Gold and Real estate...

[Pennybug]

Are they at opposite ends? I've noticed that the price of gold seems to be inversely tracking interest rates. I'm guessing that as the housing market picks back up (that's an IF really)... I wonder will we see the price of gold go down?

[Oakair]

My bet is thats an if that wont ever materialize...

[ardorlan]

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)

[Pennybug]

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)

Dang! That's just downright insightful. I've heard that one dime of silver has just about always bought a loaf of bread. Never heard that about gold though. Makes good sense. This will go in my book of things worth remembering.

[Lemon Thrower]

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.

[Treetop]

No offense meant, but this seems silly to me. A medium level home costs much much different in different parts of the country. the same house that would cost 150k back where I grew up would cost much less one state over in WV and would cost much more in nj, less then all of them out here where I live now....

and if you contracted out the building yourself, even doing none of the work is often even less then that....

[ardorlan]

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=JXt1cayx0hs

I 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)

[ardorlan]

No offense meant, but this seems silly to me. A medium level home costs much much different in different parts of the country. the same house that would cost 150k back where I grew up would cost much less one state over in WV and would cost much more in nj, less then all of them out here where I live now....

and if you contracted out the building yourself, even doing none of the work is often even less then that....

Let me dial this in a bit more.
I do mean the national average selling price (not building), not any local city average. still might be silly.

The numbers listed on this link
http://www.census.gov/const/uspriceann.pdf

[97guns]

for me its the only 2 asset classes that i own, income producing real estate for 50% and the other 50% in pm's, im fully divested of paper assets. hows that for diversification, a broker would have an absolute heart attack if he saw my portfolio. its been working great for me the past 2 years. i take all the rents, pay the bills and buy metal with the left overs...... i did over extend myself this month