The Real Money Show
The Real Money Show - August 17th, 2013
The Real Money Show with Guildhall Wealth Management and John Scholes from Saturday August 17th, 2013.
And welcome to the Real Money Show with Guildhall Wealth Management, a full hour of expert advice on gold and silver buoyant and natural fancy color diamonds with us in studio today. Paul Wiseman, president of Guildhall, Jeremy, Jeremy Wiseman, vice president of Guildhall, Darren Long on the phone, our senior analyst with Guildhall, and back in studio, we're in house diamond expert, the queen of diamonds, back with us, Nicole Snippen. How are you guys? Good to see everybody. Darren's on the missing list. I think he's vacationing somewhere in Bora Bora, I believe, right, Darren? Is that where you are at home? I'm not sure where he is. I'm here by phone. How are you, buddy? I'm good. We couldn't get the modern technology to work, so we had to go old school. Yeah, it's been around for a while. Thank you, Mr. Bell. What's the update in the market, Darren? Well, listen, week over week, let me just first congratulate anybody who took our advice. We said last week that two closes above 2050 in silver would produce a move that would take this towards 22. I was sure of it. We saw the charts. Jeremy and I spoke at length about it, and as we sit here and tape the show today, gold is traversing up to the words. $1,365 an ounce, about a 4.2% increase week over week, while silver, the hands-down winner, as we tape the show on Thursday, has gone above $23 an ounce for a 12 and a half percent jump in seven days. That should surprise nobody considering that we have said time and time again, rallies happen quickly. If you're sitting on the fence, you miss moves like this. This is the time to be adding to your portfolio. If you look at the charts, the daily gold and silver charts have improved dramatically. Right now, when I look at the charts, I'm seeing a really nice formation develop, especially in gold. We know gold always leads this market, and this time was certainly similar to last times, and silver always ends up getting the biggest moves. Now, the stochastics are aligning. There are key buying signals that are beginning to look a lot more likely, and in silver, those key buying signals have been flashed as we speak, and now silver has hit a small rally mode. If you're short this market, then you're beginning it's scared, and those who are short are surely going to follow the same charts I do. They know full well how close we are to seeing a decent momentum-based rally occur in which they are going to be forced to cover, and it's going to drive prices a heck of a lot higher from here. I think this is probably the biggest underlying story that you will not hear in mainstream media, which is this is very much looking like a short squeeze, where several weeks ago, those who were short the market were very optimistic, feeling very confident that they were on the right side of the trade. Markets don't go down forever. They also don't go up forever, of course, but it looks like they're being forced to cover here, which is why you're seeing such dramatic moves up in the market. Now, the other key thing that we're going to talk a little more at length as we go on today, as well as what the pullback in silver and gold created was a new market setup in that supplies are damaged. There was barely any silver when we were up at 48 originally. There's even less today, because as the market came off, more and more people demanded it all around the world. Now, you're seeing major delays and shortages of the precious metal, and I think that's going to create moving forward this is a microcosm this past week of what we're going to continue to see, because when there's a lack of supply out there, there's going to be heavy and heavier demand, and this story will come to the forefront. I believe that these moves, you're going to see a lot more than going forward. So, delaying your only delaying lack of profit. The interesting thing is that when we did have the sell-off a couple of months ago, it was paper. Goldman Sachs called for gold to drop down to virtually zero. It didn't happen, and we dropped down to around about $1,180. We've moved up almost $180 since that happened. We've got people like Soros that have gone out of the market in gold. They got out pretty quickly. They've bought into Apple. They like the stock market. They can't manipulate the gold and silver market as well, as they can tweet that they're buying stock like Apple and Apple jumps up $40, $50. The truth is, with gold and silver, it's absolutely, there is no delivery out there. It's taken three to four weeks. We have a depository where we store physical product. 10-ounce bars, 100-ounce bars of silver, 1-ounce, 10-ounce bars of gold. We're waiting three and four weeks. We have the product on order. We're getting deliveries every couple of days, but basically, we're three to four weeks behind on every order that we place. So, this actually tells us that the physical market is the smart market. People know that you can't be pushed around when you actually own physical product. Now, at Guildhall, we only trade in physical product. That's gold, silver, platinum, and platinum. You can buy several ways from us. You can buy. You can take immediate delivery, home delivery. You can buy product. We can store it for you in a very secure, safe, depository that's insured with Lloyd's in London. And the third option you have is that you can also use collateralized financing where you can put up about 30 percent of the product, which for right now, silver is trading at 23.15. You're putting up around about $8,500, and you're still controlling 1,000 ounces of silver. The difference is, if silver to double, for example, if you're laying out right now $25,000, for you to double your money, silver's got to go to $50. When you're putting up $8,500, silver only has to move up $8.50 from where we are at 23 and change to $30, $31, and you've doubled your money. Now, financing is not for everybody. Again, you can put up 30 percent, finance 70 percent. You can do 40, 60, 50, 50, whatever makes you comfortable, whatever you need to take the risk out of making this investment. But this is going to be one of the smartest investments you're going to make for yourself and for your family right now. 1-877-214-1711 or guildhallwealth.com is the number. Guys, I want to throw this out to Jeremy, you or Darren, possibly, China continuing to make headlines and how and why does this continue to impact gold and silver bullion? Well, if you look at Reuters this week, there's news reports that came out on Wednesday and Thursday that Chinese gold buying has exceeded 700 tons in the first six months of the year, which is about an increase of about around about 50 percent over last year. Also, they recently basically stunned most of the analysts with the release