The Real Money Show
The Real Money Show - August 24th, 2013
The Real Money Show with Guildhall Wealth Management and John Scholes from Saturday August 24th, 2013.
Welcome to The Real Money Show with Guildhall Wealth Management, a full hour of expert advice on gold and silver bullion and natural fancy color diamonds with us in studio today. A full roster Paul Wiseman, president of Guildhall, the vice president Jeremy Wiseman, as well Darren Long, our senior analyst with Guildhall and the queen of diamonds back again this week. Nicole Snippman, our in-house diamond expert throughout the show. You want to call in, get some website information guildhallwealth.com, the number one eight seven seven two one four seventeen eleven and welcome back this weekend guys how are you? Great to be here John. Got an update for us off the top. Right away we have a market which has been very stable week over week in gold slightly higher up to about 13.75 from 13.65 last week and looking for two closes about fourteen hundred which would push this market another hundred to a hundred and fifty an ounce higher my expectation. We have silver again twenty two ninety last week this week trading in and around the twenty three ten to twenty three forty range and again beautiful week over week and we're base building we're certainly sitting in this range it's giving opportunity for buyers to load the boat here again pick up some ounces in this range and take care of their business there and again if you look at the news of the week we've had a lot of different news from different areas but one of the important notes that we've wanted to make here was that we're looking at another record year for silver eagle sales in the US now of course the US being the largest economy in the world stands to reason that they do a lot of coin buying and selling and of course believe it or not most of that coinage goes overseas it doesn't stay in the country but they are on record pace within the next two to three weeks to surpass the total sales of 2012 and although there was a ratio in gold the silver for about twenty to one during the month of April meaning for every twenty ounces of gold there be one ounce of every twenty ounces of silver there be one ounce of gold this month it's five hundred to one for every five hundred ounces of silver so far this month one ounce of gold so silver has really led the boat here and is definitely taking up the the the fight yeah the silver eagle is equivalent to alcanadian maple leaf so this is a collector's item we really don't encourage people to buy what we call rounds which are coins because you're paying for minting the minting you're paying for the eagle on one side and you know the encounter you're paying for the queen's head on one and the maple leaf on the other and you're paying a premium as much as 15 percent for that value whether it's one ounce of silver or one ounce of gold you're actually paying a 15 percent premium so the smart thing is is always to buy one ounce wafers or ten ounce bars hundred ounce bars that is the best way to go when you're purchasing gold and silver it would definitely and again this is a this is a week in which we have to congratulate a lot of people john uh a lot of buying activity this week and certainly our listeners all over Canada and around the world congratulations for adding to your portfolio it's been a busy week there's a lot of news out there of course the fed spoke uh this week about kiwi tapering and of course in their verbiage everybody was trying to discern whether or not they were going to pull back on the amount of printing that they're engaged in right now the 85 billion per month again no clear indications what they were going to do but of course post Wednesday afternoon when the minutes were released certainly the markets reacted very quickly and promptly and anything that there was in terms of drop for pricing for either silver gold were bought up within minutes we saw a bit of a price breakdown below 23 down to the 2280 level and of course within 10 15 minutes right back up to 2330 so people are looking for bargains and buyers are buying now it's it this whole tapering issues a bit of nonsense isn't it they really only have a couple things they can say we're not tapering or we are tapering that's all that anyone really cares about and ultimately you're sitting in an environment where country central banks all around the world central governments are dumping u.s. treasuries because they want nothing to do with the u.s. dollar especially after the us has said we or the fed has said we're going to taper so who wants to be a part of that and then on the other side of it you've got that all these central banks have been net buyers of gold for for at this point years so i don't see where the fed is going to come up with a buyer of u.s. debt unless it's them so at a tune of 85 billion a month plus minus wherever they're however they're coming up with it if they don't do it then who else is going to do it so the proverbial rock in a hard place is is where they're at so you can job own all you want but you let you take away that stimulus and things are going to go bad in a in a hurry well the fed is the biggest owner of the u.s. treasure is so you know everybody thinks it's Japan or it's China but it's one hand robin the other hand it's uh you know borrowing from peter to pay paul the interesting thing is though uh we're really impressed with uh silver that it's up actually 30 percent since june i mean that's a terrific move up and i see a potential right now i've been calling on the show i feel silver is going to move up to maybe 60 dollars within the next 12 months i think we could easily seek gold at 2200 dollars you know people may think i'm crazy but let's look back you know 10 years ago when silver was trading at three dollars and 80 cents and i said i think silver is going to hit almost 50 dollars within the next 10 years and we hit 4930 you know call me a liar for 70 cents hey you don't even have to look back further than that far if you look back 2010 in august of 2010 we were sitting here pleading with people in fact by september mid september of 2010 i can remember going on doing the show with jeremy and him and i ranting and raving about how important it was for people to focus in on buying now because we saw all of the telltale signs for a rising price the price at the time of silver 18 dollars and 50 cents an ounce and by years end of 2010 we hit 30 and as paul said we reached by spring of 2011 a high of 49 it's nothing we haven't seen before that's the seasonality of the market it is very cyclical and we expect nothing to be different this time except that we're going to hit a new high and the other thing is it's just a shortage of physical product what we're seeing being traded is paper you know we have a depository and we place orders every single day for gold and silver and we're as much as three four weeks away from deliveries if we get deliveries every day