sell equities. We don't sell ETFs or futures or options and futures. We sell the physical product. Whether you're buying a one ounce bar, a 10 ounce bar, a hundred ounce bar, or a thousand ounce bar as silver, it's physical product. It's not paper, the same thing in gold. You need to get into this hard asset. It's going to protect your hard-earned money, your capital. Jeremy, why don't you explain what we do with the depository? Yeah, this is a great way for investors who are looking to hold more than a few hundred ounces of silver that want to know where it is, that it's safe and secure. We have a vault in Toronto, in Canada, where it's fully insured. You can hold your product. You can have it allocated. If you're looking for that, it is segregated bullion, but you're buying the actual product. You're storing it. It's in a safe, secure location. You can buy and sell on a phone call. Anyone concerned with liquidity, cost of doing business. To purchase the bullion, you're buying it at the same price you would buy it anywhere. The difference is now you're getting access to brokers. Now you're getting access to the market to buy and sell. Now you're getting access to storage. You don't have to worry about the logistics of carrying a thousand ounces, weighs 65 pounds or plus. So this is a great opportunity for people looking to own more than a few hundred ounces of silver. They should definitely think about using the depository. We can set up meetings where you can even go to visit your bullion as well. We'll take a short break when we come back. We'll talk about Middle East demand, Darren, as well as using the depository and the advantages of that. And a question of the week, the numbers to call 1-877-214-1711 and guildhallwealth.com. And more The Real Money Show, the number 1-877-214-1711 and guildhallwealth.com. While you're on the website, take advantage of the precious metal advisor free subscription to Guildhall's premier market newsletter. Tell me more about that, Darren. Listen, that's the heart and soul of what we do in terms of writing for our clients and keeping them up to date. I've been with Jeremy writing this newsletter since 2005, believe it or not. And in it, it's jam-packed full of information about the markets. We have a chart of the week, we give pertinent articles and we always include a diamond of the week as well. And it's our take on the markets. My own personal writing is included in that. And we take a lot of pride and passion in doing it. We like to share it with everybody because I want more people to know about what is happening, the realities of this marketplace. And it's free. If you'd like to own it, it's free. Just simply call us or email us and we'll be happy to get you onto that list. No obligations whatsoever, 100% free. And oftentimes people who are buying it are buying it with two people in mind buying the bullion together. And sometimes one person needs more convincing than the other. Well, rather than doing it around the dinner table, it's a lot easier to subscribe someone else and say, because you can give us a call and say, listen, I have a friend who wants this subscription as well. Please forward them the information. You can forward it to your friends and family. It's a really good place to start to learn about about bullion and find out what's going on, what's making it such a great opportunity. Again, to sign up for guildhallwealth.com and the number one, eight, seven, seven, two, one, four, seventeen level. We mentioned before the break down about the question of the week. And this might tie in with the the pository that I know you offer. Kevin, Kevin Dunsmore in Calgary, interesting question says, how do I buy and sell gold or silver if I'm not even that close to your office? Well, it's a great question. First off, to let everybody know, we have no boundaries. We have clients the world over. There is no boundaries. When you are using something like our depository, you can call from anywhere in the world. And in a moment's notice, you can buy or sell product during market hours. Now, that being said, we were talking just before the segment in between there about the importance of understanding the take home versus leaving in the depository. Now, if I have one ounce of silver, maybe even 10 ounces of silver, maybe I take that home. Okay, I might have a small portion. But once I'm getting a decent amount, if I'm getting five or $10,000 or more of product, and I'm holding on to that, I run the risk when I take it home of not being safe. I'm putting my family at risk. Potentially, I'm going to be telling other people that I've invested in silver and wanting people to know I've made that investment. Who knows who you're going to say during the World War II loose lips sink ships. Right, exactly. People tend to say what they've got. And you can get home invasions. And there's a lot of needy and greedy out there at the moment. You're getting near Christmas and people need money. And they become desperate people do desperate things. You can guilt or, as if you want to buy the product, you can take it home if you don't want to pay a small fee, because you think $60 minimum fee for a course of a year for storage is a lot of money. So, you know, take it home, Barry, put it in a safety deposit box. But if