of commodity demand statistics for July. I think many analysts predicted that China was going to have some—I even heard the term, and I'm sure you did, Jeremy and Paul, a soft landing of sorts. Instead of falling, Chinese demand for oil as an example has gone to an all-time high, an all-time high. Despite where they are, despite how great their economy has been proving, and it's been improving over the last 12 to 24 months at around about a 7 to 10 percent clip, which is enormous in and of itself. Clearly, you're still seeing that demand rise. If the industrialization of China continues, that's great news for commodity investors. Jeremy, we spoke about it last week, but the importance of understanding how the East views bullion is the key to understanding where we're going long-term, right? Of course, the thing that we want to keep in mind about Asia is, of course, that in 1980, they weren't in this market when silver originally went from about $5 to $50, and the biggest move happened in the last three months of that bull market. Of course, this time around, the population of the earth has doubled. Asia has entered the market, and silver is being used in more products today than ever before. You've got a situation here where there's the most demand industrially on this bullion than ever before. The demand for it, as you can see, anyone who's looked at the newspapers or read into the market over the last six months as the price did decline, the demand out of China was huge for both gold and silver. Of course, in 1980, if it did rise to $50, this time you've got twice as many people in the market. Asia is involved in the market. China's demand for it is massive. I think this is, again, part of that setup that's going to create a really robust move from here on out. There's an interesting press release, actually, from the Gold Council, excuse me, that came out today. The latest World Gold Council Gold Demand Trends report, which came out, as I said today, which covers the period from April to June 2013, highlights how the recent fall in gold prices has generated significant increases in demand, most notably from consumers in China and India by far the biggest markets for gold compared with the same time last year. If you want this report, we'll be happy to email this out for you. Question, guys. There has been a recent pullback in gold and silver. Should it be this cheap right now? It shouldn't be. I mean, if you look at 2013 price declines, it took silver well below where it was trading prior to quantitative easing beginning. Now, nothing has been changed in terms of the money printing that's out there. The Fed in the US, which leads the way around the world with the sheer quantity of money printing, it's still got the pedal to the metal, so to speak, $85 billion a month. Of course, we saw gold and silver pull way back. I think what has happened and what was clear for us is that if you just take a step backwards, a lot of investors started to panic. When they saw the market was being shorted in silver and gold and the recent pullbacks, that combined for this short-term mentality of panic. And of course, a lot of people got out of the market. And I think traders really overreacted to this paper time talk. And I think because of it, a sizable rally is very likely. 1-8-7-7-2-1-4-17-11 or guildhallwealth.com. Lots more information, by the way, you can get it, and you want to sign up as soon as you can for the premium market newsletter called the Precious Metals Advisor on your website as well. Yeah, looking on the last little while in gold and silver and you realize, look, you have to understand that what's happened is a new setup in the market has created this ability for the market to move very, very strongly. However, it started because essentially, Venezuela asked for their gold back. Eventually, Germany asked for their gold back. You had wealthy investors out of Europe asking for their gold back. And of course, ABN Amro had to default on their gold promises. So you had these beginnings of defaults happening all around the world for physical metal. And the banks needed to do something desperately to change that situation. Of course, pushing the market down, getting the sentiment cracked, that was a big part of it. Silver sentiment is down something like 60% off the all-time off the most recent highs that we've had. Of course, the unintended consequences was that the physical demand grew, supplies dwindled even more, and there's a major transfer of wealth occurring from gold bullion out of the vaults of the central banks, specifically in Europe and North America and over to Asia. And we want to be a part of the wealth transfer. There is owning gold and silver. There's no counterparty risk. It's a way for countries around the world to maintain sovereignty. Germany's having a tough time. They don't have their gold anymore. So with this in mind, knowing that there's such strong demand on bullion, both gold and silver, knowing that the recent pullback has just made that even more apparent means that this move up is going to be a powerful one. 187-7214-1711 or guildhallwealth.com. Okay, guys, I've decided now you convinced me this should be a part of my portfolio 15 to 25%. How do we start an account? Well, to get an account open is really simple. It takes no time at all. And essentially, what you need to decide is how much of your portfolio percentage-wise you want to devote to it. Typically, we suggest between 10 to 25%. And of course, how you want to invest. Paul indicated earlier that there are a couple of ways you can do it. You can actually take the product home if you like, but the most common way that 90 plus percent of our clients do it is to buy in the physical. You can have it stored with our firm. You can buy in different quantities, which in the second section we'll talk about and how we get bars versus coins and things of that nature. And of course, accounts start in silver at 200 ounces or more and in gold at 10 ounces or more. If you like what Paul was talking about earlier, this is the idea of using other people's money to invest. Then of course, you might want to try collateralized financing. In the second section, we can certainly delve into an example. I think we came prepared today to talk about a couple of different ways to do that. But either way, you're owning physical bullion. That's the key. You're storing it. You have ease of liquidity. You have all of the expert advice here on the panel. You are going to be in control. These are non-discretionary accounts. And you get to make the shots based on what you think is going to be best for you. And certainly education is the key. And we're here to provide that for our clients. And I came across a great article this week I wanted to share because over the last several months, we've heard Paul ranting and raving that he believes the prices will be much, much