The Real Money Show
The Real Money Show - October 19th, 2013
The Real Money Show with Guildhall Wealth Management from October 19th, 2013.
The real money show, the numbers you need to know 1 8 7 2 1 4 17 11 are direct contact info or number rather Monday to Friday 1 8 7 7 8 silver guildhallwealth.com in studio. We have Paul Wiseman president, vice president, Jeremy Wiseman and we have Nicole Snipp and the queen of diamonds in studio today. Nicole, let's go right to you. What do you say start? We'll start with diamonds this week because we love them so much. How was the how was the tender? The tender was exciting for those who aren't to wear what the tender is. We always talk about it. The tender, the tender. It's the Argyle mine in Western Australia. Each year they host a tender which is by invitation only. It's a very exclusive event where they take usually it's a teaspoonful of the most exceptional diamonds from the mine. This year was a little more than a teaspoon. It was 64 diamonds and it included nine red diamonds which was which was very, very rare for them. It was very, very interesting because the prices went for 35% more than they did last year and they accounted this for more investor demand, more bidders were there than ever. There's definitely a growing awareness and demand for these diamonds so there were also some records that were broken. The highlights included a 1.56 karat fancy red diamond and it was called the Argyle Phoenix and it achieved the highest per karat price for diamond ever produced from the mine. That was a record. Then there was the Argyle Dafin which is a 2.51 karat fancy deep pink and it broke the record for the highest price ever paid for an Argyle diamond in overall value and it achieved a bold record price for a fancy deep pink diamond. Records were broken and it was very, very exciting. We actually have a report of the results. You can get the report and we have three videos which explain investor sentiment as well as explaining a little bit more about the diamonds at the event. The interesting thing though, on this tender, normally it's about two, three percent go to the Orient. This year the tender bidding was 25% came from China and Japan so that's the reason that the prices were accelerated and they were up as much as 35%. Last year we won three stones through our partners in New York of tender stones. This year I bid on two stones and didn't add to it. I bid 30% more than I did last year and didn't even come anywhere near. We know the rates were up 35% to 40% on some of these tender stones especially the VS quality and that's what we tend to sell in argau pinks is VS. We're only 11 VS diamonds in the whole tender and because they went for such crazy prices we were outbid unfortunately but we also always look for good pricing from our dealers and our partners so that we can pass that on to our clients. So we're not going to overpay just to get caught up in the hype because then our clients won't see the reward if we do that. This was the overall that almost seems like a new hunger for colored diamonds in Asia. Absolutely with emerging markets there is a hunger and not only do they understand colored diamonds but they want to know everything about colored diamonds. They want to know as much as we do they want to know about proportions they want to know about the symmetry it's more than just the beauty but they want to know all aspects and of course the investment potential. But there's a really really interesting report that just came out. It's an industry report and it's based on colored diamonds versus white diamonds and I just wanted to kind of go over some of the highlights for our audience because I think it's very important. You hear us always talking about the demand and the supply and how they're increasing. So this report just came out and it said that more buyers around the world are looking for colored diamonds with diminishing supply and prices for pink diamonds are up 30% from a year ago. That's pinks. So these are really especially argyle pinks are really a niche within the niche market of colored diamonds and then intense and vivid yellows. This was really surprising are up 35%. Now we always say they're going up 12% and we're very conservative. So for industry experts to say that they're going up 35% per year is very astonishing and then for less quality yellows which we don't even touch they're going up 10% per year. So that's really incredible. And then we've got fancy blue diamonds and we try to sell intensive visits but we do offer fancies as well and they've increased 35% over two years and that's for fancies. So it's really incredible what's happening with colored diamonds and the awareness that's going on because it's always been very exclusive kind of a secretive club and there's just huge investor demand. We can see the prices jumping. You know what Nicole was telling you about is an insider report that we get information constantly every week you know we get information about natural fancy colored diamonds. It's very important to understand when you're buying a natural fancy colored diamond they're talking about vivid going up 35% in one year. These are stones of over one carrot internally flawless. That's what we sell. That's what we get our clients to investing. We're not trying to sell you a half carrot or a quarter carrot in a yellow. You have to buy a carrot and above. Jeremy you want to add something like that? Well you know what we've noticed over the years is that it's a it is a very new market for a lot of people. What we notice is that those who have come to purchase diamonds with Guildhall tend to buy multiple once they once they've got in once they learn they get a taste for it. They're really happy with the results clearly you know we underscore the results and articles like this show that the prices are increasing constantly. But we do notice that people are they need to learn before they get in. It is in some cases a large purchase just like you would with real estate. There are two tier markets in some ways. There is the entry level where you can buy a fancy yellow for about $12,000. You can move all the way up into million dollar diamonds which would be again this is like real estate in a sense although it is real estate in your pocket. But one of the things that really is distinct for Guildhall is that we only focus on very very high quality. So you don't have to try to find which one is good which one you know try to find that diamond in a rough if you will where they're all good we've we've staked our claim we purchased those diamonds we we have skin in the game we're all we're investing in them and then we're going to pass that on to you. So definitely give us a call we'll walk you through it we'll show you the basics that you need to know and then all one thing we just want to leave you with in is that the knowledge that any diamond you pick subjectively every single one of them is considered investment grade. 