Residential properties in higher end resort areas, particularly ones impacted by the recent economic fluctuation. It's amazing how overextended the 'well-off' can get.
The intent is to get something I can enjoy as a second/vacation home that will also do reasonably well over a 15-20 year holding period. Realistically, I don't expect to break even taking expenses into account, unless I run this particular as a rental. The 'imputed rent' and intangible benefits should be worthwhile for me, personally, though. This will be capped at not more than 10% of net worth.
There is a possibility of converting the property to my primary residence, if I buy in another state with certain tax advantages to me, so I'm also screening with suitability for a primary residence in mind, including access to shopping, medical care, airports, etc.
One target, Incline Village, NV, made #1 on Forbes "America's Most Troubled Luxury Neighborhoods" list.
In Pictures: America's Most Troubled Luxury Neighborhoods - 1. Incline Village-Crystal Bay, Nev. - Forbes.com
And there are plenty of troubled properties at a small fraction of the insane prices in that article in the town, probably two dozen with Walk Scores of 90 or better.
Like i did not put it clear. my understanding, gold is something useless at normal evn unless something very bad happens. so when gold keeps up and up, it is telling use something, what's the thing, i wish i know,
Maybe, except Gold is completely unhinged from dollar moves. Since 2000 the dollar index is down 25%, Gold is up 360%. Since October 2008, the dollar is down 10%, gold is up 140%. And in January and February of this year when the dollar rose nearly 10%, gold rose by slightly less. Clearly something else is going on here.
As an aside, the local paper carried an article today claiming that a significant part of the run up in the price of gold was due to large producers like Barrick unwinding hedges. If so, the implication is that when the finish unwinding a sizeable part of the demand will fall away.
"The intent is to get something I can enjoy as a second/vacation home that will also do reasonably well over a 15-20 year holding period."
Can you go go overseas? Adelaide, Australia is in the epicenter of the world's greatest mining boom.
I think you mean Perth.
JOHN WILLIAMS: What has been done over the last couple of decades has set up the ultimate debasement of the U.S. dollar. The dollar as we know it is going to become worthless in the years ahead.
PAUL SOLMAN: But people can be wrong. I mean, the last time we were here, we were doing a story about inflation. Inflation went away. We never even did the story. Are you not at all humbled about making these predictions?
JOHN WILLIAMS: Well, I -- in my humble, most humble opinion, we have in place now everything that has been the nightmare of the people looking at this system over time.
PAUL SOLMAN: John Williams' gold dealer begs to differ.
CHARLIE MAMMOSER: Even though gold has gone up $150 in the last month, the dollar still is $1.49, $1.50 to the euro. It's not going nowhere. So, I think it's more feeding of itself. It's going up, so more people are jumping on the bandwagon. That's kind of how I see it.
PAUL SOLMAN: So, this is just a speculative bubble even, perhaps?
CHARLIE MAMMOSER: Yes, that's kind of how I see it. And I'm just wondering, when's it going to pop?
.. There was a guy in the suit, saying the dollar will be worthless and gold is the way to go. Then they cut the gold dealer, who looks, well, not very suit-like:
Love it.
But you really have to see Charlie Mammoser to get the full effect...
For my wife and I, we've simply cut back on expenses wherever possible to offset any losses in the market. We rarely eat out, instead opting for coffees and meals at home with family and friends. Neither of us are shoppers. Entertainment is a walk on the beach, a good movie on TV or a good book. We love to visit with family and friends over a meal or a good bowl of homemade ice cream.
We rarely eat out, instead opting for coffees and meals at home with family and friends. Neither of us are shoppers. Entertainment is a walk on the beach, a good movie on TV or a good book. We love to visit with family and friends over a meal or a good bowl of homemade ice cream.
I think what's happening has to do with the un-hedging by mining companies like Barrick and the purchasing of gold by central banks, like India. So lots of demand coming in at the same time mining companies are reaching the limits of production.
Gold is going into strong hands like hedge funds managed by John Paulson, Paul Tudor Jones, David Einhorn, Eric Mindich, David Hayman--the cream of the crop.
The story never changed... it's all part of the same story. A declining dollar certainly increases demand for gold, but whoever said there's a one-to-one correlation between the dollar and gold? The strongest correlation between gold and anything else is between gold and real inflation. And with the U.S. and other governments around the world holding interest rates down and printing money as fast as they can, where else can gold go but up?In this case I find it interesting how quickly the story changed from "the dollar is declining" to "supply / demand" once someone points to the fact that gold is appreciating many times faster than the dollar is depreciating.
And cover your back. I think we're at a time when we hope for the best but plan for the worse. Which brings me back to my original post. Cheers.Like the Sergeant on Hill Street Blues used to say: "Be careful out there..."
I'm not sure what you mean by this...? Isn't that what hedging is all about?If my goal is to hedge an exposure, say dollar weakness or inflation, I'd be very concerned that my hedge vehicle movements are multiples of the thing I'm trying to hedge.
And cover your back. I think we're at a time when we hope for the best but plan for the worse. Which brings me back to my original post. Cheers.
The strongest correlation between gold and anything else is between gold and real inflation. And with the U.S. and other governments around the world holding interest rates down and printing money as fast as they can, where else can gold go but up?