you're buying a thousand ounces, that's 10, 10 ounce, 10, 100 ounce bars. It's close to 70 pound. If you've got a safety deposit box, it's going to fill it up. You know, you're going to get a bigger safety deposit box. It's the cost of the storage. And, you know, if it's in the safety deposit box, you can't sell it on a phone call. That's the difference between the depository and taking home delivery. And that's the big difference between us and a lot of the competitors. A lot of the competitors are happy to sell. And pricing might be very similar between us and our competitors. But, of course, our pricing includes us. You get us as experts, any one of us. You can talk to anyone, any question, any time. And, of course, everybody in our office is familiar with your account and understands what you've invested in. And that's important. And the good, impruded investor understands the importance of the sell. We can all buy and we can accumulate, and we can buy in great ranges like we're in right now. But the really smart investors understand the importance of being timely on the selling aspect of that market. We've had a couple of clients this week that actually sold a product that had it in the depository. I mean, they wanted some, they needed some cash. We took back the product. It wasn't the fees for selling was very, very tiny. And it made sense for them to do it. The problem is, is when you take home delivery and you're going to take bars, not everybody's going to take those bars back because they want to get them a say. You know, not everybody's trusting today. Not every, you know, they could be filled with lead for all you know. So if we have the bars, we know we've got the bars. The bars are numbered for us. We are safe. This is a great opportunity to get into the market. Silver right now is trading at, you know, $22 an ounce plus. Gold is $1,300. You know, this is a tremendous way to do this. If you want to use financing as well, which we're going to talk about in a little later on in the show, you can finance up to 70% of a position as well. We have collateralized financing. But if you look at what's happening in the market today, gold and silver for every seller, when the prices get knocked down to where they've been, they've come off 40%. For every seller, there's a buyer. For every winner, there's a loser. For every success, there's a failure. Holding gold and silver is a long term investment. It's not a day trade. You don't day trade your house. You don't have to day trade gold and silver. We've seen the market go over the last five years from $89 as high as $49. And we've seen it come down to $18. We're trading at $22 today. I think this price is an unbelievable price. This is an early Christmas present. If you get into the market today, you will make money. In my opinion, this is a great opportunity. We really do consider this value investing at this point. It's very true. There seems to be a really good amount of support at the lower levels here. Every time the market has been tried to be pushed down a little bit. China's jumping in. India's jumping in. Central banks are jumping in. It seems that the only ones left out in the cold here are going to be the yen, the euro, and the US dollar. Central banks buying, that's important. Think about that. Be part of that value investing. If you think on a day-to-day, you're not necessarily going to be a winner in this market. Banks can think long-term generationally. Countries can think generationally. You just have to think a little bit more long-term here. We know there's a bubble going on. It's as clear as day. When is it going to burst? Could burst next week? Could burst next month? Could burst next year? It could be a black swan event. It could be an innocuous event. We just don't know. But the factors out there for this thing to burst, the smallest thing can make it go the other way. I think that for gold and silver, it's so easy. It's very cheap right now. Take advantage the way central banks are taking advantage. Continue to accumulate. When that bubble bursts, you're going to be in the best position to buy those stocks, to buy that real estate, to buy that startup company, and this starts with protecting your capital. I think especially going forward with retirement, the fact that there's no interest rates, people are forced to speculate. Do you really want to be speculating in a market that's been in a bubble for over two years? The thing is as well, I've always maintained it's better to be whether it's one day, one month, two months, too early than one day, too late. Because when this market takes off, it's going to take off real quick. We jumped up to almost $13.50 in gold. This week, it came back down to $13.13. People are calling gurus who are in this business, been in this business a long time, calling for $1,400 gold. We hit $1,400. Gold's going to go to $1,500 very, very quickly. JP Morgan. Goldman Sachs recommended selling gold. The Gartman letter. Gartman, who is a pretty savvy trader, he came out yesterday on CNBC and said you need to have gold in your portfolio. Everybody is starting to recognize that you need to have hard assets. As Jeremy said earlier, there is a bubble. Two years before subprime was out, people were saying this is going to bust. Subprime is going to go south on you. All of a sudden, when it did go south, people got hurt. We're just saying, and in my opinion, I think you look at the stock market, you look, it's been cheap money. While the Fed has been putting him so far, I think it's $2.7 trillion. Trillion. You know what trillion looks like? The US debt is $17 trillion. So 2.7, that's almost it. There's about 18% of the US debt has been given out in less than a year. It's a good time to start investing indeed. 