Gold News: Australia Has a Proposition

As gold continues to drop below 1300 this morning, let’s consider a plight faced by our friends in Australia: Would you choose property or gold? In the face of slowing wage growth and exploding property prices, some enterprising Australian fund-raiser found the middle ground. Buy a hot property and sell lottery tickets for it. You don’t hear gold news like this every day, to say the least. 

This way, people who probably could’t afford the property could have a chance at owning it for the price of a lottery ticket.  Brilliant, simply brilliant – addresses two problems with a solution that benefits a third party (hopefully a charity). Then, to sweeten the deal even further, give the winner their choice of the property or an equivalent amount in gold.  Yes you read that right, gold. Such a choice.

This Gold Enthusiast would choose the property option because it comes with $250,000 in gold, so it gives one diversification. In the short term property prices will probably continue up, as there is no sign of their abating yet.  So enjoy the property for 3 months or so, then sell it and buy a more affordable place, or invest the money if you already had a nice flat. And hang on to the gold. What would you do?

Read today’s featured article, consider your options, and you might be tempted to buy lottery tickets in Australia. (Note: The author has no affiliation with the publisher of today’s featured article – though we like the way they think.)

Related: Here’s How the Dollar is Keeping Gold Down. 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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