The Real Money Show
The Real Money Show - September 28th, 2013
The Real Money Show with Guildhall Wealth Management from September 28th, 2013.
And welcome to the Real Money Show, a full hour of expert advice on gold and silver bullion and natural, fancy, colored diamonds, one of our favorite parts of the show in studio today, president of Guildhall Wealth Management. That would be Paul Wiseman, as well vice president Jeremy Wiseman and Nicole Snippman, the resident queen of diamonds, the expert in the diamonds here on the show. Lots of stuff happening today, guys. The numbers to invest, by the way, get started is 1-877-214-1711, the website guildhallwealth.com. And make sure you take advantage of the precious metals advisor, free subscription to Guildhall's premier market newsletter. And good afternoon, guys. Jeremy, market update right off the top, aren't you? Sure. Let's just get straight into updates on precious metals. Both gold and silver were not much changed week over week. We are sort of range bound, although we are seeing a tick up into the close on Friday here as we tape the show. Basically, after a nice run up that we saw since the post lows from June, it is natural to see some consolidation, which it very much feels like right now. Although, of course, you know, when you go sideways for a little too long, you might see a bit of a retest, which it looks like we're perhaps getting in gold around the $1,300 level. We've seen that a couple of times and it's bounced bounced off nicely. So we're not expecting too much of lows, but of course there are always are opportunities. Right now, 13, 25, 13, 40 in gold is clearly an opportunity. Anything below 25 in silver is an immense opportunity. Essentially, what you're going to be looking at is so if silver crosses 25 or gold crosses comes a close to 1400, then we do expect extended moves upward and confirmation of the advances in that to come on that. So that's where we're at with precious metals in terms of the range bound and we are expecting longer prices long term or higher prices long term. Okay. Also, in the recent news, we had the CFTC did conclude their investigation. This was an investigation that's been open for several years now, looking into perhaps a price manipulation in the silver market. You did have Andrew McGuire basically walking them through a manipulation in the market and they've concluded that there is none. Of course, this is also coming from JP Morgan, which are in a lot of hot water for a lot of misdoings in the market. Essentially, saying there's no wrongdoing that we can see, the market clearly doesn't really care either way. There's been no drop in price. If they had concluded that there was manipulation, then you could clearly see that the market would have taken off significantly. Real investors know the story. They continue to buy physical as opposed to paper. This ends up being a bit of a misnomer in terms of news. Well, this is really important news actually that the CFTC went after JP Morgan a little bit, but I think JP Morgan's got enough on their plate. The US government seems to be extracting enormous amounts of money in fines. They just got fined $11 billion. They're up to almost $20 billion within the last year in fines alone for doing wrongdoing, the London well, manipulating oil, manipulating gas. They didn't need to put gold and silver on, but maybe they'll come back to that in a year or two when they extract some more money from them. But it seems that the US government is definitely going after JP Morgan. The interesting thing is I just got back from a trip from the States where I visited one of our largest suppliers that sell US mint and Canadian mint coins, both maple leaves, eagles, as well as other bars of gold and silver. I went to the vault. I went and did a whole tour of their premises, and the strange thing is that they are back-order. They're allocated product, whether it be from the mint, whether it be from the US mint. It's coming in. But we're about a month behind, even without deliveries, from two other sources that we use for our purchasing. Now, at Guildhall, we only sell physical gold, silver, platinum, and palladium. We don't deal in paper. We're not selling equities with stocks. We're not selling ETFs. We're not selling certificates. We're not selling any other form of paper trading, whether it's options or futures, options on futures. We deal with the physical product. You can buy the product, gold, silver, for immediate delivery. You can have it delivered to your home, your office, or you can pick it up from us. We have a second option that is the best option that we fill this out there at the moment, where we have a depository, which is safe, secure, insured, where you can take your product. You can store it with us, whether it be 10-ounce bars, 100-ounce bars of silver. If you want 1-ounce bars, 1-ounce rounds maple leaves, we have that as well. Whether you want 1-ounce gold bars, 1-ounce maple leaves, 10-ounce bars of gold, or kilo bars of gold, we have this available for you in the depository. The depository, as I said, is safe. It's secure. It's insured. It's very easy to open an account. Any time you want to get hold of your product, it's available for you. If you're a large investor and you want to get the bar numbers, this is going to be available for you. If you buy 5,000 ounces of silver, which would be 50, 100-ounce bars, and you want those bars, it will be segregated and allocated for you in the vault. This is the way to go when you're buying physical gold and silver. The beauty about the depository is that you can sell on a phone call. We talk on the show every week about countries printing money, whether it be the US, whether it's Japan, which has been doing it for years, Europe, Canada, they're all printing money. Every one of these countries has a central bank. These central banks in the US is the Fed, we have the Bank of Canada, and then there's all these central banks around the world. They are still buying gold and silver. They're printing money, yet they are big buyers of gold and silver. Now, we've got emerging countries, China, India. India has always been a country that believes in gold, generation for generation for generation. Gold has been proven, even if we look over the last 10 years. Guildhall has been in business since 2002. When I first went into the business, silver was trading at $3.80 an ounce, gold was trading at $250 an ounce. In 1971, when did Nixon take the gold standards? 