wobatus

If Housing Were Priced in Gold

My parents bought their house for about $35,000 in 1964. Gold was $35 back then, so about 1000 oz.

In 2006 it would have gone for about $2,000,000 (my folks sold out in the '80s, but it has sold several times since then). Gold was $603 that year on average. So the house was worth about 3300 oz of gold.

It sold for $1.6 last year. Last year gold averaged about $872, so about 1800 ounces.

I don't know. I think of gold as a hedge, not an investment, although I suppose in this environment it can be both. A house is where you live.

I prefer a diverse bag of equities that have paid a growing dividend over a long course of years, bought in good times and bad.