higher within 12 months. While J.S. Kim came out and will quote, he says, "I guarantee gold and silver prices will rise in the next 12 months." Of course, nothing goes up in a straight line. But we do see others joining the fray here that the market looks very strong off the bottom. And it's a great time to be accumulating. We'll take our first break when we come back. Lots more about how to buy bullion and what it would cost. Give an example, dollar-wise information right now. You want to invest, begin right now, 1-877-214-1711 or guildhallwealth.com. This is the Real Money Show with Guildhall Wealth Management. The Real Money Show with Guildhall Wealth Management to get the investing starting right now, the number 1-877-214-1711 or guildhallwealth.com. We talked about investing, getting started on silver. Darren, give me an example. Well, listen, if you first off, if you took the advice of the team from last week, Paul talked about it. The price of silver when we did the show seven days ago was $20.50. It's now trading at around $23.15 as we taped the show on Thursday. If you would have bought into this market, even without the collateral financing, just bought and owned, you'd be up around 12 to 13%. Let's take a look at an example of 5,000oz of silver. Now, I'd have the choice if I want to buy this. I could do that. That's going to be around about 115,000 to $120,000 worth of metal that I would pay for. That's one option of doing it. I could lay out the entire amount, own, control, and decide when to buy and sell that product to make profit. The other way to do it is to use what we call collateralized financing. Now, in this example, I would want the client to have access to the funds. It's crucial to understand that this is not taking $1 and turning into $4. We're taking $1 and we're using $40.50. $0.60 of that dollar. In this example, same 5,000oz of a client to lay out as little as about $43,000 US, including commissions and everything required to get opened the account. They would own and control 5,000oz of silver for that $43,000. Now, if we looked from last week to this week, we got basically about a $2.80 move. Now, if I'm looking at it from a practical standpoint, that's near about a $14,000 gain. So, essentially, I would have made that money in seven days. Now, it doesn't happen every week, but this market, as we said, moves very quickly and leaves a lot of people behind. The best way to take this approach is to start getting something into the market. Now, as we said earlier, accounts start as little as 200oz. In this example, if we have 5,000oz of the market and we get a $5 move, it's $25,000. If we get a $10 move, that's $50,000 back in your pocket. Now, if I lay out $43,000 to buy 5,000ozoz, all I need is about an $8.5 to $9 move and I've doubled my money. Now, I don't know where else you can go in the market to find that kind of return in that short of a period of time, but this is one way our clients are doing it here at Guildhall. This is the absolute way to go right now. If collateral finance is not for everybody because there is a little bit of a risk involved, you're putting up 30%, you're financing 70%. But you can take some of the risk away by putting up 40%, financing 60, maybe go 50/50. What 50/50 does gives you twice as much product in the market. It's Darren said, for example, if Silver's trading right now $23, you're looking around about with commissions, start up fees close to about 120,000, you're putting up about 60,000. Right now, we don't need a huge move in the market, a $12 move in the market with 5,000ozoz is going to double your money. Whether it's a $6 move in the market, you're going to get a 50% return and a $3 move in the market is going to make you 25% return for that investment. This is the way to go for people that have spare cash. If you have stocks that are sitting out there in the market, have done nothing for a couple of years, if you're looking at RIM and you're looking from $70 down to $10, it may be time to get out and get into an investment that can reverse that. If we look at the stock market today, the Dow's down, as we're recording this show on Thursday, over 200 points, the sentiment is getting very, very weak. When you get companies like Walmart, not meeting expectations, stores that have been open over a year have got not the same store sales as they did in previous year. When you've got Cisco that are laying off 4,000 people, it tells you things are not that great in the US. You can paint whatever picture you like. The US dollar, in actual fact, has been quite strong because it's been the best house on the worst street. Therefore, it's gone up in value. It's still a weak sister. You've got $17 trillion in debt in the US. You've got $180 trillion, not even on the books. That's social security and Medicare. They're not even accounted for. Unemployment's still at 7.5%. I don't know where they're going to create jobs from to pay $197 trillion off in debt. That's an awful lot of money. How many football fields is that, Darren? What's a trillion dollars? Oh, gosh. A trillion dollars would be all of a football field and probably the entire property in front of the White House piled about as high as a 53-foot trailer. Those are very enormous amounts of money. I don't think people quite understand how much money that actually is. But if you do look at this, Paul's advice is exactly spot-on. Remember the seasonality of bullying also. Typically, the biggest moves start in August, end of July, end of August, early September, and take us through to the spring. If we are to see that right now, my expectation and certainly Paul has talked about it, would be that silver would make an all-time new high above its $79.80 high at $52.50. Again, it only takes a bit of momentum from the big traders, the big buyers who have sat and waited for these bottoms. Remember, Paul said $11.80 in gold was the bottom $18 in silver. Big money has been sitting on the sidelines throughout this summer. Now, you're going to see big money entering the market on mass. This could easily ignite a short covering rally, and it would be of epic proportion, something we've been looking for, expecting, and telling our clients for some time now. The number 1-877-214-1711 or guildhallwealth.com, Jeremy? Yeah, we've broken up above some key resistant levels. As often in the past, when we do break above these resistance levels, it takes a little bit of time and when eventually gold and silver does it acts as though they were never actually resistant levels to begin with. Again, to me, this is looking a lot like a short-squeeze, a short covering already, which I think is going to help to get more buyers into the market. As that story of the lack of actual inventory out there continues to make its way towards the public, I think that you're going to see more and more momentum. It doesn't surprise me that we're