What should we invest in to guard our assets from inflation?

[ArmSurvival]

Re: What should we invest in to guard our assets from inflation?

I have been hearing about banks dumping commodities lately, if this happens the prices will fall a lot. Gold is the highest it has ever been but dumping comodaties may effect that to.

US and European banks have announced numerous times in the last year that they will sell hundreds of tons of gold (in just one announcement a few months ago they declared 400 tons will be sold). They're doing this in order to keep the price of gold down, which conversely boosts the value of their paper currencies. It worked for a couple of weeks, but even US and European central banks cannot fight against the general economic conditions which are pushing the price of gold higher and decreasing the value of their currencies. Couple the economic uncertanties with the fact that China has been buying and stockpiling gold for the past few years, and you have an environment where the price of gold will continue to grow.

I have also heard many people (some of them analysts) saying that the official price of gold does not factor in the full effect of inflation. Basically, when they equate the price of gold, they put less statistical weight on currency inflation compared to how it is in reality. I remember an article from last year saying that if they adjusted the price of gold to show the full effect of inflation, gold would really be around $2,000 an ounce. Not sure how much of that is in fact true, but its interesting to think about when you consider that the western financial system is doing everything in its power to keep gold down and currencies up.

[Armanen]

Re: What should we invest in to guard our assets from inflation?

http://forum.hyeclub.com/showpost.php?p=286926&postcount=356

[gegev]

Re: What should we invest in to guard our assets from inflation?

Investing in Armenian real property would one of the most beneficial options. Vahan Hovnanyan, a real estate developer from USA; who bought several hundred hectares of land in a suburb of Yerevn in past, paying $1 per one square meter, now sells one square meter for $70. Especially taking into account that the real property prices in Armenia are about 20% less: thanks to God it didn’t become that cheaper as it is in developed countries. And soon, after the world economic recovery, it will soar again, I’m sure.

[MrHyeSev]

Re: What should we invest in to guard our assets from inflation?

Investing in Armenian real property would one of the most beneficial options. Vahan Hovnanyan, a real estate developer from USA; who bought several hundred hectares of land in a suburb of Yerevn in past, paying $1 per one square meter, now sells one square meter for $70. Especially taking into account that the real property prices in Armenia are about 20% less: thanks to God it didn’t become that cheaper as it is in developed countries. And soon, after the world economic recovery, it will soar again, I’m sure.

gegev are you planning to invest in Armenian real property? And if so how much?

[Muhaha]

Re: What should we invest in to guard our assets from inflation?

Investing in Armenian real property would one of the most beneficial options. Vahan Hovnanyan, a real estate developer from USA; who bought several hundred hectares of land in a suburb of Yerevn in past, paying $1 per one square meter, now sells one square meter for $70. Especially taking into account that the real property prices in Armenia are about 20% less: thanks to God it didn’t become that cheaper as it is in developed countries. And soon, after the world economic recovery, it will soar again, I’m sure.

How much did Hovnanyan actually sell? I doubt very much. Real Estate in Armenia doesn't really seem like to much of a sound investment. If you're going to invest in anything in Armenia, Exporting business' are probably the best bet, but then if you do that you'll probably have to worry about whatever local kingpin and his dislike with akhpars, or most likely anybody, taking away too much of the action.

[gegev]

Re: What should we invest in to guard our assets from inflation?

How much did Hovnanyan actually sell? I doubt very much. Real Estate in Armenia doesn't really seem like to much of a sound investment. If you're going to invest in anything in Armenia, Exporting business' are probably the best bet, but then if you do that you'll probably have to worry about whatever local kingpin and his dislike with akhpars, or most likely anybody, taking away too much of the action.

In “Vahagn” district there are about 100 cottages most of them are built by Hovnanyan. About 20 land spots are sold, each approximately 800 square meters, which makes about $1.1 million. In addition he constructs and sells cottages each for about $250,000. Thus his all fixed expenses are covered by the profits long ago. As refers to word “akpar”: we have a lot of Diaspora Armenians here whose businesses prosper. So forget about ‘akbar” kind of discrimination. Although I don’t reject that there is some truth in your arguments too, but it depends on your personality as well.
The kinds of problems you mentioned may arise if you are going to invest hundred million dollars.

[gegev]

Re: What should we invest in to guard our assets from inflation?

gegev are you planning to invest in Armenian real property? And if so how much?

My elder son bought a cottage in Yerevan in 2002 for $22,000 now it can be sold for $110,000. My middle son bought a land spot of 400 square meters in Yerevan suburb in 2006, for $25,000.

[Haykakan]

Re: What should we invest in to guard our assets from inflation?

In “Vahagn” district there are about 100 cottages most of them are built by Hovnanyan. About 20 land spots are sold, each approximately 800 square meters, which makes about $1.1 million. In addition he constructs and sells cottages each for about $250,000. Thus his all fixed expenses are covered by the profits long ago. As refers to word “akpar”: we have a lot of Diaspora Armenians here whose businesses prosper. So forget about ‘akbar” kind of discrimination. Although I don’t reject that there is some truth in your arguments too, but it depends on your personality as well.
The kinds of problems you mentioned may arise if you are going to invest hundred million dollars.

i agree with the akhbar part. A lot depends on your personality, if you are a good person then it wont matter but if not then...

[KanadaHye]

Re: What should we invest in to guard our assets from inflation?

Housing prices have increased world wide... however, if lending gets tighter and interest rates increase, the prices will drop to where they should be. I think the prices of homes are way too inflated.


November 17, 2009, 6:00 PM ET
Ara Hovnanian: Suprisingly Upbeat at Home Builder Conference

We were initially puzzled at the enthusiastic display of optimism from Ara Hovnanian at a conference Tuesday afternoon. But we think we have it figured out: Home builders who’ve made it this far are feeling good–sporting the sort of stunned optimism one might feel after living through a war. The chairman and chief executive of the nation’s sixth-largest builder said that a dramatic cutback in construction combined with pent-up demand as the population grows and new households form makes for a promising future.

In response to the downturn, “we are under-building more grandly than ever before,” Mr. Hovnanian said at the UBS Building and Building Products conference in New York.

It was a line delivered with his usual charisma. Overall, he seemed more enthusiastic than usual.

We’ve detailed the New Jersey-based company’s troubles: It took on more debt and made more acquisitions near the top of the housing bubble than most big rivals, and it just finished a flashy 48-story condo tower announced during the heyday. Buyers are hard to come by.

Plus, founder Kevork Hovnanian – Ara’s father – just passed away in September at the age of 86.

Hovnanian is among the few home builders left standing after struggling through the worst downturn in generations – the mother of all cycles, as Mr. Hovnanian labeled it. Tuesday, the National Association of Home Builders reported that its closely-watched confidence index stayed flat at 17 out of 100 in November. While that’s better than all-time low of 8 in January, any student will tell you, 17 is nowhere near passing percentage.

Should Mr. Hovnanian’s predictions hold up, public builders including Hovnanian should find themselves in a sweet spot: With minimal access to capital, private builders nationwide are shuttering at a “phenomenal” rate.

“It’s scary, the number of home builders that are closing their doors,” Mr. Hovnanian says, referencing The Home Builder Implode-O-Meter, which monitors the trend.

The large public builders are readying themselves to gain market share once the market returns. Today, we wrote about Lennar’s land acquisitions. Mr. Hovnanian said his company has picked up almost 4,000 lots – buying them, securing them with a deposit or using a partner - in recent months.

Enthusiasm aside, that signals confidence in the future.

http://blogs.wsj.com/developments/20...er-conference/