Lemon Thrower wrote:ardorlan wrote:I feel gold and real estate are connected, at 100oz of gold for a medium house, this is the equilibrium.
if the Medium Level house falls to a value of 150,000 that means gold should be worth 1500 per oz.
if the medium level house raises to a value of 300,000 that means gold should be worth 3000 per oz.
So I think if house prices go up, gold goes up and the dollar is falling.
I think if house prices go down and gold goes down, then the dollar is raising (yeah.. that is going to happen)
while what you say makes sense, in reality this rarely occurs. long term charts of housing prices measured in gold demonstrate this. still, we could be moving towards your ratio right now, its just that its not a stable point.
Lemon Thrower is bring up a good point, I believe in bankers getting together, or maybe natural human behavior cycles, If you look at the charts, Gold does Touch 100oz for a medium house like I said, and
its a personal belief of mine that this is the equilibrium (since this is what occurred when we were on the gold standard(pre 1935s as people in the USA), However since removal of the gold standers and manipulation or natural cycles, its about a 30 year ride.
with house prices going all the way up above 600oz of gold for the medium house, then "crashing" back down to 100oz of gold for a medium house.
I tend to believe that the banks are manipulating lines of credit as a group, to cause a housing boom, then a bust, foreclose on everyone so they can own all the houses, cause another boom again, and rake in the cash on the up swing. I think now physical houses might be more abstract. There is a documentary called "Money Masters"
http://www.youtube.com/watch?v=JXt1cayx0hsI don't believe everything I read.
Still I strongly believe that 100oz of gold for an medium income house is a pretty solid floor that will prevent gold from raising above that, and houses from falling below. (Although Major Factors such as Hyperinflation/World War could/would swing this out of wack for a time)