drbubb

Exactly. With gold overbought, and its record highs unconfirmed by Silver, and Gold stocks, I decided it was a great time to "take the money and run", banking my profits in Gold MACE. What next? I am meeting someone tomorrow to talk about Property in Japan. I am looking forward to it ! I am also researching working with a Houston-based firm that invests in distressed US properties. I think it is 1-2 years early, but they have a good concept, which looks "defensive" in what may be a tough few years ahead. I am still studying it, but it looks very interesting.

We have no need "to buy back in" ! The trade has already served its purpose - reducing my loan balance - & I have captured that result by repaying the loan. I am very happy having reduced the effective loan balance by 15%, or original cost by 10%. If Gold prices drop, then I will re-enter at some advantageous level. Otherwise I will "store my wealth" elsewhere. Wealth stored in the property has grown from HK$1.86 million - $180,000 gain on Gold, to maybe HK$2.75 million. We are presently offering the property at HK$2.88 Million, and it is rented generating about 4.5% on our cost. That particular investment represents "wealth stored in property", and I am comfortable with that now. That property is rented and generates an income, and also represents a sort of "bolt hole", if we need it. At the moment, it is very hard to find suitable places to invest, and so my capital is piling up in Cash, as I research alternatives. I consider Gold as part of my cash, but I am gradually reducing Gold holdings because of the high price, the lack of yield, and the fact that we are headed into a seasonally weak time for Gold. If this was now late August, then I might not be selling down. For Cash, I like: HK$, C$, US$, some Sfr... and I am seeking more ideas for that.

The truth is, I really dont care, since the Gold sale was part of a "contextual trading strategy" which has already served its purpose. ================ (the following was posted on the Strategic Downsizing thread) : Using "Contextual Trading" and GOLD trades to reduce property costs 1/ I was lucky. I happened to be in the offices of HSBC in the afternoon (HK time) while Gold was still up. I saw a price that I liked, and I pulled the trigger. The larger story is this: + We bought a property for HK$1.86 Million in early 2007 - It was the first one (of 10) that we bought. + We bought a total of 10 properties in 2007-8, and over the last year have been selling them off, one-by-one, as prices rise, + Each one has been sold off at a profit. Some profits were tiny (only HK$7,000 after cost was the smallest), and some were big, + All those sales left us with plenty of cash + In February, we had enough cash to pay off the remain loan of HK$1.05 million on property #1, + Gold was cheap when I was contemplating this, so instead of paying off, I bought 1,050 MACE of Gold at about HK$1,000-1,100 each, I have now sold off enough MACE to pay off the loan, with the latest sale at over HK$1,160 per MACE, so that's a profit of about 15%. And I have decided to retain the profit as a holding of 200 MACE, and reduce the loan balance by HK$1 million, to only HK$50,000. In effect, we have made an "extra profit" of almost HK$180,000 through this gold maneuver. I can think of it as reducing our cost the property by about 10%. I like this type of "Context Trading", where my trades are made in relation to a specific asset, and this way I can think of each trade, as part of a program to reduce our cost base, or to upgrade our standard of living. The context, helps me t0 avoid being too greedy, but also to make trades on scale which can be meaningful. As another example: + We are thinking about selling the flat we live in, if we can acheive our "high" asking price, + We like where we live, so I don't want to do this, unless we can somehow think of it as a step to improve our living arrangement + We have found a flat that we like, which is in a different neighborhood, but is a nice modern building with some luxury touches + The flat is larger than the one we live in now: over 1,000 sf, versus 750 sf, but the rental value is on par with where we live now + If we sell, I would cash a nice fat profit, and my partner and I would then enjoy "upgrading" the larger rental flat + Later, if/when the property market falls, we would buy again - this time larger than 750sf, but at a lower price psf than we sold + If prices do not fall in HK, we would consider moving somewhere (KL, Singapore, Philippines, NZ, Japan, Spain, the US?) where we can get more for our money, and have a nice "adventure" for a few years 2/ The truth is, I really dont care, since the Gold sale was part of a "contextual trading strategy" which has already served its purpose. THE OVERALL IDEA here is to always operate from "a position of strength", and only make major moves when they improve your strategic position. I am trying to develop some better Wealth Measurement tools, which will help people to see when they are enhancing their position.

