[bluemavrykParticipant@bluemavrykJoin Date: 2008Post Count: 5]

November 10, 2008 - 9:46 am

That about sums it up in a nutshell!

Very true comment about Banks keeping a lid on proces of Precious Metals. If I can add to that, they also make it quite compicated to purchase physical gold bars across th counter, and even add a surcharge of CHF30 per bar!! for "handling & shipping" ??

Funny story.. 2 years ago I am standing at the counter at Credit Suisse in Bahnhofstrasse Zürich dressed  in my boardshorts, t-shirt, 5-day growth and unkept hair asking the Teller for the current price of Gold.. without blinking an eye he askes me "can I afford to buy Gold??!" (as it is wasting his time serving people "like me"..) ..after telling me that the price is CHF785/oz he neglects to tell me that there is additional fee of CHF30/bar (as described above).

I can see that there are a number of Gold Bars in his drawer and then begin asking him why do I have to pay this additional fee if the Gold bars are already there IN THE BANK! IN HIS DRAWER!? RIGHT IN FRONT OF ME! He tells me that the Bank has already paid for the shipping & handling to the bank (frmop Credit Suisses bank depository 3kms away!) and that the Buyer must  "cover" the Banks expense!

I then asked him, why then doesnt the Bank charge me for the mining costs, salaries of the miners, refining the Gold, melting into bars, shipping from Africa to Europe and all other subsequent fees as well!! .. he wasnt impressed…

I managed to talk him out of the additional fee (as I was already a "good" customer of Credit Suisse) and took my 13 Gold 1oz bars home with me….

Today, instead of this headache, I use a Precious Metals Account (yes, still with Credit Suisse…) and buy and sell Gold & Platinum "without fuss" over the phone (in German or French, Swiss arent too happy about trying to speak to you in English). No charges, no fees! (but then again, no physical Gold in my hands)

The Bank still controls my Gold, Platinum & Silver.. 

 Val

[bluemavrykParticipant@bluemavrykJoin Date: 2008Post Count: 5]

November 10, 2008 - 9:00 am

Gday David,

The plummet is quite easy to explain.

There are 2 major factors to consider when speaking about Platinum.

Firstly,  that it is very much tied to the fluctuations of the Gold price.
Secondly, because it is so costly to get out of the ground & process, there needs to be great demand for it before it is excavated.

The peak in XPT this year can be explained in simple facts: the immense demand for vehicle production and hence the demand for catalytic converters for each vehicles polution standards and the output of XPT mining/process. Demand exceeded supply (greatly= XPT became a "rare" commodity and hence prices soared.

Dont forget that XPT is also used in the manufacture of Hydrogen Fuel Cells, something that should be worth watching in the years to come when our oil suuplies are even further stretched and the USs need for an "alternative" fuel source kicks in. (not to mention the future demands of places like China & India.)

The immense drop came about because of the stabilisation of oil prices (after record highs), the slowdown in the US economy, financial crisis in all markets and the immediate recession of spending. You have to remember that when demand is high (during a Bull market) mining companies meter out their quotas in prediction of future demands, not current demands. Consequently, mining companies like to keep the balance in the "demand" area not in "over-supply". Considering this, because the recession hit very quickly, mining companies were caught with their pants down and there was an "over-supply" of both Gold & Platinum on the market. Add to this the number of speculatiors as well as banks that started selling Gold & Platinum in huge bulk quantities and your question is easily answered.

Remember one point, XPT unlike Gold can be destroyed and "lost". Nearly all of the worlds Gold stocks (jewellery, currency, bars etc) are always circulating and re-circulating. It always re-enters the market in some form. XPT though rare, is expended and therefore "lost" in lots of market vehicle production.

Just a thought.

Thanks for your comment and post David.

Cheers,

Val

[bluemavrykParticipant@bluemavrykJoin Date: 2008Post Count: 5]

November 9, 2008 - 4:50 pm

Property prices in different regions is always up to personal perspective and personal financial situations.

You cant compare apples and oranges, BUT you can compare the cost of the apples against the apple market and the cost of oranges in the orange market, capisce?

For over 5 years I have been following the property market in Croatia and trying to buy into that market. I was overwhelmed when I saw that the property prices for the same 2 bedroom apartment in town etc was costing the same money as an apartment in Switzerland! Again, it all comes down to apples & oranges.

Someone earning GPB might think these prices are a bargain, Aussies might feel these prices are very steep. Germans looking for investments may find them too risky or costly to set-up and run when comparing prices in Euros for a similar sized property bakc in their home-country.

Take for example the fact that I live in Switzerland but own property in Australia and Spain. I get paid in Swiss Francs (CHF), which at the moment is doing 25-30% stronger than what it usually does against the AUD. This is great for paying off my mortgage quicker if my lender was Australian (which it isnt). My point is, there are some interesting benefits you can take advantage of if a) you are buying property in Australia AND b) you arent actually IN Australia.

I can afford to buy an additional investment property in Australia because I dont reside there and bank/lenders are very willing to lend me up to 80% of the value of my investment as long as I am not a resident. Well thats bloody unfair if you are Australian and ARE living in Australia. This means that Australia is ACTIVELY promoting properyt to be sold to non-residents. Consequently, someone like my brother who lives in Melbourne has next to no chance of buying a property as its just way too expensive for him to try and break-in to the property market.

So, to answer your question: Is Australia still a great place to buy property? Sure, if you can afford it! Just like anywhere else. Be happy that at least in Australia the property market is very mature and there are no (or little) corruption problems, scams that target foreigners and fraudsters looking to relieve you of your lifetimes savings

Cheers from Fribourg,

Val