71. Gold was $35 an ounce. Today, we're trading at $1,340 an ounce. Two years ago, May 1st, gold was trading at $19.30. Personally, do I believe gold is going to go above $19.30? Yes, I do. I believe you're going to see him. My opinion, gold, go to $2,200 and above. It's not only myself. I mean, you've got people in the business that have been in the business a long time, with John Embers of the world, the Sprots of the world. You can read all the negative you like. You can go into CNBC and B&N, and they've got everybody on the bring on to these shows are all selling stocks. Stocks right now is where they want you to be. Again, you're dealing in paper. If you think that the stock market is only going to go up, it's never going to collapse, how do you feel about owning rim? How did you feel about owning Nortel, which it was $100, stock that went to $1. Bear Stearns, Enron, just to name a few companies. Gold and silver have been one of the best investments that you could have made over the last 10 years. We're still up 400%, an average of 40% a year. Gold and silver moves up. 1 8 7 7 2 1 4 17 11 or guildhallwealth.com to start investing. Jeremy, or Polly 1 answer, we have a question, by the way, you want to send questions to the real money show that's investing at guildhallwealth.com this week. When you guys can handle this, comes from Tom and Woodbridge and is asking a good question. He says, "How do I determine whether or not to use collateralized financing or deposit rate?" You guys talk about this every week, which one do you take? First off, let's talk a little bit about the depository, why you'd want to do that. If you like the market, you're buying gold and you've decided, "Okay, you know what, I'm going to own more than just a couple thousand dollars worth of bullion. Now you have to start thinking about security on that bullion as well as you're the type of person who's looking to simply purchase it. You don't want to think about it too much. You know it's an asset. You know you're putting 10, 15, 20% of your net worth into it and you want it to be secure. That's where you want to start thinking about the depository. Unlike holding it at home and the security is basically on you to to ensure it because companies won't ensure more than $1,500 from my understanding is not only the security of it, but also the logistics. Eventually there's a lot of bullion there, whether it's gold or silver, you're going to want to eventually sell it and that's where. Just to inject there. I mean if you're trying to ensure gold and silver on your home insurance, your policy is going to go through the roof. I mean insurance rates go up anyway every year, but if you put gold and silver into play, remember you can sell gold and silver anywhere today. Even if you wanted to go to one of these places and say we buy your gold, you know anybody that's breaking into your home can go somewhere and you know get rid of that pretty quickly. Serial bars, no serial bar, serial numbers, they melt it down, they don't care. So it's a risk to take home delivery and bury it in your backyard. Even if you have a safer home, there's still a certain amount of risk. Therefore the depository is the way to go where it's secure, it's safe, it's insured. And again it's for people who understand eventually that they're going to be selling and the logistics is selling, it's easy to to sell on a phone call. So essentially it's for people who don't want to think too much about it, they want to own the asset, they don't want to have to worry about it day to day, but they do want to get into this market with more than just you know a thousand dollars or so in this market. Now the financing, that's for someone who really wants to take advantage of the market. They see that the price of silver is trading around 22, that gold's trading around 13.25 and they say you know what, there is a lot of move up here and we can take advantage of it. So you're getting a lot more, you are adding risk but you are adding a lot more opportunity as well. So if you're, if you have a good bulk of bullion, you might want to diversify into financing as well. What measurement would you start? And later in the segment, in the second segment, we'll talk about exact numbers but what's a good leap off point as far as buying bullion? I think if you're going to buy in the depository again, if you're looking to own anything more than a few hundred ounces of silver, you'd want to be looking at that and anything closer to anything above 10 ounces of gold, you'd want to be looking at that. And in the, in financing, I think a thousand ounces of silver, you'd probably want to use, use some financing, put up eight thousand dollars instead of 22. And our recommendation, I mean if you're buying a thousand ounces of silver, we recommend you buy some gold with that, about 15 to 20 ounces of gold. So you've got a bit of both. It's a safe way to go. Sometimes, you know, silver is a little bit more volatile than gold. Gold goes up an easy rate. You'll see jumps in silver. Again, if we look at 2011, silver went as high as forty nine dollars, dropped all the way down to eighteen dollars. You know, in June, we were training at eighteen dollars and twenty cents as we're recording the show today. We're at twenty two dollars. Two weeks ago, we were as high as twenty four dollars. Before Benanke made his speech about tapering, everybody was thinking that the government was, you know, going to pull in the amount of money, eighty five billion dollars a month. They were spending on buying, you know, paper. Gold, silver went to twenty four dollars and sixty cents. I believe we get two closes right now above twenty five fifty and two closes gold above fourteen hundred. You're going to see these markets move up very, very quickly. We've also got, you know, the states with the budget, which they're, you know, they're going to run out of money next week. So on the weekend of Monday, they've got to figure out a plan. But let's talk about that in the next segment. The number one, eight, seven, seven, two, one, four, seventeen, eleven and guildhallwealth.com to start investing in lots more information. Get the information as well with the precious metals advisor, free subscription to Guildhall's premier market newsletter. We'll take a short break. Thanks, Tom, by the way, for that email letter, investing at guildhallwealth.com to ask a question, get an in-depth answer from, from the show here for sure. Jeremy, second segment that found an article on gold. So you get simply titled this on, I want you to answer to it. Chinese housewives versus Goldman Sachs, no contest. Want to discuss that in the second segment? We'll get to that in the Real Money Show. The Real Money Show continues with Guildhall Wealth Management. The numbers to start investing one, eight, seven, seven, two, one, four, seventeen, eleven