1 8 7 7 2 1 4 17 11 Guildhall wealth.com and money to Friday during business hours direct contact is 1 8 7 7 8 silver Nicole I wanted to mention something that Jeremy was saying about a fancy diamond a 1 carat fancy you can get in for as low as $12,000 now with color diamond investing there isn't an urgency the way there is with gold and silver the way Paul and Jeremy will talk about a little later but it they are going up so much and even by the percentages that I've mentioned from this report you know 35% up for intense and vivid diamonds well that's going to trickle down even to fancy color diamond so a year ago you could have bought a fancy one carat diamond for 10,000 now it's 12,000 so the urgency isn't necessary believe that you're watching it like a stock but if you were watching some diamonds on our website and you were thinking about it and thinking about it please know that they're going up all the time because of the supply and demand fundamental situation that we've got and even so because of this tender where diamonds were went up 35% that is going to push prices for color diamonds across the board up we're going to start to see the trickle-down effect start happening over the next several months and come the new year prices for color diamonds will go up and we as a result will be having a lot of our diamonds reappraised so any fancy diamonds that you might be looking at for $12,000 again you could have purchased it for 10,000 a year ago might be up a little bit more so that is the urgency you want to get your pricing in order and it is strictly a supply-demand market you know the the fact that the tender diamonds are up 35% just shows that's what the market's willing to bear so in in great times 35% I think the lowest we've seen on a tender diamond is is around 30% so it's not that big a surprise but a lot of the times people who whether it's dealers whether it's it's investors the problem they have when it comes time to sell which is why you have this supply demand with fundamental so good for diamonds is that when you sell a diamond that you know is constantly going up in value you now have to go and you're naked with that cash you now have to go put it into something that's going to do as well and that's a dilemma that anyone who owns a diamond is going to have imagine owning a group of seven painting and every year you know that's worth more do you sell it now you've got the cash you're always going to chase after it again so luckily someone like Lawrence Graf for instance who's sold major diamonds at auction and bought them back a few years later luckily he's got partners and is willing to buy it again later on at the higher price but for everyone else like our like ourselves once you buy that diamond you really want to hold on to it because it's difficult when you let go a guild who diamonds as well we're trying to create a secondary market now every diamond that I purchase is a diamond that I would buy myself I'm not buying it because it the price is right or the color is right or whatever everything about that diamond has to be true whether it's the color has to be a great color the clarity you know whether it's yellows is internally flawless in pinks we normally go for VS quality and above blues we normally sell IF and above it's about it's like real estate it's location location location it has to be the best you know if you can you can buy a home somewhere for 300,000 and you can buy a home for three million dollars normally what goes up the better is the home for three million dollars because there's more people fighting for that product and it's a factor life so when we buy a diamond we're looking for the secondary market somewhere down the road we tell our clients you need to hold this five years 10 years 15 years if you're looking to retire if you're looking to put your kids through university this is the perfect investment because natural fancy color diamonds tend to go up in price an average of about 20% a year this is for high quality diamonds diamonds that have fire diamonds that scintillate diamonds you know the diamond picks you when you want to buy it you don't pick the diamond the diamond picks you but we create a secondary market every diamond that I buy somewhere down the road I'm happy to take that diamond back because the supply is getting smaller and smaller and people from again from the Orient and Asia are looking to buy this product they want to get their hands on it there's more millionaires and billionaires being everyday in China than there is in Canada or the US so you know this is a market as I said we're really excited about Nicole's again this inside of the report Nicole you got some information that's incredible well one of the things that I wanted to address which is in this report and is I'm always anticipating what people are thinking and we're always talking about how incredible this investment is and for those of you that are thinking well if it sounds too good to be true you know what's the catch there is no catch and one of the things in the report was is there a bubble for color diamond so I'm just going to read a little portion of this just to answer that question that many of you might be wondering so the outlook for color diamonds remains positive and many of the insiders are dismissing the notion that color diamonds will be in a bubble and eventually burst so they they're justifying that dealers have shifted to this market for a reason and continue to compete for an ever dwindling supply of goods prices have increased due to consumer demand and not speculation and that's very important now they also go on to say that nothing is completely bubble resistant but for now consumers are looking for something unusual and exciting with real value at a time when low interest rates continue to drive the wealthy to invest in collectible connoisseur items in such an environment color diamonds surely make the grade and are likely to outperform other assets in the short term for now the color dark color market remains the one bright spot of real growth in an otherwise stagnant diamond industry and it's especially important to know that while we've received economic downturn for instance the crisis of 2008 color diamonds not only remains stable but they went up in value records were smashed at auctions for the last ten years alone color diamond prices continue to escalate it's very exciting please do not think about a potential bubble it does not exist this is the safe safest smartest most beautiful