US Housing priced in gold

[4plexowner]

In a world where there is no absolute measure of value, we are forced to evaluate things on a relative basis.

Should I put my money into stocks or bonds? Oil or copper? Real estate or precious metals?

Since most assets on this planet are (currently) priced in the fiat US dollar which has no fixed value, it is informative to remove the USD from the analysis.

We can do this by charting one asset relative to another. Go to www. stockcharts.com and type “$WTIC:$GOLD” – you’ll get a chart showing how oil is performing relative to gold. In this case, oil has been outperforming gold for the last two months. A stock or futures trader might choose to put their $$$ into the stronger asset class.

One of the reasons to value an asset relative to gold is that gold is considered (by some) to be the only real money. Pricing an asset in gold removes the variable factor of how quickly the fiat currency is being debased (also called inflation by the uninformed).

I came across this article which shows US house prices in gold. The chart below shows US house prices relative to gold going all the way back to 1890.

[img_assist|nid=10966|title=US housing priced in gold|desc=|link=node|align=left|width=400|height=216]

I’m betting that US housing will reach the ‘100’ level shown on this chart before this correction is over – probably in the 2014/2015 timeframe – at that point it will be time to switch out of the precious metals and back into housing

Here’s the article: http://news.goldseek.com/BullionVault/1241207027.php

[scaredyclassic]

re; the egenral argument to buy, being, well, it’s all going to be a wash with inflation and rising interest rates, so real estates a decent place to park cash…it’s not a stretch for me to imagine taking my 20% down right now on an ok 300k house, putting that 60k in gold, and having the gold price triple to 180k and meeting or approaching the house’s price in the next 5 years. not sure what that means if interest rates double as well, but i think there’s some realistic probability you could pay cash for the house with the 20% down held in gold for 5 years or so…

[scaredyclassic]

re; the egenral argument to buy, being, well, it’s all going to be a wash with inflation and rising interest rates, so real estates a decent place to park cash…it’s not a stretch for me to imagine taking my 20% down right now on an ok 300k house, putting that 60k in gold, and having the gold price triple to 180k and meeting or approaching the house’s price in the next 5 years. not sure what that means if interest rates double as well, but i think there’s some realistic probability you could pay cash for the house with the 20% down held in gold for 5 years or so…

[scaredyclassic]

re; the egenral argument to buy, being, well, it’s all going to be a wash with inflation and rising interest rates, so real estates a decent place to park cash…it’s not a stretch for me to imagine taking my 20% down right now on an ok 300k house, putting that 60k in gold, and having the gold price triple to 180k and meeting or approaching the house’s price in the next 5 years. not sure what that means if interest rates double as well, but i think there’s some realistic probability you could pay cash for the house with the 20% down held in gold for 5 years or so…

[scaredyclassic]

re; the egenral argument to buy, being, well, it’s all going to be a wash with inflation and rising interest rates, so real estates a decent place to park cash…it’s not a stretch for me to imagine taking my 20% down right now on an ok 300k house, putting that 60k in gold, and having the gold price triple to 180k and meeting or approaching the house’s price in the next 5 years. not sure what that means if interest rates double as well, but i think there’s some realistic probability you could pay cash for the house with the 20% down held in gold for 5 years or so…

[scaredyclassic]

re; the egenral argument to buy, being, well, it’s all going to be a wash with inflation and rising interest rates, so real estates a decent place to park cash…it’s not a stretch for me to imagine taking my 20% down right now on an ok 300k house, putting that 60k in gold, and having the gold price triple to 180k and meeting or approaching the house’s price in the next 5 years. not sure what that means if interest rates double as well, but i think there’s some realistic probability you could pay cash for the house with the 20% down held in gold for 5 years or so…

[4plexowner]

this chart is on www. jsmineset.com this morning

[img_assist|nid=10970|title=NYSE in gold|desc=|link=node|align=left|width=400|height=232]

this is a long-term view of the NYSE priced in gold

how’s that ‘buy and hold’ strategy workin’ for ya’?

[4plexowner]

this chart is on www. jsmineset.com this morning

[img_assist|nid=10970|title=NYSE in gold|desc=|link=node|align=left|width=400|height=232]

this is a long-term view of the NYSE priced in gold

how’s that ‘buy and hold’ strategy workin’ for ya’?

[4plexowner]

this chart is on www. jsmineset.com this morning

[img_assist|nid=10970|title=NYSE in gold|desc=|link=node|align=left|width=400|height=232]

this is a long-term view of the NYSE priced in gold

how’s that ‘buy and hold’ strategy workin’ for ya’?

