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Metal Mania: Gold, Silver, Real Estate and Mortgages
Confounded Interest ^ | 12/02/2012 | Anthony B. Sanders

Posted on 12/02/2012 6:35:58 PM PST by whitedog57

There is no doubt that the housing and commercial real estate bubbles (and burst). Gold experienced the greatest appreciation since 2000, with silver in second place. Multifamily real estate (Moody’s REAL) and the Case-Shiller 20 metro index demonstrate the plunge in real estate. Real estate did poorly relative to precious metals since 2000. [Bear in mind that these are price indices, not total rate of return indices.]

In terms of total returns, the JP Morgan MBS return index outperformed the SP 500 index. The Dow Jones REIT index is the third index which started and ended at the same place as Agency MBS, but had substantially more volatility between the beginning and the end.

Just since 2000, gold has been a superior investment (in terms of price) than either residential or commercial real estate. And agency mortgage-backed securities returns (Fannie, Freddie, Ginnie) have outperformed the S&P 500 index and the Dow Jones REIT index. Of course, it helps when interest continue to fall (some of it courtesy of “Uncle Ben”).

Back in 2000, who would have thought that Agency MBS would be the leader versus the S&P 500 index? Gold and government guaranteed mortgage-backed securities – who would have thought?

Despite gold’s lackluster performance over the past year, it still deserves a closer look.

Elliott Wave:


Well, you don’t need technical analysis of gold to know that investors are buying gold coins after the recent election.

(Excerpt) Read more at ...

TOPICS: Business/Economy; Government; Politics
KEYWORDS: gold; government; mbs; obama
Great. Gold or government guaranteed MBS pumped up by the Fed.

What a sick nation we have become.

1 posted on 12/02/2012 6:36:05 PM PST by whitedog57
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To: whitedog57

Mr. Sanders needs to learn how write.

I read the first sentence three times and still don’t know what he’s trying to say.

2 posted on 12/02/2012 6:44:51 PM PST by MV=PY (The Magic Question: Who's paying for it)
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......the housing and commercial real estate bubbles (and burst). “

Maybe he meant to say “ .....bubbled (and burst).”

3 posted on 12/02/2012 8:11:39 PM PST by WildHighlander57 ((WildHighlander57 returning after lurking since 2000))
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Yeah, I kept looking for the verb. I guess it was ‘bubbles’, but that didn’t make a great deal of sense.

4 posted on 12/02/2012 9:00:19 PM PST by fhayek
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