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“Come On Down … Argentina Way!” 
17/10/2008-By Michael Checkan “Come On Down … Argentina Way!”
By Michael Checkan
This was the invitation extended to me by friend Doug Casey, of Casey Research, in January of this year. Doug's invitation was not to travel to Miami, the "Gateway to Latin America" but to Argentina in Latin America.
Doug has always been a clever investor going back to when I first met him in the 1970's in Washington, DC. He owned a non-regulated company, Kimberly, Case and Guard dealing in gold numismatic coins before gold bullion became legal for Americans to own in 1975. Subsequently, he was an investor in a regulated company, Georgetown Securities, as he tried his hand in the securities business.
But Doug's real passion was international travel and real estate, which for him go hand in hand. Doug's interest in travel has taken him to more than 150 countries, and in the late 1970's he wrote the book, "The International Man." This bestselling book did not make Doug rich, but his international travels and real estate investments have made him quite wealthy. So, when Doug suggested visiting his real estate project in Argentina, you can be sure I listened.
I had not been to Argentina for 20 years and didn't really know what to expect. But, in February of this year, I traveled to Buenos Aires, Salta and Cafayate. I was met in Buenos Aires by an Argentine friend who is assisting Doug with his real estate investments. Jose gave me a briefing about what was going on generally in Argentina and specifically in Salta Provence and even more specifically about Cafayate. Jose used to spend his summer holidays in this beautiful part of Argentina.
Doug and a small group of investors are developing a world class project, Estancia de Cafayate. I visited this development located in a valley flush with vineyards and blessed with idyllic, Spring-like weather year-round.
My friend, Barbara describes the property well...
"It's situated within casual strolling distance of the main plaza of Cafayate and provides spectacular mountain views, acres of vineyards and abundantly flowing water. Horse, llamas and sheep graze throughout the property giving it a truly special feel. And the plans here call for particularly high-end amenities including pools, stables, polo field, 18-hole golf course, spa/gym, bocce ball, billiard room and well-stocked library.”
So, why is Argentine land a good investment today? Here's the case made for Estancia de Cafayate in Doug's words.
Oversold and Under-Appreciated. Thanks to classic government meddling in the economy, the country's financial system collapsed in 2000/2001. Almost overnight, Buenos Aires went from one of the most expensive capital cities in the world to one of the cheapest. While the economy is well on the way to recovery, it is still dirt cheap, especially out in the hinterland where stunning properties, as well as excellent food and fine wine, are selling at bargain basement prices. So, first and foremost, buying real estate in Argentina today is a bet that the macro-economics of the country will continue to improve, driving the prices of all things, especially well positioned real estate, much higher.
Commodity-Based Economy. At one point in the early 1900's Argentina was the world's 6th largest economy giving rise to the now outdated expression, “Rich as an Argentine.” Wealth rested then, and will rest again, on commodities. The country combines near ideal growing conditions for all manner of crops and livestock with large and mostly still untapped quantities of minerals. As a result, the country is currently running both a large balance of trade surplus and a large government surplus.
Lifestyle. Thanks to the large influx of Europeans over the previous two centuries, Argentina is one of the most European countries in the world. That translates into architecture and a largely sophisticated and homogeneous populace. Simply put, there's simply less cultural friction, reducing the Forever War to what you choose to watch on CNN. The reality is not lost on wealthy Europeans, who are flocking to the place and who will help drive the prices of your real estate there. I think it's of critical importance to have a comfortable crib outside your home country. And if you're ever going to do it, now's the time. So, come on down. I plan to take a small group of ASI clients and Information Line readers to Argentina in February 2009. The one week trip, February 21st -March 1st, will take us to Buenos Aires, Salta and Cafayate with seminars in Buenos Aires and Cafayate and much more. I am presently working with Fritz Satran, President of AESU Travel to organize the trip. I have traveled the world with Fritz for the past 15 years and he will make this a very special trip.
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