Faber On Real Estate:
I think another avenue is to own farmland. I think that real estate prices in the US have come down – OK, they may go down another 10% – but relatively to other countries and internationally, after having declined, if you can find a house you like, it may not be a bad time to buy a house in the US. It may not go up in value, but it may preserve its value.
…
I know quite a few extremely well to do people who have second thoughts about life in big cities and security in big cities if the unrest in the middle east were to also spread to developed countries. And they also know that we might have problems with modern warfare that would include cyber war, or switching off of the electricity or biological warfare – terrorism – that would touch the big cities. So, they want to be safe. They buy islands and they buy farmland in the middle of nowhere.
We’ve suggested in the past that real estate has not yet hit bottom – and we maintain this position. We could see housing collapse another 30% from here, perhaps even more. However, the decision to purchase a home at this point comes down to value.
If you are looking to flip properties as a business like many did leading up to the real estate detonation, you’ll be hard pressed to generate significant revenue. But if you have other intentions and goals, it might not be a bad time to consider purchasing.
Farmland, for example, is a real estate asset that produces commodities. Unlike a suburban home with no real possibility for production unless you’re willing to do the work, farmland allows a family to generate their own food, as well as their own energy – essentially eliminating the necessity of the ‘grid’ on which most people depend. Not only that, but outside of major cities you’ve got an extra layer of security in the event of war, economic collapse or other disaster.
Additionally, if the US dollar continues to be debased, which it will given historic trends, we can expect interest rates on homes to start rising – significantly. In the 1980′s rates exceeded 15% in some cases. The following example demonstrates why it might not be a bad time to buy now if you expect interest rates to rise:
via Mortgage Calculator
Home Price: $200,000
Current Rate: About 5%
Monthly Payment: $1073.00
Total Payments Over 30 Years: $386,500
or, waiting until rates rise and prices decline 30%:
Home Price: $140,000
Rate: 10%
Monthly Payment: $1228.00
Total Payment over 30 Years: $442,000
Unless you plan on paying in cash after the next leg down in real estate, it may be to your benefit to buy now and lock in a decent interest rate, even if you expect a massive decline in prices. Additionally, you may end up paying less simply because of inflation and (hopefully) a future wage adjustment or earnings increase.
Check out the neat software on this page that provides "A launching pad for your Real Estate Deals"
Click on the PropFrog link to the right or at the bottom of the page and learn more.
Saturday, February 26, 2011
Marc Faber on Precious Metals
Faber on Precious Metals and Value:
All of that [money printing] is favorable for silver and gold. Now, the question is, is gold and silver expensive or is it cheap? In 1999 you could buy an ounce of gold for $252. Now it’s $1400. Is it cheap or expensive?
In a money printing environment it’s very difficult to decide what is expensive and what is cheap because the function of money to be a unit of account and a store of value has been lost through the money printing. My view would be, yeah, relative to 1999 the price of gold is expensive at $1400. But relative to the money printing maybe not.
My advice to all your listeners is to gradually accumulate gold. Don’t buy it on margin – just gradually accumulate month by month.
…
I think the US government is bankrupt. They will not default on the debt. They will just print money. Not to own gold and silver is to trust Mr. Bernanke. Now go and look at his speeches, and then you tell me whether you rather trust gold or Mr. Bernanke.
Nominally, gold has surpassed it’s record highs of the early 1980′s (and silver is well on it’s way). In real terms, adjusted for inflation, gold would have to hit roughly $2300 per ounce to have the same “value” as what it had in the 1980′s. When QE2 was announced in 2010, the price of gold shot up relative to not just the dollar, but all global currencies. One can surmise that QE3 would have a similar effect. Add to that the strife around the world and the panic buying that ensues in insolvent nations like Greece, where the street value of gold during their 2010 riots was 50% higher than the listed exchange values, and you can see the direction that precious metals are headed.
From a preparedness standpoint, gold should be a part of any complete emergency and disaster plan. As we’ve mentioned in the past, and Dr. Faber suggested in this interview, accumulate gold over time. You don’t have to invest all of your finances in precious metals – but acquiring a little bit every month wouldn’t be a bad idea. The strategy of dollar-cost-averaging let’s you balance out your overall “buy” price in the event of volatility where prices drop or rise rapidly.
With gold, you don’t have to worry about your US dollars, because you are, in effect, your own central bank.
https://silversaver.com/share/J3MAA/
"The strategy of dollar-cost-averaging let’s you balance out your overall “buy” price in the event of volatility where prices drop or rise rapidly." You're in luck! :) SilverSaver provides an automatic and convenient way to Save in Silver using Dollar-Cost-Averaging. Check it out at the link above.
All of that [money printing] is favorable for silver and gold. Now, the question is, is gold and silver expensive or is it cheap? In 1999 you could buy an ounce of gold for $252. Now it’s $1400. Is it cheap or expensive?
In a money printing environment it’s very difficult to decide what is expensive and what is cheap because the function of money to be a unit of account and a store of value has been lost through the money printing. My view would be, yeah, relative to 1999 the price of gold is expensive at $1400. But relative to the money printing maybe not.