coming into the depository but it's three weeks behind our initial order so that tells you there's a shortage and as darren said you know last this month 500 pieces of silver were sold against one ounce of gold so it tells you that people understand that silver is underpriced and it's the way to go in these volatile times we haven't even seen any inflation yet the figures on inflation are kept basically they're saying it's two percent a year i don't know whether any of these politicians ever go shopping ever put gas in their cars ever pay for anything and as they're being comped all over the world uh like some of the politicians that have to pay back the money that they spent was it a senator or a politician senator senator oh well she had a good time for about 140 grand of government money but anyway uh you know it's the silver physical silver physical gold these are the hard assets that you really need to own right now we think that you know this show it's called the real money show gold silver is real money natural color diamonds real money real hard assets that will only increase in value as we get into inflation as i said if the government says it's two percent inflation we haven't seen a wage increase coming up in the states right now you know the salaries have actually dropped over the last year or two one eight seven seven two one four seventeen eleven is the number to start investing guilt whole wealth dot com how was the supply based on this five hundred one number well again if you look at across the board there's problems everywhere we're seeing deleveraging the market right now so for where the first ten years of this market um we we highlighted and we lived through a period of time in which the predominant investment was made on paper in the futures market people were buying contracts futures contracts and that's what they were doing and now you're seeing people actually start to take delivery so instead of rolling over that contract and trying to go double or nothing the next month or actually taking a premium instead or in lieu of taking delivery that physical product they're actually smartening up now and you're starting to see big institutions big investors start to say hey if i call for uh if i call for delivery perhaps the price is going to go higher because they can't find the product they're right they can't now if this week you are watching the news what uh we like to look at are the silver producing companies around the world then we're keeping a close eye on them every week the largest in the world comes uh via Poland and it's KGHM Polska um and they are actually believe it or not the largest producer of silver but it's a byproduct of their primary metal which is gold and uh they are reporting a year to date uh seventeen percent drop in production over last year at this time so again that's the world's largest producer of silver right now a lot of people will think it's probably Fresno or BHP but it's actually KGHM and they uh being the largest in the world if they're having problems sure enough you're going to see other newsworthy items come out that are going to talk about the other producers also having the same problem so it stands to reason that as everybody piles in and tries to take delivery uh it's going to get tougher and tougher and it's going to drive prices a lot higher well this is also a story it's not just the number one producer who's down this is a a story that that goes through all of the producers because ultimately and especially the junior mining stocks because look they they've had to withstand a bear market within a within a secular bull market of precious metals consolidating and being in a bear market for over over 15 months and so they've had to get through that and if you're not bringing on new investors to keep mining you shut down production because if there's any and I know bankers and they tell me that the cost to produce mine to produce silver these days has gone way through the roof we've talked about this so many times on the show the cost for tires the cost for machinery the cost for labor um they've all moved up we've seen the inflation in the in the resource sector so these are the there's less silver coming to market this goes back to what we talked last week about the whole setup so you see the mining stocks have suffered as a result of the last couple years in in silver and gold less metal coming to market more people wanting to take their delivery we've talked about Germany rich people in in Europe rich people everywhere are saying you know what papers not good enough I want the I want the real thing mbm amberau almost uh well did default on their on their obligations and it's caused a whole domino effect in the industry and so there's a reason that we're out of precious metals in terms of being able to to meet the demand right now but what's it going to be like when interest rates do start to climb what's it going to be like if if the Fed actually does taper what's what's it going to be like when when bubbles start to burst in real estate and and equities and bonds and whatnot you're going to see a massive explosion in the pricing I believe that's that's my strong opinion here one eight seven seven two one four seventeen eleven so you've got the number you've got the money you want to start investing how how do you go about doing it well it's easy to open up an account we open we offer three different types of accounts one you can just take your product home two if you're happy to store the product with us we'll be willing to offer you storage in a secure safe and insured depository which is local and uh three of course if you want to take a little bit more of a bite and get your money working a little bit further for you can use the concept of collateralized financing which is the notion of using other people's money where you can put up as little as 30 of the value of the metal you'd like to invest in and have the other 70 percent financed for you and when we come back in the second segment I think Jeremy and I will give an example of exactly what we're going to to offer and the thing is that good whole wealth we sell the physical product we don't sell securities we don't sell ETFs we don't sell certificates options or futures and options they are bars of gold bars are silver when you drop a hundred ounce bar of silver on the floor you get that claim you know that that's the real thing so if you're interested in investing in the real thing gold silver give us a call you can take home delivery as Darren said you can open an account for easy liquidity which means you can sell on a phone call buy and sell or if you want to open an account collateralized financing and we're going to talk about how to finance the next segment one eight seven seven two one four seventeen eleven is the number you want to call now or guildhall wealth.com after the break we'll talk more about how to buy bullion some examples how to do it how to get started as well perceptions versus