lucrative asset that you can possibly make if you want any more information please don't hesitate to call us and we'll walk you through it we'll take a short break the numbers to call one eight seven seven two one four seventeen eleven and direct contact monday to friday one eight seven seven eight silver and while we take a break head over to guildhallwealth.com and sign up for the precious metals advisor free subscription to guildhall's premier market newsletter and more of the real money show talking diamonds the number you want to call one eight seven seven two one four seventeen eleven monday to friday during business hours direct contact is one eight seven seven eight silver and guildhallwealth.com. Paul you mentioned this in the past and every time you go to guildhall and buy a fancy colored diamond comes with a certain amount of certification with your purchase. I guess you could address that as well as anybody at being a GIA graduate. Absolutely we every single one of our diamonds have been graded by GIA which is the genealogical institute of america and they're the foremost authority the world's foremost authority on diamond grading so we only go with GIA and you will get a GIA grading report which tells you all of the information about your diamond there's certain grading criteria many of you have heard of the four C's the four C's are your cut your color your clarity and your carrot weight and it will tell you all that information including the symmetry the fluorescence the polish there's also a plot on on the grading report and it will give you all the dimensions for your diamond as well as showing you if there are any clarity uh valuations any clarity marks on the diamond everything will be there. We also provide an independent appraisal now we use two companies now we're very happy to announce we're using two companies and the reason is because Harold Weinstein who we use grading for color diamonds has become an appraisals have become so popular that they're busy now so we like to get our appraisals in early but everyone's backed up now because there's really only very few people in Toronto who even know about color diamonds and and can appraise them so we're now using another appraiser as well and this appraisal appraisal is your replacement value so if your your diamond is lost or stolen it will give you an indicator of how much it would be to replace that diamond so you get those two reports with your diamond and every single diamond on our website will show you the the independent appraisal and grading report. You know you read from the article before the break about the increase demand in this hunger for color diamonds I was I was reading some of it while we were taking a break and part of it here is interesting says a strong demand witness for color diamonds at the auctions has filtered down to commercial goods as well dealers explain that the rarity enhances the investment appeal of colored diamonds and even among medium to lower end consumers that's huge. Absolutely that's huge and it gives everybody an opportunity and with companies like Guildhall we're enabling everybody so you don't have to be an ultra high net worth investor spending 40 million dollars at an auction for a diamond you can get into this this investment for like we were talking about earlier 12,000 up to a million plus it really depends on your budget. Yeah we don't challenge anybody's pocketbook I mean every meeting with Guildhall is strictly confidential you know you come to our office we sit down we figure out a budget we show you product every diamond on that website go to Guildhall diamonds.com we own there's no bait and switch every diamond is available to you as I said we don't challenge your your pocketbook but we will help you pick a diamond we will explain what it is especially nickel. Nickel is a GIA you know diamond graduate grading diamond graduate so she understands the diamonds I mean I pick just on basically my knowledge I've been a collector I understand the product I know how to negotiate with my dealers and partners cutters and polishers they come to us because we pay our bills they you know when a when a cutter and polisher takes a rough diamond cuts and polishers they want to get their money they don't want to wait 90 120 180 days and sell it to a Tiffany's a Cartier or a graph and wait for them to sell the diamond they come to us because they know we move merchandise they're going to get paid straight away they give us great prices we pass these prices onto our clients. I have started to notice we all started to notice that colored diamonds are starting to make their way into into jewelry stores I remember a few months back Tiffany's was doing their they're re doing a new flagship store on Blur Street and the whole outside was all colored diamonds but one of the things that you notice when you you go into those stores and you kind of do a bit of research is that the the diamonds aren't of the same quality that we're that we have they're not necessarily internally flawless they're probably down to VS and they also have you know a tremendous more amount of overhead that theirs worked into these diamonds. Correct so what what they'll do is they'll they'll they'll sacrifice a C here in there one of the four C's and obviously you're paying retail so one of the things that we've noticed from from jewelry that we've created and we have a great designer that we utilize is when you're when you're picking a diamond that is internally flawless and has great symmetry and all of those things when you put it into jewelry there's something just spectacular about it so you can really see it and the other thing we've noticed when when people do come to to look at diamonds and choose a diamond is Paul always says it chooses them they know it's subjective it doesn't matter they're all great just pick one and inevitably someone will hold one for a little a little longer than the other and we we know that that's the one for them and we help them to make to to realize that answer. And it's funny men tend to choose the pinks and women tend to pick yellows and they always say to us well what's the difference this is a half carat pink and this is a two carat yellow and it's the same price well you know size does matter in some cases and it's important you know if you're putting it into a piece of jewelry you know your two carat diamond is going to look a little bit better than a half carat pink but the pinks are so rare especially the argar pinks if you go to our website you'll see some beautiful argar pinks we have a 0.53 a 0.59 intense we've actually even got a 0.81 from last year's tender that's a that's on the website and I'm going to tell you something right now we are going to be changing