and online at guildhallwealth.com. Take advantage of the precious metals advisor, free subscription to Guildhall's premier market newsletter. Before we get to that article we touched on before the break, Jeremy, simple question. Why did people buy gold? Great question. I love that question. There are really four reasons to own it and we're going to focus in on one or two as far as that article is concerned, but there is geopolitical unrest. People want to protect themselves against a distrust of government or governments distressing other governments. There is this large potential of inflation. You look around, you can see that prices are rising, wages are dropping in many respects. So inflation is a big concern and gold and silver are typically great hedges against inflation. We're going to zero in here on the dollar crisis, which is an eventual lack of confidence in the US dollar. Fiat currency, printing a lot of money, doesn't create value. And so there's got to be an end game to that and ultimately supply and demand. When you're looking at gold and silver and you're thinking about investing, you want to in a sense follow the money, follow the gold, follow this transfer of wealth that's occurring. And I think this article that you found is a big, great example of a massive transfer of wealth. It's by Jeff Clark and Gold seek this article. Can I read a bit of this and you can answer to it? Jeff, please. He says that sure the two big to fails can move markets, but they say things that are good for them, not us. As an example, while Goldman Sachs was telling clients in the public to sell gold in the second quarter, they bought 3.7 million shares of GLD and became the ETF seventh largest holder. What is that all about? Well, it's amazing that, you know, at the end of the day here, we know we've got QE2 infinity. They can bluff that they're going to and jawbone that they're going to cancel it, but they keep, they keep printing. And the benefactors of that is going to be the Goldman Sachs of the world, the city banks of the world, the major, major banks on Wall Street, because they're getting, they're getting that money. That's why the stock market's going up, or one could at least create a very strong argument for that. So they know what's, what's in it for them. And they know what's not in it for them. And Gold's rising price is anti to fiat currency in the rising stock market. So when you're trying to pay off your bad debts or bad toxic investments of the, of the banks, they're getting the benefit of the Fed. And if the Fed turns to them and says, by the way, we're anti dollar. Now this is conjecture, of course, but it's a, it's well documented in the blogosphere and, and, and by, by articles like this, that essentially, look, banks and the central bank do not like gold. But on the other side of it, you've got Chinese housewives who don't seem to care what Goldman Sachs is thinking. He goes on to say, Jeff does this senior precious metals analyst says, when I visited China two years ago, guess who no one was talking about? Goldman Sachs. There was news about the US, of course, but the regular diet of journalistic intake consisted of Chinese activity, not North America and surprise surprise. The view from that side of the big blue ball was materially different than what we hear over here. In some cases, the exact opposite. Yeah, which is to say that they don't really care about what Goldman Sachs is saying. What they care about is dollar devaluations. Anybody can look at what's going on in the States and this, this incredible amount of fiat that's being created and say, I don't want any part of that. I want to make sure that my wealth that I've earned is going to be safe and secure. And I think that emerging economies, especially in Asia and India, just by looking at the supply side and the, and the, and the, or rather the demand for bullion is showing that, that they have bigger fish to fry than paying attention to whatever articles Goldman Sachs is trying to put out. The interesting thing is that there's approximately 3% of the world's population owns precious metals, gold and silver. That's 97% are in stocks, in bonds, real estate, anything other, you know, than gold and silver. Now, gold and silver has been around for, you know, 5,000 years. If we go back to biblical times, the ratio between gold and silver, 16 pieces of silver to one piece of gold in 1971 before Nixon took off the gold standard. It was again 16 ounces of silver versus one ounce of gold. Today, we're around about 65, 66 to one ratio on gold to silver. If the ratio was to come down to 32 to one right now, you know, gold's trading just over 13, $1340, silver is a $22, that would give us $44 silver. If a 16 to one ratio was to happen within a very short time, we would have over $80 silver. That's at today's rate. I need, I will actually congratulate everybody that came to our seminar last week that participated, that bought it, you know, some natural fancy colored diamonds, or they bought gold and silver. It's a great time to get into this market and we appreciate people coming out, turning out to our seminars. We're actually really excited about next week, October the 5th and 6th, where we've got one of the best celebrity speakers, Gerald Solente. He's actually written unbelievable amounts of books. He's a real trendsetter. He's appeared on every show in the US from the Today Show The Good Morning America, Fox News on ABC, CNBC, Chicago Tribune, Washington Post. He's written for all these people. He's a trendset. He loves gold and he's going to, actually Darren Long is going to interview him next week on what he thinks about gold, why you should be in gold, and other things that are going on in the world that are trending. You need to get for your family, for yourself. You work hard for your money. This is the thing that's happening in China. They work extremely hard. They want a hard asset. They don't want paper. They want something that they can trade, whether it's now five years, 10 years, 20 years down the road and protect their hard-earned capital. This can only be achieved through gold, silver, and natural fancy color diamonds. Essentially, China, as an example, is holding on to closely two trillion dollars in US assets that they essentially want to get rid of. They're selling their US treasuries and they're replacing it with gold. That means that the buyer of last resort is the Fed. They're buying their own treasuries and you have to ask yourself how much confidence can that eventually or continue to instill in the dollar, right? 