[4plexowner]

this chart is on www. jsmineset.com this morning

[img_assist|nid=10970|title=NYSE in gold|desc=|link=node|align=left|width=400|height=232]

this is a long-term view of the NYSE priced in gold

how’s that ‘buy and hold’ strategy workin’ for ya’?

[4plexowner]

this chart is on www. jsmineset.com this morning

[img_assist|nid=10970|title=NYSE in gold|desc=|link=node|align=left|width=400|height=232]

this is a long-term view of the NYSE priced in gold

how’s that ‘buy and hold’ strategy workin’ for ya’?

[Chris Scoreboard Johnston]

Been using this concept for years in valuing markets vs one another, I guess my secret is out now. It also works for SP500 although 10 or 30 yr bonds work better. Reversions regularly happen when these overbought/oversold levels are hit. Of course you use the dollar vs gold to determine gold valuations.

Can’t wait to buy gold now since it is going to 6k, Jesus people do not fall for this con. The Gold hype is just like housing in 2005 and stocks in 2007, 2000. Plus my favorite part is that you get to pay a 35% commission to buy the coins, so you need a huge move just to have a scratch trade.

I cannot believe people fall for this crap. Only a matter of time before Joe Battalia gets a pie thrown in his face. I do trade the long side of this market at times, but I am just shocked at how many people are swallowing this hype on something that has already tripled.

The 6k Gold people are the same ones that blew the tops in housing and stocks, yet we will bet our live savings on them to get this one right?

Interesting how 1980 to 2000 does not count with Gold. Remember we had big time inflation in the early eighties.

[Chris Scoreboard Johnston]

Been using this concept for years in valuing markets vs one another, I guess my secret is out now. It also works for SP500 although 10 or 30 yr bonds work better. Reversions regularly happen when these overbought/oversold levels are hit. Of course you use the dollar vs gold to determine gold valuations.

Can’t wait to buy gold now since it is going to 6k, Jesus people do not fall for this con. The Gold hype is just like housing in 2005 and stocks in 2007, 2000. Plus my favorite part is that you get to pay a 35% commission to buy the coins, so you need a huge move just to have a scratch trade.

I cannot believe people fall for this crap. Only a matter of time before Joe Battalia gets a pie thrown in his face. I do trade the long side of this market at times, but I am just shocked at how many people are swallowing this hype on something that has already tripled.

The 6k Gold people are the same ones that blew the tops in housing and stocks, yet we will bet our live savings on them to get this one right?

Interesting how 1980 to 2000 does not count with Gold. Remember we had big time inflation in the early eighties.

[Chris Scoreboard Johnston]

Been using this concept for years in valuing markets vs one another, I guess my secret is out now. It also works for SP500 although 10 or 30 yr bonds work better. Reversions regularly happen when these overbought/oversold levels are hit. Of course you use the dollar vs gold to determine gold valuations.

Can’t wait to buy gold now since it is going to 6k, Jesus people do not fall for this con. The Gold hype is just like housing in 2005 and stocks in 2007, 2000. Plus my favorite part is that you get to pay a 35% commission to buy the coins, so you need a huge move just to have a scratch trade.

I cannot believe people fall for this crap. Only a matter of time before Joe Battalia gets a pie thrown in his face. I do trade the long side of this market at times, but I am just shocked at how many people are swallowing this hype on something that has already tripled.

The 6k Gold people are the same ones that blew the tops in housing and stocks, yet we will bet our live savings on them to get this one right?

Interesting how 1980 to 2000 does not count with Gold. Remember we had big time inflation in the early eighties.

[Chris Scoreboard Johnston]

Been using this concept for years in valuing markets vs one another, I guess my secret is out now. It also works for SP500 although 10 or 30 yr bonds work better. Reversions regularly happen when these overbought/oversold levels are hit. Of course you use the dollar vs gold to determine gold valuations.

Can’t wait to buy gold now since it is going to 6k, Jesus people do not fall for this con. The Gold hype is just like housing in 2005 and stocks in 2007, 2000. Plus my favorite part is that you get to pay a 35% commission to buy the coins, so you need a huge move just to have a scratch trade.

I cannot believe people fall for this crap. Only a matter of time before Joe Battalia gets a pie thrown in his face. I do trade the long side of this market at times, but I am just shocked at how many people are swallowing this hype on something that has already tripled.

The 6k Gold people are the same ones that blew the tops in housing and stocks, yet we will bet our live savings on them to get this one right?

Interesting how 1980 to 2000 does not count with Gold. Remember we had big time inflation in the early eighties.

[Author]

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