realities is the economy down south really getting that much better we'll find out shortly the real money show continues with guildhall wealth management the real money show with guildhall wealth management returns one eight seven seven two one four seventeen eleven or guildhall wealth dot com catch pass shows on iTunes in fact you can google the show anytime at the real money show and want to remind you that to get an investor kit you can on gold and silver and fancy colored diamonds or for a free subscription to the precious metals advisor guildhall's premier market magazine as we said in the last segment you know if you want to open an account with guildhall wealth if you're going to finance the minimum amount that we will finance is five hundred ounces of silver if you're going to use the depository it's two hundred ounces of silver ten ounces of gold if you want to finance we will finance five hundred ounces of silver or ten ounces of gold so that's the finance. Darren why don't you give us an example of what a say two thousand say two thousand ounces of silver right okay so if i was going to buy two thousand ounces a couple of ways to do it one would be just to take let's say for example twenty one hundred ounce bars and i can easily do that including all fees today for around uh i think it was about twenty five ninety was the code i gave this morning before i came to the show two thousand five hundred ninety us per bar uh and of course just multiply that by twenty and you've got your price and you could get two thousand ounces in the market it's going to be around about fifty thousand of course the other way to do that and of course you can put those in our depository they're securely stored insured they're yours so you can buy and sell any portion of those in hundred ounce increments and of course whenever you want to talk to us as experts you have access to us now the other option uh that you can take the other road you can take is if you do happen to have that money you may have the fifty thousand you may say hey i don't want to spend it all but i'd like to have two thousand ounces of silver you can use what's called collateralized financing and that's the the idea of using other people's money whereby for that same two thousand ounces you would lay out let's say thirty percent of the value of that metal and hold back the other seventy percent now in that scenario for that same two thousand ounces around fifty thousand dollars of value you would lay out around seventeen to eighteen thousand dollars instead you're holding back the balance of those funds that you can use for a rainy day you might want to cost average in a like or unlike product or buy a diamond as well and of course as the market progresses you're using the leverage in the account to pay off the debt and to work towards building a return on investment now in an investment like that what i find so exciting in a market that's moved up like we've just seen you get real compounded movement going forward now it's not for everybody and there is risk involved that's above and beyond what you might consider if you're just taking a depository account but the reality is you can set that account up in a multitude of ways you might want to take you know seventy percent you might want to take fifty percent you might only take forty percent or thirty percent financing but if i look at that example of two thousand ounces over the next twelve months if i lay out eighteen thousand dollars and the market goes up to thirty dollars just the thirty dollars and i factor in the cost of borrowing my commission and everything involved that eighteen thousand would move to a value of around twenty five and a half thousand now if it moved up to thirty five dollars an ounce which again Paul and i and Jeremy and Nicole are all sitting here we know full well what this market is capable of it could easily move up to thirty five dollars an ounce or more but if it did that same eighteen thousand dollar investment would now be worth in and around the neighborhood of about thirty five thousand two hundred and if we were lucky enough to see forty which is super conservative in my opinion this is not even bordering on sixty which is what Paul thinks the market's going to do if we were lucky to see forty dollars an ounce over the next twelve month period and you put in that eighteen thousand you own that two thousand ounces of silver that eighteen thousand could grow in value to around forty five to forty six thousand dollars an ounce i'm not sure that there are going to be too many investments you can go out there and get that have the type of liquidity that silver has and have as much return on profit potential in my opinion as you would get here in this type of investment well one of the other things is as well we find it amazing that people jump on the bandwagon when they read headlines gold fifteen hundred sixteen hundred two thousand silver hits you know forty dollars people buy at the high you're supposed to buy low low sell high that's the way you make money in this business so again when darren's talking about you know silver trading right now just over twenty three dollars you know eight nine ten dollar move in the market and you've basically doubled your money to that eighteen thousand represents thirty five thousand with silver being around about you know thirty two thirty three dollars wherever it is you know if we only move up from twenty three dollars you know if it moves up basically four five dollars you've got a fifty percent return and a three dollar move in the market you've got a twenty five percent return i think that these markets are so underpriced we got beaten down in paper product gold and silver sold off the u_s dollar got extremely strong you know it was the best house on the worst street people put money into the u_s dollar but look what's happening all over the world with currencies with a rupee in india um what's happened by putting in to the qe we created or we didn't create the fed created a bubble in every nation outside the u_s they could buy cheap dollars and invest it put buildings up if you look at turkey if you look at india they are struggling the bubble is burst and the next thing that where it's going to hit is in the u_s and we're also going to feel it in canada the yearly wage in the u_s right now has dropped it hasn't gone up the jobless and we're going to talk about that as well i think a little later you know the people that are unemployed it's not the figures that you think in the states it's up uh in canada there's a lot of companies now laying off people and the same thing with a bomber with the health care you know they don't know whether they're coming or going companies they don't want to pay ups doesn't want to pay for spouses they are you know there's an outcry outcry right now with ups they just don't want to pay for spouses they're trying to cut costs on everything so are the companies doing well in the states is it is it organic