1-8-7-7-2-1-4-17-11 in guildhallwealth.com to start investing right now as well. Take advantage of the precious metals advisor. Free subscription, by the way, to Guildhall. Guildhall's premier market newsletter. This thing also from GoldSeek. Jeremy says, "Who's buying your wonderful physical demand? Physical demand also soared in Thailand, Indonesia, and Vietnam last quarter, increases ranging from 20% to 40% being reported." So, it was Goldman Sachs just trying to get everyone in here. Well, yeah, exactly. So, it's cool to head fake. Absolutely. Well, again, my contention is that they get the benefit of QE and the opposite of fiat currency is going to be solid, real assets like gold and silver. But what you can see from this report, which is a great report just discussing, for example, gold imports through July into China reaching 26 million ounces, which is going to surpass what they imported through the entire 2012. It just shows you that gold is in a bull market, a serious bull market. When Paul goes to see our suppliers and they know that they're lacking in supply, that the supplies are dwindling all the time. The demand is huge here out of Asia. They're representing 70% of demand at this point, that you know we're in a major bull market. So, the question is, do you want to take advantage of the low prices or do you want to wait until the whole thing cracks open? Prices go above 2000 and you're buying late. The interesting thing is, when you go to see a supplier, especially somebody that distributes whether it's US men, Canadian men product, other men, and you see their vault, their depository and their shipping rooms. The whole floor is covered in basically half-inch metal because they don't want the floors to cave in. But they're moving product round and you're seeing literally thousands of orders waiting, being picked and checked and sent out whether it's by FedEx or whether it's by armored vehicle waiting to be picked up. It's not just us telling people to go buy gold and silver. This is in the US. When I see thousands of orders on a daily basis being picked and packed, I know we're in the right business. All these people can't be wrong. Fiat currency is extremely dangerous. If we look what's happened in Europe, if we look what happened to Cyprus, if you had 100,000 euros in your bank account a few months ago, you've got 20% of that confiscated. If you would have had gold, silver or diamonds in your, in a vault, they wouldn't have taken anything from you and you still had your money and it would have been up about 15, 20% rather than being taken away from you. Printing money is confiscating your wealth. It happens every day, every week, every month. If we look at the US dollar, is the US dollar buying the same as it was 10 years ago? Does the Canadian dollar buy you the same as it did 10 years ago? If you look at England, England had a guy who was the Chancellor's Exchequer, became Prime Minister Brown. He sold off all the gold from England. What a dumbbell. You know, when gold was trading around about $250, wouldn't they like to have all the gold back today at 1340? Never mind 1900, never mind 2000. Wouldn't they like to have that product back? But what some of these countries are doing is also leasing out the gold. So on their books or they're renting their gold, it looks like they've still got the product. But guess what? Some of these central banks, the cupboards bear, you know, the emperor's got no clothes. We see it. I see it when I see orders that are back ordered. I'm seeing product being shipped out from, you know, from these vaults from, from mince, but we're still back ordered a month. There's an allocation of gold and silver. It will still, people will keep on buying and buying. There's no good news coming out of the, out of the US and there's not great news coming out of the states. I mean, in Toronto right now, they said, great, we're going to build a subway. Federal government gives, Ontario government gives, the city of Toronto, they're potless. They don't have the money. Who are they going to tax for it? You know, it's always the end to tax payer finishes up paying for all these blunders, all this printing and everything else. Be smart, get some gold, get some silver. We only sell physical product. We don't sell paper products. You want to sell paper products? Go to a paper shop. We don't sell paper. Jeremy, it kind of speaks to what you're saying about the graph about India and China being the main buyers of physical gold. I mean, the title of that graph is gold demand is dominated by Chindia. I mean, that's going to become a term that people are going to coin eventually with this activity. Chindia. Yeah. Brilliant. Yeah. And again, I mean, it's a great article. Jeff Clark did a great job on that. Essentially, it's just pointing out that they're not paying attention to what the banks are putting out in their reports. I mean, I had a client point out to me a report this week from city that they're saying that, oh, just because we've had a bit of a move up in silver and gold as a result of the non easing or non tapering that's going on, that that's going to be short-lived because eventually there will be tapering. And yet city, Tom Fitzpatrick out of city a few weeks back or a month ago was saying that gold's going to go to 3500. So who's right? They're both work for city, but essentially these banks are calling for lower prices all the time, but money talks. And what you can see is that physical bullion is in a major bull market. Gold is being transferred incredibly quickly across across the ocean to Asia, China, India, not just there, but also Russia as well and in South America. So I think you've got to look at these fundamentals, supply demand, think about the crisis of confidence of the US dollar and say, do you want to be there if and when it does happen? And there's a lot of sources out there saying this can only go on for so long. Let's just before we take a quick break bounce back over to real investing. You've convinced me I'm not buying the Goldman Sachs bluff. Take a thousand ounces of silver. What's it going to cost me? Well, right now a thousand ounces of silver in Canadian should cost you close to about $25 or an ounce or just about $25,000 to put that into the depository. You can also finance that where you'd put up about $9,000 and you can you can take advantage of collateralized financing. So and of course we can tailor the investments, figure out what you're looking for, how much gold, how much silver, how much equity you want to put in on financing. We can do that all. So just give us a call at Guildhall and we'll walk you through it. Well, the beauty about being in the depository, you know, some people don't like finance. They don't like owing money. They don't like paying out any interest. You know, no one's going to loan you money without charging you interest. That's one thing. But when you buy, you're buying the physical product, it's paid for product, you put it in the depository. It's safe. You can sleep at night. And when you do want to sell, you can sell it on a phone call. That's the beauty of it. You can have your money basically within 24 hours. You know, very hard to do that at even at a brokerage house. You want to sell a stock, you know, they make you hold up for almost a week. You want to sell your RSP? Try to get your money the next day. Doesn't happen. 