Southfork, it seems to me you're misunderstanding what people are warning about. There is no issue with the cooling portion of your condenser. The issue is with the discharge pipe that runs inside the condenser from the retort to the beaker that catches the mercury.
When you heat the gold and mercury in your retort, everything gets hot, including the air which expands. When the heat is removed, either intentionally at the end of the run, or unintentionally if your burner should happen to run out of propane, the air inside the retort chamber is going to cool and contract. That causes a partial vacuum inside the retort chamber. It's that vacuum that is of concern. With your discharge tube immersed in the beaker of water, that vacuum can draw water back up through the tube. If enough water is drawn it, it can make its way into the very hot retort chamber. If it does, you can have a very serious problem. That's what everyone is trying to warn about.
Having said that, by the looks of your particular retort, you may or may not experience this problem. Your retort chamber appears to be pretty small, and the tube that leads from it through the condenser and into the discharge beaker seems to be of a fairly large diameter. I'm guessing that the volume of the tube is probably sufficient to keep any water sucked back in as the retort cools from ever reaching the retort chamber. But to be safe, and more importantly for anyone who may look at your pictures in the future and whose retort setup does not provide that safety margin, you really should follow the advise of keeping the end of your discharge hose above the top level of the water in your beaker. Attach a short "tube" of fabric from the end of the rubber tube into the water in the beaker.
That's all I can type for now.
Dave