growth or is the profit made by cutting jobs cutting hours making you know if you're making food smaller packages and you think there's no inflation you know you got to wake up and you got to realize that gold silver natural fancy color diamonds are the best investments that you can make right now to protect your wealth you know you work hard for your money you should actually look to protect your capital not everybody can be in the stock market not everybody can i don't know the average person that can buy apple shares of five hundred dollars and can buy google at eight hundred and eighty dollars ninety dollars how many shares you're going to buy two ten twenty you know the people that are making money the people on wall street h funds that are able to buy these big stocks and move the market up the average person is dying if they look at their account every single month there's statement owning stocks here in canada they've been beaten up pretty badly and that's why when you're coming to seminars with guildhall or you're talking to the experts here we're not financial planners we're not financial advisors but we do give and shed a different angle in light on the way you traditionally invest and believe it or not we've gone through a period of change in which the perception of how to build wealth has changed drastically and it's not the same as it was before you cannot expect to hold on to those dead horses and have them come back in 10 or 15 years from now and you shouldn't be taking that type of advice in my opinion three percent of the world investing gold and silver that's 97 percent of the people don't own gold and silver don't know how to invest in gold and silver you know they go into traditional investments they know real estate they know condominiums you know they know RSPs they know GICs and you know they're not making you any money the government the banks everybody's confiscating your wealth inflation is is minimum of five percent they say it's two percent if you've got your money in a GIC right now and you've got a million dollars you may get a one and a quarter percent subject to capital gain as well and you're losing three percent a year on your money that you've got be in something that's a hard asset that you're going to get a return a simple thing to look at 10 years ago if you took $10,000 put it in a coffee can buried it in the back garden today you still have your $10,000 with a buying power of about $7,000 if you took the same $10,000 whether you bought 2,500 ounces of silver because it was trading of four dollars which would have been $10,000 or you would have bought some gold same $10,000 let's look at what that 2,500 ounces is worth a $23 you're looking at around about $55,000 is what 2,500 ounces of silver is worth that same $10,000 whether it's in a tin can whether it would have been a GIC wouldn't have been much more so what is the better investment and right now silver's trading just over $23 I in my opinion I think it's going to go to $60 I think it will easily move up a lot further than where we are in the next couple of months 1 8 7 7 2 1 4 17 11 guildhallwealth.com as we sit here and tape this Darren Obama is currently on the talk show circuit at the University of Buffalo spending his time wisely perception versus reality is the economy down there really getting better you know what the headlines will have you believe that it is I read three articles today two from Canada from one of the large newspapers and one from the US and both were indicating that there are signs of life and what I ask is what's their baseline what are they talking about improving from what I mean if you're talking about from the lowest to the low maybe they're improving but you know the fact is that there's so many things out there that are wrong with the US economy and it's going to punish us in Canada but I'll give you I brought an article here that's talking a little bit about that there are 33 points in the article and the phrase we coined rice which was obama shing obama shing right it's obama shing these these notes are obama shing right we don't want to we're not here to doom and gloom but I mean it's the reality and you have to understand the reality in order to make money from it and that's why you're buying gold and silver but if you look at it here's the point one on this article when Barack Obama entered the White House 60.6 percent of working-age Americans had a job today only 58.7 percent of working-age Americans have a job and I would venture I guess that of that 58.7 percent a very large number of those people are not actively working constantly they have part-time jobs and that's that's one of the biggest problems well the interesting thing is gallops that does the gallop poll they came out with today it's actually on CNBC it's on net net you can actually see they call for the unemployment rate in August at 8.6 percent the Labor Department in the state say it's 7.8 percent this is gallop they really talk to people and obvious the figures they say they're saying right now the unemployment not unemployment the underemployed in the US is 17.7 percent real figures the government Labor Department in the US is 14 percent is underemployed so you know I who do you really have to believe here I mean the figures look great they can make figures look whichever way they want every month they come out and they change the figures all I know is I just got back from the states last week and I took to everybody and the only people are doing well are the very wealthy the middle class of going paycheck to paycheck living on their credit cards and the kids are the worst the kids that are spending money and going crazy it's on credit cards and running up debt I wish I could get to them to tell them to buy some or I think that's what the whole administration is doing because you know we're just going to go through some of the list if we're going to doom and gloom a little bit we might as well go this way this was number five on the list that 40 percent of all workers in the United States actually make less than what a full-time minimum wage worker made back in 1968 are things getting worse or are they getting better if you look at gas we're looking at inflation as an example cost price and of things when Barack Obama took office the average price of gas was was a dollar eighty five today it's three fifty three I mean if I ran my own campaign instead of Romney and actually gave some of these numbers I probably win the presidency and but that's neither here nor there um different aspirations there another aspiration but but you know the other and just another quick one the federal reserve held held under half a trillion worth of treasury bonds and this goes back to what we discussed in the first segment in 2008 in 2008 right now they've skyrocketed past two the two trillion dollar mark now this goes along with something else I think is that our listeners should appreciate which is that if the treasury bonds start to rise