Thread: Buying Gold with my Thai savings?

Originally Posted by draco888

Why can't you say whether it is possible to have a negative net yield?

on a property ? or a bond ?

Originally Posted by draco888

As an aside I do know several people from families who have been able to flee various regimes by virtue of the fact that they owned gold.

Originally Posted by draco888

Why are you still on about holding period return?

because that's what you are confused with,

you keep calling an apple, an orange, so to explain that is not an orange, I need to describe both with their differences

comprende, dummy ?

Originally Posted by Butterfly

Originally Posted by draco888

Why can't you say whether it is possible to have a negative net yield?

on a property ? or a bond ?

will not wait for your answer on that one since you will probably go in some silly tangent and circles

a corporate bond yield can't go negative,

a government treasury yield bond can go negative for very good reasons (security fee for large holdings that banks can't insure)

a yield can't go negative on a property, but if you found one, I would be interested to know what purpose such asset would serve and how you would price it since yields are part of the valuation process

My bet is that you are also confused on yield spreads going negatives over some benchmark, which is a different measure. Both have the terms yield but they are two different animals.

what a clown you make, no wonder you are long on Gold, like all the other nutters

Originally Posted by Butterfly

Originally Posted by draco888

Why can't you say whether it is possible to have a negative net yield?

on a property ? or a bond ?

It was property you stated always had a positive yield, try and keep up.

Originally Posted by Butterfly

Originally Posted by draco888

As an aside I do know several people from families who have been able to flee various regimes by virtue of the fact that they owned gold.

Is that so unbelievable?

Originally Posted by Butterfly

Originally Posted by draco888

Why are you still on about holding period return?

because that's what you are confused with,

you keep calling an apple, an orange, so to explain that is not an orange, I need to describe both with their differences

comprende, dummy ?

How many times do I have to repeat I'm not talking about holding period return.

Originally Posted by draco888

How many times do I have to repeat I'm not talking about holding period return.

but you are, that's the problem, you keep confusing yield and holding period return

Originally Posted by draco888

Ok you have just confirmed you don't know how to do property yield calculations if you think a negative net current yield is impossible.

and you just confirmed that you don't know the difference between a yield and an holding period return

can't wait for you to show me a property with a negative yield, if you can find one

Originally Posted by DrAndy

Originally Posted by socal

I bought gold at under $850 an oz and I am still ahead on average.

well done, but that is not what investing smart is all about

you should have sold at $1700 and waited until the right moment to buy again

I do not trade physical gold, nobody that understands does. That is what so many people don't understand. Gold is raw savings. Gold is where my surplus earnings get parked. Gold is savings, nothing else on earth is. Cash under your mattress has currency risk. Just ask any Thai person who had Baht under their bed in 1997. Bank deposits have currency risk and counter party risk. Bonds have currency risk and counterparty risk. Stocks and real eastate are investments, not savings. Gold is the only real savings.

I trade in stocks and not much else which I did really good in in 2011. I had a stock recommendation on here that went up 20% in the time period that I set out. Its on the record.

Consider the options

Let’s look at an example. You want to buy about $500,000 worth of real estate, and with a 25 percent down payment plus costs, you’ll need about $150,000 in cash to close the deal. You have two choices:

A swanky downtown San Diego condominium for $500,000, or
Three nice moderately priced boring suburban $165,000 condominiums.

Immediate cash flow

In reality, moderately priced cash flow positive condominiums are the best location, location, location, and here’s why.

A $500,000 downtown San Diego condo would probably generate negative cash flows of about $1,000 per month. That’s $12,000 per year[at]— ouch[at]— on a $150,000 cash investment or negative 8 percent return on the investment.

A moderately priced $165,000 suburban San Diego condo would probably generate positive cash flows of about positive $250 per month. Multiplied by three condominiums[at]— so apples to apples on the $500,000 investment[at]— is positive $750 per month. That’s positive $9,000 per year on a $150,000 cash investment, or positive 6 percent return on the investment.