My advice to all your listeners is to gradually accumulate gold. Don’t buy it on margin – just gradually accumulate month by month.
…
I think the US government is bankrupt. They will not default on the debt. They will just print money. Not to own gold and silver is to trust Mr. Bernanke. Now go and look at his speeches, and then you tell me whether you rather trust gold or Mr. Bernanke.
Nominally, gold has surpassed it’s record highs of the early 1980′s (and silver is well on it’s way). In real terms, adjusted for inflation, gold would have to hit roughly $2300 per ounce to have the same “value” as what it had in the 1980′s. When QE2 was announced in 2010, the price of gold shot up relative to not just the dollar, but all global currencies. One can surmise that QE3 would have a similar effect. Add to that the strife around the world and the panic buying that ensues in insolvent nations like Greece, where the street value of gold during their 2010 riots was 50% higher than the listed exchange values, and you can see the direction that precious metals are headed.
From a preparedness standpoint, gold should be a part of any complete emergency and disaster plan. As we’ve mentioned in the past, and Dr. Faber suggested in this interview, accumulate gold over time. You don’t have to invest all of your finances in precious metals – but acquiring a little bit every month wouldn’t be a bad idea. The strategy of dollar-cost-averaging let’s you balance out your overall “buy” price in the event of volatility where prices drop or rise rapidly.
With gold, you don’t have to worry about your US dollars, because you are, in effect, your own central bank.
https://silversaver.com/share/J3MAA/
"The strategy of dollar-cost-averaging let’s you balance out your overall “buy” price in the event of volatility where prices drop or rise rapidly." You're in luck! :) SilverSaver provides an automatic and convenient way to Save in Silver using Dollar-Cost-Averaging. Check it out at the link above.
Saturday, February 19, 2011
Tuesday, February 15, 2011
Silver Remains Good Value
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.fgmr.com%2Fsilver-approaching-stage-two-of-its-bull-market.html&h=9c569
Check out this site to Start Saving in Silver! https://silversaver.com/share/J3MAA/
Check out this site to Start Saving in Silver! https://silversaver.com/share/J3MAA/
Tuesday, February 8, 2011
Buying Silver While It's Still Relatively Cheap
Buying Silver While It's Still Relatively Cheap
Get some silver while is still affordable with the convenience provided by SilverSaver. Save automatically and take advantage of Dollar Cost Averaging to accumulate more silver over time. https://silversaver.com/share/J3MAA/
Get some silver while is still affordable with the convenience provided by SilverSaver. Save automatically and take advantage of Dollar Cost Averaging to accumulate more silver over time. https://silversaver.com/share/J3MAA/
Monday, February 7, 2011
A LONG ROAD AHEAD - CHOOSE THE RIGHT VEHICLE
A LONG ROAD AHEAD - CHOOSE THE RIGHT VEHICLE
It's going to be a long road to the top of this gold bull. If you can avoid pitfalls like leveraged accounts and numismatics, gold will shield your wealth from the Fed's steady erosion of the dollar's purchasing power. An old proverb goes, "the greatest truths are the simplest; and so are the greatest men." Don't trust brokers who pressure you to invest in complicated schemes or fancy products when all you really need are pure bullion coins and bars, held in your physical possession. This advice has been given from father to son since Ancient Babylon, and though Americans have forgotten it for a few generations, it remains the simple truth. Peter Schiff
It's going to be a long road to the top of this gold bull. If you can avoid pitfalls like leveraged accounts and numismatics, gold will shield your wealth from the Fed's steady erosion of the dollar's purchasing power. An old proverb goes, "the greatest truths are the simplest; and so are the greatest men." Don't trust brokers who pressure you to invest in complicated schemes or fancy products when all you really need are pure bullion coins and bars, held in your physical possession. This advice has been given from father to son since Ancient Babylon, and though Americans have forgotten it for a few generations, it remains the simple truth. Peter Schiff
Friday, February 4, 2011
Americans Will Flock Into $5,000 Gold and $500 Silver
https://silversaver.com/share/J3MAA/
Better get ahead of the herd and get some silver while it's still affordable.
SilverSaver provides an affordable and convenient way to save in silver.
Check it out at the link above.
Wednesday, February 2, 2011
Utah Sound Money Rings True
https://silversaver.com/share/J3MAA/
It is time that Americans wake up and take back control of our money supply. We the People have been duped by our government and the Federal Reserve in an insidious scheme to rob us our wealth with paper money. Get some gold and silver now in order to benefit from the Greatest Wealth Transfer in History.
A discussion of precious metals as money.
"Silver money in permanent circulation is the only
available, practicable route to begin to free governments from
the impositions demanded under duress by banking systems."
A discussion of precious metals as money. Hugo Salinas Price
http://www.plata.com.mx/mplata/documentos/images/Hugo_Salinas_Price_London_2011.pdf
available, practicable route to begin to free governments from
the impositions demanded under duress by banking systems."
A discussion of precious metals as money. Hugo Salinas Price
http://www.plata.com.mx/mplata/documentos/images/Hugo_Salinas_Price_London_2011.pdf
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