in interest rates then all of a sudden it's going to cost a trillion dollars a year just to manage the deficit and pay the interest on the deficit in the United States so thing like I said things can get in it get in a rough shape real quick in the United States so you have to look to protect your wealth protect by owning assets this is our strong belief and we believe that right now because silver and gold are undervalued that you want to use them use the maximum purchasing power today to get into the market give you one more before we take a break number four in your list it's hard to believe but in astounding 53 percent of all Americans now make less than thirty thousand dollars a year the other figure there's not a lot of guys in radio I'm thinking the other statistic the other statistic is not even on there they're one what is it one in six people in the state room food stamps well it talks about the increase in food stamps was uh 37 million now past 47 million one eight seven two one four seventeen eleven and guildhallwealth.com when we come back we'll take a short break my good pals here Nicole Snim and she's got a featured diamond she's got all all kinds of stuff about diamonds get away from gloom and doom yeah we're into yells blues and yellows as a matter of fact we'll do that with the real money show continues with guildhall wealth the real money show with guildhall wealth management start the investing now the number you need to know one eight seven seven two one four seventeen eleven online a guildhallwealth.com you can also catch uh past shows on iTunes and simply google the real money show it is the uh the diamond portion of the show which I love our good uh friend Nicole Snimann the queen of diamonds the in-house diamond expert is here and uh some big news the argyle tokyo tender is happening in fact you're keeping a watch on it yeah we're definitely keeping a watch on it because it's very exciting for us this is like the academy awards this is this is a big deal and what happens at the tender really sets the price for argyle diamonds we usually see the prices jump even up to about 30 percent so it's going to be really interesting to see what takes place and there's some spectacular diamonds that are coming in the tender this last year we actually there was 55 stones last year we got three of the tender stones and we paid a lot more than we you know paid the year before the stones normally don't go to tokyo they never do they normally start in Perth Australia was obviously is where the mine is in western Australia they then go to Hong Kong and at one time they used to go to New York but they've skipped New York and they've gone straight to tokyo before they're even going to Kowloon in Hong Kong China myself and Jeremy were there a year before last at the tender and it's an exciting thing because they put out the whole selection of diamonds is under severe security you can't get in unless you're invited and we went with our partners out of New York that we buy our argyle pinks and this year how many diamonds are there there's going to be 64 diamonds 58 are pinks three are red and three are blue and what's interesting about this tender it's the first time in eight years that there's a diamond over three carrots so there's some exciting diamonds here we've got the argyle imperial which is 3.2 carrots it's a radiant fancy intense orangey pink and I should mention that a lot of the diamonds in the tender are SI and we talk about that a lot that it's very very difficult to procure pinks and reds that are vs which is what we carry so another one one of the only vs is the argyle celestial which is a 0.71 carrot heart shaped fancy dark gray blue vs one now heart shapes are very coveted in Japan and where it's going to be in Hong Kong and or tokyo rather and it's just very exciting because there's a large selection and normally a bit the tender just for our listeners who don't know enough about the tender it's argyle has the most magnificent diamonds they're 90% of the world's pink diamonds come from the argyle mine and they're a very unusual shade of pink they're very jewel toned there's pink with purple with orange with brown there's just a mixture of modifying colors that make these really truly exceptional in the tender usually 55 diamonds of the most exceptional go into tender and they usually fill a teaspoon but because they have some of the larger diamonds this year which is very rare it will maybe be i guess a tablespoon in a bit but they're worked on at the mine by the most skilled artisans they they work on cutting these diamonds and crafting these diamonds for a year so they're truly remarkable and they're the prices like i said before are insane yes they don't produce very many blues now one of the diamonds as nickel just discussed was the it's called a celestial it's a 0.71 it's a heart-shaped fancy dark gray blue we actually have on our website a 107 1.07 carat fancy internally flawless pear shape which is an incredible incredible stone you don't see blue diamonds of this caliber and we have one actually on our website but getting back to the tender you know you don't see VS quality your last year's tender there was 11 vs quality stones we purchased three of them this year we actually haven't even seen the full description of every diamond that's in the tender and we only buy even if we're looking at the tender if there's 12 vs we will bid on 12 of those vs stones and hope to get a couple of the stones we don't do si one we don't do si two we don't do i one even though they're the most beautiful colors beautiful cart as an investment for me for me to resell to my clients and to take it back sometime in the future and resell it for the clients i want to sell vs quality which means it's a very slight inclusion and it has to have the best and best of color yeah i just want to sort of echo that point because if you think about the tender 50 some odd diamonds every year that is not a lot to choose from well the teaspoon really puts it into perspective right that's great well i think also because when we talk about aragal mine producing 90 percent of the world's pinks you have to keep that in perspective that's a one tenth or one percent so it sounds like a lot but it's really a small amount that's mined and especially that can be considered investment grade is even smaller percentage so when you go to our website go to guild or diamonds dot com you'll see some of the most beautiful aragal pinks we have a tender stone on there a point eight one from last year's tender we have a point five three we have a point five nine aragal pinks actually came from two months ago from the mini tender that they put out we only buy vs quality we buy the best quality that we can get even from aragal we are that selective one eight seven seven two one four seventeen eleven or guildhall wealth dot com when you say it's the security tight security is this like uh you know seeing the crown jewels yet you've had a look keep