Using "Contextual Trading" and GOLD trades to reduce property costs I was lucky. I happened to be in the offices of HSBC in the afternoon (HK time) while Gold was still up. I saw a price that I liked, and I pulled the trigger. The larger story is this: (see below)

CONTRASTING VIEWS - from DrB's diary A perfect expression of the bullish sentiment which has driven stocks to what may be a 2-of-3 top. Thanks. I wont pick holes in this argument, except to say that the fundamentals for an continuing economic recovery look extremely poor, and the power of the stimulus to hold the economy up, is fading day-by-day. The recognition that the recovery is dying will become more widespread in Q3, and everyone will accept that nothing-has-been-fixed by the hugely expensive stimulus before Q4 is over. The fact that today's rally has given back nearly all of its gains, and may go negative before the day is over, is a sign that the game may be ending soon - probably this week - and even today BTW, Gold is-$21 today, and was up earlier. I have sold down over 80% of my HK paper gold, the last 30% of that today at over $1260. Gold's weakness is a sign that stocks will soon head down too IMHO. So far. it has filled some gaps it left on the way up. A slide below $1230, would be a bad sign. Volume is heavy

Here's more about WORMHOLES USED FOR TIME TRAVEL 9/9 Ancient Aliens 2010 series: The Visitors http://www.youtube.com/watch?v=55qqAHS4350 == M., Have you heard the story that the US went into Iraq to secure a Stargate that Saddam was messing with? Here's a depiction of a wormhole: /source: http://www.shiachat.com/forum/index.php?/t...able-wormholes/ From above: On Saturday, July 1st, 2006, I received the following request from physicist Jack Sarfatti, in San Francisco: "Hey Gary what's the name of that kid from Tehran you told me about a year ago or so? I forgot his name. Are you still in touch with him? Does he have a web page?" In a follow up email Sarfatti explained that "the reason I asked is that a member of the USG [united States Government] asked me my opinion on the above work by Mohammad Mansouryar..." When asked, "Can he push the state of the art and is this work technically competent?" Sarfatti had replied, "It's better than most in the field." Someone in the government had been checking around asking about Mansouryar and wanted to know more about his research. Obviously Mohammad was someone Starstream Research needed to keep an eye on. In fact I had already alerted Sarfatti to Mansouryar in November of 2004, when I discovered a paper he had posted at the physics archive at www.arXiv.org about the generation of 'exotic matter' from the physics of the quantum vacuum. Are Stargates a way of holding them open for regular use?

Look Back in Anger. Look forward, and you will see something different (From a comment there): All them government workers can afford those houses and there are more government workers with more money than the taxpayers. Who's In Your Wallet? By 2015, almost £10 billion of public money will be spent every year supporting the retirement of millions of public sector employees – up from £4 billion this year, the independent body said. In a speech on Monday, Nick Clegg, the Deputy Prime Minister, said the pensions were simply "not affordable". The pension burden will almost certainly lead to higher taxes or greater cuts to public sector spending. The OBR report – the first it has produced since it was established by George Osborne – set out the expected rises as part of a comprehensive examination of the state of public finances. In 2010-11, the amount spent by the taxpayer on public sector pensions will be £4 billion, rising to £5.5 billion the following year, the report said. The cost will then rise, on average, by 20 per cent each year until the commitment reaches £9.4 billion in 2014-15. This equates to almost £4,000 for each of Britain's 26 million households. The sharp increase, according to the Treasury, is a result of Britain's ageing population. More people who have already retired are living longer and there is now a growing number of public sector workers who are retiring. There are also almost a million more public sector workers than a decade ago. Within hours of the publication of the report, Mr Clegg attacked the gold-plated pension schemes, signaling that the Coalition Government would have to tackle the problem soon. http://www.telegraph.co.uk/finance/persona...000-a-year.html == I am really beginning to like the new Dep-PM. What a difference from "Two Brain Cells" Prescott ! I am also wonder when they will begin to string up the Laborites for there multiple lies. Surely, some genuine crimes will be found

How many ounces for a share in one of these ? Vivos Project - headed by Robert Vicino ========== Future Breakthroughs Coast to Coast AM 2 http://www.youtube.com/watch?v=ChuQIYt0sN8 (About 3 minutes in) Blast proof bunkers : 5 built, out of 20 for US. with more coming in: China, Russia, Romania 20,000 sf, with several levels. Buried 40ft underground Shelter for 1,000 people, with food for 1 year Cost : $10 million, or $50,000 for a share Includes; Atrium, gym, and jail Located 150 miles from major metro areas Rich people have them already: Tom Cruise, US Government ===== website :: http://www.terravivos.com/

From HPC / London Asking Prices Fall By 2% In One Month A few more months like this, and the panic will really set in.

Dont worry. Give them time, and they may be begging for decent offers like that

Sure, that makes good sense. Don't sell now, sell later... when prices are lower, and the average person begins to panic. What a great way to destroy wealth !

Using GF's chart, and drawing a channel around it, I can get this It may suggest some caution with Sterling Gold longs here

I cannot rule that out. But if the CB were giving them cover, they wouldnt be "naked" shorts would they? You would need an explanation like that - which is pure conjecture, I believe, to keep the manipulation theory alive Remember, if bank A sells OTC to bank B, and bank B wants to hedge that trade later, then them may do it by selling futures, and the hedged position of bank B shows up in the futures stats as a short

They have other longs, beyond the Mining hedges. All banks have position limits, and those would limit Naked shorts, to some reasonable proportion of a banks capital

Interesting chart, GF. But what is happening within the Gold circle?