1-877-214-1711 and guildhallwealth.com. During a short time ago, Jeremy mentioned retirement and long-term investing. Give us some information on that. Well, again, we talk about it in our seminars and the importance of understanding the changing face of wealth management in this country, and especially the changing face of portfolio development. And I think that if you're going to retire comfortably, you've got a big shot coming if you're going to keep doing the same traditional things. Now, there was a study that was released earlier this year in July by the Institute for Research on Public Policy. And the projections show that about half, 50% of all middle-income earners in Canada over the age of 40 are going to see a significant decline in their post-retirement standard of living. And for many, that's going to come as a rude awakening. They're not going to be prepared because they're doing the same thing every year, contributing the same money, making the same contributions and expecting better and better results and never getting it. They're not keeping up with inflation. They're not keeping up with the different changes within the market economies. Now, most pension experts will agree in Canada that we're not saving enough for our retirement. So what's the solution? Everything that they can try and do, they're going to try and do for pension reform. But I say the heck with it, don't necessarily think that you need to reform that pension. Think out of the box. Think about what our ancestors did. And it wasn't that long ago. I know my moment that in my, you know, grandma and grandpa did the same thing. They put physical assets all in their pockets and they put it above all their paper investments. It wasn't wasn't too long ago that we didn't have tons of debt. We didn't think that way. And Paul said about $1 trillion. Let me identify what that is in terms of being able to save that. To save $1 trillion over the next 40 years in a zero interest bearing account, you would have to put aside $480 million a week. That's one. No problem. No problem. Now think of it. Think of it. Downsize a little. I'm about to retire and I want to, I want to retire comfortably. I went and called up my own financial planner and I asked her, I want to live comfortably. I want to live on about 70% of pre retirement earnings. I want to live to the age of 90, hopefully, with my spouse and I want to live comfortably with at least bare minimum 70%. She told me that in order to do that by the time I'm 65, that's not to retire early. It's at 65. I'm going to have to have between $1 to $1.3 million in the bank and I'm going to have to have that money earning at a bare minimum, 2 to 3% per year every year until I'm 90 in order to live on 70% of my pre retirement earnings. Now that's pretty good. That's a modest income and that would live very comfortably. But if you apply that to the average Canadian, the amount required to live, that standard living is not much difference. It is around a million dollars right now to live comfortably at the age of 65, which for me is about 25 years from now. So ultimately, when you look at it, retirees got to think differently. They got to think outside of the box. They need hard assets like color diamonds. They need to have gold and silver in their portfolios and they need to be smart of what they're doing. Ask questions. Ask why the banks that they're with don't sell gold and silver. The interesting thing with what you just said was 10 years ago, if you took $10,000 cash, put it in a tin can, buried it in the back garden, what would that buying power give you to have about $7,000? Give or take? If you took the same $10,000 and silver was trading at $4 an ounce, and bought 2,500 ounces of silver, even though we're at $22 an ounce today, that 2,500 ounces of silver is worth $55,000. That's 5,500 versus 10,000. So this is, and we've seen it. The market's going to come back. It's going to snap back. You need to get into gold and silver. 1,8, 7, 2, 1, 4, 17, 11, Guildhall wealth.com. The other half of what you guys do so well is natural, fancy colored diamonds. Lots of that coming up right here in the Real Money Show. The Real Money Show, the number 1,8, 7, 7, 2, 1, 4, 17, 11 and Guildhall wealth.com. Jeremy, let's talk diamonds. Sure. We've been seeing, if you just look at Sotheby's and Christie's, you can just go on, you can start to see that fine art, vintage cars, move up to colored diamonds. They have been in a complete boom over the last 10 years. Price is moving up 100% in six months, in some cases on certain art pieces and certain colored diamonds. And the reason for that is quite simple. The wealthy are moving into these type of hard assets to protect themselves against coming inflation. You want to follow that trend. You want to follow what the wealthy are doing. Now, not everybody can buy a $30 million diamond. But if you do the right research and you go with the right people, you can certainly buy a $15,000 diamond. Now, that won't get 100% in six months. But the type of track record that colored diamonds at Guildhall have been getting have been anywhere comfortably from 12 to 20% in that mid-tier range of diamonds. So, you want to look at what they're doing. Why is it that the wealthy, the top 2%, the top 1% are so eager to protect their wealth with these art pieces, with diamonds, with cars. You want to follow the smart money. Well, that's, you know, it's this thing. 