seeing lots of major analysts out there starting to call very big, starting to feel confident about those big calls as Paul has been for several months already. I think that the other route we can also look at if you're interested in buying gold or silver bullion is, of course, the depository. It's secured, it's segregated, it's insured product, you're receiving monthly statements about exactly what you're holding. It's a great way to get into the market where that depository is in Canada, one of the safest places right now. An actual fact, also one of the least corrupt places in the world right now. I think that's something to consider. Remember that the reason why all of these problems are existing is because governments have deregulated markets. Everything's become corruptible. Money printing is way too easy in the United States. As you can see, they've printed more money in the last few years than it took over 200 years to get to. Governments, when they get into trouble, they're going to take the path of least resistance. They're going to come after your pocketbook, gold and silver are a great way. There's no counterparty risk. You can't have your wealth taken away from you the way they did in Cyprus, not that that's going to happen. Here, per se, but we're seeing different routes taken all throughout the world in terms of bail outs and bail ins. That trend seems set to continue. Holding your precious metals in a depository is a great thing. As well, it's good to remember that we're not saying don't take it home, but just understand that you can't get bullion insured for more than $500 to $1,000. Anything above that, and you're doing so at your own risk, it's good to have the depository. It's extremely dangerous to store metal, gold, silver in your basement, even in a small safe in your house. The insurance companies will not pay you out on bullion because they feel that you should keep that in a bank or in a safe deposit box or in some safe depository. With Guildhall, with our depository, it's not like Germany asking the US for their gold or silver, and it's going to take seven years to get it. When you put your product in the depository, you can have your product delivered to you within 48 hours if you want that product. If you want to sell it, you can sell it on a phone call. Even if it's in the depository and you want to take some of that product out to give to your kids, to your grandkids, as presents, Christmas presents, whatever it is, this is a perfect way to invest in a depository. As Jeremy said, you can start off, we can talk about coins as well. We sell maple leaves and we sell coins. The difference between a maple leaf and one ounce gold maple leaf and a one ounce bar of gold is you're paying a premium. You're paying for that printed or minted gold coin with a maple leaf on one side and the queen's head on the other. You're going to pay as much as $50, $60 more than you will for an ounce of gold, whether it comes from Johnson-Mathy or whether it comes from Scotia or whether it comes from any other reliable mint. It makes sense to put your product in a depository. It's safely stored. It's very convenient. You can sell product and buy product on a phone call. This is the way to go. Darren, did you want to add anything to that? Well, listen, this is the time of year when you do it. As a client, I've got a lot of potential clients right now all asking me, is this rally going to last? It was the most common question of the week in our e-mailed questions. The answer is that none of us here can tell you exactly where the price is going to go tomorrow. We see the statistics, we look at the rally, we look at the information, all of the technicals, all the analysis, like anybody else that knows this market as well as we do. But the reality is, tomorrow we could wake up and this market could easily be $2 or $3 higher. Now, on the downside, I think there is little in the way of downside right now. In fact, I think that as we go into the fourth segment, when we summarize, we'll talk about the potential downside right now. I do think it's very minimal at this point in time. The other thing to keep in mind is, just because Silver's moved up 12% in the last week doesn't mean you've missed anything per se. We're still trading well below the 200-day moving average. We're trading well below the highs of 2011. There's going to be lots of opportunity. Do we want people to take advantage of the lower price? Well, of course so. Everyone's going to make a lot more money if you can buy in at the lowest price. But there's a lot of room to grow and we're seeing the start of a good rally. We're pretty excited. There's much more upside than there is downside in the ratio right now. Last week, when we recorded the ratio, the ratio between Gold and Silver was 66 to 1. Today, we're at 59 to 1 because Silver has actually rallied up a little bit more than Gold. The interesting point is, for the last 5,000 years, the ratio between Gold and Silver has been 16 to 1. In 1971, when Nixon took the Gold standard off, it was 16 to 1. We've been as high as 80 to 1. Right now, it's 59 to 1. If we get down to 32 to 1, Silver's going to be $45 just at today's price of Gold versus Silver. Get down to 16 to 1 ratio. You're looking at $85, $90 Silver. It's not rocket science. It's not smart math. It's actual fact. You just have to look all around the world. What's happening in the world? Who's printing money? Printing money is confiscating your wealth on a daily basis. The USA right now, there's no inflation. I know when I fill up my car, when I pay insurance, when I go for groceries, I'm paying more for everything. The packaging is getting smaller. You have to look at your portfolios today. Look at the dogs in your accounts. Look at the stocks that you're not making any money from. Unload them. Get into Gold and Silver, and we're going to talk about natural fancy color diamonds in the next segment, which is one of the smartest investments that you will ever, ever make. Whether it's diamonds, whether it's precious metals, a couple of different things you want to get on, the precious metals advisor, Guildhall's premier market newsletter, absolutely free if you go to their website and sign up now. And the phone number 1-877-214-1711 or guildhallwealth.com. The real money show continues with Guildhall Wealth Management. The real money show with Guildhall Wealth Management, the number to start investing right now, 1-877-214-1711 or Guildhallwealth.com. Nicole, back in studio this week, our in-house diamond expert, an update on diamond so-called. On the industry side, things are a little bit quiet. Some diamond forces are closed. And so there isn't a lot of buying and selling of rough, but things are about to heat up because we've got the Hong Kong jewelry show starting in September. And that's incredibly exciting because that's when the Argyle tenderstones