Steve, That suggests a FLAT correction to me:

From DrB's diary - I thought some might want to see this:

Some believe that such bases exist, and they are being kept secret. (BTW : Have you ever heard of "Black Ops"?) Personally, I find the idea rather unbelievable, but one thing that caused me to give the notion slightly higher credibility was the attitude of Ingo Swann, one of the most famous and credible Remote Viewing specialists. The following from from another thread here:

Here's Don Harold's response ...to the Dead- heads who mocked him for selling a portion of his Silver at $20.50 Reply to Alexiscom1 and Others About Silver http://www.youtube.com/watch?v=ZlfNJvJSIoM Well, "Don got lucky again." And I know how he feels. He says: "What some do not understand, is that price can get manipulated UP and DOWN !"

have you got it on a Log scale? (I removed the charts; GF.)

Nice charts here, from HPC:

Please fix it then ! Raw Chart : here According to Wikipedia: Thatcher elected : 1979 Blair first elected : 1990 = = = = = Prof. Taleb's comment on where the Global economy is now, after Mr. Brown "saved it": Black swan author Nassim Taleb says the world debt problem is worse now than at the height of the credit crunch and investors should ditch equities and US Treasuries and back hard assets. In an interview with Bloomberg, which you can see here, the New York University professor who made his name predicting the credit crunch, says that governments have failed to learn the lessons of the banking crisis, allowing the debt problem to morph into a new and more ‘vicious’ form. ‘I had detected fragility in the banking system and it is still there and we need to do something about it,’ he said. ‘We have had a couple of years since the meltdown and the risks have increased and taken a much more vicious form.’ He warns that economists and investors are continuing to espouse theories not backed by empirical evidence, such as the pricing of assets and risk, and says the globalisation has made events less predictable as the world has become more inter-connected. Taleb brands the government bailouts of the financial system and the transferal of debt from the private to the public sector a fast-track to increasing moral hazard and is scathing about the profits made by the banks over the past year.

Another great chart, GF ! After my modifications... Can anyone spot a pattern here ?

He is selling almost all his Gold and Gold shares, expecting a "big pullback" He may be right. BECAUSE LIBOR IS RISING AGAIN ! LIBOR CHARTS /source: http://www.economagic.com/libor.htm View the WikInvest / Libor-3Month chart /see: http://www.wikinvest.com/wiki/LIBOR Libor since 1999 : http://www.wsjprimerate.us/libor/libor_rat...chart-graph.htm 1-year Libor data: http://www.moneycafe.com/library/libor.htm#chart == == Anyone have Stertling libor charts?

I agree. / But: see below Be careful with your gold investments here (Tom Obrien, the top gold forecaster, has gone bearish.) You might consider taking profits on 10-20% of your position. Then, if we get a 10-20% pullback, you can buy back in cheaper == == (Is this report complete nonsense?) Rents rise faster than house prices Rent rises have outpaced house price growth – to reach less than 5pc off the all-time high. By Emma Wall 14 May 2010 Buy-to-let properties are now yielding an average of 4.8pc Photo: GETTY The average rent rose to £663 a month in April, 2.2pc higher than a year ago. The monthly increase for rent was 0.6pc, compared to just 0.4pc growth in house prices. This was the third consecutive monthly raise, according to research conducted by LSL Property Services, which owns the UK's largest lettings agent network. Rent is now just £25 less than it was at its peak in August 2008, meaning buy-to-let properties are now yielding an average of 4.8pc. David Brown, of LSL Property Services said: "Despite the distraction of the election, the buy-to-let market has gone from strength to strength, and landlords have seen their highest rents and yields this year. "The UK's political uncertainty surrounding the hung parliament – and its potential impact on the economy – will continue to depress demand for house purchase. "With transactional levels subdued, the private rental sector will play an even more pivotal role in providing accommodation for hesitant buyers, and we expect tenant demand and rents to be boosted in the medium-term." House price growth has dropped significantly since the beginning of the year, which saw a monthly increase to January of 2.1pc. The buy-to-let market is outstripping private property significantly, with the average annual return reaching 12.8pc for landlords, resulting in an income of £19,765 in the past year- £7,115 in rent, and £12,650 in capital appreciation. Annual returns have increased for fourteen consecutive months. Returns have been boosted by a decline in tenant arrears- with just 9.7pc of all rent not being paid. This was the lowest proportion since LSL began compiling figures two years ago, and a significant drop of £7m from March. Mr Brown concluded: "Not only has the buy-to-let market emerged from lingering effects of the recession, but landlords are now within touching distance of the record rents they achieved before the downturn. "Supply and demand imbalances have corrected, and landlords are now getting a few pounds less each per month than they did at the peak of 2008." /see: http://www.telegraph.co.uk/finance/persona...use-prices.html