walking or is it uh no you get there by invite wow there's a special time the destination is a secret come on it's like a james bond movie i'm loving this already it's it's held in there what's the name of the hotel Jeremy a peninsula peninsula hotel and it's one of the oldest hotels actually in hong kong they serve tea every day at four o'clock you should see the lineups just have the english tea i should see you should bring me that um no that they you wait till you wait you wait in a kind of downstairs and then they call you up and then you're taken up by a security guard with whoever has been invited and then there's a procession of guards all the way through the corridor till you get to these big double doors and you get in and then you see on the table there's actually if you go to our website i think it's up there isn't it a picture of me looking at diamonds at uh at the tender but it's set up there's fifty five sixty stones set up and you go through each stone and give serve your class a champagne and you take your time and you go through and you make notes on every diamond which one you want to bid on there's a whole list and uh after the show about three weeks down the road you put your tender in and you don't know for a couple of weeks if you've won anything and as i said the year before last we didn't win anything last year we won three with our partners out of new york and we bid high but we're happy because you know we sold one of the stones i bought one of the stones for myself and ones on the website i can just sit back the stone and right now there's on the website so point eight one from last year's tender it's a vs quality stone emerald car that stone i in my belief will be six figures high six figures seven figures within ten years well that's the type of investment it is so you can obviously tell we're very excited about this and the reason being is that what happens at the tender what happens in the big auction houses is so important to our industry because it dictates to us what's happening where the value is where where the investment is going in in gold and silver we can see on a daily basis what's happening we watch the market every day there's reports that come out with diamonds color diamonds there isn't that much news so when something does happen it's big and it has a direct impact on the prices and we were just talking about how the prices will jump we're going to see the prices as a fallout of what happens with the tender you're definitely going to see more demand and you're going to see the prices go up so if you are watching pink diamonds on our site particularly the argal watch them now and if you're interested call us make an appointment because the prices definitely will go up now something else who do so well at guild hall is wealth to wear this is diamonds you can use in jewelry now what's different about this week and nicole i know you have something to talk about a very a very nice vivid yellow oval is that this one's actually in a ring setting already right and we we don't normally talk about wealth to wear on our website as a feature diamond but i wanted to talk about this one because this is wealth to wear that's truly a design piece and it is an incredible investment it's 3.69 carats vivid yellow oval cut internally flawless it's truly breathtaking you know there's some women in our office they slipped it on their finger and didn't want to let it go i mean it is breathtaking it's brilliant it's it's just unbelievably magnificent it's flanked by two step cut a calf's head cuts which are a very rare triangular cut and they're 0.5 carats each so it's 4.69 carats in total and you could easily put this in the safe you don't have to take it out to play as we say with wealth to wear you could buy it for someone we could resize it for you but jewelry tends to do very well at auction so this is a piece that you could just put away it's it's beautiful it's immaculate and just sit on it and you know hold on to it for five to twenty years whatever this is a type of also it's an heirloom that you could pass down from generation to generation this is the type of stone that somewhere down the line will go into auction and will fetch incredible incredible prices we're seeing big stones of fancy or intense which is not the same quality as a vivid fetch in prices that are ridiculous they're just because it's an investment not only this is a piece of art it's a piece of something that you're going to get enjoyment out of we had actually had the stone on his own and we put it into a setting because we thought it would make just a wonderful wonderful gift and being at 3.69 carats I always talk about oval cuts they're so elegant they're beautiful but they always have that perceived value of looking larger so this diamond actually looks like a four carat and especially with the two diamonds on the side yeah it depends on the size of your finger but I mean it does look really large and the appraised value is four hundred thousand dollars and we have it on our website for two hundred and forty thousand so it's unbelievable it's something that you have to see it so I always encourage people to come into our office and make an appointment and really look at the diamonds but the question is what could that cost ten years ago and what it's going to cost in another ten years that's a very good point you can let us know we're looking at ten years ago you could have bought for example one carat vivid internally flawless seventy five hundred dollars today you're looking at thirty five thousand dollars so a stone like this that you know you're going to pay two hundred forty thousand in that range easily could be worth a million dollars in in 10 years 15 years whatever I don't want to over exaggerate it but this type of diamond is the type of diamond that people want as an investment you've got to look at just the stone the stone is three point six nine it's an oval it has every characteristic the color the fire that just comes off of this diamond is incredible fire is the scintillation the colors that just fly off it's the most beautiful stone that I've seen in a long long time and it was actually a stone that we purchased at Las Vegas last this last June at the show and we only purchased three diamonds and we purchased a pink one oh one oh five intense vs quality and we bought a one oh seven blue internally flawless that was the three stones that we purchased out of probably seeing fifty sixty stones these were the three that jumped out at us that we felt were the best investments for down the road to hold onto and in actual fact this the supply that we purchased it from these diamonds were actually kept at the back of his safe and they were just brought out for this show so this is an investment that somebody takes they say okay you know I'm putting away I'm paying a quarter of a million dollars now but I know it's going to be worth a million dollars in 10 years time and you just put it away one eight seven seven