Supply and demand also explains housing prices in 2005.
Long term, gold and real estate will both benefit if Fed’s actions result in significant inflation.
But almost all people who are bearish on real estate are very bullish on gold and silver. Since premium in gold is currently significantly higher than premium in real estate, I am wondering what the reason are.
Are there other benefits from gold other than inflation hedge? What makes you sure that what happened to oil will not happen to gold?