10% of the people make 90% of the money. What do the other 90% do? You know, they watch and they listen to financial advisors or they play the market, not invest in the market, haven't got a clue what's going on. And they never, they look at their statement every month. They get from the bank or from brokerage houses and they throw up on the shoes. They're not making up, they're not making any money. The only people are making any money are, you know, the brokers. You need to get into a hard asset. If you look at a natural fancy colored diamond, if you look at the track record, since they've been keeping records for the last 40 years, they have never ever dropped in price. Color diamonds range from yellows, pinks, blues, greens, oranges, red. These are the type of diamonds that colors that you need to buy. You need to buy whether it's a fancy, intense vivid. That's the quality that we sell. Jeremy, you wanted to add something? Just with the bathroom. No, I wanted to just say that it is a new market for a lot of people, but I would say our average buyer of diamonds is 50 years plus. And a lot of people who, once they get into this market, end up buying multiple diamonds. And you have to start asking yourself, why? What is it that people who are moving towards retirement are seeing with colored diamonds? What is it that is making them want to buy multiple diamonds, at least with our firm? And I think it's simple. I think one, when you start to see the type of returns that can happen and the type of compounding of returns that you can get with a colored diamond and knowing that you have to stick with strict criteria to do that, you start to come up with an answer that says, this is a lot easier than my other investments where I'm not sure if it's going to continue on an upward slant the way real estate has been going great. Some stocks have been going great. But to be honest, when you're looking at a stable investment, you'll look at bonds, you'll look at GICs, and those aren't giving you those returns, yet the diamonds are. I think the only real question that really stops people from getting in is just the understanding of, well, how do I go about selling it at the end of the day? Because these diamonds are so hard for us to procure, we have provided that secondary market for our clients and match their, the sellers with the buyers. And it's important because if you think about it, the differences between this marketing colored diamonds and let's say a stock portfolio are abundant. But if you point those out and you know what you're getting into ahead of time, number one, you never invest money you can't afford to lose in any investment. It just makes common sense. But when you look at colored diamonds, which you give up in liquidity, meaning I can't call up and sell it that same day, you get back in lack of volatility. And I think at the end of the day, that puts a person's mind at ease. You're not going to get a call from your broker on a Monday morning saying the market's crashed, you know, you've got to sell. So it's an insurable asset. It's an insurable asset. Can you ensure? It's a wearable, it's a wearable asset. Let's work it well through our classic card, right? I mean, and this is the, this is the reality that we're dealing with. So we don't want to give the wrong impression to people about the greatness of these colored diamonds for the wrong reasons. These are great long term instruments to build wealth. I'll give you an example. 10 years ago, you could have bought a one carat fancy vivid internally flawless yellow stone, round about a carat for about $7,500. Today, you're paying anywhere between 35 to $40,000 for the same type of diamond. I just got one of my clients reappraised on a diamond they bought from me a year ago. It's only a small diamond. It was a 110 carat vivid IF. It went the quality of the stone colors and remarkable, but it was a 110 carat. That stone was actually appraised. It went from $63,000 to $75,000 in less than a year. That's how much the stone has gone up. When we purchase natural fancy colored diamonds, we go for the best, best quality. First is color, then the clarity, then the cut, and it has to be in yellows. We only do over a carat. When we get into pinks, they don't come in very large sizes. So, you know, it's from a quarter of a carat upwards. The same thing. We are now getting our clients into a color that is absolutely remarkable. Blue and blue, green and green, blue stones. In actual fact, I've got two beautiful stones that we've just put up on the website. One is a 0.35. It's a small stone. It's a bluish green. It's a radiant card. It's stone actually is appraised at $66,000. And it's just