*Fictional story, enjoy.
( Too bad that millions of 2005 home buyers did not get the same advice as this man did )
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It was 2005 and John was just about to sign the papers for a purchase of a house for around $400,000. He was about to buy it from somebody, who has bought it 10 years earlier for 120,000 dollars or an equivalent of about 300 ounces of gold.
Just before closing, a mystery man showed up at the broker's office. He said to him: " John, scrap that deal, I will show you how you can get this house for the same price that it was worth 10 years ago, which equals the amount of your down payment - 120,000 dollars."
Here is what you need to do :
"BUY 300 OUNCES OF GOLD AND WAIT 3 YEARS."
Fortunately, John listened. It is 2008. His 300 ounces of gold are now worth 270 grand.
Next week he will close on the same house, with cash, buying it for only $200,000 from a guy on the verge of bankruptcy. He was the one who ended up buying the place after John backed out three years earlier.
And John is using the extra 70 grand that is leftover, to pay cash for a foreclosed townhouse in another neighborhood.
And what he will do with the rental income from the townhouse ?
He will be buying gold, roughly 1 ounce every 2 months. |
