Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22
UK House Prices Real Terms Sustainable Trend - 17th June 22
Why I’m buying the “new” value stocks… - 17th June 22
Optimize Benefits from R&D in Software Product Development with an R&D Tax Credit Software - 17th June 22
Want To Save On Your Business Energy? Here Are Some Helpful Tips - 17th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Buying Homes with Cash… Gold Edges Closer to Currency Status

Commodities / Gold and Silver 2011 Feb 13, 2011 - 06:11 PM GMT

By: Investment_U

Commodities

Steve McDonald writes: Despite the gloomy housing numbers, many of the hardest hit areas in the real estate crash are seeing big new buying activity.

And not only that, it’s happening in cash.


Buyers in markets across the United States are snapping up homes in all-cash deals, betting that prices are at or near bottom.

According to the National Association of Realtors, 28% of U.S. home sales were all-cash transactions last year. By comparison, the rate was just 14% in October 2008, in addition…

•Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to Zillow.com. By comparison, they represented just 13% of all deals in the fourth quarter of 2006.
•The percentage of buyers in Phoenix paying cash hit 42% in 2010, more than triple the rate in 2008, according to Raymond James’s equity research division.
What motivates these buyers? In short, irresistible prices – and cash buyers can often command 5% to 10% more off the asking price than a buyer using a mortgage.

The Next New Global Currency: Gold

In a really big announcement this week, Morgan Stanley (NYSE: MS) started accepting gold as collateral. How big?

Well, in the past, only bonds and stocks were allowed as collateral, so moving gold into this realm is seen as a major move toward gold being accepted as a true currency alternative.

The Slap in the Face Award

The award this week goes to Irving Picard.

Who’s Irving Picard? He’s the court-appointed trustee who’s trying to recover losses from the Bernie Madoff Ponzi scheme.

He’s prosecuting the owners of the New York Mets baseball team to recoup $1 billion. Why? Because it seems the Mets owners actually made money while Madoff was running his operation and, according to Picard, the Mets didn’t do enough due diligence and should have known that Madoff was running a Ponzi scheme.

I’m sorry… but the entire Justice Department and the SEC couldn’t see the scheme, but an investor – no matter how large – is supposed to have figured it out for them?

That’s weird enough, but the real slap in the face comes when you read the indictment and realize that most of the evidence (if you can call it that) against the Mets owners is based on a money manager that the Mets owners shunned because he wasn’t getting the returns that Madoff was.

The really unbelievable part of this story is that Picard will probably win at least a partial settlement from these folks.

Unbelievable! Investors are now supposed to fulfill the SEC’s enforcement responsibilities, or we have to give up our returns.

That’s it. Catch you again next week.

Steve McDonald

Editor’s Note: Each week, Steve McDonald reports on the most important economic and market developments, showing investors how to profit from the trends. You may have read some of his previous posts on the site this week.

But always a willing entertainer, Steve also takes time to head to our subterranean recording studio to tape these weekly updates for you. And you can find this week’s Investment U Weekend Update right here.

Source: http://www.investmentu.com/2011/February/gold-edges-toward-currency-status.html

http://www.investmentu.com

Copyright © 1999 - 2008 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


14 Feb 11, 04:30
Sue the SEC

Why doesn't he just sue the SEC, that would make a lot more sense. The SEC just plain ignored the evidence given to them years ago. They should pay the bill. For years the SEC has been the joke of Wall Street, it seems that the only people working there are losers who can't get a job anywhere else on the Street.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in