frizzers

They shouldn't have to raise money with the production they have.

He may be raising money to further exploration , to fund a takeover or to buy some kind of smelter so they don't have to use Pinoles . I know Keith is thinking about all these things.

Keith has quite a loyal shareholder base. I suspect what has happened is that funds participating in the placement will have sold their existing stock above $2.50 and participated in the placement at $2.50 on which they also get a free warrant. They make on the deal.

But for those not in on the placement it is most frustrating. At $14 silver the stock should be above $4.

With gold at £650 per ounce and latest nationwide showing 257,000 as average London property price (Jan 9th - it will be lower already) that means we are now at 395 ounces for the average London house. Looking at the chart, we are at the first level of support. I think we will see 300 by the spring.

Rental falls outstrip decline in sale prices. What’s going on?

Surely rentals are booming because no one has confidence in the sales market and even if they do, they can’t raise a mortgage? Well no, when the supply of property on the rentals market increases year on year by 92% and the City enters one of those periods when large numbers of people are ejected, the demand / supply relationship gets turned on its head. Overall, renting remains the preferred option, so the volume of transactions overall are increasing. However, the activity of the market is heavily skewed towards the lower end and, as a result, on average, there have been falls in the rental value of 4 bedroom houses across Douglas & Gordon’s 10 letting offices of 15% - 20% in the final quarter alone. In contrast, 1 bedroom rental values have fallen on average by around 5% / 6%. Average rental values in Douglas & Gordon’s areas have fallen 10.6% in the final quarter of 2008, bringing the total decline in the calendar year 2008 to 11.2%.

On the sales side

Average values have declined by a further 8.9% in the final quarter, bringing the annual decline in values to 20%. The peak of the activity in the sales market in 2008 was April, with a small spike at the end of November. This means that the normally prime months of May, June and September / October saw very little activity for reasons that will be pretty obvious to all readers.

“Averages are Averages”

As we have said many times before in our Market Reports, “averages are averages”. The ones quoted above are specific to Douglas & Gordon’s areas of operation. They are derived from a revaluation of a set portfolio of properties of different sizes, but of a standard condition and quality. They are useful to an extent if you are a property owner in this territory in a way that any national statistics quoted are comparatively useless. The properties being valued vary in size, but what they have in common is that they have no major snags i.e. they are not situated on busy roads, they are not basements, they are not a 4th floor walk up, and in a weak market such as we are currently facing, the price of properties with any kind of handicap will suffer more than those without.

http://www.douglasandgordon.com/dng/market...ewareOfAmateurs

Yes. What a story that chart tells.

A very close friend has had her place on the market since July. It is a lovely semi in Earlsfield very nice done up with a garden. Good small family home.

At the peak houses in her street fetched £600k. She went at £550 had an offer accepted and the deal fell through for some reason. It was taken off the market. In the summer it went back on at £500k. Then £475. Then £450. Then £430. Now £400.

Loads of repeat viewings. Loads of interest. People fall in love with the house (it's lovely). IMO Unless she puts it on at £350 it will not sell now.

She bought it in 2003 for £270 and spent a lot doing it up.

She is anticipating the market, but the market is overtaking her down and she can't keep up

Your reasons make sense. I presume you will hold onto some.

 

Gold here (today) is more or less on the 12 months moving average, and so there's a good chance your cost was below this.

The 252d.MA also often proves a resistance or support level

 

Meantime, major gold stocks (GDX) are still trading about 20% below the 252d.MA (near $40)

GDX ... update

 

Here's CDNX - which has hardly moved as GDX doubled ... update

 

I suppose the weak performance is partly due to tax selling, and partly do to concerns that these companies will be unable to finance themselves (at reasonable prices) and will just burn up cash.

Look at those bolinger bands on CDNX. It's ready to go.

Some of us saw the move in gold stocks:

http://www.moneyweek.com/investments/stock...-now-14142.aspx

Feeling v. bullish on gold juniors here.

Bubb, you mentioned near-term producers elsewhere. Which ones are you looking at?

London House Prices in ounces of gold

Currently Nov 08

Average Cost: £382,951

Detached: £778,868

Semi-detached: £416,499

Terraced: £417,058

Flat: £315,339

Gold at c £575 per ounce

Average Cost: £382,951 = 666 ounces

Detached: £778,868 = 1350 oounces

Semi-detached: £416,499 = 723 ounces

Terraced: £417,058 = 725 ounces

Flat: £315,339 = 547 ounces

Still got a long way to drop imo

100 ounces not impossible from here. I think I had 200 as a target once upon a time.

But 100 ounces from 666 now . That makes gold in London houses from here still a potential 6 1/2- bagger. Ouch

As we are writing, the average UK house price in ounces of gold is: £158,442 / £575.70/oz = 275 oz.

