More bad news for house prices

Realmoney_2

"People have to be extraordinarily secretive," Krasilovsky says. This secrecy keeps away not only thieves but also prying relatives and the tax man. "One of the benefits of owning precious metals is nobody knows you own it," Venzke says. "It’s the most private investment you can make."

I find it very surprising Bloomburg starting to say bury gold and silver to hide it from the tax man. I agree with secrecy for obvious reasons but this was wrong of them. Even if more and more people are doing it, its wrong to suggest it like this.

Interesting about metal detectors though, is that right about asbestos and mirrors?

"Metal detectors are a worry. Basic detectors can find metal on the surface or in the first 12 inches to 14 inches below ground, depending on soil conditions, says Louis Mahnken Jr., a sales representative for Kellyco Metal Detectors in Winter Springs, Fla. That’s why Venzke advises burying it at least four feet deep. There are online debates about the best way to frustrate such thieves, including using scrap metal as decoys or hiding metal by covering it underground with asbestos or mirrors."



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So bury it over 4 feet deep with asbestos and a mirror on top?

kabayiri

TheEnigma wrote: »

I remember hearing about these companies approaching council tenants offering to lend them the money to buy their property at the reduced rate. Of course the company has a charge on the property until the loan (private mortgage) is paid back just like a bank would.

I am sure we will see a rise of these companies approaching council tenants offering to lend them 100% of the 50% they need,

They hope the tenant will get into trouble and the company can repossess.
....

I know someone who does this sort of thing at the moment for people who you would class as 'distressed sellers'. He comes to an arrangement with the owner, and I honestly think he wants them to keep their head above water.

The new council house sale plans certainly created a lot of interest.

Change is opportunity I guess.

Cleaver

Flight2quality wrote: »

If you’re looking for a safe place to put your investments, Chad Venzke has a suggestion: Dig a hole in the ground four feet deep, pack gold and silver in a piece of plastic PVC pipe, seal it, and bury it.

From the article:

For those storing gold and silver in or around their home, the most immediate danger isn’t a crisis or a dip in metal prices. It’s theft.That’s why Venzke advises burying it at least four feet deep.


Do-it-yourself investors who don't trust banks must find creative storage options, whether burying gold in the yard, submerging it in a koi pond, stashing it behind air-conditioning ducts, or placing it under carpets. All these options are debated in online gold and silver investor forums. They're also debated and demonstrated in youtube videos, including one by Venzke that has been viewed more than 7,000 times.

Brilliant. Completely paranoid about people finding his gold, so he puts it in a secret hold four foot in the ground. Then he does an massive interview with Bloomberg about it and films a YouTube video on the subject. Fantastic logic.

Cleaver

Another question for nearlynew, element, real money etc.

Okay, so I buy £100,000 of gold, wrap it in an asbestos fish and plant it under a secret tree, or something like that. It's nice and safe. In the mean time, the banking system collapses. All western and eastern financial institutions go under, taking pretty much every company and organisation with them causing world chaos. Everyone has lost their job, the government and army cannot control people and we fall in to disorder. There's no food, disease is rife, the world's population starts declining by the millions as feral and rival gangs take root and rule in a mad-max environment.

Luckily though, I have my lovely gold. So, the question on everyone's lips is... what do I do with it now?

Jimmy_31

Cleaver wrote: »

Another question for nearlynew, element, real money etc.

Okay, so I buy £100,000 of gold, wrap it in an asbestos fish and plant it under a secret tree, or something like that. It's nice and safe. In the mean time, the banking system collapses. All western and eastern financial institutions go under, taking pretty much every company and organisation with them causing world chaos. Everyone has lost their job, the government and army cannot control people and we fall in to disorder. There's no food, disease is rife, the world's population starts declining by the millions as feral and rival gangs take root and rule in a mad-max environment.

Luckily though, I have my lovely gold. So, the question on everyone's lips is... what do I do with it now?

Melt it down and form it into some type of cosh or hammer, it will come in useful when it all kicks off:)

WhiteChristmas

Flight2quality wrote: »

1 new house will be built for every one council house sold.

No, the money raised from the sales will be used to supply more social housing.