about a third of a carat. The stone that we and we also have a 0.61. It's also a bluish green. That stone is also appraised very highly. Sorry, the 0.35 was appraised at $110,000, and we've got it on for $66,000. That's how rare the color is. It's blue green. Basically, it's 80% blue, 20% green. Makes it an incredible stone. On the other stone was a 0.61. It's appraised a little higher. Let me just bring that up. On the 0.61, that's appraised at $115,000, with that stones on for $69,000. These two stones are magnificent. It would be a great start to a portfolio collection, whether you're looking to retire, whether you're looking to put your kids through school. This is one of the best investments in a blue green, especially blue stones. They tend to double as much as 50%, they tend to double every two years, as much as 50%. We've got blue IF actually on our websites. We've got some great, great stones. They sell very, very quickly. This is an investment that you can make money on. You can put it away, $66,000. Not everybody's got that type of money. You can get into a yellow vivid for around about $35,000. 1 8 7 7 2 1 4 17 11 guildhallwealth.com is the number Darren. I wanted to just briefly review a couple of really pertinent points when it comes to buying a diamond. Understand number one, that if you're in Canada, you want to work with a Canadian company. That's the most important thing, because you don't want to be sending diamonds over the border, overseas and so on and so forth. That can be a dangerous game. And when it comes time to sell it, you want to make sure before you buy that the person you're working with has a tri-trude and tested way for selling the diamond. As Jeremy alluded to earlier, we create the secondary market by exposing the diamond to the world stage and we SEO that particular diamond. We may put it out into certain geographical locations and we will definitely go out of our way when it comes time to sell that diamond for you to market it the world over to the most important buying markets. You don't want to deal with someone that that only sells and won't buy back the diamond. There are lots of lots of instances where a client has come to us having bought a diamond before and said, Hey, I need to sell my diamond. It's not guaranteed 100%. But certainly if we need inventory or if we need to have that diamond to sell somewhere else in another market, we're going to make a fair market offer on that diamond for you, even though you may have not held that for what we recommend to be the five or 10 year period. Now that being said, the number one important rule is documentation, documentation, documentation. There's in a week that goes by where we get a phone call from somebody and they have no idea what they bought. They just tell us what the diamond is. It's a one carat yellow diamond. I bought it for 54,000 five years ago. I'll say, well, what kind of clarity does it have? I don't know. So they go and they have to get their GIA and they know nothing about it. Education is the key to being a successful investor, whether it's gold, silver, color, diamonds, any other investment being proactive and understanding what you're buying is the key to understanding. We take so much time in pride from Paul being going the world over to help people understand more about diamonds than Nicole, who's on the show quite often, the queen of diamonds, Jeremy, myself, Stephen, everybody else in the office to educate and get people up to speed. You need to have the GIA documentation. That's the genealogical Institute of America. It's the DNA of the diamond. It comes with every diamond. If you're going to buy a color diamond. And on top of that, unlike our competitors anywhere, we give every one of our diamonds when we sell an appraisal. So that appraisal comes from an independent appraiser. We have no affiliation whatsoever with that appraiser. We get the diamond and get a second opinion of what its cut is, what its clarity is, all the four C's, all of the DNA and the diamond and a fair market value to ensure that diamond. Remember, these are not liquid instruments. So you need to know what they're worth. And lastly, you got to be a member of the NCDA. If you're working with a firm that is not a member of the NCDIA, my recommendation is do not buy from them. They are not qualified as a color diamond seller. And that is something that is very important. You can call the NCDIA. They're located in New York. And they are the voice of the industry for colored diamonds. And they will tell you about our company or others that you're thinking of. And if you're not registered with them, sorry, there's a reason for that. So these are very pertinent buying tips. And this will help you to avoid NCDIA. I mean, it's an association. They don't let in certain people. I mean, they actually kick people out who have any types of problems and a guild who we go out of our way to make customers happy. We take them. We hold their hand through the whole buying situation. We had a client come in this morning. You know, Darren showed him quite a lot of diamonds. He picked a diamond. The diamond picked him. Having no idea about wanting to buy a diamond either when it came in, just gold and silver. And before he left, he drove the conversation, fell in love with a