The New York Daily News is reporting today that Olympic swimming phenom Michael Phelps has purchased a $1.69 million condo on Baltimore’s waterfront. He’s also reportedly purchased a swim club and ice rink with the hopes of turning the facility into an Olympic training center. Now, he may turn his attention to a new car—possibly a James Bond-esque Aston Martin.

The home is part of a development called The Crescent at Fells Point. To view some of the properties Michael passed up, check out the 76 luxury listings on our site for the Baltimore area, from $1.4 million to $6 million. To comment on this posting, click here.

“With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people.” - Friedrich Von Hayek

I’m not advocating a return to the gold standard but when governments lose on printing money, as is the case today, investors should buy gold.

A way to protect yourself is to obtain good information about your bank from an independent research source. At Cumberland, we have utilized the services of Chris Whalen’s firm, a custom analytics provider: Institutional Risk Analytics (www.institutionalriskanalytics.com) .

Their services range from an automated report showing the bank’s financial and credit performance ($50) to a detailed profile of an institution prepared by one of their analysts. That costs $1,000. For additional information, contact Christopher Whalen (914) 827-9272 or cwhalen@institutionalriskanalytics.com .

Our advice is that depositors should try to lower that risk as much as possible. Here is one idea.

The analysis set forth in this article is focused on gold but the same conclusions are largely applicable to the other precious metals with monetary characteristics: silver and platinum.

Gold has been trading in the $900-$1,000 range, which is all-time high, slightly above the 1980 brief peak above the $800 range, however, on an inflation-adjusted basis (please see chart below) it is still way below the peak and average range during the stagflation period of the seventies; a period that greatly resembles the current macro-economic setting.

I expect gold to continue to appreciate substantially in the medium and long term, with strong chances of moving in a sustained fashion above $2,000 within the next two to three years.

After you have spread your insured deposits around and IF you still have uninsured deposits that need some liquidity placement, consider placement of the funds in gold or other precious metal with www.weinvestonline.com.

Isn’t gold considered to be just a commodity with no real monetary role anymore?

I’d like to refer to an article by Tony Fell , and it’s particularly interesting, given that he was chairman of RBC Capital Markets at the time of writing. He talks about how gold has three attributes: it’s a commodity, a store of value and a currency. He says so many people now think of gold only as a commodity or jewelry, or as an archaic relic, that there’s a feeling of “who needs it anymore?” People don’t think of it as money.

However, the daily sales volume gives a conclusive indicator that gold is much more than an industrial commodity. The physical turnover of gold by members of the UK’s London Bullion Marketing Association is about $25 billion per day. We’re talking about net turnover between the LBMA members. The volume is estimated at 7-10 times that amount.

It’s pretty clear that these are currency transactions. That’s why gold, silver and platinum trade on the currency desks of all the banks and brokerages, not the commodity desks. What people need to know is that gold is a currency [like dollars or euros or yen]. Gold is not trading at these volumes as a commodity or as some archaic relic.

Investors choosing to ignore these trends do so at grave peril to their wealth. As Churchill once said: “The time for procrastination and delays and excuses is over, we are into a period of consequences”.

Ron Wellman
We Invest Online, Inc.
Investment Concierge
www.weinvestonline.com

In the 1960s, Norman Jewison directed a small gem of a movie, “The Russians are Coming, the Russians are Coming.” The plot centers on the reaction of the residents of an oceanfront New England village to the crew of a Russian sub that runs aground just off the coast. Given the Cold War hysteria at the time, the locals are convinced they are under attack. By the end of the movie, both the Americans and the Russians discover that they have a lot more in common than they had previously thought, and humanity wins the day.

If the movie were to be remade today, the petrified townsfolk would be replaced by extremely affluent homeowners and their real estate agents, and the “menacing” Russians would be billionaires with plenty of cash and a penchant for overpaying. Needless to say, fear would be replaced by euphoria in the updated version, at least in the beginning, as the “have-a-lots” all vie to get high nine-figure price tags for their exotic digs. Fear would inevitably set in, however, as the real estate agents all begin to realize that there aren’t enough Russian billionaires to go around to make all their sellers happy.

The report today that a Russian billionaire had plunked down 500,000,000 euro for Villa Leopolda in Villefranche on the French Riviera was the kind of news that makes you stop, go back and reread carefully. There must be one too many zeroes in there, you think. But, no, the price was €500 million, or just about $750 million. Why, it was just a few weeks ago that Donald Trump made news when he sold a mansion in Palm Beach to a Russian billionaire for $95 million. The truly interesting angle on that transaction was not the price, but the rumor that the buyer was planning on tearing the house down. But that is yesterday’s news. Compared to today’s announcement, a $95 million teardown seems almost ordinary.

The news report I read that presented details on the deal said that the real estate agents along the French Riviera were giddy. “Giddy” soon will be replaced by “exasperated” as these same agents soon discover that it will be hard to meet the new-found expectations of their well-to-do sellers. One agent quoted lamented that now he and his fellow agents wouldn’t dare propose prices less than €100 million to their top clients.

Yes, those of us who are involved in the reporting on and promotion of luxury real estate smile and shake our heads when we hear of deals that seem outrageous on the surface. We may even get giddy ourselves for a few moments. Let’s face it: Big price tags for real estate make interesting news, and if the buyer can spend that kind of money, then what’s the big deal? Even so, there is something unsettling about so much money going to buy a single property. If we have learned anything in the past year or two, it is that there is a problem when the real estate market eschews reality in favor of fast and unsustainable profits. Given that this deal is so extravagant, it is not likely to have any significant impact on the luxury market as a whole (though area luxury agents are likely to see their world turned on its head for a while). I don’t suspect this is going to precipitate a string of €400 million and €500 million deals along the Côte d’Azur. If it does, not only will I eat my hat, I will go back to school and learn how to speak Russian.