This is Tory code for 'we will give the cash to our backers in the building trade who, after admin costs and "other sundries", will use the remaining money to build a 4-house terrace on the outskirts of Slough which will be sold off-plan to a private landlord'.

The whole scheme is merely the next step in the plan to shift all rented accommodation back into the private sector. Just as the 80s "shareholding democracy" sold their stake at the first hint of profit, so the rented housing stock will end up in a small number of hands in a few decades time; we really are quite spectacularly stupid.

In years to come, the 20th Century, with its social health, education and welfare framework, will be viewed as a blip.

Flight2quality

WhiteChristmas wrote: »

No, the money raised from the sales will be used to supply more social housing.

This is Tory code for 'we will give the cash to our backers in the building trade who, after admin costs and "other sundries", will use the remaining money to build a 4-house terrace on the outskirts of Slough which will be sold off-plan to a private landlord'.

The whole scheme is merely the next step in the plan to shift all rented accommodation back into the private sector. Just as the 80s "shareholding democracy" sold their stake at the first hint of profit, so the rented housing stock will end up in a small number of hands in a few decades time; we really are quite spectacularly stupid.

In years to come, the 20th Century, with its social health, education and welfare framework, will be viewed as a blip.

Its all good for those of us wanting even more downward pressure on house prices. One way or another it means more hoses added to supply. In a yr or 2 most of these houses sold for 50%value will be on rightmove zoopla ect, as well as all the new extra ones built appearing along side them. More supply = downward pressure on prices.

Realmoney_2

Flight2quality wrote: »

As more of any commodity is mined or produced does not make it worth less, everything comes down to supply and demand. Look at gold almost all is added to stockpiles and the price keeps going up, silver 50% is consumed, so for me silver is a better bet, but each to his own.

I nearly went for a 1 oz Platinum bar for just over a grand. The price has come down so much that Platinum is cheaper than gold at the mo :eek: But I went for another grands worth of silver instead

If I was going to buy gold I would buy Platinum instead. Platinum is more rare than gold, but so is silver.

Amazing that the platinum 1 oz bar looked just like the silver 1 oz bars I bought. They look the same they weigh the same, but I bought 50 silver bars for the same price as 1 platinum bar. To me its obvious which is the most undervalued.

Just out of interest does anyone remember any other time when Platinum was cheaper than gold?

So if it really is 50% of mined supply of silver gets consumed by industry and 8x more silver is mined than gold, then you could say there is only 4x more silver mined than gold. Because hardly any gold gets used uop by industry.

But the price ratio is a lot higher than 4;1 it is now over 50;1 :T

Flight2quality

Realmoney wrote: »

So if it really is 50% of mined supply of silver gets consumed by industry and 8x more silver is mined than gold, then you could say there is only 4x more silver mined than gold. Because hardly any gold gets used uop by industry.

But the price ratio is a lot higher than 4;1 it is now over 50;1 :T

It seems to be now over 100% of mined supply is consumed in industry.

"According to the CPM Group, the total silver supply in 2011, including mine supply and secondary supply (scrap, recycling, etc.), will total 1.03 billion ounces.9 Of that, mine supply is expected to represent approximately 767 million ounces.10 Multiplied against the current spot price of US$31/oz, we’re talking about a total silver supply of roughly US$32 billion in value today. To put this number in perspective, it’s less than the cost of JP Morgan’s WaMu mortgage write downs in 2008.11
According to the Silver Institute, 777.4 million ounces of silver were used up in industrial applications, photography, jewelry and silverware in 2010.12 "

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/30_Eric_Sprott_-_Silver_Producers__A_Call_to_Action.html


So 767 million ounces mined this yr and 777.4 million ounces of silver were used up in industrial applications.

About 300 mill ozs from secondary supply (scrap, recycling, etc.) But there are no stockpiles left to draw down from like has been happening for the last few decades when demand exceeded supply.

Investment demand is greater than 300mil ozs every year so where will the silver come from?

lvader

You need to look at the full demand and supply figures, which although ultimately are a zero sum you end up with an implied net investment which is essentially the production surplus. This surplus has increased massively over the last couple of years to 178 million ounces in 2010. I would be very surprised if industrial demand which has been flat since 2005 increased that much in 2011, at the same time production from mining has increased around 15% over the same period.