Originally Posted by Butterfly

Originally Posted by draco888

a negative net current yield is impossible

since you are too dumb to deal with and uneducated in those matters, I will refer a few quick links for you to read

Current Yield Definition | Investopedia

Calculate Net Rental Yield - Net Rental Yield Calculation for the Real Estate Investor

The beginning of a successful rental property investment strategy is an accurate estimate of rental yield for the prospective property.

maybe you learn something today, yield is not your actual return, it's a valuation metric for the expected performance of an asset like properties

therefore a property yield is NEVER negative, even though your holding period return might be

a confusion often done by amateurs like yourself, not the first time you made those first timers mistake, you did previously with some correlation discussions on Gold and other assets.

Originally Posted by draco888

Consider the options

Let’s look at an example. You want to buy about $500,000 worth of real estate, and with a 25 percent down payment plus costs, you’ll need about $150,000 in cash to close the deal. You have two choices:

A swanky downtown San Diego condominium for $500,000, or
Three nice moderately priced boring suburban $165,000 condominiums.

Immediate cash flow

In reality, moderately priced cash flow positive condominiums are the best location, location, location, and here’s why.

A $500,000 downtown San Diego condo would probably generate negative cash flows of about $1,000 per month. That’s $12,000 per year[at]— ouch[at]— on a $150,000 cash investment or negative 8 percent return on the investment.

A moderately priced $165,000 suburban San Diego condo would probably generate positive cash flows of about positive $250 per month. Multiplied by three condominiums[at]— so apples to apples on the $500,000 investment[at]— is positive $750 per month. That’s positive $9,000 per year on a $150,000 cash investment, or positive 6 percent return on the investment.

Originally Posted by Butterfly

Originally Posted by draco888

a negative net current yield is impossible

since you are too dumb to deal with and uneducated in those matters, I will refer a few quick links for you to read

Current Yield Definition | Investopedia

Calculate Net Rental Yield - Net Rental Yield Calculation for the Real Estate Investor

The beginning of a successful rental property investment strategy is an accurate estimate of rental yield for the prospective property.

maybe you learn something today, yield is not your actual return, it's a valuation metric for the expected performance of an asset like properties

therefore a property yield is NEVER negative, even though your holding period return might be

a confusion often done by amateurs like yourself, not the first time you made those first timers mistake, you did previously with some correlation discussions on Gold and other assets.

you got to be joking, right ? is that how you are doing your calculations ?

not only you know fuck all about stocks and I must dare say Gold from all your silly assumptions, but you have no fucking clue how to even calculate a capital rate for a property investment. No wonder you are confused with Holding Period Return and yield.

more links for you to learn,

Yield (finance) - Wikipedia, the free encyclopedia

Gotta laugh at these gold losers. I told them gold was a sell at $1600 and the wankers didn't want to listen and posted all kinds of useless charts except the most relevant chart - the 100 yr gold chart.

Originally Posted by socal

Originally Posted by DrAndy

Originally Posted by socal

I bought gold at under $850 an oz and I am still ahead on average.

well done, but that is not what investing smart is all about

you should have sold at $1700 and waited until the right moment to buy again

I do not trade physical gold, nobody that understands does. That is what so many people don't understand. Gold is raw savings. Gold is where my surplus earnings get parked. Gold is savings, nothing else on earth is. Cash under your mattress has currency risk. Just ask any Thai person who had Baht under their bed in 1997. Bank deposits have currency risk and counter party risk. Bonds have currency risk and counterparty risk. Stocks and real eastate are investments, not savings. Gold is the only real savings.

I trade in stocks and not much else which I did really good in in 2011. I had a stock recommendation on here that went up 20% in the time period that I set out. Its on the record.

Gold has currency risk as well you dumb arse. You're such a nitwit.