are unveiled. And that's always really, really exciting and prices are jumping and a lot of interest and we're going to be participating in the tender. And it's also very important for Israeli diamond cutters because the Hong Kong market is very important and emerging and it's growing just behind the US diamond market. So that's a very important factor to notice in in jewelry cutting and diamond cutting. And then we've got the US and International Diamond Week. That begins August 26th. And there's going to be an auction for a 50 carat vs. fancy intense yellow cushion cut diamond. So there isn't a reserve on that because that particular diamond, there's a tender on that one. But I will let everybody know what it goes for. And we should start to see some auctions beginning in the fall, winter and spring. That's usually when we see the auction results and I'll be reporting on that. And then there was the Indian International Jewelry Show that just happened. So things are about to heat up in the color diamond market and I will definitely be reporting on that. We haven't actually received this year's tender yet from Argyle of the stones that are going to be in the tender. They were on display actually in New York a couple of months ago, but we haven't seen the official tender of what stones are out there in this year's tender, which will be held in Kowloon in Hong Kong. We actually purchased, and I'm going to kind of give a lead into nickel, we actually purchased a couple of, there was called a mini tender from Argyle. We actually purchased a couple of stones from that tender. And nickel is going to tell us a little bit about those stones. Absolutely. They're two breathtaking diamonds. And what's really interesting about these diamonds, they're over half a carat. And so with pink diamonds, that's significant because we usually see a lot that around 0.20, 0.30, we consider investment grade pink diamonds that they can start at 0.18. So when you can get over half a carat, that's quite a feat. And that's usually the stones that go into tender over half a carat and above. And the other interesting thing about these two diamonds is they're both emerald cut. It's an extraordinary cut. I know Paul, that's your favorite cut. It's very elegant. It's very strong, powerful, quite masculine. If I don't mind a New York sale, I know. But the other thing about it, considering that they're both intense pink, they're both emerald, one is a 0.531, is a 0.59. The 0.53 intense pink is a strawberry color. And the 0.59 is more of a cotton candy color. So it just goes to show you how each and every diamond, especially these Argyle diamonds, they're so unique that even within the same cut clarity and color grade, the colors can be so varying. So they're both exceptional. The 0.53 carat is appraised at 147,500. We have it on our website for $103,250. And the 0.59 carat intense emerald, they're both VS2, by the way, is appraised at 164,000. And we have it on our website for $114,500, both two extraordinary diamonds. Like I said, the emerald cut is just so strong, powerful. And although it's not as brilliant as around, it holds the color really well. We see a lot of emerald cuts with pinks. And they're both very, very beautiful and they make incredible investments. The thing is as well is last year's tender, there was 55 diamonds that actually went into the Argyle tender. Out of those 55 diamonds, only 11 of those diamonds were VS quality. We actually purchased three of them. And we've got one still up on our website and one I still own personally and one we sold. But there's three stones that we have that I think are the most incredible investments. One is the 0.81, which is the diamond from the tender from last year. The 0.53 and the 0.59, they're actually all tender stones, whether they were from the mini tender or the main tender, and they are magnificent value. This is the type of stone that would double every three years, not every four to five, but every three. And in VS quality, they you just don't see these diamonds. They're very rare. They're exceptional diamonds. And these are the diamonds that will increase in value very quickly. Now, the Argyle mine is tending to close. I think in about 2018, as Nico said earlier, they produce a lot of diamonds about 90% of the world's diamonds. But in actual fact, what is that? But one 10th, 1% of the total pings. And they're not VS quality. They're SI1, SI2, I1. And if people really want to know about, you know, how the clarity and of diamonds, they should call us and get some information. But VS quality means that it's very slight inclusion, which is extremely rare in Argyle pinks. You need a microscope or even a jeweler's loop 10 times to find that inclusion. That's with a trained eye. SI1, SI2, and I1 diamonds, you can actually see the inclusions with a naked eye. And Nico, we were going to just we talked earlier before the show about what an inclusion is. And you were going to let people know about it. Well, yes, because we got a great question, an email question. So we were going to answer a clarity question, but basically blemishes are what sit on top of the diamond and inclusions are any kind of well, we don't like to use the term flaw, but that sit inside of the diamond that can possibly detract from the diamond's value. The email, by the way, investing at guildhallwealth.com. That question from Joan from Milton she asked, so which is the least harmful to the diamond of all the inclusions? And I really like this question because I'm always studying diamonds. And definitely, I'm going to say pinpoints and crystals. And the reason I'm kind of giving you a two for one answer is because pinpoints and crystals are the same. It's basically what we call in the industry a baby diamond trapped within the diamond. So a pin point is very, very negligible. It's basically a speck. It's not eye visible. It does not affect durability. And it does not affect clarity grades when diamond graders are looking at the diamonds. And it's like I said, it's very negligible. What you don't want to see is more than three pinpoints together. That becomes a cloud. And then it will be hazy. And that will affect how the light travels through the diamond and it affects the clarity grade. A crystal is a tiny bit bigger than a pin point. It's also not necessarily eye visible. But what's interesting with color diamonds is that the crystal is usually the same color as the diamond. So in fact, because the crystal is a little piece of diamond within the diamond, it is actually brilliant. So if you're going to have an inclusion in a diamond, a crystal and a pin point are the best ones to have. It's pretty common. And like I said, it doesn't affect the diamonds value. 