vivid diamond that he's considering buying. And it's a perfect example of how people connect with the diamonds one-on-one. And once they understand that all of those things that apply to gold and silver apply to colored diamonds, they can't but help at least think about adding it to their portfolio. This buying a diamond and letting the diamond choose you has happened to us on multiple occasions, not just from our clients, but from ourselves. We go on buying trips to New York. We'll go see our suppliers. And inevitably, there's always a diamond that jumps out. And you know what, every single time we've had a diamond like that, jump out at us, we've only been able to hold on to those diamonds for a couple of weeks maximum because they just stand out so much. And it's so easy to sell these type of diamonds when they're so beautiful. 1-8-7-7-2-1-4-17-11, guildhallwealth.com. Something, Darren, if the last minute of the segment you can touch on, you mentioned coming in for gold and silver and the looking of diamonds. That's a nice one-two punch that often your investors do. They end up getting a bit of both. It is. It makes total sense. And if you apply a budget to something, it can be broken down and we can help you out with that. No problem at all. And starting off, Jeremy, you mentioned the $30, $40 million. We call them rock star diamonds and all the types that Beyonce can afford. Where's a good starting point for say a yellow diamond? Obviously, it depends on your budget. I always like to say that if you can, for example, if you're looking in the 17-18,000 range, you could comfortably get a fancy yellow diamond. If you can try to get up to the intense diamonds, these diamonds don't go down in price. So they're always moving up, again, 12 to 18% on these type of yellow diamonds. So if you can move up to an intense, do it. Always try to just push your limit a little bit. It does help you in the long term. I think you want to decide, are you going to use this in jewelry and enjoy it while you're investing in it? Or are you just going to put it away? That's going to really help if you're going to move towards a pink diamond, which they all tend to be a bit smaller. You can get into a fancy, that would be our entry level diamond, a fancy yellow diamond. We don't go under a carrot for our yellow diamonds. And you can get into that for about 11 to $12,000. Moral of the story is it's a good investment and it's affordable at that level. Yeah, it's always better to move up. It's like buying a house. You wish you would have bought the house a little bit. It was a bit more expensive because in the long run, it became more of an value. And that's the same thing with a diamond. If you're going to fold 50,000, that diamond in five years is going to double. 10 years could easily be worth $200,000. The number to start investing 1 8 7 2 1 4 17 11 and guildhallwealth.com. More of the real money show coming up. The real money show, the number to start investing is 1 8 7 2 1 4 17 11 and guildhallwealth.com. And while you're there, sign up for the precious metals, advise a free subscription to guildhall's premier market newsletter. Some news, in fact, Darren out of the Middle East, some demand for precious metals. What's that all about? Well, listen, we've been looking and following these markets and we've often been guilty of letting our clients know about this. And some people catch on, some people don't, but the true fact is that a lot of what we've talked about has already caught on in other places in the world. The Western markets are really the last markets in the world of the largest markets available to get into gold and silver. And that being said, keep in mind that of all globally managed assets, about three to 4% are parked in gold and silver, either paper or physical. That's three or 4%. A good bull market, at least over the last 100 years, and there have been four of them, should have around 20% or more participation rate, which means gold and silver are a long way to go. But speaking of that, despite a slight drop in physical demand from China in recent days, physical gold demand is remaining hugely robust in India, the Middle East, and amongst coin buyers here at home. But again, the real big news is that the Middle East is picking up the slack right now. And I can see these numbers. And if you look at them, the Middle East has had about an eight-fold increase in or about 700% jump in demand in probably the last three, four years. And it's incredible to see that geopolitical uncertainty in the region. If whether you're looking at Libya or Egypt or Syria, Iraq or Iran, it's leading to demand for bullion. And as a result, the Dubai Gold and commodities exchange has planned now to list a spot gold contract in the second quarter of next year. This is a bores there, which offers gold and silver futures. And they're talking to local merchants and industry organizations. And their aim is to get regulatory approval for the product by early 2014. Now, demand for bullion and Dubai is expanding about eightfold in the last six to 10 years. And Dubai accounts for about 25% of all global physical gold trade and United Arab Emirates is going to grow hugely as a demand center for precious metals. So if you're looking at what are the bullish factors going