the price on that because we know the prices are up 35% we have a 105 fancy vs two pear shaped pink that is absolutely stunning and we have with it a 107 fancy internally flawless blue that's actually a pair is male female is a blue and a pink two pear shaped diamonds and they're both stunning but they're in the $300,000 range per diamond and it's not doesn't meet everybody's pocketbook but as Jeremy said you can get started for $12,000 you take that stone in you know five years time it can easily be worth you know twenty four twenty five thousand dollars and in ten years it can be worth 50,000 but when you get into a vivid the vivid are extremely rare it's like having alexus misadis and a Ferrari you know the Ferrari if you put that Ferrari away for a long time it becomes something that people desire and one especially if you don't use it don't have no mileage on it doesn't have a scratch on it it becomes a piece that becomes valuable and that's the same thing with natural fancy color diamonds there's fancy there's intense and vivid you know you can buy an intent of fancy for 12,000 the same one carrot is about 18 20,000 in intense and when you go to a vivid it doubles again to about 40,000 dollars 38 to 40,000 dollars so it's up to you but this is an investment that stands the test of time and since they've been keeping records for the last 40 years they've never gone down in price and we do tend to increase in value approximately 20% every year we have a calculator on our website we've been very conservative we put down 12% a year we don't want to say something's going up 20 the insider report tells us that vivid are going up 35% we're saying 12 so we're being pretty generous with them conservative in what we're saying go to our website look at the diamonds pick something out give us a call set up an appointment get into the office because i'm going to tell you we are changing the prices you know we i have to replace these diamonds the vivid i'm going to be paying 35% more than i've got them up right now so i'm not dumb i wasn't born yesterday you know i just didn't come over on the boat i'm putting the prices up it's up to you you want to make a great deal come call us make an appointment 1 8 7 7 2 1 4 17 11 in direct contact monday to friday another number really easy 1 8 7 7 8 silver guildhallwealth.com you know nikole um paul just mentioned the argyle and we should mention that the argyle mine has got a lifeline it's not open forever exactly it's already been operating for almost 30 years and it's going to be closing in 2020 so they have gone underground mine it was an open pit mine they've gone underground and they're really just mining for what's left argyle mine produces 90% of the world's pink diamonds sounds like a lot it's it's actually really out of a ton of ore that that that they mine it's like a bucket and out of that bucket it's very few that are actually it's one tenth of one percent and so it's really one tenth of one percent of that bucket and it's a small bucket so they are very rare and of course of that one one tenth of one percent that isn't to say that all of them are investment grade so really it's a fraction a fraction of a percent that come out of the mine that are true investment grade we have vs diamonds and in in the argyle world especially for pinks vs is the highest clarity that you can get each one of our diamonds they're they're so spectacular and the amazing thing about argyle diamonds is that they're a purplish pink raspberry colors strawberry colors a very jewel tone color and it's very it's very unique and that's what the argyle mine is known for so when the argyle mine closes you can still buy pure pinks in in brazil and africa around the world but these are a very specific color that investors connoisseurs want and it's it's kind of the brand argyle that people are clamoring for and and also if you think about it every year argyle is doing a tender of about 65 diamonds over 10 years that's 650 diamonds you know 20 years yeah 20 years you're looking at 1300 or so diamonds it's the you know that's all that's a very small amount and if you if you look at the vs quality of that which is clearly about 20 percent or a quarter of that you're looking at a potential of in tender diamonds 300 it's crazy and out of what can come available from the argyle mine that they can recut and create vs you're probably looking at maybe another three four five hundred diamonds so the fact that you can see that we carry on a regular basis vs quality diamonds shows you where we are in the industry how close in the industry you have to be to the cutters and polishers to get that type of problem you're looking at an argyle pink it's like looking at a great artist you know there's an original oil painting i mean there may be some lithos sign lithos there is hundreds and hundreds and thousands of prints you can you know in posters and books and whatever but it's not an original and it's not a sign litho that's the difference the argyle mine produces as nickel says one tenth of the world's production or the mine's production is argyle pinks i mean you know they produce whites and browns and there's a lot of browns that are industrial diamonds but the pinks are where you want to be they are so rare even in blues for every 112 Picasso's that go into auction at sotheby's or chris is there's only one blue diamond and when i when you're asking me the question john i don't even know if i mentioned in my little ramble that the mine is closing in 2020 so so that's six years left and if you think about is dead right so if you think about what's what's going to be left above ground to to sell and trade and collect it's not going to be very much because investors and connoisseurs take those argyle diamonds particularly tender diamonds which are very few and far between and they put them right to the back of the safe and they're going to put them away for decades so you're only going to have really what's coming out of the mind because anything that's already above ground let's say to recycle is just going to be kept in in sapes and vaults it's no difference to savvy investors savvy investors collect baseball cards you know uh collect postage stamps they're for lateralists they understand this rarity of something that is not there's no longer they're going to be produced you know to create a diamond a natural fancy color diamond it takes about three billion years you know you don't put it in a pot and turn it on and cook it and cook it and say we've got a diamond it takes three billion years to even create this type of quality with nitrogen and hydrogen in these type of diamonds and the rarity increases i guess with worldwide exposure and popularity ten you mentioned a decade