wood for sheep?
This isn’t actually true. In the US, housing has outpaced the value of gold.
In 2023, you would need 254.7 ounces of gold to buy a house, since $495,100 avg home / $1,943 price of gold = 254.7
In 1920, you would need 164.1 ounces of gold to buy a house, since $3,395 avg home / $20.67 price of gold = 164.1.
Oh look the gold bugs are back
I'll trade my RuneScape account for one.
If I was lucky enough to be in your shoes, I would hold onto the RuneScape account. Gold may go out of style at some point. /s...sort of.
Alright. You drive a hard bargain. 2 bars of gold then!
I'm in Canada. 25 years ago my parents bought a home for $130k, they sold it 15 years ago for $500k, it's now listed for $1.1 million. We are so fucked.
If you include maintenance and taxes, it actually sold for less than the same amount of money invested in an index fund.
Still a tough bind for someone who isn't already a homeowner. I've put a lot into index funds which have performed really well, but if I sell them now to buy a house and the real estate market shits the bed (which it really should), then I'm in an even worse place. I remember talking to people in 2007 who complained they would "never be able to afford a house", but three years later their local listings fell by 30-40%.
For sure, it just illustrates that as much as the market can feel fucked up, as an investment housing isn't necessarily the best. I've checked the numbers many times when I hear people talking about their parent buying a house for X$ in 19XX and it's very rare that they beat the market. It's the people that bought in 2009/2010 or right before COVID that are the real winners when it comes to real estate as an investment because they made a lot of money for the amount of time, but people who buy as an investment to hold it long term? Nah
Look, unless you're renting it out, your house isn't an investment. It grows in value and that's nice, but you'll spend more on maintenance and improvements than it will increase in value.
Your house is your house.
My last house I bought in 2012 for 545k CAD. Sold it 10 years later for 1.3 million. Agree. We are collectively fucked.
Sounds like you're not doing too bad
I am not. The problem is everyone else is not afforded the same luxury. What is the point of wealth if people are still struggling?
It's frustrating.
Ignores that common folk can neither buy at spot nor sell at spot.
monetarist cope
This post feels like it's sponsored by the World Gold Council to encourage people to buy gold.
Gold prices must be high
Well, it's working.
Just ignore that general index funds have higher ROI.
And you don't need armed guards to keep index funds.
Seems like a lousy investment.
If you had of invested the equivalent amount of money in the Dow Jones index instead of purchasing 10kg of gold and kept it invested from 1920-2024 you would have ~$15 million.
Not only that, but SP500 pays dividends practically every year, whereas gold costs money to store securely. $15M in SP500 would have netting something around $300k last year in dividends alone.
This, precious metals are a hedge against hyper inflation. Not an investment.
So I get the idea of a hedge, but I guess the question on my mind whenever I hear talk about hyper-inflation is “what are you going to do with the gold if society collapses?”. My thought is that if the world economy got so fucked up that the US dollar was worthless, and the government didn’t step in, then wouldn’t we sorta be in a failed state? And if we were in a failed state is the plan to sit on the gold in some sort of fortress to wait for civilization to come back? Hoping that you can defend it and that the incoming civilization doesn’t just take it?
In 1920, the average price of gold per troy ounce was $20.68USD[26.2 kB pdf]; 1 Kilogram = 32.15075 Troy ounces. Average house price in the 1920's was $6,296.
$20.68 USD * 32.15075 oz t = $664.87751 USD * 10 = $6648.7751 USD
In 2023, the average price of gold per oz t was $1,940.54 and the average home price was $495,100.
$1,940.54 USD * 32.15075 oz t = $62,389.81641 USD * 10 = $623,898.1641 USD
This meme is credible, excepting errors in my assumption that 1 kilogram of gold is equivalent to 1 kilogram of common material.
At the same time, it picks and chooses its dates. Gold has been volatile, with the price oscillating between $2,100 USD in 1980, $470 USD in 2001, and back up to $2,200 USD in 2011.
Gold has no intrinsic value to me I wonder if as the boomers start to die off if it will start losing some form of value
It has some intrinsic value because it's a metal with a variety of applications. It just doesn't have nearly enough intrinsic value to justify its price.
We're gonna need a ton of it for all the space shit we're starting to do again.
Unlikely. Part of why gold is so valuable is its inertness. It doesn’t corrode or rust, which makes it great for electronics.
Well, it has value to people who make electronics, and that industry is still growing. So, not likely.
especially military specification electronics and extreme temperature range performance applications.