Blog – David McCarthy on Galway Talks 18.04.13

 

Issue:  Concerns expressed over potential increase in house repossessions.

Comment:  Apparently the Government is making changes to legislation which will close off a loophole that has existed here for the last few years as a result of a High court ruling.

This loophole meant that lenders could not move to repossess properties in connection with loans that were taken out before a certain date.

Concern has been expressed recently that, once legislation has been changed, there could be a rush of applications for repossessions.  Whether or not this will be the case, remains to be seen.

I would certainly hope that cases that come before the courts will be monitored closely by the Government to ensure that lenders, who are trying to repossess property, are behaving overzealously.

Issue:  Investment in Gold looses its ‘Shine’.

Comment:  For many years Gold traded well below $1000 per ounce.  Since 2000, Gold has had this perpetual ‘bull run’.  Recently we have seen the price drop to a level where it currently trades at circa $1350 per ounce.  This was after touching nearly $2000 an ounce in 2012.

As I have constantly warned people before, Gold is a commodity and is influenced by a variety of factors not just supply and demand.  Like any commodities investing in Gold should only be considered by a sophisticated investor that understands the market.

The idea that Gold, is a safe alternative to a bank deposit, is seriously flawed.