1 8 7 7 2 1 4 17 11 and Guildhall wealth.com. Take advantage as well of the precious metals advisor free subscription to Guildhall's premium market newsletter. Take a short break back with the queen of diamond. She's in studio and ready to rock out of diamond of the week. We got a question of the week and an amazing diamond up for auction. We're going to get to as well. The real money show continues. The real money show continues right here. Guildhall wealth management to start investing 1 8 7 2 1 4 17 11 Guildhall wealth.com and the precious metals advisor. That is a free subscription to Guildhall's premium market magazine. Gerald Solente, guys, coming up the fifth and the sixth going to be a huge interview. A must see and must hear information, correct? Correct. We actually worked with Gerald a year and a half ago in a Vancouver 7-hour we did. He's a tremendously smart guy. He's been a trend setter for years and years and years. He's been calling markets, been calling trends. He's appeared on every TV show there is in North America appeared in every newspaper from Oprah to the day show to all the financial shows. He's a remarkable gentleman and is fun to work with an interview. But he's a big believer in gold and he will tell you that. You've got to listen to what this guy has to say. The radio show is on 640 on Saturday and Sunday. Listen to it. You will really enjoy what he has to say. Nicole, why don't we talk about some diamonds? Great. I'm going to start with a 1.5 radiant intense yellow internally flawless and this is a really, really beautiful stone. What I really like about it is that it's quite square. We often see radians they'll be a little long-gated. This has really got a nice shape to it and it's a beautiful color. I think it's like a sunny gold, marigold color. It's really, really pretty. It's been appraised as 62,000 and it's on our website for $36,995. It's a great investment. It's a really good size like I was saying and you can view the GIA grading report and the independent appraisal online. This would just make a fabulous investment. Then we have another diamond that I'm particularly excited about. I'm actually sort of obsessed with this diamond at the moment. If I didn't have so many darn karate classes and dance classes to pay for, I might want to buy this myself. It's a 0.26 karat natural fancy blue round brilliant cut internally flawless diamond. With this diamond, I actually overheard Paul talking about this diamond with a cutter. I know this cutter, we've worked with him before and he facets the most beautiful diamonds, polishes and finishes gorgeous diamonds with great symmetry, fire, brilliance. When I heard him talking about this, the fact that it's blue so rare, so, so rare, the fact that it's round, which is an unusual cut and if a color can be evenly saturated with a round, that's a real bonus. The fact that it's internally flawless, I just looked at him, went to his desk and said, you have to buy this. When it came in from New York, it was more than we expected. I just looked at it really in the little parcel that it came in and in the flute paper and it just is so beautiful. It dazzles, it's got a great color. Now, it's small, it's 0.26, so it's kind of cute, but the color especially with blue is very powerful, mysterious. I think it's like an ice blue or like a sky blue. It doesn't really have any gray in it, which is unusual for a blue. So, it's a really, really beautiful color and for a fancy, it's got a nice popo color. And the thing I really also love about this diamond is that if you want to get into a blue diamond and make that kind of investment, we've had diamonds on our site for upwards of a million dollars. We have one right now for about $380, a beautiful pair. $380? What did I say? $380,000. Thank you. $380,000 and it's exquisite, but not everybody can get into that. So, if you're looking for an investment and you want to do really well because blues are very rare, this is the diamond to buy. It's appraised at $63,525. And right now we have it for $41,250. The difference is obviously size matters. This stone is a 0.26. It's over a quarter of a carat. And as Nicole says, you know, it's just over 60. It's been appraised around about $63,000. It's just over $40,000. We have a 107 pair shape, fancy blue over a carat. The stone has been appraised at $555,000. That's almost nine times the price. That's how it jumps when you go from 0.25 to 0.49 to 0.50 to 0.74, 0.75 to a carat. And once you get over a carat, this is an internally flawless stone. Even though it's a 0.26, it's fancy, it's round, which is really rare. It's a beautiful, beautiful stone. And this is the type of stone that would double in price probably every two to three years. I love blues. I mean, that's my passion. And they just go up. I mean, in auction at South Abyss and Christie's, you know, for every 112 Picasso's that go and sell, there's only one blue diamond. So blue is extremely rare. Internally flawless is top of the top of the heap. I mean, it's the cream. And you, as a starter diamond, this is just an incredible investment. Yeah, or to add to a collection, this would fit in beautifully. So that big blue, you're pretty much saying once you get over a carat and blues, now you're playing in the tall weeds of the big boys. Well, that's serious money. But I mean, 40,000 dollars, 41 to 50 is still nothing to sneeze at, but not everybody has 300 plus to invest. So if you want to start an investment with this diamond, you're already surpassing, you know, the fancy yellows, you're getting into something that's going to make money for you faster. Could you, I know you guys specialize in this as well at Guildhall Diamonds. Could you use either those or Lisa Yellow for, for wealth to wear? Well, absolutely yellow. Now, with a 0.26 round, obviously it's little, you'd have to, you'd have to build it up with whites around it. It can be done. But I think for this type of diamond, I would recommend just put this away and your safety deposit box or