two one four seventeen eleven our guildhallwealth.com just before we take a break Nicole Sotheby's the name that's known for things that are extreme quality big auction happening yeah yeah absolutely last week I mentioned that things are starting to heat up with color diamond market and this is a prime example because a couple days later there was announcement from Sotheby's Hong Kong they expect to fetch 19 million dollars for a rare blue diamond it's called the premier diamond and it is a 7.59 carat fancy vivid blue diamond and I mean it's beautiful and the thing I love it is it it's iF and the thing I love about it is this could easily be a guildhall color diamond it means all the specifications all the criteria it's brilliant it's stunning it's got fantastic symmetry it's got the great depth of color very saturated and it's going to be really interesting to watch because whatever the expected value is there it always gets more so it's going to be really really great to watch and Sotheby's has a real track record with selling vivid blue or blue diamonds and this is no exception we also got to realize for every blue diamond that goes into auction there's 112 Picassos that's the equivalent that shows you how rare blue diamonds are and the reserve is a 19 million but you also got to take in at a fact that the buyer pays 15% and the seller pays 15% so you're adding 30% to that value of the stone you're looking at a 25 million dollar blue stone as I said we have a blue 107 internally flawless pear shape on our website nowhere near that price obviously not everybody's got 25 million to play with but this stone you know you're looking at 300 000 in that range is a beautiful stone to get started as a great great investment we'll recap the show in our next segment take a short break the real money show with guildhall wealth management the real money show with guildhall wealth management to start investing the number you need to know is 1-877-214-1711 or guildhallwealth.com iTunes for past shows as well google the real money show anytime to catch old segments and more more information you can email questions as well anytime investing at guildhallwealth.com got Jimmy mailed a shortly short time ago during this segment and Calvin questioned about seminars coming up with you guys we do we actually have we take the we take the summers off give everybody a chance to do the vacation things our seminar series actually picks back up in september we'll be making an announcement on next week's show good letting everybody know when it's going to be if you want to be an early bird early bird gets the worm you can go to the website and check it out the details are up there now but we'll make the official announcement next week and it will be part of an ongoing seminar series that we'll be having between now and christmas and of course into the new year we're excited it's going to be local and certainly looking forward to having a good group of attendees and you should not hold back if you're looking to invest in gold and silver don't wait for the seminar there's going to be towards the end of september you know this is the time to get into the market silver's trading at 23 20 i see a big move up in my opinion i think we're going to hit highs that we've never seen before i love this market i love what's happening really in the turbulent markets in the states whether it's the Dow the Nasdaq um there's a bubble waiting to burst and when that bubble burst everybody's going to talk about gold and silver you've got to remember when you watched the business shows whether it's CNBC or the shows in Canada the people that hate gold have never owned it they've missed the boat and they're not going to tell anybody to buy gold and silver when they're in the equity market and they make their money selling stocks and bonds so you've got to remember if you're right now we're investments if you're if you own stocks that have just a complete dogs and they're not doing anything it's time to get out of the market and get into something that's going to move we recommend right now that you should have a minimum of 15 to 25 percent of hard assets in your portfolio whether it's gold silver a natural fancy color diamond this is what you need to own to protect your capital you know as i said i think this is turbulent times i think inflation is going to be coming and when inflation in the rears is ugly head you want to be into something that's going to protect your capital you have life insurance you have health insurance you have car insurance you have every insurance there is except insurance to protect your hard-earned cash so if you're looking to retire you're looking for your kid's education look to buy a natural fancy color diamond they have never dropped in price in 40 years they double tend to double every four to five years the better quality you buy the better investment you're going to make it's like real estate it's location location location i think the can just kick that's it but on that note uh lots of trend changes up and coming especially in real estate i own speculative real estate and i'm somewhat bearish on real estate right now certainly in the long term perhaps and if you're living in it's great investment but uh if i could be putting my money into the market right now hands down i'm putting into the hard asset market in the form of gold silver and i'm definitely going to buy a natural fancy color diamond the reason is simple what they uh what what happens this time of year is that market prices also get set for the coming year so when you see the demand coming out of places like japan and and the asian markets in india and all over the world for those diamonds you do tend to see a price change and of course we have to price diamonds according accordingly and of course on our site right now you can go and look at the diamonds but i would say that by the end of probably october somewhere in that range diamond prices will rise as they do every year it's been no exception and you can easily see a 10 15% jump in the price of yellows alone we're seeing already if you look at the exchange rate all diamonds are purchased in us dollars so right now uh the currency is five and a half six percent you've already made six percent because we're selling our diamonds in canadian not in us so this has an effect on india india are huge buyers of natural fancy color diamonds as well as white diamonds it's a you know india cuts actually about 80 percent of the world's diamonds the type of diamonds that we buy for guildhall especially in a natural fancy color diamond are the top diamonds they're all cut in tel Aviv they're cut in new york they're cut in and swap these are artisans these are people that cut the finest diamonds you can actually put two diamonds together sometimes a diamond that's cut in india and a diamond that's cut in tel Aviv or new york and instantly you know you can tell which is the better stone or which is the better cut so we love to go out