ago you never saw mba stars and musicians walking on the red carpet diamonds it was really in the 90s in the late 90s when we saw celebrities really wearing them on the red carpet and especially when Jennifer Lopez had her huge pink engagement ring early 2000s that's when the world took notice and that's when it kind of took off in terms of a trend but then it also had a lot of awareness on the investor side and especially when we saw world markets collapsing then people were turning to hard assets and turning to alternative investments and they saw the the huge rewards and then it really took off from there as well and you don't need j-lo money to get started that's the key ring you don't the number one eight seven seven two one four seventeen eleven and direct contact monday to friday really easy number one eight seven seven eight silver guildhallwealth.com online and sign up for the precious metals advisor free subscription to guildhall's premier market newsletter gold and silver buoyant how do you get in on we'll do that next and back with more the real money show the contact numbers to start investing one eight seven seven two one four seventeen eleven and monday to friday direct contact number is an easy one one eight seven seven eight silver you can go to guildhallwealth.com and guildhalldiamonds.com as well we could talk about diamonds till we're blue in the face or yellow or red for that matter I want to wrap it up Nicole the argyle wrap up tell us how people who are listening and people want to invest can get the information you were talking about sure just send us an email you can send it to info at guildhallwealth.com or info at guildhalldiamonds.com or call us and we have an argyle wrap up report as well as three great videos so if you don't want to read it you can listen straight from the source from from from argyle and you can learn more about the diamonds as well as investor sentiment so great little videos they're short just to learn more gold and silver buoyant you guys also do well very well Jeremy what's uh what happened this week well as you know last week we talked about a special that we had oh that's right we had some bullion product that came in we had some maple leaves um they all sold out very very quickly um sold very quickly yeah we uh sold a few kilo bars and uh we have one monster box left of maples and uh we'll continue that sale for for that so if you're hearing that's your only shot to for that one uh plug on on that special but as the week went um really busy people really taking advantage i think there's that sense that this debt ceiling was going to be resolved one way or another i think a lot of a lot of what you saw pricing wise whether it be the market going down or the market going up it seems whichever one happens there's always an answer for it but it seemed like a lot of um it was baked in the cake whether it was the stock market moving up or gold and silver moving down initially then they came out they said that they were going to raise it and obviously gold and silver shot up so uh we know that that raising debt limit is not a good thing for fiat currency and so we we definitely seen the the prices move up a lot of people knowing it's it's it's go time you know it's uh it's time to make a move in this market and we saw a lot of activity in physical buying a lot of people buying into the depository this week and one of the more exciting things we had happened this week is uh one of our uh very large clients came to the depository to what we like to say kiss and hug their their medal so that was really exciting uh you go through all the security and and all of these things and uh they went to visit their their bullion we had a huge skid they let us into into the the room to do it because it was just too much bullion to bring out into the showing room because it's this wasn't a couple a couple hundred ounces this was uh this was over ten to ten thousand ounces so hundred one hundred ounce boss yeah the wonderful wow the wonderful thing is is is our client was so excited they said okay i get it now i understand what this is all about you don't go and buy bullion and put it in a safety deposit box where you've put it in the trunk of your car you've driven it to the bank you've put it in a safety deposit box or a vault at home when the price moves at some point it's going to move up at some point it's going to come down you don't want to wait for banking hours or go to your basement pull it out of the vault let's lug it up the stairs like a dead body and put it into the trunk of the car now go to the bank or go wherever it is you're going to go to sell it and by the way use your crystal ball all the way along because you know when the price is going to come down or not look we know that this is a secular bull market there's a long way to go here but there's logistics involved in physical bullion and when you can see um a thousand ounces what it actually looks like and what it is to carry a 70 pound brick um or division of or see a skid of ten thousand ounces of silver it clicks in really quick what this is all about this is about securing and storing and segregating your bullion this is your your asset that has no counterparty risk involved if banks go on a holiday doesn't matter if banks put in capital controls no problem you can always take delivery of it this week a letter that JP Morgan sent out to every one of their business clients that had over fifty thousand dollars you got some yeah that this was interesting because you know gold and gold and silver in the mainstream are not are Cinderella no no one wants to know in the mainstream um it's taken a long time for people to get on to CNBC to talk about gold and silver and for them to even entertain it um to any degree but what you do get is a lot of blogosphere stuff in in silver and gold and one of the articles that came out was that JP Morgan was was putting capital controls if you had fifty thousand dollars you couldn't do it you couldn't do international wire transfers turns out as we looked at it even though it literally was capital controls turns out what it was is is JP Morgan was looking to get lower businesses to put more money into the bank and pay more fees and move up to the higher account level so they're trying to funnel their clients to get more money out of them and that's actually on the heels of the fact that JP Morgan for the first time in something like seven years or so um don't quote me on that but it's been a long time sorry since 2004 they had a quarter loss and the reason they had a quarter loss is because they've had to put away something like seven point two billion dollars for litigation so you know when a bank is crooked eventually if the if the CFTC