 

As predicted on here many times before, UK home owners are now experiencing a double whammy of house prices falling off a cliff while their currency is going down the toilet.

 

What's your tagrget GF? 50 oounces?

And what's your target for London HPs in OOG?

Currently Nov 08

Average Cost: £382,951

Detached: £778,868

Semi-detached: £416,499

Terraced: £417,058

Flat: £315,339

Gold at c £575 per ounce

Average Cost: £382,951 = 666 ounces

Detached: £778,868 = 1350 oounces

Semi-detached: £416,499 = 723 ounces

Terraced: £417,058 = 725 ounces

Flat: £315,339 = 547 ounces

Still got a long way to drop imo

100 ounces not impossible from here. I think I had 200 as a target once upon a time.

But 100 ounces from 666 now . That makes gold in London houses from here still a potential 6 1/2- bagger. Ouch

Thanks steve, wren, Wanderer, cdswamp, bigtbigt for the pep talk, I needed it, it's a lot of money to play with! Cheers!

 

We just sat down and talked about everything, it took a while... We have decided to go 10% cash for the unexpected, 45% physical silver and 45% physical gold, very similar to wren's suggestion. I aim to be all in by the middle of Jan at the latest. The 10% cash may find another home but it must be extremely liquid and diverse from our PM holding.

 

BTW - cdswamp we're singing from the same hymn sheet, my savings wouldn't be 100% in to PM's if I weren't. Thanks for the detailed reply.

45% physical silver. That's a lot.

I'd recommend listening to some Bob Hoye.

Silver may not be the done deal people think it is. I have a huge holding bought in 05-06 . It is a source of immense frustration to me.

Eh? The £500 'kiss goodbye' hasn't happened yet has it? Are you meaning tomorrow CC?

On Nov 26th gold was 820. 3 trading days later it was 760. We got the smackdown.

I am hearing rumours from a source that has rarely been wrong.

 

The source says it's coming soon but doesn't know when.

 

The source also says if it fails there is going to be a discontinuity.

 

If I had to bet, friday afternoon in NY trading.

 

It usually starts with gold stocks being pounded a few hours before the smackdown proper.

Superb call again

Bob Hoye and Russ Clarke

The source also says if it fails there is going to be a discontinuity.

Hi Cg,

What do you mean by discontinuity?

CC

PS You are earning lots of karma points at the mo.

Bought some more ounces from baird's yesterday.

3 week wait minimum. Only Krugers for sale at, as they put it, 'hugely inflated prices.'

The boss said to me, 'I've been in this business for decades. I was there for gold fever in the 1970s. I've never seen anything like this. I have 50 people working for me. I need another 200 (!), but it's impossible to find anyone because there's nobody who knows this business. All the internet dealers, one's with a big internet presence, are coming to us for bullion cos they can't source it anywhere else. We are 6 or 8 times busier than we've ever been.'

One example which is proving to add substantial value is management decided to mint 99.9% pure silver into coins, ingots and bars which are actively marketed on the Company's web site. Interest levels for these products are extremely high and are beginning to represent substantial revenues for the Company. These products tend to sell at substantial premiums to COMEX spot prices. It is anticipated that these sales of refined silver products will represent approximately 10% of the Company's silver production by February 2009. The Company is also exploring other ways of selling its silver outside of the normal avenues of commercial sales.

It should also mention that management were strongly advised to pursue this avenue by CC and, on discovering the success and popularity, are now taking on new staff to handle sales.

They changed them to ruby because of new technology called technicolour.

See this thread

http://www.greenenergyinvestors.com/index....+silver+dorothy

Bullish gold and very bullish silver COT.

BTW I wouldn't rule out a retest of gold below $700 early next week.

Gold needs to find a bottom here.

 

More likely at 700 then a countertrend rally to somewhere near the top of the channel before the next move down.

 

[url=http://g.imag

In fact it was just below 700, but more or less bingo.

Now we head to top of channel

Silver gold back down from 88 to 78 on this drop. Silver usually falls further. Bullish set up?

FWIW I was in TK Max today buying a dvet and they were selling this pilow cases made out of some thick fibre that had loads of silver particles in it that apparently help allergy sufferes. (Dust mites etc) . Interesting.

Gold needs to find a bottom here.

More likely at 700 then a countertrend rally to somewhere near the top of the channel before the next move down.

[url=http://g.imag

Ceers MR

Dollar turn due?

http://www.financialsense.com/Market/wrapup.htm

If we get it, we are set up for the most beautiful W and could quickly move back to 1000

But that would be too good to be true.

He'll be making a fortune now being an economist and professor and SPEAKER and WRITER.

He won't need to risk trading the markets