The US real estate to gold ration has always facinated me: https://www.longtermtrends.net/real-estate-gold-ratio/ If you bought a house with gold in 1890 or 2023, the price would be... about the same.
Lol I love this
Gold prices are hitting records
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Re: Gold prices are hitting records
#12The US real estate to gold ration has always facinated me: https://www.longtermtrends.net/real-estate-gold-ratio/ If you bought a house with gold in 1890 or 2023, the price would be... about the same.
So in terms of gold, real estate is currently kind of cheap?
Re: Gold prices are hitting records
#13If you adjust for inflation, there have been 3 periods in the last 50 years with higher gold values. https://www.macrotrends.net/1333/historical-gold-prices-100-...
Looks like Great Depression, 1979/1980, and right after the Great Recession. What is the significance of 79/80?
Interest rates spiked as the Fed tried to address inflation. Gold serves, in essence, as a short against paper currency. When inflation is running 14%, gold looks like a good alternative. So everyone was buying gold.
Re: Gold prices are hitting records
#14The US real estate to gold ration has always facinated me: https://www.longtermtrends.net/real-estate-gold-ratio/ If you bought a house with gold in 1890 or 2023, the price would be... about the same.
I forget where I heard it. Supposedly the amount of silver needed to buy a goat during Roman times is similar to today.
Cold metal seems to act as cold storage of value across history.
Re: Gold prices are hitting records
#15The US real estate to gold ration has always facinated me: https://www.longtermtrends.net/real-estate-gold-ratio/ If you bought a house with gold in 1890 or 2023, the price would be... about the same.
Gilded Age 2.
Re: Gold prices are hitting records
#16If you adjust for inflation, there have been 3 periods in the last 50 years with higher gold values. https://www.macrotrends.net/1333/historical-gold-prices-100-...
Looks like Great Depression, 1979/1980, and right after the Great Recession. What is the significance of 79/80?
Gold is generally considered a hedge against inflation.
https://www.forbes.com/advisor/investing/gold-inflation-hedg...
Re: Gold prices are hitting records
#17Earlier quoted context omitted.
Looks like Great Depression, 1979/1980, and right after the Great Recession. What is the significance of 79/80?
Interest rates spiked as the Fed tried to address inflation. Gold serves, in essence, as a short against paper currency. When inflation is running 14%, gold looks like a good alternative. So everyone was buying gold.
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Re: Gold prices are hitting records
#18The US real estate to gold ration has always facinated me: https://www.longtermtrends.net/real-estate-gold-ratio/ If you bought a house with gold in 1890 or 2023, the price would be... about the same.
I forget where I heard it. Supposedly the amount of silver needed to buy a goat during Roman times is similar to today. Cold metal seems to act as cold storage of value across history.
>Supposedly the amount of silver needed to buy a goat during Roman times is similar to today.
Probably not during famines.
Re: Gold prices are hitting records
#19The US real estate to gold ration has always facinated me: https://www.longtermtrends.net/real-estate-gold-ratio/ If you bought a house with gold in 1890 or 2023, the price would be... about the same.
But the gold can only recently be held in an ETC and would cost money to securely store for most of that time. The house could be rented and yield an income.
Re: Gold prices are hitting records
#20Earlier quoted context omitted.
Looks like Great Depression, 1979/1980, and right after the Great Recession. What is the significance of 79/80?
Gold is generally considered a hedge against inflation. https://www.forbes.com/advisor/investing/gold-inflation-hedg...
And by bidding it up at the end of a period of inflation, those trying to hedge burned themselves. Same thing is happening now: inflation is back down to baseline, but people think it's high because prices are higher than they were (brains have trouble with reasoning based on derivatives of functions).
Basically gold is, as it always has been, a sucker's bet. All the people buying it now are probably going to lose money.