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2006 CALLED THE TOP OF THE MARKET Nov 28 th 2006 see below 2007/2008 THE END OF THE BIGGEST INFLATIONARY CREDIT BUBBLE IN HISTORY 2009/2010/2011 THE PROBABILITY OF IT LEADING TO A BIG DEFLATIONARY PERIOD WITH FALLING VALUES & VERY LOW INTEREST RATES FOLLOWED BY FAR HIGHER INFLATION HOW DEEP THE DEFLATION & THE LENGTH OF IT – NO ONE KNOWS IT COULD BE FOR A FEW YEARS OR MAYBE FOR A DECADE BUT WHEN INFLATION DOES EVENTUALLY RETURN IT COULD EASILY BECOME FAR HIGHER THAN PREVIOUSLY EXPERIENCED WE BELIEVE THE CHANCES OF ALL CURRENCIES BEING ABLE TO EXIST INDEFINITELY IN THE FUTURE WITHIN A POLITICALLY ACCEPTABLE OR CONTROLLED BAND WIDTH YET REMAINING PART OF A REAL GLOBAL ECONOMY ARE VERY VERY SMALL THERE ARE LIKELY TO BE HUGE CURRENCY DEVIATIONS, DEVALUATIONS & THE REAL POSSIBILITY OF A EURO BREAK UP LEADING TO A DOLLAR BOOM OR STERLING BEING FORCED TO JOIN THE EURO OR A DOLLAR CRASH CAUSING OTHER CURRENCIES TO STRENGTHEN THE POSSIBILITY OF TRADE WARS EMERGING & THE CONTINUING UNWINDING OF THE JAPANESE CARRY TRADE ARE OF CONCERN AMERICA WILL CERTAINLY HAVE TO WATCH HOW MANY DOLLARS IT PRINTS NO-ONE KNOWS EXACTLY HOW THIS GAME WILL PAN OUT - ABSOLUTELY NO-ONE WE ARE BEGINNING TO LIVE IN VERY UNCERTAIN FINANCIAL TIMES MORE SO THAN AT ANY TIME SINCE WORLD WAR 2 WE BELIEVE THERE IS A VERY REAL CHANCE THAT THE GREAT DEPRESSION OF THE 1930’S WILL BE FOLLOWED BY THE GREAT GLOBAL DEPRESSION OF THE 2010’S FOLLOWED INEVITABLY BY THE GREAT GLOBAL INFLATION The Bank for International Settlements, The Association of Central Banks, could not have put it better, in their annual report of 2007 “Years of loose monetary policy have fuelled a giant global credit bubble, leaving us vulnerable to another 1930’s slump”.
OUR STRATEGIC OBJECTIVE MAXIMUM CHANCE OF CAPITAL PRESERVATION AND HIGH SECURE INCOME WITH A CHOICE OF CURRENCIES FOR THIS DEFLATIONARY PERIOD
COUPLED WITH MAXIMUM CHANCE OF CAPITAL PRESERVATION AND CAPITAL INCREASE WITH A CHOICE OF CURRENCIES IN THE FOLLOWING INFLATIONARY PHASE
UNITED NATIONS DEPARTMENT OF ECONOMIC & SOCIAL AFFAIRS REPORT PUBLISHED 1ST DECEMBER 2008
“the report recommends reform of the international reserve system from reliance on the dollar and towards a multi-currency system” 2009 THE LAUNCH OF OUR INTERNATIONAL HIGH SECURE BANK INCOME MULTI-CURRENCY REAL ESTATE FUNDS
SECURED ON SOME OF THE WORLD’S LARGEST BANKS USD – GBP – EUR – CHF – JPY
THE 5 RECOGNISED WORLD RESERVE CURRENCIES
THE PAST RECORD SPEAKS FOR ITSELF
Contents of email sent by JAMES GOLD on 28 th November 2006 to TIM LEE OF PI ECONOMICS ( www.pieconomics.com) a well known and highly respected US Economist. They analyse global issues for professional investors and we highly recommend their service. QUOTE “We are on a tipping point. We have not been able to buy a decent commercial property that we’d want to own for 2 years. (i.e. since before Nov 2004, over 4 years ago) Every commercial real estate investor has been rushing into Europe like lemmings just to play the yield versus the interest rate differential without understanding anything. These people will take a bloodbath and the only money left in commercial real estate is to short it.” UNQUOTE Contents of email sent by JAMES GOLD on 29 th June 2007 to the same person some 7 months later ( www.pieconomics.com) QUOTE “The HSBC Bank, sold its sky scraper building in Canary Wharf , ( London ) the largest single and most valuable building in Britain , a few months ago to some Spaniards to show a 3.8% yield. They took a 20 year leaseback. The purchase price was of course vastly overhyped.” UNQUOTE As Benjamin Graham, who mentored the great Warren Buffet, told us, “An investment operation is one which, upon thorough analysis, promises safety of principal and adequate return. Operations not meeting these requirements are speculative”. This clearly explains why we were unable to find a single property worth buying for over 4 years. We are professional investors not speculators. Naturally, we’re delighted we didn’t buy anything in those crazy speculative days. We just couldn’t find anything that made financial sense. As Warren Buffet himself says “Price is what you pay, value is what you get.” WHEN PRICE GOES UP, VALUE GOES DOWN. THE VALUE OF RESIDENTIAL AND COMMERCIAL REAL ESTATE GREW PROGRESSIVLEY WORSE THROUGH 2004/2005/2006 UNTIL IT BECAME DREADFUL VALUE IN 2007 AS PRICES CORRESPONDINGLY PEAKED. PERHAPS IN 2009 WE’LL SEE SOME VALUE SLOWLY CREEP BACK INTO THE MARKET. BUT WE’RE PREPARED TO WAIT MUCH LONGER IF NECESSARY. As Warren goes on to say “Be prepared, Noah didn’t start building the Ark when it was raining”. 2009 & THE OPPORTUNITIES TO KEEP AHEAD OF THE GAME THE YEAR WILL SEE US OPEN OUR NEW YORK OFFICE & THE LAUNCH OF OUR INTERNATIONAL HIGH SECURE BANK INCOME MULTI-CURRENCY REAL ESTATE FUNDS OFFERING YOU THE ABILITY TO MIX, MATCH & HEDGE YOUR CAPITAL & INCOME ON PUBLICLY QUOTED EXCHANGES & SECURED ON THE SOME OF THE WORLD’S LARGEST & IN OUR OPINION SAFEST BANKS
WE BUILT THIS INVESTMENT MODEL TO SUIT OURSELVES AS PROFESSIONAL INVESTORS NOT SPECULATORS AT LONG LAST AFTER 5 YEARS WE MIGHT FIND SOMETHING PHYSICAL ACTUALLY WORTH BUYING LEAVING THE SHORT PAPER MARKET BEHIND
2009 WE’RE POSITIVELY LOOKING FORWARD TO IT ARE YOU? IF YOU’RE INTERESTED TO DISCUSS ANY ASPECTS WE WOULD BE DELIGHTED TO HEAR FROM YOU
USA 00 1 646 575 2210 UK 00 44 781 609 5286
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