JudeJin

Gold's Relationship with Real Estate

i think what people are missing here is the fact that a lot of houses in the US are built many years ago and have lost real value over the years through wear and tear and out-dated technology and material used to build the house. if we take into account of the wear and tear and outdating of the houses, we may get a far different picture. especially when i believe the median house price in the US is very much skewed towards this large proportion of old houses.

while gold is a perfect and honest store of value. gold can stay shiny and pure for almost forever.

it is very difficult and very confusing to get the real value of gold.

i'd like to use other metrics, like college tuition to guage the true inflation and how gold is undervalued.

i'd like to also share some stats observed in china. i believe currently gold and silver are probably the most undervalued in terms of real estate and salary in thousands years of chinese history:
a crappy 100-sq.-meter apt in shanghai, 20000RMB per sq. meter cost 10 kilos of gold.

i believe gold is very undervalued even against the strongest currency in the world, RMB, let alone the weakest major currency, USD.

central banks around the world are keeping the printing press busy. china, faced with its own real estate crash and economic meltdown, will also loosen up its monetary policy. gold is priced in USD, which is theoretically broke. china will probably try to appreciate RMB against USD much slower than the market will appreciate gold against USD.
this is why i'm not only bullish on gold against USD, but also bullish on gold against all major currencies including RMB.