–Rick Goodwin, Publisher, Unique Homes

Frequently, experts that I interview draw a parallel between over-the-top homes in the current market and the Gilded Age. Today’s Boston Globe makes a similar comparison in an article about a $23 million mansion being constructed in Boston.

According to the Globe, the owner, investment executive Ofer Nemirovsky, spent 10 years acquiring two adjacent properties at the corner of Exeter Street and Commonwealth Avenue in the city’s Back Bay district. The new 23,000 square foot home will be the largest in the entire city. Each of the home’s six levels has a specific focus. One is devoted solely to a master suite; another to formal spaces. Interesting features include an atrium bordered by a glass walkway and railings; an “artifact room” connecting to one of two studies in the master suite and an indoor sports court. Check it out here.

Camilla McLaughlin

A new homes development, Las Canadas, showcasing expansive, mountainside homes is being constructed in Punta Mita, Mexico, according to DINE, a Mexican luxury real estate developer. These private casitas, situated on the breathtaking Careyeros mountainside, will be priced from $1.45 million to $2.35 million. This enclave of 14 unique homes features amazing views of the stunning Jack Nicklaus Signature golf course and the pacific. Each home offers a wooded setting and unsurpassed privacy. The homes will be three- and four-bedroom designs. Casita buyers and owners will have the privilege of joining the private Club Punta Mita, which features distinctive amenities, including Nicklaus Signature Golf Course, the Punta Mita Tennis Club and access to Punta Mita’s three Resident’s Beach Clubs. For more information about Las Canadas, visit www.lascanadaspuntamita.com.

—Angie Kandil, for Unique Homes

The prestigious, invitation-only Luxury Real Estate Board of Regents has expanded with the recent joining of Grace Bay Realty. Grace Bay Realty is now the board’s distinguished representative of the Turks and Caicos Islands, according to RISMedia. The Board of Regents is an exclusive affiliation of luxury brokers, which is essentially the crux of the global LuxuryRealEstate.com network. It is made up of 84 brokerage firms, which represent more than 600 offices and 1,700 luxury real estate professionals worldwide. Each Board of Regents member is chosen because of his or her credentials and dedication to the LuxuryRealEstate.com brand. Information for vacationers, many luxury homes, condos and island retreats are listed on its Web site at www.gracebayrealty.com.

—Angie Kandil, for Unique Homes

Manasco Realty, previously affiliated with Century 21, is now an affiliate of Prudential Real Estate, and will operate in designated areas in North Carolina, such as Danville and surrounding Pittsylvania County and Caswell County. Broker/Owner Carl Manasco said he chose Prudential Real Estate because of its “global brand strength” in addition to its “commitment to Internet marketing and sales professional training.” Manasco Realty specializes in historic properties, downtown Tobacco Warehouse District properties, and new condominium projects. The company owns a 12 percent share of its overall market, which Manasco plans to expand to 18 percent over the next 12-24 months, according to reps. For more information regarding Prudential Manasco Realty, visit its website at www.manasco.com.

—Angie Kandil, for Unique Homes

Talisker, a real estate investment and development company, recently acquired the Canyons Resort, located in Park City, Utah. Park City also features Tuhaye, which has a Mark O’Meara-designed golf course and clubhouses designed by Robert A.M. Stern. Another remarkable development is Empire Pass, on Deer Valley ski slopes, which will also include a Montage Hotel that is under construction. For more information about Talisker’s acquisition of Canyons Resort, click here.

—Angie Kandil, for Unique Homes

The spike in gas prices could be re-shaping the American lifestyle for many people, particularly baby boomers and millennials, people born between late 1970s and mid-1990s. Urban living may become the new trend due to the $4-a-gallon gasoline, according to The Wall Street Journal. People are leaving their nests in traditional suburbs and moving to density-rich urban areas because of the long and, now expensive, commutes to their jobs. With transportation being a significant household expense, the second largest after housing, suburban families are deeming it essential to move closer to their jobs. What kind of challenge does this potential new lifestyle pose for cities? According to the article, cities will need to invest in public transportation systems, and develop incentives for developers to provide for the urban housing demand. To read more information about this new trend click here.

—Angie Kandil, for Unique Homes

Majestically settled on Pasadena’s soil is a breathtaking Colonial Revival estate conceived by Giannetti Architects. With features such as crown molding, French doors, carved fireplaces, marble and mahogany floors, hand-painted wallpaper and paneled walls, and exquisite window coverings, 1500 Lombardy Road is a coveted place to be. The two-story foyer is stunning with its winding staircase and mechanically operated grand chandelier.  Additional touches such as an elevator, massive workout room, and beautiful balcony make the California mansion virtually irresistible.  Other highlights include Plasma screen TVs throughout, a media room, which can be closed off for more intimacy, side-by-side Sub-Zero refrigerators, a master suite with custom double doors, a guesthouse and pool house and plenty of outdoor space ideal for entertaining. The dream property is now being offered at $11,000,000. Watch as Coldwell Banker’s John Fairbanks gives a tour.

—Jenny Smith, for Unique Homes