We bought our home in 1971 in North Providence, Rhode Island for $31,500
Remember the financial meltdown of 2008
Please look at this video showing Alan Greenspan, Arthur Levitt, Larry Summers and Robert Rubin doing absolutely nothing to prevent the problem even after they were warned. They destroyed peoples lives.
Not sure what any of it means since trust in the accuracy of the government numbers is precisely zero. So they will just make the numbers be what they want them to be. Just like inflation
My dad died recently as a direct result of the COVID booster “vaccine” (but that’s another story). In going through his papers I found the original mortgage agreement for his house which he bought in 1967 for £4800 over 25 years at 7.5%. The house is now valued at £300,000.
I calculate, that in 1967 330 ounces of gold would have bought the house. Today, 66 years later it can be bought for just 211 ounces.
In other words, it has risen over 620% in FIAT but fallen over 36% in gold.
Very back of the envelope calculations here on Tamborine Mountain, close to your childhood locales Joel:
~210 ounces in April 2013 bought
~290 ounces today (using conservative valuation - nothing like what we see homes are going for which could be 10-20% higher. Don’t really know cause we aren’t selling and haven’t had an agent do any actual valuation)
We purchased our home for approx. $70K in 1987 when gold was around $447/oz. So it would have taken 156 oz of gold to pay for it. The house is now worth around $600K and gold is around $1700/oz. So it would now take 352 oz of gold to buy the house or approx. 2.25 times the amount of gold while the price of the home increased about 857%.
I bought my home in Bethesda, Maryland in November, 2001 for $1,900,000 cash. The gold price on that date was $274 per troy ounce, meaning I would have to have paid 6,934 troy ounces of gold to purchase the home in 2001. On September 15, 2022, I spoke with the agent who handles most of the home sales in this neighborhood. I asked her to price my home for sale. She told me that it would "move" at $2,400,000. (Note: In the last five years, I have added $300,000 in improvements, e.g., stone walls, exterior lighting, backup power generation, extensive orchard/garden areas, underground irrigation, copper gutters and downspouts. This figure was in addition to standard maintenance, i.e., painting, HVAC replacements, roof maintenance, bathroom fixture maintenance, etc.) $2,400,000, on September 16, 2022 (with gold at $1,665) was equivalent to 1,441 troy ounces of gold. $2,400,000 in 2022 dollars is equivalent to $1,436,000 in 2001 dollars, so the real price of the house (in 2001 dollars), including the improvements, declined by 24.4%. But the gold increased in purchasing power so that if I wanted to purchase the home today, with the improvements, I would enjoy an 80% discount (1441 gold ounces vs 6934 gold ounces). Put another way, I could buy 4.8 times as many similar houses (6934/1441=4.81) now (1441 oz) for the gold home purchase price in 2001 (6934 oz). Of course, gold has gone up and down over the last 21 years, but it has certainly kept up with long-term inflation (at least with respect to houses), even when you calculate inflation correctly (e.g., the Shadow Stats 1980 methodology).
We bought our home in 1971 in North Providence, Rhode Island for $31,500
Remember the financial meltdown of 2008
Please look at this video showing Alan Greenspan, Arthur Levitt, Larry Summers and Robert Rubin doing absolutely nothing to prevent the problem even after they were warned. They destroyed peoples lives.
No consequences
No accountability
https://youtu.be/W-Q9AOp2FW8
Not sure what any of it means since trust in the accuracy of the government numbers is precisely zero. So they will just make the numbers be what they want them to be. Just like inflation
Built my house in 1990 for about 320 ounces (at $360/oz), $60/sf then. 10.5% mortgage at the time. It’s worth 129 oz today at $1680/oz, $115/sf now.
My dad died recently as a direct result of the COVID booster “vaccine” (but that’s another story). In going through his papers I found the original mortgage agreement for his house which he bought in 1967 for £4800 over 25 years at 7.5%. The house is now valued at £300,000.
I calculate, that in 1967 330 ounces of gold would have bought the house. Today, 66 years later it can be bought for just 211 ounces.
In other words, it has risen over 620% in FIAT but fallen over 36% in gold.
Very back of the envelope calculations here on Tamborine Mountain, close to your childhood locales Joel:
~210 ounces in April 2013 bought
~290 ounces today (using conservative valuation - nothing like what we see homes are going for which could be 10-20% higher. Don’t really know cause we aren’t selling and haven’t had an agent do any actual valuation)
We purchased our home for approx. $70K in 1987 when gold was around $447/oz. So it would have taken 156 oz of gold to pay for it. The house is now worth around $600K and gold is around $1700/oz. So it would now take 352 oz of gold to buy the house or approx. 2.25 times the amount of gold while the price of the home increased about 857%.
Uh, not to nitpick, but it’s Dogg. He’s got more than one G in his name...and his account lol.
I bought my home in Bethesda, Maryland in November, 2001 for $1,900,000 cash. The gold price on that date was $274 per troy ounce, meaning I would have to have paid 6,934 troy ounces of gold to purchase the home in 2001. On September 15, 2022, I spoke with the agent who handles most of the home sales in this neighborhood. I asked her to price my home for sale. She told me that it would "move" at $2,400,000. (Note: In the last five years, I have added $300,000 in improvements, e.g., stone walls, exterior lighting, backup power generation, extensive orchard/garden areas, underground irrigation, copper gutters and downspouts. This figure was in addition to standard maintenance, i.e., painting, HVAC replacements, roof maintenance, bathroom fixture maintenance, etc.) $2,400,000, on September 16, 2022 (with gold at $1,665) was equivalent to 1,441 troy ounces of gold. $2,400,000 in 2022 dollars is equivalent to $1,436,000 in 2001 dollars, so the real price of the house (in 2001 dollars), including the improvements, declined by 24.4%. But the gold increased in purchasing power so that if I wanted to purchase the home today, with the improvements, I would enjoy an 80% discount (1441 gold ounces vs 6934 gold ounces). Put another way, I could buy 4.8 times as many similar houses (6934/1441=4.81) now (1441 oz) for the gold home purchase price in 2001 (6934 oz). Of course, gold has gone up and down over the last 21 years, but it has certainly kept up with long-term inflation (at least with respect to houses), even when you calculate inflation correctly (e.g., the Shadow Stats 1980 methodology).