You can post links to cash flow divided by Market price till it comes out of your ears.
No wonder you cannot distinguish between current yield and holding period return if Wikipedia is your source. Did you say you actually studied finance at university?
I don't know where you base me knowing fuck all about equities comes from since I don't recall posting much about them, must be your crystal ball again huh?

Originally Posted by Butterfly

Originally Posted by draco888

Consider the options

Let’s look at an example. You want to buy about $500,000 worth of real estate, and with a 25 percent down payment plus costs, you’ll need about $150,000 in cash to close the deal. You have two choices:

A swanky downtown San Diego condominium for $500,000, or
Three nice moderately priced boring suburban $165,000 condominiums.

Immediate cash flow

In reality, moderately priced cash flow positive condominiums are the best location, location, location, and here’s why.

A $500,000 downtown San Diego condo would probably generate negative cash flows of about $1,000 per month. That’s $12,000 per year[at]— ouch[at]— on a $150,000 cash investment or negative 8 percent return on the investment.

A moderately priced $165,000 suburban San Diego condo would probably generate positive cash flows of about positive $250 per month. Multiplied by three condominiums[at]— so apples to apples on the $500,000 investment[at]— is positive $750 per month. That’s positive $9,000 per year on a $150,000 cash investment, or positive 6 percent return on the investment.

Originally Posted by Butterfly

Originally Posted by draco888

a negative net current yield is impossible

since you are too dumb to deal with and uneducated in those matters, I will refer a few quick links for you to read

Current Yield Definition | Investopedia

Calculate Net Rental Yield - Net Rental Yield Calculation for the Real Estate Investor

The beginning of a successful rental property investment strategy is an accurate estimate of rental yield for the prospective property.

maybe you learn something today, yield is not your actual return, it's a valuation metric for the expected performance of an asset like properties

therefore a property yield is NEVER negative, even though your holding period return might be

a confusion often done by amateurs like yourself, not the first time you made those first timers mistake, you did previously with some correlation discussions on Gold and other assets.

you got to be joking, right ? is that how you are doing your calculations ?

not only you know fuck all about stocks and I must dare say Gold from all your silly assumptions, but you have no fucking clue how to even calculate a capital rate for a property investment. No wonder you are confused with Holding Period Return and yield.

more links for you to learn,

Yield (finance) - Wikipedia, the free encyclopedia

Originally Posted by draco888

No wonder you cannot distinguish between current yield and holding period return if Wikipedia is your source.

the wiki are for your help, maybe if you had a real education in those instruments, you wouldn't make the mistake to confuse Holding Period Return and yield like you clearly did in your post above.

Stick to Gold, like the Chinese peasant, and Socal 1.0, it seems that this asset is simple enough to talk to you as a worthwhile investment.

draco rams socal with his fake gold dildo every night

Originally Posted by waradmiral

draco rams socal with his fake gold dildo every night

In your dreams maybe! But hey, each to his own.

Gold taking a dramatic dive, hope you gold hoarders not get hurt to much.

Originally Posted by waradmiral

Gotta laugh at these gold losers. I told them gold was a sell at $1600 and the wankers didn't want to listen and posted all kinds of useless charts except the most relevant chart - the 100 yr gold chart.

Remember I was talking physical vs paper ? Just maybe something is going on here that is just a little above your pay grade ?

ZeroHedge today

US Mint Sells Record 63,500 Ounces Of Gold In One Day. (today)



One of the more curious revelations of the New Normal is the fundamental dichotomy when investing between paper "investors", or those who chase returns based on intangible, fiat-based and central bank-backed promises, such as capital appreciation or cash flow streams, and those who would rather convert their paper money into hard assets, even if said assets can not be, in the immortal words of Warren Buffett, fondled, or otherwise generate a cash-based return. Such as gold.



