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How to tell where the price of your house is headed
examiner.com ^
| 11/02/10
| Gil Guignat
Posted on 11/02/2010 11:35:51 AM PDT by SGW
There is an interesting study that has been done back to the 1930s. It has to do with the median price of a house divided by the price of gold. Whenever that price reaches 100 we reach a bottom.
( SEE GRAPH TOP LEFT. DOUBLE CLICK ON THE PICTURE IF YOU NEED IT LARGER)
Since Phoenix has been one of the hardest hit places in terms of housing prices, youll find this a very interesting exercise.
(Excerpt) Read more at examiner.com ...
TOPICS: Business/Economy
KEYWORDS: gold; median; residential
This is a very interesting study because there is over 100 years of data. Could be valuable.
1
posted on
11/02/2010 11:35:59 AM PDT
by
SGW
To: SGW
"Before we site this study, lets cover a few basics. This will allow you to tell where the value of your residential real estate is headed..." Do they have any credibility after the third word in the article?
2
posted on
11/02/2010 11:42:44 AM PDT
by
z3n
To: z3n
3
posted on
11/02/2010 11:50:22 AM PDT
by
DariusBane
(People are like sheep and have two speeds: grazing and stampede)
To: z3n
4
posted on
11/02/2010 11:53:27 AM PDT
by
DariusBane
(People are like sheep and have two speeds: grazing and stampede)
To: DariusBane; z3n
The problem isn't failing to link to the study.
The problem would be in taking financial advice from a writer who doesn't know (and apparently whose editor also does not know) the difference between cite and site.
5
posted on
11/02/2010 11:53:33 AM PDT
by
Fixit
To: SGW
At $217,983 gold would have to rise to roughly $2200 per ounce. The odds of that happening are 100%.....
I guess I should buy gold with those odds I can’t loose.
To: Fixit
Hey, lighten Up!
That was so damn funny I posted it TWICE!
Once wasn’t enough!
7
posted on
11/02/2010 11:55:48 AM PDT
by
DariusBane
(People are like sheep and have two speeds: grazing and stampede)
To: SGW
So the bottom line is that the median home price ($220k) should be equal to 100 ozs of gold. Right now the ratio is about 160 so gold must rise to $2,200 or the house must decrease by $80k. With the way the Fed is creating paper money I would bet that gold rises.
8
posted on
11/02/2010 12:09:32 PM PDT
by
2001convSVT
("Repeal ObamaCare")
To: SGW
The author is a nut. Looking at that graph, I plot a straight line showing that today the median price of a house over the price of gold should be around 300, and we're below that figure now.
9
posted on
11/02/2010 12:19:49 PM PDT
by
Yo-Yo
(Is the /sarc tag really necessary?)
To: Hang'emAll
At $217,983 gold would have to rise to roughly $2200 per ounce.
Alternatively, the median price of the house might go down to $100,000, so you might not win.
10
posted on
11/02/2010 12:30:07 PM PDT
by
Dr. Sivana
(There is no salvation in politics)
To: SGW
Actually, I believe the ratios at the top/bottom will be
much different this go-around. Last time it was about 100 gold ounces for a median home or 816 ounces of silver for the same home.
This is about (today's prices) $135,670 in gold OR $20,300 in silver. Can you see how relatively CHEAP silver is? It WILL be $30 minimum up to $50 per ounce by Jan first. JMHO
Personally, I believe that this time around it will take much less precious metals to purchase that home this time around. Silver is MUCH scarcer than ever before, and, most importantly, there are MILLIONS more in the world able to buy it. The Chinese government is pushing their citizenry to buy and even advertising it heavily.
Nam Vet
11
posted on
11/02/2010 12:40:43 PM PDT
by
Nam Vet
(Are you better off than you were 4 trillion dollars ago?)
To: Hang'emAll
I think the time to buy gold is when it was at 400 dollars an ounce...back in 1980s.
To: SGW
I see it quite simply that housing tracks inflation and gold is an inflation hedge .. of course they relate.
To: All; PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; OneLoyalAmerican; ...
Goldbug ping
Mail me to get on or off the Free Republic Goldbug Ping List.
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14
posted on
11/02/2010 9:51:48 PM PDT
by
jiggyboy
(L)
To: z3n
Interestingly, the word “site” is now “sight”.
Hmm.
15
posted on
11/03/2010 9:30:14 AM PDT
by
misanthrope
(Liberals just plain suck!!)
To: jiggyboy
16
posted on
11/03/2010 10:35:47 AM PDT
by
GOPJ
('Power abdicates only under the stress of counter-power." Martin Buber /a Tea-nami's coming..)
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