wherever you feel comfortable storing it and just tuck it away and know that I would say a minimum of five years to hold it. It's a pure collectible. It's just a collectible that because it's so rare, so it's so beautiful as a piece of art, it's just going to keep on, you know, increasing in value. The other stone that Nicole was talking about just before the 1.50 fancy intense IF, that's another breed. I mean, we're looking at, you know, Ferraris and Lamborghinis, you know, in Rolls Royce's and we're looking at Mercedes and then, you know, when we get down to the bottom, we're looking at Lexus. But, you know, we're buying the top, top product. I go out of my way and the deal is that I deal with and my partners that I work with, they know the type of stone that I would buy to sell because every stone that we sell somewhere down the road, we're going to get that stone back. Whether it be five years, 10 years, 15 years, 20 years, you know, maybe 50 years from my next generations and generations that, you know, are in my family and the business. Every stone we sell has to meet certain criteria. It has to have color, the cut, the clarity, they're all very important. You know, size is important, but it's the dimensions of the diamond, you know, there's diamonds out there in the trade. They're called leftists. The reason they're called leftists is because they're left over from, you know, they put them into pieces of jewelry. What we sell is investment diamonds. Investment diamonds means that we want that diamond back somewhere down the road. We want to resell it. We will make money. So will you. You know, natural fancy color diamonds tend to double every four to five years again on the quality that you buy. The bigger the diamond is like living in homes, location, location, location. If you're buying a home for $5 million, it's going to go up in value. Accordingly, if you buy a house for $200,000, it's not going to jump up a million dollars, but you buy a home for $20 million, it's going to jump up to $3 million accordingly. So this is what happens with larger stones. 1 8 7 7 2 1 4 17 11 Guildhall wealth.com. Also, make sure you take advantage of the precious metals advisor free subscription to Guildhall's premier market newsletter. Good to have that in your pocket as well. Nicole, I think on the way into studio this afternoon, you were talking about an insane, insane diamond up for auction. Yeah, it's insane because it's so important. This, this diamond is going to have major historical importance. It is a very important diamond. It's called the pink star. It's just under 60 carats. It's yeah, it's and that was been cut down by the way. It's a boat anchor. Yes. And it's a vivid pink and it's a oval cut. It's truly magnificent. And they're saying that the pre estimate sale is just in excess of $60 million. And the thing that I find really fascinating about this is that in 2010, graph purchased the graph pink and that sold for $46.2 million. And that was a record, an all time record at auction at Sotheby's Geneva and the same auction house that's going to be selling this diamond in November. And that was an all time record for a color diamond ever. So this one, they're already saying that it's going to have a pre estimate in excess of $60 million. So we already know, number one, that's going to be a record, right? And number two, I certainly think that's going to go for more than $60 million because it's a vivid, it's pink. It's a type two diamond, which means it has no nitrogen elements in it. So it's a pure pink and it's really remarkable. And you're going to see this in the history of books with diamond. And the other thing is as well, there's commissions involved. These houses charge 15 to 20 percent fees for putting it on the auction block. And even the seller has to pay 15 to 20 percent. So this could easily, as Nicole said, goes for $80 million, $100 million. I think so. It's one of the rarest stones. Not everybody's got that chum change. I mean, so, but you should look at our website, go and look at our pinks, our Argyle pinks. We've got a, we've put a bid in actually this Argyle tender that's just finished in in Cologne, Hong Kong. And, you know, we're trying to get three, four pinks. And we're told the prices are just that we have to bid is just outrageous. So we're still trying for four, five stones. And we hope we're going to get lucky enough. But this pink is definitely going to put the value of all pinks out. Absolutely. Because I always tell our clients that what happens at auction dictates the value of natural fancy color dimes. It's very, very important. This is the public record. This is what we know. When somebody's spending $60 million, that's not, oh, I'm going to put that on my finger just to wear it. That's for investment. So it really, really dictates the value. And it's important to watch these auctions. So you know what's going on on the world stage. Do you know where that diamond came from, the history of the pedigree of it? It came for my safe. No, it's actually, it's in an Argyle that's become the Argyle home. It originated from De Beers and it was 132 and a half carats. And then it was cut down and it was unveiled in Monaco in 2003 and sold. And now it's been purchased again. And it's going to be actually on a little tour before it goes up on the auction block in November. Like, you know, great art that, you know, was created 200 years ago. You just don't see it. I mean, they're just every, this type of diamond is a masterpiece. $60 million, somebody probably bought this diamond. I would say for $15 million. And it's already up for $60 million. It goes for $80 million, $100 million. Someone's going to take this diamond, put it away in a safety positive box or in their own home with a security where they can go and look at it and have people come and see it. And somewhere down the road, this stone will probably sell for a quarter of a billion dollars. Yeah, these are the type of diamonds that stay within generational wealth and families and or with companies that this is their hero diamond. It's, but it's still an investment to the company. But you normally see these kinds of diamonds. It's a historical piece and it stays hidden for quite some time. Jeremy, one final question before we take a break from Karen and Oakfield, ask a question. By the way, investing at guildhallwealth.com says, why is there a difference between the appraisal price and the price you charge for diamonds? Right. Well, number one, we do get advantage of good pricing. That's number one. Number two, we're not charging retail for our prices, for our diamonds. So, you know, we see a lot less quality chart being