1 8 7 2 1 4 17 11 or guildhallwealth.com Jeremy. Yeah, we're looking at these two Argyle diamonds and clearly both are over half a carrot. A lot of our what we would call entry level Argyles would be below 0.3. So we're getting above half a carrot. We do have a pink diamond that's above a carrot, but it's not an it's not an Argyle. That doesn't make it bad. By any stretch, it's any finding any pink above a carrot is a very rare thing. But essentially, when you're looking at two half carrot diamonds, they're both being emerald, both both exhibiting different types of color. This, this is really for serious investor. These are the people who are buying these understand that they're going to be put away for five, 10, 15 years that the value is going to go up that they can appreciate that they are that they are emerald, that they are Argyle. This is most likely going to be to the to the investor who's purchased colored diamonds in the past. A few, a few yellows, maybe even some of the entry level pinks. And then they move up into something like this. 1 8 7 7 2 1 4 17 11 or guildhallwealth.com. Just before we went on the air, I mentioned, you know, how can we don't have these Argyle diamonds that are one, two, three carrot size. And I think it goes to show the not everything part in the pond makes the cut for a guildhall colored diamond because we get that big, they have inclusions and they're just, you won't carry them. You won't carry them. That's right. That's right. We only carry the best of the best, which means it has to be the highest color grades. It has to be the highest clarity grades for each color grade. They have to be exceptional. They have to be beautiful to the eye. They have to be incredible to meet our are tough, tough, strict guidelines. But with with pinks because of the way they're formed, it's the crystal graining irregularities within the crystal structure that they tend to have inclusions in them that will fracture and break. So they do tend to be smaller and very included. So like Paul was saying earlier, we'll only carry VS, VVS for pinks. And they do tend to be smaller. That's why when we're talking about half a carrot and above, it's a rare find. In white diamonds, when you're looking, we always encourage people to go for the magic numbers. And the magic numbers are just below each quarter. So 0.25, 0.49, 0.99. So will you tell people to buy on the shy if you're going to say buy an engagement ring instead of getting that one carrot get a 0.99. In the investment world, when you're looking at pinks, for instance, and you get over 0.5, you're looking at something of true value, what we call money in the bank. That is a fantastic investment. And that's why these point over 0.5 carrots are so valuable because we also know that that's what goes into the tender. Anything over half a carrot and above. And that's what makes them investment great. Well, I wanted to let everybody know on top of all the things that Nicole and Paul and Jeremy have already said, we do offer a 10 day money back guarantee on a diamond. For any reason, you're not happy. Totally satisfied with the diamond. You can always bring that diamond back to us. We'll be glad to exchange it back for a full refund 100%. In addition to that, where I am up north here is Muscoah Haven and lots of jewelry people up here. I went into a store, second day I was here on vacation and popped in to look at a couple of watches and lo and behold, I see a yellow diamond there. So I go over and ask the person what it is. It's a 1.5-carat light fancy yellow set in a Tiffany setting that they had bought from a client. It's a return. The client traded in and upgraded to a pink stone that they had. And for that diamond, 1.5-carat. And the clarity rating on this is the best thing of all was SI clarity rating. It was clearly flawed. You could see it with the naked eye and with the Tiffany setting, which was white gold and it was flanked in baguettes. It wasn't even a very nice diamond at all. It looked very poorly. That diamond, they were asking 25,000 and they had two offers just below that, which they had turned down. And when I was in that store, there was a gentleman who was actually looking at another colored diamond they had there, which I couldn't see. And they were telling us that they had buyers were coming in for each of these unique pieces. So it goes to show you that a lot of people are asking far more than those diamonds should be selling for. We should be having a store up north, I guess. What's that? I said, we should be opening a store up north. I guess so. I guess people get carried away thinking they're on a Caribbean cruise, huh? So I think so. And Darren, I'm glad you brought that up because colored diamonds are becoming so popular, especially in jewelry. We're seeing tons and tons of advertising. Tiffany's has a huge banner right now for their colored diamonds. And it's important to note that just because a store is selling colored diamonds, it doesn't mean that that's going to be for investment. You have to know what you're looking for. You have to make sure that the color is saturated. You have to make sure that it's the best clarity grade. If you just want to wear it just to enjoy it and not have the investment, that's fine. But why not wear something and enjoy it all the while knowing that it's appreciating them value. So just be careful when you are going into stores and check around. And a guild hall, that's wealth to wear. That's what we call it. But it's also every diamond comes with a GIA, which is a Gemology Institute of America. That's the certification of that diamond. Every diamond comes with an independent appraisal, which is a replacement appraisal if that diamond was stolen or it was lost. Darren talked about a 10 day money bag guarantee. Every diamond that we sell at Guildhall Diamonds, we have in stock. It's on our website. It's not mythical. We don't swap out things. I'm not sure what the terminology is for swapping something out. What is that Darren? A bait and switch. Oh, bait and switch. We don't do that. Every stone is there. It's a 10 day money bag guarantee. We're a member of NCDIA, which is the National Color Diamond Association. And we have on staff, Nicole, who is a GIA graduate diamond grading expert. And I'm also proud of the fact that our pricing is so good because we're not greedy. We're not looking to gouge you. We honestly want you to make a really good investment and come see us, you know, four to five years when we believe that's going to double and see your return on investment. If we charge too high, then you're never going to see that return. So it's so important to us that they're priced right and that you get that appraisal so that you can see what the market value is. 1-877-214-1711 or guildhallwealth.com. We'll take a break. We come back. We'll recap precious metals. Tell you how you get in on the market and more about fancy color diamonds with Guildhall Wealth. This is a real money show with Guildhall Wealth. The real money show with Guildhall Wealth Management. Get