and find for our clients the best of quality everything has to meet our criteria the color is the first thing that we look at the next thing that we look at is clarity which is very important to us and the cut is very important obviously when you're buying a yellow you want to buy over a carrot if you're buying a pink you need to buy over a quarter of a carrot because that's investment grade nicole tell us more about the 3.69 vivid yellow oval ring that you have absolutely because this diamond ring is absolutely spectacular 3.69 carat vivid yellow oval internally flawless with some white diamonds flanked on the side a total carrot value of 4.69 and it is set in platinum so the ring is so incredibly beautiful and it would just make the most incredible investment and we love it and i hope it goes to the right buyer because this i mean if you're looking at real estate this diamond ring for 240 000 the same thing you could buy a real estate but you don't have to walk around with a plunger you don't have to worry about tenants you don't have to worry about the grooming of the place and the gardening and all of that you put this in a safety deposit box or you wear it and you enjoy it because that's the beauty of these diamonds it's internally flawless you don't have to worry about ruining it you can wear it and enjoy it we have the biggest selection of eternally flawless yellow diamonds we're very proud of the fact that that's what we look for our customers that's what we purchase that's what we bring to the table we bring our expertise when we buy a diamond we're looking not only to sell that diamond whether we sell it to a client they hold on to it for five 10 20 years we expect to get that diamond back sometime in the future you know people say is there a secondary market we have a secondary market we have our website we do emailing we have parties we do seminars and if a client wants to bring a diamond back to us we can sell that diamond for our clients. Darren a great companion to the to a diamond on guild hall fancy colored diamond is gold or silver how does one go about for example broad strokes getting involved in some gold and silver purchase. Oh it's very simple I mean first off our products are all physical so when you're buying gold and silver it's typically we're going to recommend that you buy it in bar form you might want to take it in one ounce 10 ounce 100 ounce increments its choice is yours and when you open up an account you can take home delivery if you like you can also store the product with us it's secured it's safe it's insured it's local and buying and selling is as easy as a phone call if you like to extend that a little further as we mentioned in the earlier segments you can collagely finance it I use the 2000 example if I wanted to buy 2000 ounces of silver right now I'm looking at putting up about 50,000 but a second choice would be to put up about as little as 30% and if you factor in the cost of commission lay out about 18,000 holding back a big chunk of that money and you can be using that for a rainy day or for some subsequent cost averaging or to buy other types of product but that's also a way to get into the market we'll be happy to go through the account with anybody that calls and of course step by step it's very easy accounts can be open in many cases within 24 hours and certainly we make it very very enjoyable to get involved. The other thing is just to get back to diamonds I love diamonds as an investment because it's the only investment that is an insurable asset. It's very tough to insure your stock portfolio I mean you can insure land or real estate but a natural fancy color diamond you can insure it is an insurable asset and it's the way to go as I said nickel was talking about this beautiful diamonds 240,000 we have a 107 fancy blue internally flawless it's one of a kind it's home for 380,000 this is also an investment that you're looking you know anywhere at a million dollars within the 10 12 years time that's the type of investment that's the time of return you're going to get on these wonderful you know diamonds and you can also put any one of the diamonds that we have in our collection into a piece we we work with very closely with the most talented designers in the city to make you a truly custom piece and once you put it into platinum and you add other diamonds around it you're also increasing the value with the total care at weight and the setting and then it becomes your own piece that you can wear and enjoy you don't have to always just put it away we said before that it's also worth coming by and actually seeing these diamonds the website does them some justice but visually in person they're yeah I get stuck sometimes even when I'm talking on air I tend to use the same words magnificent and incredible because sometimes it's just so hard to put into words to describe these diamonds I mean I can talk about the color this ring in particular is very very saturated saturated it's got such a deep hue and it's it's breathtaking but you have to come into the office to see them we teach you how to hold the jewelers loop and once you put that diamond underneath 10 times magnification it comes alive and you see the sparkle and you see all the colors that are bouncing off of the facets and how the light interplays with it and you really get to enjoy the diamond I mean every single person you think you know some man who comes in he doesn't look that into diamonds and they just look at them and say wow because you can't it's hard it's a visual thing it's hard to put it in towards you truly have to come in and see them and that is why we encourage you come into the office we'll spend time with you we'll answer your questions we'll help you with the process it's really easy process and it's an enjoyable process and every diamond we saw does come with a GIA Gemology Institute of America that's a stone certification an independent appraisal and we do give a 10-day money bag guarantee nobody really does that in the industry they give you a credit note if you buy something we don't do that we want you to be totally happy we can you know we're transparent we're a Canadian company which is very important you're not dealing with companies that are across the border that it's too much effort to send stuff back or you're too lazy you don't want confrontation this is the way to go get into some gold get into some silver get into a natural fancy color diamond and this will be one of the best investments that you will ever make for your family start the investing today the number 1-877-214-1711 or guildhallwealth.com you have questions for anyone on the team you can email them investing at guildhallwealth.com as well and make sure you sign up online for the gold and silver fancy color diamond vester kit free subscription to the precious metals advisor guildhall's premier mark and newsletter join us here again next week we'll do it all again with guildhall wealth management this is the real money show