doesn't have the ability to go after them you know to me it's it's all starting to look like an episode of boardwalk empire when when the crooks have the have the the police in their pocket eventually they're civil suits eventually their their clients are gonna are gonna complain and it looks like it's finally coming around to bite them in the in the backside and they're finally having to put away a ton of money to fight litigation because they have so many lawsuits against them for things that they've done ultimately again this all comes back to do you want to be a part of a market where things can be manipulated owning gold and silver has no counterparty risk you're simply purchasing an asset protecting your wealth and if you continue to buy month in month out you're building your wealth as well so everyone at our firm holds it owns it we've had it we've been here since 2002 and um it it helps you sleep at night knowing that you have that asset we're recording this show Friday afternoon it's around about three quarter to three uh silver's trading at twenty two dollars gold is trading at thirteen hundred and seventeen dollars gold went down to as low as 1280 this week actually at the beginning of the week uh fried last week uh they sold off they tried to sell paper through the system and they sold millions of ounces through paper contracts for every seller there's a buyer for every winner there's a loser somebody bought the gold at twelve hundred and seventy dollars or twelve hundred and eighty and have made a sizable profit buying it you have to remember a lot of these central banks that are buying up especially out in China where they're buying up these when somebody's selling off you don't put millions of ounces in the market anybody that's going to trade understands that you ladder in this was a you know specific smash down they didn't get away with it somebody bought it and you know what at the other end they're saying you know what we take these contracts over but when the contract is due we want the product we don't want to roll it over we're going to take the product and it's going to scare the living daylights out of some of these people because there's going to be a lot of short covering happening in in in the very near future we're still having problems even we sell at Guildhall physical gold silver platinum palladium we don't sell equities we don't don't sell certificates ETFs futures or options on futures we sell the physical product when you drop a hundred ounce bar of silver it makes a claim when you drop a piece of paper it doesn't it's like dropping a feather it doesn't make a sound there's several ways you can open an account at Guildhall if you want to buy physical product you want to take a media home delivery it can be delivered to you or you can pick it up you can open a depository account which we are really excited about the depository because not only is it that you it's segregated it's it's allocated segregated it's secure it's insured with Lloyd's in London it's an unbelievable way to buy the product you buy a two thousand ounces of silver outright you know the market moves up well let's say you know 20 ounces of gold gold moves up 20 20 30 a hundred dollars and you want to sell off five ounces you can sell it off take the money it's easy it's you can be done on a phone call it's the most simplest way to trade it's secure if you want to take home two thousand ounces of silver it's a hundred and 30 pound the insurance companies don't insure you for that if you're burying it in the back garden or under the mattress or putting it in the basement somewhere hiding it you you know if that's stolen from you you can't put an insurance claim it's like diamonds it's 25 dollars a thousand give or take to ensure gold silver or diamonds so again you can take home delivery if that's what you want to do put it in safety positive books thousand ounce bar a silver weighs 65 pound looks like a big french french loaf it's heavy and you you know it takes some muscles to move it you know so you can do that you can put it in our depository for easy liquid it even buy and sell on a phone call we even offer collateralized financing where you can put up as little as 30 percent and finance 70 percent so quick example today's silver is 22 dollars for you to buy that outright with commissions it'd be about 23 000 dollars with all the opening fees for you to double your money would have to go to forty six thousand dollars today take the same thousand ounces you put up round about eight thousand eighty five hundred dollars silver moves up from twenty two dollars to thirty dollars you've doubled your money you've made eight thousand dollars so five thousand ounces you're going to make forty thousand dollars ten thousand ounces you're going to make eighty thousand dollars it moves up twenty dollars if you look at two thousand two thousand eleven may first silver was trading at forty nine dollars we're at twenty two dollars today a smash down again gold was trading in 1930 it's thirteen seventeen that's six hundred dollars to move to take out last year or two years higher it's going to happen i've been saying on this show i think over the next 12 months you could easily see two thousand dollar gold i think you're going to see fifty five sixty dollars silver that's my opinion i'm sticking with it again it's one of these things it's better to be a month or two months too early than one day too late you could have gone into silver at eighteen dollars when we were pitching and telling people at eighteen twenty it was an absolute steal a twelve hundred dollars and change gold was an absolute steal we think it's got a long way to go if you look at things that happen you know in world war two they had ships going across the Atlantic delivering the salaries to the to the armies those ships got sunk five pound notes no one's diving for those paper five pound notes they're still diving for galleons off the coast of florida and bringing up ingots gold and silver guess what and it's still worth millions and billions of dollars today what does that tell you gold silver is real money 187 214 1711 and direct contact money to friday 1 8 7 7 8 silver well coming up in the next segment i want to go over what it's going to what it actually takes to mine gold and and silver what the supply looks like where where the mining what's the mining industry look like i don't i'm not a mining expert but i can tell you in terms of what what they're saying it costs to mine gold and silver these days this is going to be a big factor whether or not you think that we've bottomed out here whether you think it's sustainable to keep the prices at at this level and where you can where you can project where the prices are