investing now 1-877-214-1711 or guildhallwealth.com. Email or either email questions investing@guildhallwealth.com as well. Darren, our final segment. Take us home. Well, listen, this is a week in which those that made purchases are to be congratulated. If you made purchases the week prior to this, well done. You've done extremely well. I had a lot of clients as to Jeremy and Paul who bought in the $20 to $21 range and lo and behold, up a couple of dollars an ounce. Silver this week was the winner, 12 and a half percent advanced in the last seven days, while gold sitting just over $13.60, about a four to four and a half percent gain on the week. Now, we had certainly indicated this to you through listening to the show. We told you that two closes above $20.50 should move silver into the low 21 ounce area and that two closes above there would be $22 or higher. That's exactly what we got. We got a late day search yesterday which brought us above $23 an ounce into the evening and the charts have improved dramatically for both gold and silver. Silver is certainly flashing all the classic signs, especially if you look at the seasonality. In 2004, 2006, 2008 and 2011, those rallies all were preceded the year before that in the late stages of summer, early stages of fall with the exact formations like we're seeing right now. We have the 100-day moving average in silver which has just been crossed today as we're speaking, which again is a hugely bullish signal. If you are short this market, you are beginning to get scared. Those who short usually follow the same charts as I do and they know full well what's happening right here. Prices are going much higher. We've been saying this for weeks and weeks that the situation in the market with low low prices down around near the cost of production, knowing that the physical market is so tight and you're having to wait such long periods to get your physical metal that we knew that it was unsustainable and we've been saying it for week upon week. This is unsustainable and how long did it last? Less than less than three months is how long it lasted with those low levels. I'll tell you something else that's also unsustainable as we're going to try to capture that cat that opened up that door. But the other thing that's absolutely unsustainable is the fact that they keep printing money in the US and any time they try to say, "Oh, we're going to take it back out." The markets get creeped out as we did just about two seconds ago. Ultimately, we know that the money printing can only go on for so long that that is also unsustainable and you can sit there and go, "No, I'm telling you, the roadrunner, as long as he doesn't look down, he will not fall." But ultimately, if you know better, you have to look for different ways and we're not saying go all in on gold and silver, but if you can put 15, 20% into your portfolio of physical gold, physical silver, that is going to go a long way. Look, if you've had it for the last 10 years, you've done very, very well. We've had a couple of poor years in precious metals, but if you were smart, you've been accumulating the whole way. Now, this is just the beginning of a run in the market. It does definitely appear that way. As Darren said, we've broken through some key resistance levels and it looks as though the market could definitely be on the way. If you add that, it could definitely be also a short squeeze. Those who were shorting the market are no longer feeling confident. They could get shaky. They might have to fill calls and the market could melt up. This is the time when you have to pay attention because backwardation is happening. That means in the futures market, where we have all of the majority of paper trading that is done week-to-week, we are seeing that the months that are further out are getting less expensive to buy as opposed to the months which are the closest, which are getting more expenses, which is a clear indication that the supply is tightening in both gold and silver. Again, if you look at the people who were telling you media-wise that this market could dip a lot lower, we said in the fourth segment, we would discuss it. Certainly, with respect to the downside right now, any movement upwards is going to have some reverse motion. Don't be expecting this market just to keep on cruising through 24, 25, 26. Expect that over the next four or five weeks, there will be lots of opportunities. They may not be where you expect them to be, meaning I don't expect to see the price of silver venture back down to $18 an ounce. Those that expect that are going to be sadly upset, and they are going to miss the boat. If you've been sitting there waiting to get into this market, you are clearly seeing all of the classic signs of a rally forming right now, and gold, silver, and natural, fancy color diamonds are the way to prop up your portfolio and give yourself that cornerstone, which will protect your wealth, ensure your wealth, and make money for you moving forward. This just came in over zero hedges that they were saying that JP Morgan is now actively buying up gold in the market to meet physical demand. Everything we've been talking about, you're seeing the news coming straight up. The thing that I said in the second segment, the people like Soros Paulson that have been selling off their ETFs to get into the market to buy Apple, they can maneuver the market with the stock market. They tweet something, and most people, only 3% of the people invest in gold and silver, 97% invest in stocks, bonds, real estate, huge amount are in obviously in equities, and they follow whether Warren Buffett opens his mouth, Soros opens his mouth, Paulson opens his mouth, they kind of follow. It's a herd mentality. A guild hall, we sell the physical product. We don't sell equities. We don't sell ETFs. We don't sell certificates. We don't sell futures options on futures. It's a physical product. Take a 100 ounce bar of silver. You drop it on the floor. You hear the bang. That's physical product. It's not paper. You can open an account of guild hall. There's three ways you can do it. You can take home delivery. You can order it and we can send it to you. You can open an account in our depository. It's an immediate delivery. It goes into the depository. It's insured. It's segregated. It's insured with Lloyd's in London. If you want to take delivery, you can have your metal in 48 hours. There's no stories. There's not like bank in New York or the Fed. It takes seven years to ship the gold to Germany. It doesn't happen. It's available for you. There is a shortage of gold and silver right now. We're waiting three, four weeks for deliveries. It tells you how short the market is. That's physical gold, physical silver. We have the product. We can supply the product for you. The third way you can get into this market is using collateralized financing. This is where you can