charged a lot more just because they put it into a setting for a couple thousand dollars. And then as well, you have to think about replacement cost. A lot of these diamonds, you know, when people are doing their research, you know, if they're not really happy or whatever the case is with one of the diamonds on our site, we often say, go find one. Go find something exactly like that and see, you know, because a lot of a lot of other companies will sell a lot less quality and there's a lot larger selection. Ours is very tightly curated as it as it were. So, to replace one of these diamonds means that a, you got to go out and try to find one and to do that means you're going to have to spend a lot more to get it. So, that appraisal is more about insurance replacement costs than anything else. But it's the same thing. If you were going to go and buy a Ferrari or a Rolls Royce, would you go to a scratch and dent or would you want that piece to be immaculate with not a scratch on it? Exactly. Right. I mean, it's a pride of ownership. So, when we go to purchase a diamond, every criteria has to be met. The size of the table, the depth of the diamond, if the diamond is not the right depth, we're not going to get the colors and the scintillation off of that diamond. You've known more about this than anybody in Nicole. Well, absolutely. We often will have dealers actually some local and we have, where we deal mostly in Antwerp in New York and we can compare two yellow diamonds, both internally flawless, both about the same cut because no diamond is exactly alike. And we can see the difference. We need to see the fire and the brilliance and the symmetry and the dispersion of colors. And the only way you can get that is with the proper facet arrangement and the right angles so that the light enters the diamond properly and stays within the diamond and exit properly so that you have all those elements. So, not only are we looking for the dimensions on paper where everything has to meet our specifications, the right symmetry, et cetera, but it has to look beautiful. If it doesn't look beautiful, it's not going to meet the Guildhall criteria and we will often say thanks, but no thanks. There's three colors of diamonds we buy. We buy fancy and handsome vivid. When I'm buying a diamond and it's an intense diamond, I have to buy the top of the line intense to the naked eye you would think it's a vivid. So, there's no such thing in grading as one to ten, but if it was a one to ten, I'm buying nine in ten in that grade that is, if I buy an intense, it has to look like a vivid. If I'm buying a fancy, it looks like an intense. So, when you're buying a stone from me, even as a fancy internally flawless, you know, for 11, 12,000 dollars, that could easily be an intense stone for 20, 22,000 dollars. 187-7214-1711 and Guildhallwealth.com. You want to ask a question just like Karen did there, investing at Guildhallwealth.com. We'll recap the show, get into more Gold and Silver Boyan and Diamonds again. More of The Real Money Show coming up. The Real Money Show with Guildhall right here. You want to invest www.gildhallwealth.com or 187-7214-1711, the precious metals advisor. That's a free subscription to Guildhall's premier market newsletter. Give us some balance, Jeremy, Gold and Silver. You should have some in your portfolio. I'll have a percentage and a percentage of both. How's that going to work? Well, I think, you know, the general consensus in the industry is that you should be holding anywhere from 10 to 15 percent of your net worth, have in that asset to hedge against geopolitical unrest against inflation, dollar devaluation, and then, of course, looking at the supply demand which we've been doing today. Of course, you can do that in several ways. You can take home delivery. You can, as we were talking about earlier in the show, you know, if you're looking to own anything more than a few thousand dollars worth of bullion, you might want to consider the security of that and the logistics of having to sell it down the road. That's where a depository can really help you. If you're looking to take advantage of the market and maybe diversify within that 15, 20 percent of your portfolio in the bullion, you might want to also look at the financing which we can offer as well. Now, as far as the markets, you know, clearly we saw the market go sideways a little bit this week. Again, we had a large move up since the summertime in both Gold and Silver. Don't forget that the Indian wedding season is just around the corner. So even though demand out of India has been very, very strong, as of late, the government's been trying to stop major imports. They've gone to a bit of a black market there if you can do your research on that. But we should see Gold demand for India being very much robust into October. But I like clients to hold not only Silver but Gold. You know, for me, for every thousand ounces of Silver, you should have 15 ounces of Gold. It's not a bad idea. Same time to put a package together with a natural, fancy colored diamond. So you've got, you know, three assets, hard assets that increase in value. You know, over the last 10 years, you know, Gold has gone up 400 percent. So as Silver, you know, Silver was trading at $3.80. We've been as high as $49. Even though it retraced back to as low as $18, we're trading today around about $22. Gold is trading at $1,340. 10 years ago, you could have bought it for $250 an ounce. So it's a great, great investment. It's not for everybody. You know, some people don't have patience. A lot of people know about real estate. Personally, I don't want to be running around with a plunger. I don't want to be cutting grass. I don't want to be collecting rents. And I don't need to put up with any aggravation. When you have Gold and Silver, you can sell it on a phone call. You can have your money within 24 hours. You buy it. If you take it home, the other downside about taking home Silver, for example, if you were to buy 5,000 ounces of Silver, whether it was 5,000 1,000-ounce bars, and they don't exactly come in 1,000-ounce bars, it's 1,002, 999, or whatever it is, 100-ounce bars, 100-ounce bars. But if you bought 5,000 ounces, you're looking at around about 350 pound. You need a wheelbarrow to come and get it. If you're a doctor or you're in business, are you going to stop in the middle of an operation? Because you see the price of Gold or Silver go up and say, "I've got to run and sell this off." It's easy to pick up a phone. It's easy to send a text. It's easy to send an email. And you can make a trade basically on that phone call if that product is in the depository. The other thing about