going to head so stick with us we're going to talk about the mining industry a little bit what it takes to mine gold what it costs and where that potentially leaves us going forward the end and the numbers to invest one eight seven seven two one four seventeen eleven and the direct contact money to friday business hours and one eight seven seven eight silver it's just that simple online at guildhallwealth.com or guildhalldiamonds.com and while you're there sign up for the precious metals advisor free subscription to guildhall's premier market newsletter the real money show the numbers to call one eight seven two one four seventeen eleven and direct contact monday to friday business hours easy one eight seven seven eight silver one eight seven seven eight silver completely easy number guildhallwealth.com online and guildhalldiamonds.com just before the break Jeremy Paul was talking about you know bullion for every buyer there's a seller yeah you know it's been really interesting we were kind of talking a little bit earlier about the fact that the CFTC seems unwilling to to do things to to battle what all this trouble that JP Morgan's getting into they're not really heading it off at the past one of the things we've really started to see is a lot of hedge fund people a lot of money managers a lot of people taking care of sovereign wealth funds have been getting on to CMBC and other mainstream news outlets and saying you know when a massive order goes in on a friday afternoon for gold selling it looks suspicious because no one wants to sell that amount clearly it's going to the bid the bid on that is going to be much much lower so you're basically trying to push the market down no one's saying that no one's you know throwing the flag up saying manipulation they're just saying that looks really weird and when everybody is starting to say it out loud it's becoming everyone knows on Wall Street what's going on but Paul is 100% right someone is taking the other side of that trade and the people who are taking that other side of the trade are other sovereign wealth funds central banks the Chinese the Japanese the South Koreans the Russians the Brazilians you name the Germans anyone looking to get bullion into their central bank to protect against what fiat money being printed all over the world so it's worth something and so there is a backside of that trade which is someone's taking delivery of that physical metal and that's ultimately putting a base into this market and at the end of the day they say those who own the gold make the rules the key phone numbers one eight seven two one four seventeen eleven and one eight seven seven eight silver monday to friday during business hours you know you you've you've handed me some pretty interesting notes over the last couple months doing the show the one you just handed to me says let's talk wallpaper i have no idea what this is right should be boring right you'd think i mean unless we're painting your house or remodeling well you know we the the the many years that we've been doing this show we always talk about the usages for silver whether it's silver in transition lenses silver in products clothing to absorb the bacteria so it doesn't stink in your gym bag this was one of the most interesting i'd seen i know we also talked about the new usb drives being made out of a little silver so it's a lot smaller etc how about silver and wallpaper and the reason they're doing that is because it's the only element in the table of elements that can block Wi-Fi come on yeah so snowden won't happen again government offices they are using it so that information come get out like silver lined wallpaper silver lined wallpaper total james bond yeah and in fact i mean that that's not the only time they've started to use silver in in construction sovers also used in wood as a preservative to stop wood from breaking down uh they're also using it where there was copper piping they're starting to use silver i guess that's for electricity being pushed around so there's a lot of usages for silver all over the place this is a big one especially for security reasons and i think we're all kind of concerned about security with the internet so that's a huge new usage for silver and it goes along with what we've what we've been saying for a long time which is there are more patents pending with the commodity of silver in it than any other element out there so while anyone can say well the economy's soft therefore industrially silver won't be used uh-uh it's in your ipad it's in your cell phone it's in your wallpaper that's fascinating yeah absolutely well again and in medical bandages i mean because silver doesn't contact contract bacteria uh that's where that saying comes born with a silver spoon in your mouth it didn't you know contract bacteria so it's it's interesting but there's a million reasons why you should buy gold and silver the main reason today is it's underpriced you know Jeremy was talking about JP Morgan of you know put these limits on it's like cypress i mean you know if you had over a hundred thousand euros in the bank they confiscated 20 percent of your wealth if you had diamonds or gold or silver they couldn't do it um it it's you know nothing has really changed i mean what went on in the us uh with this you know kicking the camera down the road with a budget i mean it's just delayed delay delay i mean you cannot keep on delaying things without sooner or later you pay the piper you know you pay me now they just have an ad on tv you pay me now you pay me later you're gonna pay me later um the kids the grandkids the future kids of the world you know the us and canada are paying gonna pay for this debt you know if you're an individual and you're maxed out on your credit cards what happens the smart person will say i'm going to cut up my credit card i won't buy anything on the credit card i'll try to pay this debt down or let me try to you know negotiate a better rate with a bank or whatever businesses if they can't pay suppliers you know you try to get a little bit longer terms but you have to pay something happens the us all they want to do is screw everybody i mean literally screw everybody you cannot carry on printing money it's confiscating people's wealth why do you think they want you to be in the stock market it's paper why do you think they don't want you to deal in cash anywhere they want credit cards use credit card use this use a line it's paper people don't use money anymore crazy well i think i think the whole thing comes down to a crisis of confidence the question is how long are people going to continue to have confidence in the fiat currency in these institutions like JP Morgan who's got multiple lawsuits against them how long how much