finance up to 70%. Silver, as we're taping this show on Thursday afternoon, is now trading at 23.20 an ounce and gold is $1,366.50. That's a really nice move up this week. If you want to use collateralized financing, you want to buy 1,000 ounces of silver. Normally, that would cost you around about $25,000 US because it is fabricated product. By using collateral financing, you're putting up around about $8,000, $8,500. The market moves up $8.50 from $23 to $31, $32. You've actually doubled your money. If you're not happy with putting up 30% and financing 70, you can put up 40. You can put up 50%. Put up 50%. Finance 50%. You're holding twice as much product. Instead of silver, when you own it at $23 to double your money going to 46, all it has to do is move up $11.50 and you've doubled your money when you're using 50% finance. When you're getting back as well to natural fancy colored diamond, this is one of the best investments, best kept secrets that's out there since they've been keeping records for the last 40 years. Natural fancy colored diamonds have never ever dropped in price. They tend to double every four to five years. Some of the diamonds actually double every year like reds. For example, if you can find a one-carat red VS1 today, you're looking at 1.8 million, 2.3 million. If you can find it 30 years ago, you could have bought that stone for $30,000 a carat. 10 years ago, you could have bought a vivid IF for $7,500. Today, you're looking at $35,000 for that stone. In 10 years time, that stone is going to be $100,000. This is one of the best investments you can make. If you're looking to retire in the next 15 to 20 years, you're looking to put your kids through school. If you're tired of the stock market, if you've been sitting on the fence since 2009, 2010, and watching your money basically dissipate, because if you put it in the bank, you're losing 3%, 4% a year in inflation, this is an alternative investment, natural, fancy color diamonds to anything out there. It's a safe, secure investment. When it comes to selling, all you have to do is we only buy back the diamonds that we sell. We don't touch anybody else's diamonds, because every diamond that we pick has got to be of a certain quality. There goes that door again. Anyway, every diamond that we sell has to be of a certain quality, has to meet a certain criteria. Color is the most important. Clarity is very important. Cut grade is exceptionally important, and then the carrot way. And Nicole helps me with every diamond that we purchase. Every diamond is guaranteed. It comes with a GIA certification, an independent appraisal. There's a 10-day money-back guarantee. Every diamond is in stock. Call us, make an appointment, come see us, and we'll be happy to run through and show you what we have in stock to meet your budget. 1-877-214-1711 is the number you need, or guildhallwealth.com. Nicole, give us a quick wrap on the two diamonds that you featured today. 0.53 fancy and tense pink VS2 emerald cut for 103,250, and a 0.59 fancy and tense pink VS2 emerald cut for 114,500. Both are Argyll, and I encourage you, if you've been listening and you've been thinking about getting a pink diamond, particularly in Argyll, now is the time because when the Argyll tender happens in a matter of weeks, or rather a month, the prices jump up. Every time there's a tender, there is such demand, it's just an increased hype, and everybody wants the Argyll diamonds. They especially tender stones. They want to put them to the back of the safe. They're just stockpiling them. You want to get on this because the prices will jump up, particularly with Argyll diamonds, especially over half a carrot. And you can see everything on the website, but guys, the diamond you brought in last week, the green blue that Darren brought, I mean, looking on the website, it's creepy. You really have to see these in person because that thing is unbelievable. You have to because obviously, on the website, you can't capture the fire. You can't capture the brilliance and you really, really need to see the colors. They jump out, but you and we teach you how to hold the jewelers loop so that you're really getting an education. You become a bit of a connoisseur when you come to see us and we really teach you how to hold the tweezers, how to hold the diamond to really see the angles, the facets and the color and how it comes alive under the loop. I like the fact that when I delivered the diamond to David here, one of our good diamond clients, it's about, I think this is his eighth diamond. He took one look at it and all he saw, he said to me, he goes, "I see dollar signs." And the investment standpoint, that's what makes me the happiest. I like to look at the long term of things. And when I look at diamonds, it's beautiful. They are color diamonds make money. That's the bottom line. You buy a color diamond today, you can rest assured that in five to 10 years, you're making money on those. And again, that's another part of the puzzle. When you're looking to improve your portfolio, give yourself some insurance, give yourself real diversification within your portfolio, get away from paper assets, add a color diamond, add some gold bullion and add some silver bullion. Doing it that way is going to assure you you're getting consistency, you're getting a long term growth, and you're getting something that's unvaluable, it's tangible, and it's holding your hands. This is very, very much a traditional investment, traditional approach, and it's something that's been done for thousands of years. So it makes sense, and it's practical, and you're going to make money. And you have that proven track record. And like Paul's saying how the diamonds tend to double in value over four to five years, you're looking at the Argyll diamonds that I was speaking about for roughly $100,000. You know that in four to five years, you're going to make $100,000 on your diamond. I mean, that is an incredible return. You can't see that with real estate. You can't see that with a lot of investments. So this is truly money in the bank and one of the best investments you'll ever make. Well, you know, just one last comment here about diamonds is you really do have to be initiated. We find that those who do purchase diamonds tend to purchase several. Darren was mentioning one just before. So that's why you can build up to a type of diamond like this, or if you really want to get ahead and get into something like this type of diamond, this is the type of diamond that's money in the bank. And the number is 18772141711 or guildhallwealth.com. Call Guildhall today for an investor kit on gold, silver, and fancy color diamonds, or for free subscription to the precious metal advisor Guildhall's premier market newsletter answering questions as well at investing at guildhallwealth.com. Call them now. The real money show. This has been with Guildhall Wealth