Hi all, Seems there is a lot of forum member mentioning about exchange gold for property for cash flow when the ratio is right.. i wonder if there has been anyone or know anyone in their life time that has done this ? i personally havent know anyone.. and wealthy people that i know have lots of wealth either have a business that produce the big cash flow or inherited. is this transfer that has been mentioned couple of times actually happen ? or do we fall to the advertising from mike maloney and all of those people who seems to be in benefit because of us stackers ? no bad or finger pointing intended.. just want to see if there is any past events from real life experience.. (i have been reading a lot as well in the book, but yet to hear about reality of what happen). thx
Hi long, Actually thanks for bringing the topic up, that is an interesting aspect of it. Realistically we would probably be looking at stackers who lived through the 80s gold bubble and managed to exit not too far from the top. Whether we are talking PM or other asset classes, the principle is the same and it's everyone's goal when in a bubble market: exiting near the top and converting into another asset class (whether property, share or even cash). Under this angle we can assume a number of people would have been able to ride the share market up to the 2000 IT bubble and exit around the top. One who would have done that, could then have converted all the shares into cash and from there into the asset class of his choice. Surely some have managed to do that. This is - I believe - the clear goal of the game when playing the shares market. PMs are different in that they are held as a hedge and a store of value. Yet, I believe most of us here would be looking at selling near the top of a bubble if we were experiencing exponential growth in the fiat value of our metals. Even if it's only to sell near the top and buy more of the same afterwards. I guess my point is that it does not really matter which asset class is converted into which. The important bit is "when the ratio is right". And it is all about knowing when it is right. I'd be keen to hear stories of people who have done that whether from PM to property or from any asset class to any other for that matter. Cheers
Funnily enough I hear more anecdotes about people losing money in the last gold bubble, not creating wealth.
hi hotel46, that must be long time ago ? "grand dad" at the time i would assume gold is still pegged 1oz = @35/usd, thx for sharing.
hi GP, i bought 100 gr when gold is about $1400 usd, and exchange rate is audusd 0.88 converted to todays dollar... i still lose money... so i think now is the best time to accumulate a lot of it using our mighty AUD... yesterday closing is AUDUSD $1.05 i wonder whether we should hold on to AUD instead... and getting interest on ING
Gold in AUD has returned 11%+ pa for the last decade (averaged). Beats the cash rate on high interest savings.
I worked in Saudi Arabia in the late 1970's early 80's and I wasn't a fan of the share market so I bought gold. Moved back to Australia in 1983. When Keating devalued the Austalian dollar from $1.20 to 90 cents I converted my gold bullion to Aussie fiat and with my fiance's share we bought our first home. We had a $35,000 deposit. The house (1985) was $85,000. The bank would only give us $40,000 @ the capped rate of 13.5%. The other $10,000 they forced us to take out a cocktail loan at 19% I was so angry I got a second job and paid that loan out in 12 months much to the disgust of our branch manager who told me that he would not have agreed to the cocktail if he knew we were going to pay it out in such a short time frame. Kind Regards non recourse
yep, an ever since then we been voting 'publican, my pappy well he voted 'publican, and ma pappy's pappy well he voted 'publican, an his pappy too, well he voted 'publican. We bin votin 'publcan our whole lives, sos that's why I vote 'publican. Better n walking aroun with a damn wristwatch up ya ass in some gook camp!!! [youtube]http://www.youtube.com/watch?v=kngBtoylIVM[/youtube]
Thanks very much for bringing this topic up. It looks like you have to exchange gold for fiat, then transact in fiat. How would you hand over "x" ounces of gold in settlement for a real estate deal, save through a solicitor? Payment would have to be in kgs of gold, which could then be swapped into smaller units at your leisure. Imagine: a house with a fiat value of $400,000 would be worth, say 246 ounces of gold, which is about 15 lb of gold, which is about 7 kilos. Imagine turning up at settlement with 7 kilos of gold, in exchange for clear title.
Free thinking people could co-operate with each other and leave government out of the loop in such transactions.
Those same 'free thinkers' who sell their house for gold at the pm peak will cry foul when they think they can get out of the 'bad deal' due to standard legal procedure not being followed. Id suggest following procedure or down the track you could lose all your hard earned effort. There are certain factors which can void a contract...
It is totally possible to exchange gold for property . You can exchange anything for a house aslong as the CGT (if applicable) & your duties are paid at around market value . I say around because there is no law saying you cant sell your house for a discounted price . Dont let anyone tell you any different
or a situation forced to us by market, which makes us have to accept whatever x amount of gold to be exchanged for the real estate.. watch out for debt !!!!
