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Quiet Saturday afternoon so thought I would relate a real life true story on the relationship between Real Estate and Physical Gold...
27/2/2024 - NZD Gold price per ounce = ~NZD$3,290
- We tendered an offer to purchase a lovely property. We offered NZD$1,200,000 (equal to ~365 ounces of gold)
- Real Estate Agent advised our offer was strongest but at exact same price as another tender. Asked to re-offer.
- Vendor needed NZD$600,000 for retirement village property ... the balance was cash for term deposit for her daughter.
- Other bidder offered NZD$1,212,500
- We offered NZD$600,000 cash + 183 ounces of physical gold (ie = to NZD$602,070)
- We were accused of being smart by the R/E Agent and asked if we were serious. The submitted our improved offer.
- 30 minutes later the Agent rang to say the other bidder succeeded and we lost a lovely house for the sake of $12,500.
1/4/2024 - NZD Gold price per ounce = ~NZD$3,742
- I was looking at another property in the same location with the same R/E Agent as above.
- After finishing the viewing, I asked if I could speak openly with her as I wanted to get something off my chest. She agreed.
- I referenced the property of 27/2/24 and asked why her Vendors turned down our improved offer & did they grasp it?
- The Agent said the Vendor had no idea about gold and the daughter thought it was some sort of scam (No bullshit!)
- I asked the agent whether she herself understood gold and she said no but was open to being educated. So I did that.
- At the end of that education, I asked if she would like me to back up my gob with some evidence. She said "absolutely".
- I asked her to take out her smart phone and quote to me the current price of gold in NZD plus what it was on 27/2/24...
- She quoted "~NZD$3,742" now and ~NZD$3,290 on 27/2/24.
- I asked her to deduct $3,290 from $3,742 on her fancy phone and she quoted NZD$452.00.
- I then asked her to multiply $452 x 183 and she quoted NZD$82,716.
- The Agent's face said it all but I reiterated it anyway...I confirmed to her that if her Vendor had accepted our offer, the Vendor's daughter would have been better off (in real value) by ~NZD$82,716....(or NZD$70,216 net, if she took off the purchaser's offer).
- The Agent ended the conversation by thanking me for the education and asked "where can I buy some gold from?".
26/4/24 - NZD Gold price per ounce = ~NZD$3,900
- I was talking to the same Agent again yesterday about another property she had (which we turned down) and updated her on the original property.
- I advised her the savings the original Vendor's daughter would now be sitting on would have been ~NZD$111,630 and that is just in the last 2 months. To say she was flabbergasted is an understatement.
- I put it another way for her to ponder on...I said if we had paid NZD$1,200,000 for the property above, the property would have lost
~NZD$208,014 in value over the past 2 months or, put another way - it would only be worth ~NZD$991,986 now.
- I asked her to make a guess as to what the savings might be by the end of this year - she declined.
- Although we were disappointed in missing out on the property, we are happy to have made ~NZD$250,000 on our stash ...
Again, the above is a true story.
When we start to price everything in the gold price (even if it is only the Spot Price), it doesn't take long to realise what a big advantage we have over the rest of the "uneducated" population. To me, this is critical and probably the single best piece of knowledge to have. By the time the rest of the population decide to try and understand what is going on - it will be too late. But I will not be shedding any tears for them I'm afraid.
My congratulations go out to everyone out there who have taken the time to get educated and get some gold (& silver of course!) in their inventories. In the time to come - I truly believe we are all going to do very well indeed - life changing actually. Now that I have experienced the above real life example - it makes it very easy to accept.
