Housing is cheaper today than much of the last 50+ years when measured against GOLD.

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(Edited)

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Seems all I hear about in the news is Rising Housing costs.

It seems I keep getting stuff coming across my news feed and stories that has to do with the unsustainable rising in housing costs. I'm not sure if this is just another fnored that is trying to get me to believe that the government will provide a solution and I should agree, or distract me from something else bigger. Either way it got me thinking the other day and let me down to a couple of Google searches and a new rabbit hole.

Inflation is not rising prices, its your money being worth less.... big difference.

I'm not sure if I heard this quote on the simply bitcoin podcast or the survival podcast with Jack spearco but one of the two made the quote that inflation is not prices rising, it's the devaluation of your money. There's a big difference, well they might seem like the same one means something costs more while the other means the currency you hold is worth less.

In the US our current economic policy has been stated that they want 3% inflation which equates to a 3% decrease in your purchasing power. Just holding cash was to 3% a year that's cumulative.

A good example of this is certain countries experience massive inflation which is the devaluation of their currency while other countries have been much more stable. Bitcoin is reaching all-time highs in countries that have a current inflation problem while in USD it's nowhere near the top. This lets you know that inflation is not necessarily represent rising costs, but more a deep evaluation in whatever your measuring against

"inflation of Gold vs Housing... Gold is higher.

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SourceWhat if we had sound money, and we never made a mistake of of defaulting on our money and getting out of the gold standard. That temporary stop that Nixon put in to end convertibility of US dollars to Gold that apparently has become a permanent and although never actually formalized.

Taking a look at this chart is really interesting to me. Both housing and gold have similar "inflation" or had consistent value vs fiat. While there's some divergence especially around the '80s manipulation of the metals market, in the early 2000s these two are highly correlated and showed you that it wasn't as much as inflation as housing and gold value is stable while the US dollar was declining.

Clearly the housing bubble of 2008 had some long-term ramifications in Gold certainly broke loose and went much higher than housing. While they're still moving in me same direction and they're getting closer to being back to a one-to-one ratio it may take some time yet. This to me just confirms that these two asset classes are very highly stable and correlated. The inflation gains seen here are really just the inverse the dollars devaluation

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If you got paid in Gold, Your wealth housing wouldn't be so bad - wealth no stolen

Post 2008 gold has actually done a much better job of holding its value against the US dollar and housing has. If we were in fact paid and saved our money in gold, we would be in a better position to afford housing today then in say the mid-2000s. If your savings was in gold and gold inflated and a higher rate than housing saving her house would never be easier. To me this is a no-brainer choice on why we stack precious metals. Clearly I think BTC will play a huge role along gold and silver in the future as many of these fiat currency games seem to be coming to a point that is unsustainable. When you're dead obligations for the interest on what you have borrowed becomes an ever-growing portion of what you collect there's no way to recover.

Let me know down below if you disagree or if I'm interpreting this completely incorrectly. I started thinking about this and think I'm thinking about it correctly but I'm a professional at making mistakes and being mistaken. Either way I think this will just mean I need to take additional trip to the LCS to see what they got in stock.

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5 comments
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You received an upvote of 79% from Precious the Silver Mermaid!

Thank you for contributing more great content to the #SilverGoldStackers tag.
You have created a Precious Gem!

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Quick math says that my home is worth a bit over 500 gold 1 oz Maple Leafs in CAD.

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That is a crazy amount of gold! You will be scrooge mcduck soon! !PIZZA

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