forward, this is one hugely bullish factor that will soak more metal out of the market. And this is the reason, again, why being early is better than being late. And I'll tell you why this is a factor on two levels. One, you've got outside countries looking in on North America and Europe saying, are you kidding me? This is crazy. How can the US keep creating this money? This is not going to be sustainable. We have to protect ourselves. You've got this outside looking in attitude. You know, being in Canada, we can always look down at the states and sometimes we chuckle at them. And we always think we're a little bit above them in some ways as we're more intelligent, you know, yeah, someone, hey, I'm from Canada, they say, what state is that in? So there is that attitude outward looking in. And then also, you want to look at nations like India who are always looking for buying, buying gold and silver at better pricing. They're seeking better pricing. China's taking the lead seeking better pricing. Clearly, when it comes to the Middle East, they're taking that buying at better pricing. They're looking to buy on these dips. Well, everyone outside looking in is buying on the dips. You're wondering, how come other? Why is it that North America wants to buy at the high? We've always said it. We've seen it happen time and time again. More people will buy gold and silver, silver at $30 more, $40 more, $50 than they ever will at the lower prices. We need to have that reverse psychology. Now, for those looking to take advantage, that's where the financing comes in. Well, again, when you want to finance something, I mean, this is an explosive way to get aggressive on this market. It's not for everybody, but when you do have the funds and they are available, one approach you can take is to collagely finance your purchase in gold or silver. Now, let me give you an example. I may well have $100,000, but if I don't want to lay out $100,000, and I still want to buy $100,000 for the silver, I can do that by putting up as little as 30%. So in that same example, I would buy $100,000 worth of silver, and I would lay out, let's say, with everything inclusive of the commission and everything that you need to get in the market, probably in the neighborhood of about $35,000 US dollars. Now, I would own and control $100,000 of silver going forward, and every time the market moved up, I would benefit from that, but I'd be using somebody else's money to do it, and thereby allowing myself the freedom of holding back as much as $70,000 of the money I would have otherwise spent. Sure, there's a cost to do that. There's a cost for financing on anything that you borrow, but the reality is, in a moving market that's going forward, time and time again, I've seen people make tremendous amounts of gains if they're in the right position taking advantage of this, and this is the concept of other people's money. It's like a mortgage, but there's more freedom. You can come and go as you like. There are no stipulations. If you like financing on Monday and Tuesday afternoon, you don't like it, you get rid of it. I mean, the value proposition is there. Risk-reward relationship is greater because of the financing, but when you look at it from what you stand to gain for collateral financing, it's an explosive way to invest. It's a great way. I mean, buying a hundred and silver trading at $22, buying $110,000 worth of silver, you've got 5,000 ounces in the market. A $5 move in the market, you've made $25,000. $10 move, you made $50,000. A $20 move, doesn't even take us to the high of May of 2011, and you've made $200,000. That's what this type of market can return for you. Not just that. What's great about the financing for certain individuals, obviously, you have to assess the risks, but what's great about it is the liquidity factor. We talk to people all the time. They're in an ETF. They're in a certificate. They own it outright. They've put it buried it in the back garden, as we like to say. Just take a certificate, for example, you can't sell a portion off. You have to sell the whole thing, nothing but the thing. You've got to sell all at once. Whereas with financing, as the market moves up, just like as the equity in your home is rising, because of rising prices, you can take back some of that invested dollar. We have clients who literally have zero invested funds with us because they've taken all the cash back, and they still have the ounces in the market. This is a great way if liquidity is a concern, but you want to get into the market to definitely give us a call, and we'll walk you through the numbers and give it some good consideration. Financing is not for everybody. If you're going to go and borrow, put it on your credit card, that's not the thing to do. If you have the cash, you're in the stock market, you've got stocks that are dogs. They're not doing anything, and you want to get out of the market. This is a great time to get into gold. In the same time, when we're talking about a natural fancy color diamond, we have two beautiful stones, blue greens on our website this week. One is a 0.61. It's a fancy. It's a VS2. It's appraised at over $150,000. It's on for $69,000, and we have a 0.35, which is an intense, which is a deeper color. It's also VS2. That's on for $66,000. This