Today provides perhaps the perfect example of how the former increasingly trade on nothing but momentum and speculative mania (such as the previously reported record inflow of foreign capital into the Japanese stock market well after the bulk of the easy upside has already been made and at this point there is mostly downside) (This is you waradimar)and where buying begets only more buying, while rampant selling only leads to liquidations, while those who invest in hard assets (and thus have little to no leverage) have become the true value investors, purchasing more as the price of the underlying asset drops. Yes, a novel concept to most High Frequency Trading vacuum tubes, and the momentum-chasing, equity trading "expert" du jour, but nothing new to Indians, Australians, Chinese or the Japanese.



And apparently to at least some Americans.





According to today's data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.



Punchline number one, as the chart below shows, is that the more the price of gold fell, the more aggressive the purchases of physical gold through the Mint became, rising to 96,500 oz in the last two days alone. Buying more of something you want when the price drops: what a stunning concept - explain that to the algos who nearly crashed the German stock market overnight. (^This is you waradimar) Losing money in stocks like usual..

Punchline number two, of course, is that the US mint charges a hefty premium for purchases: much more so than traditional vendors like Apmex or Gainesville Coins, and is usually the last resort for when nobody else has any physical at a lower premium to spot (or any metal in inventory).





So how long until the US mint "runs out" of American Eagles and Buffaloes in inventory, along with the depletion of all other precious metal vendors? And what happens if the price of paper gold hits zero (or goes negative) courtesy of bank and financial institution liquidation selling of paper derivative contracts nebulously referencing some yellow metal somewhere, even as suddenly there is no physical to be delivered to anyone, anywhere?
Inquiring minds really want to know.
h/t Alex, source US Mint

Originally Posted by Butterfly

Originally Posted by draco888

No wonder you cannot distinguish between current yield and holding period return if Wikipedia is your source.

the wiki are for your help, maybe if you had a real education in those instruments, you wouldn't make the mistake to confuse Holding Period Return and yield like you clearly did in your post above.

Stick to Gold, like the Chinese peasant, and Socal 1.0, it seems that this asset is simple enough to talk to you as a worthwhile investment.

Anything can be negative yield you moron. Dracco explained it in too technical terms for you.

Say you buy a house for $400,000 and rent it out for $266 a month.

266 x 12 months is a $3200 annual return. $3200 is .8% of 400,000. Inflation is say 2%. Bingo. Your rate of return, not even including property taxes and income taxes is negative 1.2% because you need to make more then 2% to make any return at all.

This can be applied to all asset classes including waradimars dividends. Does he know this, no, he is clueless.

Whats this... another bond bubble maybe ? Its only been going up for 28 years in a row. But hey, gold is the bubble.

CREDIT SUISSE: 'Gold Is Going To Get Crushed'


Credit Suisse: Gold $1,100 - Business Insider

Bearish sentiment toward gold has prices for the yellow metal tumbling again. On Wednesday, George Soros
revealed through a regulatory filing that he cut his gold exposure during the first quarter.

In a new note to clients, Credit Suisse's Ric Deverall forecasted that gold would plunge to $1,100 this year
and eventually to $1,000 within five years. This according to Bloomberg's Maria Kolesnikova.

More from Kolesnikova:

“Gold is going to get crushed,” Deverell told reporters in London today. “The need to buy gold for wealth
preservation fell down and the probability of inflation on a one- to three-year horizon is significantly diminished.”
...

“When gold is going up, it looks like a great idea to buy more gold,” Deverell said. “And when it’s going down,
do you really think risk-averse central bankers are going to try and catch the knife? No.”

Deverell was responding to the latest stats on central bank gold reserves. According to a new report
from the World Gold Council, these banks bought around 109 tons of gold in the first quarter, marking
the seventh straight quarter of net purchases.


related links...

Gold Prices Falling - Business Insider

Central Banks Buy Gold In Q1 - Business Insider

It's all being manipulated by the Fed in the USA as they need to buy back all the gold they sold that belongs to the Germans - 7 years to quietly buy thousands of tonnes of the stuff. If people would start believing this, the price would shoot up again.