longer are people going to believe the sway in the mainstream media where you know Goldman Sachs says sell gold and then you find out three weeks later that they were looking to buy it you know how long is that going to happen but you know there's more than one fundamental out there in terms of well just hedge against hedge against uh look at the ratio against stock market collapses and fiat currency when you look at the supply we said coming in out of the last segment you want to look at the supply of gold and silver right now the main the really big mining companies can can mine silver for fifteen dollars or so the main ones the rest of them can do it at 19-20 dollars we're selling at 22 right now so there is a very very slim margin for a lot of those companies that are trying to make a buck in in the mining industry how long can they keep trying to sell at those low margins not very long and when that starts to happen and we've already seen it in the last couple years with with silver and gold is mining operations are just shutting down they're waiting till the market moves they're going to need much much higher sustained prices before they'll even say okay fine we'll go into it because the last time they did it market was running they expanded expanded expanded they thought the market would run would just keep running it didn't they got caught with their with their pants down in many respects and now they're going to be they're going to be gun shy to get production going and what we can see is that if you need silver to be 25 dollars to really start making money on it we're going to need sustained higher prices before these mining companies can come back online or these smaller marginal ones can really start to make money so it's supply and demand it's supply and demand and we've already been in a deficit for silver for decades more silver has been used than is coming out of the ground which means you're going to whatever stockpile there is so it's ridiculous that the price is even low it's ridiculous that people are waiting for a lower price to get in the funny thing is you know when you talk about gold or silver on every tv show they think everybody the clicks gold and silver is a gold bug we all got tins of spam and bottles of water and gas masks that's not the case i mean you don't put a hundred percent of your money into gold and silver but let's you know always a couple of weeks ago was giving an example 10 years ago if you would have took ten thousand dollars put it in a coffee can and buried it in the backguard or left it in the house somewhere you know that ten thousand would be about seven or eight thousand dollars worth of buying power today you know silver ten years ago was trading it let's call it four dollars you know you would have bought 2,500 ounces of silver 2,500 ounces of silver today is worth fifty five thousand dollars for that same ten thousand dollars what is the better value and i don't care about if there's people out there listening say well it was you know if you take this and compound it and do this and do that all i know is 2,500 ounces is worth fifty five thousand dollars two years ago uh it was forty nine dollars it was worth a hundred and twenty odd thousand dollars yes it's come off but that ten thousand is still worth ten thousand with a buying power of about eight so if you want to play catch up this is the great time at twenty two dollars to buy silver gold at thirteen hundred dollars and change you're not going to do any damage don't put a hundred percent of your money put fifteen twenty percent of your funds into something that's going to protect your hard-earned cash well they're great speaking on what Paul's just talking about great article came out they just printed a whole list of how silver and gold are have done since two thousand to september of two thousand thirteen so they're taking away the high of the market from a couple years ago and just comparing it to fiat currencies and it's amazing you want to know how silver's done against uh the Canadian dollar in in the last in the last uh thirteen years hundred and eighty nine percent so if you'd want to be in Canadian cash or silver would you rather be up a hundred and eighty nine percent or have lost that purchasing power Chinese won two hundred percent let's let's go look for uh the u.s. dollar here u.s. dollar 306 percent now these are these are generally speaking stronger currencies if you look at something like uh samalia or or Sri Lanka rupee at 650 so you know there it's an interesting thing to look at how a hard asset with a five thousand year history of of securing wealth has done against fiat currencies i don't care what they say the inflation rate is i don't care how much money they print or how much debt ceiling they have numbers like this numbers like this don't lie they show you this bar redoah these are interesting facts i mean you know a guildhall we only sell physical gold silver platinum palladium you can finance if you want to finance you can take home delivery you can open a depository account which is safe secure allocated segregated uh we can even give you the numbers of the bars so that you you know exactly where you are don't put all your money in gold and silver don't put all your money in diamonds but put have anywhere from 15 to 25 percent you will make money now we are going to have some specials give us a call throughout the week because we're going to have uh some product coming in and we'll let you know what we have on special but you have to give us a call to get and we'll let you know what those what that product is whether it's maples or hundred ounce bars and if you really want to get the you know an investor kit learn all about investing in gold and silver that's available to you you can get our precious metal advisor which is our weekly report brings you up to date with what's happening in the market uh we have a couple of great videos on argyle diamonds and diamonds in general so go to info at guildhalldiamonds.com uh the same thing you can go to info our guildhallwealth.com call us make an appointment get into this investment you will not be sorry the number to call to start investing like Paul said lots more information there's two of them one eight seven seven two one four seventeen eleven and direct contact money to friday business hours this one is really easy one eight seven seven eight silver and go to guildhallwealth.com catch old shows on iTunes just like Paul said make sure you sign up for the precious metals advisor free subscription to guildhall's premier market newsletter this has been the real money show what if you could 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 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