is a great start to collect its portfolio. Just one last thing about financing before we move on is it's also a great way to dip a toe in the water of the market. You can buy 500 ounces of silver or 1,000 ounces of silver for less than $5,000. Rather than putting out $10,000 to buy less than 400 ounces, you can put out half that and still get your 400 ounces in the market. It is a great way to dip a toe in the water and start to test these markets and get a feel for the markets before you outlay all of the funds that you're looking to put in. The number 1-877-214-1711 and guildhallwealth.com online. FOMC Minutes Report, Darren. We had that this past Wednesday. As usual, at the end of the month, the feds get together and they discuss where the markets are going. Of course, the expectation, no changes to the amount of money being printed. $85 billion a month is the status quo. They will continue to prop the stock market because it's the only hope they have. Housing reports were weak. The jobs report continues to stagnate. Of course, they're not getting the expected or desired results. It's very concerning for everyone. On Wednesday, they sounded a bit less optimistic about economic growth, to be honest with you. They are not going to stop printing. If that's the case, the worst scenario that they could have is that the economy stagnates and deflation occurs. Nobody can agree on how to move forward, but they still get a paycheck. Mark my words. Everybody still gets their pay at the end of the day. The reality is that they don't know what to do right now. There's talk and rhetoric that even the slightest bit of decrease in the amount of money being printed could stall the economy and have very adverse effects. Listen, gold and silver love that adversity. They respond extremely well when things like that happen. Expect the month of December to be a fireworks month. It's the next delivery month in gold and silver. As I said, right off the top of the show, there are big numbers coming out that are telling us there are problems with delivery and the amount of gold available in the New York market is dwindling down. It's surprisingly low, even to somebody on the inside like myself. It is exciting to see, but again, when you look at them, they don't know what's happening. That is extended to the financial media as well. Again, this week, the amount of mandasties and financial lies that just are spewed out is incredible. The amount of retractions that should happen because of these things, it just blows me away. I'm sitting on the inside and I listen to the radio or CNBC or BNN and I hear somebody make a report. Of course, as Paul always says, these people don't even own the stocks. They're just telling you to go ahead and buy them, but they don't own them. Why not? The reality is even the headlines, you got to look beyond. When you're educating yourself about investing, you have to stay the course. You're going to put 10,000, 20,000, 100,000, a million dollars into something. Be proactive. Understand the market that you're investing in. If you ask anybody at my company, do they have skin in the game? Do they own gold, silver, natural fancy color diamonds? Everybody in my company owns the product. We believe in the product. We've done very well with the product and we're going to do even better in the future. Jeremy, you mentioned about something Paul said actually a short time ago about the two diamonds that he was speaking about, but this is common with Guildhall. You have the appraise price and then you have the selling price. There's a big discrepancy. Why is that? Yeah, there is a discrepancy and you don't want to confuse the two, but essentially, an appraise price is to give you an idea of if that diamond was lost or stolen and obviously lost or stolen diamonds have come with sentimental value, etc. That's what potentially you have to pay, what the insurance company is going to have to pay you to try to replace that diamond. If we have a yellow 1.75 oval yellow that got stolen, vivid, and it has to be replaced, it's not going to be easy. You're going to have to go to several dealers. You're now on the buyer side. You're now on the seeking side. These things are in some cases, in some ways, like snowflakes. So you're really trying to capture lightning in the bottle when you're trying to replace a diamond. So it makes sense that these appraisals are much higher. There's not like white diamonds. There's millions and millions and millions. I mean, even to find a natural fancy color diamond for every 10,000 carats of white mine, there's only one carrot of colored. To get a vivid, internally flawless, you have to mine a million carats. Go find one. Find one with a beautiful internally flawless, very tough, the right color, almost impossible to find. There's no vivid out there to be got. So this is why when they appraise it, the appraisal is a replacement value. It's not the retail value. If you went into a retail store, you may pay 20% over that appraisal price. The number one, eight, seven, seven, two, one, four, 17, 11 online. You could check it out at guildhallwealth.com. And while you're there, sign up for the precious metals advisor free subscription to Guildhall's premier market newsletter. This has been another edition of The Real Money Show.