when you take product home, when you go to sell that product, not everybody's going to take that bar of silver back from you without a saying it. That means they're going to want to drill it and test it to see if it's actual product. When you're buying product through Guildhall, the bars are numbered, the bars come from the Royal Mint. If that's what you want, you can have angle bars, you can have Johnson-Mathy bars, whatever your heart desires in this type of bullion. It's important, again, if you're going to take it home, your house insurance, your home insurance is going to go through the roof if you put this on your insurance policy. The same thing with a diamond, you want to put a diamond in a safe, secure place, a safe deposit box if you're just going to put it away and just hold it. We're also offering, actually, on our diamonds coming up in November, depository as well for your diamonds, where we can actually put it into a safe, secure depository. There is a cost involved, but it's a lot less than putting it on your insurance policy. In reference to an article we read in an earlier segment, Jeremy, what do you believe? What do Chinese housewives say about gold? Well, I think what you're looking at there is that there's a massive migration of bullion across the Pacific, India and China, Thailand, Korea. They're all importing gold at massive rates. You also have to look at the gold demand through Russia as well as in South America. What you see is that physical gold is in a major bull market. Clearly, not just central banks are buying gold, but Chinese housewives and Indian housewives are buying gold as well. By the way, they say that in those articles, because what they're saying is that essentially they control the pocketbooks of the family. That's who's buying is the families. Clearly, supply, demand from the east is saying that we're in a bull market. They clearly love the lower prices here. I think you want to follow the money. We see it as a very positive sign for stronger prices ahead, and especially with central banks. Up until 2008, central banks were all net sellers of gold. Now, they're all net buyers of gold. When you look at silver, China stopped exporting silver several years back. Everything that they mine in China for silver and gold, they're keeping that too. Give me an idea, Paul or Jeremy, one of you guys can answer this no problem. What do you think the price in gold and silver is heading over the next 24 months? In my opinion, I think you're going to see over the next 12 months, I think you could easily see $50 to $60 silver. I think you could see $2,000 to $2,200 gold. It's not just my opinion. If you go to a website kingworldnews.com, if you follow Turk or von Graetz or even Spratt, they're calling for $2,000 gold. It's not just myself that has this opinion. We've seen silver and gold over the last 10 years go from $3.80 to a high in 2011 of $49. We saw gold go over $1,900 from $250. History does repeat itself. I believe gold and silver will achieve these higher amounts probably within 12 months, 18 months, 24 months. I can see this happening very, very quickly. Just to recap as well, go to our website. Look at our diamonds, guildhalldiamonds.com. Every diamond on that website we own, it's available. The diamond of the week Nicole was talking about was a .26 fancy blue internally flawless, magnificent stone. We also have a 1.50 fancy intense internally flawless, magnificent stone, also on special. This is the great, great investment. If you're looking to retire, you're looking to put your kids through a university. This is the type of investment that is sound and is going to make you money. Give us a quick comeback in those diamonds as well, Nicole. Got them on the website, ready to go, correct? Absolutely. Actually, the .26 was a sneak peek that we sent around to our clients on Friday. It's actually being photographed. You're getting a sneak peek for the first time on air. It will be up next week, but if you do have any questions at all, you can give anyone at the firm a call. I do want to impress upon you that this blue one in particular is absolutely spectacular. It's actually my favorite in the collection right now. I would love to take it myself, but unfortunately, I can't. And then again, the 1.50 that Paul just mentioned, it's an intense, so it's got great saturation of color. It would make a great piece to own in a pendant or in a ring. It's really beautiful. That one's $36,995, and the .26 is $41,250. So they're both great prices, great investments. I mean, these first come first, so do you have to understand that we do get a lot of calls? These diamonds move quickly. If you're interested, give us a call. Make an appointment. If you want to come and see it, but if you want to purchase it, give us a call. We'll be happy to look after you. You know, each week, Jeremy, we talk about the free subscription to the precious metals advisor. Give me some details on that. Yeah, you know, our clients and people looking to get into the market, find it really informative. Essentially, Darren writes an article every week. We also feature a diamond of the week. Then we'll also put together what we think are the best articles of the week. So we're always scouring for good information, and we'll put that out as well. So it's a great overview every week and sort of a great way to get involved in the soap opera of gold and silver and learn more about it. So if you're still thinking and want to get some more information, it's a great way to start educating yourself on bullion and bullion markets. And just to go over some examples of the depository or financing, if you do read the precious metal advisor and decide you want to invest, the depository is really for people looking to own a little more than a few hundred ounces of silver and a little more than five ounces of gold. And of course, right now, you can get into a thousand ounces of silver for about $24,000 Canadian. And that's a great way to get into the market. We'll monitor the investment with you. You can sell on a buy and sell on a phone call with that financing. You could buy the same thousand ounces, put up about $89,000 and really start to take advantage of the market. So give us a call, we'll walk you through it and we'll find out what works best for you. And make sure you join us next week. Gerald Solante will be here for an interview with Darren. That's information you need to know. The number to start investing 1-877-214-1711 or guildhallwealth.com and take advantage like Jeremy said of the precious metals advisor free subscription to Guildhall's premier market newsletter. This again has been The Real Money Show.