Never mind ' Rich Checkan ' opining that listening to a " brief 20 x minute interview " with
Alasdair Macleod could be worthwhile , I personally feel that this amounts to an understatement of immense proportions . Frankly , It's vital that anyone and everyone who has the opportunity to gain knowledge from the words and writings of the - ' Sage Of Sidmouth '
( or should it be - Skye ..?? ) needs to grasp any opportunity that comes along to learn from the feet of the ' Master 'with both hands - whether this takes just 20 x minutes or any number of hours .
Thanks Alistair. I totally get the credit bubble, and safety of gold and silver in where we are heading. One metric that I now can’t reconcile is the value of gold verses average house prices to say the 70s. Within the last year these prices have gone from being more or less at par to being valued at +50%. Ie you need 50% less gold to buy a house. To get back on par houses either need to move up (unlikely) or gold down. Can you help rationalise?
Essentially the ( accelerating ) situation whereby you need ever less Physical Gold to pay for a house is essentially what Alasdair has been outlining time and again for yonks - the same does apply to Oil which ramps ever upward when priced in ' Fiat Dollars ' per barrel but which has flat-lined & in fact dropped substantially since the 1950's ( Priced in Gold )
Going back to the cost & affordability of buying a house in ' Gold ' - perhaps the most stark example ( again which Alasdair has noted & talked about countless times ) goes back to the end of the ' Weimar Republic ' in Germany in 1922 - 1923 , when you could purchase a very large & grand house in the swankiest area of Berlin ....equivalent say to
' Mayfair ' or ' Belgravia ' in London or ' Avenue Montaigne ' / ' Rue de Furstemburg '
in Paris for just 5 x Gold Coins . These equivalent property's in London or Paris
at today's price levels = £ 25 - £ 40 x Million ( that bit more in dollars ) .
The other age old dictum as applies - " Low interest Rates = high and climbing property prices " , and " High Interest Rates = Lower and falling property prices " .Where this is concerned and whilst the U.S. (+ UK / Europe & others ) might seek to lower rates somewhat to try and put a floor under the stock market's ( amongst other things ) , for my part I think that this will only be temporary before ' Events ' force them to start hiking them again . When this happens and along with all the other financial devastation this will trigger - you'll almost certainly see a humungeous drop in residential property values
( commercial Real Estate already being in the toilet ) - much akin to what happened in 2007 - 2009 , at which point you'll get ever more house for ever less Gold ( or Silver ) .!!
I did a similar exercise for Sydney Australia. I believe it shows by just how much fiat has lost purchasing power. Houses would be higher if they were affordable. Affordability used to be 3 times annual salary, now in some places you need 10- 12 times annual income for an average house. It's the biggest loan most people will ever make.
Thank you Alasdair.
Never mind ' Rich Checkan ' opining that listening to a " brief 20 x minute interview " with
Alasdair Macleod could be worthwhile , I personally feel that this amounts to an understatement of immense proportions . Frankly , It's vital that anyone and everyone who has the opportunity to gain knowledge from the words and writings of the - ' Sage Of Sidmouth '
( or should it be - Skye ..?? ) needs to grasp any opportunity that comes along to learn from the feet of the ' Master 'with both hands - whether this takes just 20 x minutes or any number of hours .
Thanks Alistair. I totally get the credit bubble, and safety of gold and silver in where we are heading. One metric that I now can’t reconcile is the value of gold verses average house prices to say the 70s. Within the last year these prices have gone from being more or less at par to being valued at +50%. Ie you need 50% less gold to buy a house. To get back on par houses either need to move up (unlikely) or gold down. Can you help rationalise?
Essentially the ( accelerating ) situation whereby you need ever less Physical Gold to pay for a house is essentially what Alasdair has been outlining time and again for yonks - the same does apply to Oil which ramps ever upward when priced in ' Fiat Dollars ' per barrel but which has flat-lined & in fact dropped substantially since the 1950's ( Priced in Gold )
Going back to the cost & affordability of buying a house in ' Gold ' - perhaps the most stark example ( again which Alasdair has noted & talked about countless times ) goes back to the end of the ' Weimar Republic ' in Germany in 1922 - 1923 , when you could purchase a very large & grand house in the swankiest area of Berlin ....equivalent say to
' Mayfair ' or ' Belgravia ' in London or ' Avenue Montaigne ' / ' Rue de Furstemburg '
in Paris for just 5 x Gold Coins . These equivalent property's in London or Paris
at today's price levels = £ 25 - £ 40 x Million ( that bit more in dollars ) .
The other age old dictum as applies - " Low interest Rates = high and climbing property prices " , and " High Interest Rates = Lower and falling property prices " .Where this is concerned and whilst the U.S. (+ UK / Europe & others ) might seek to lower rates somewhat to try and put a floor under the stock market's ( amongst other things ) , for my part I think that this will only be temporary before ' Events ' force them to start hiking them again . When this happens and along with all the other financial devastation this will trigger - you'll almost certainly see a humungeous drop in residential property values
( commercial Real Estate already being in the toilet ) - much akin to what happened in 2007 - 2009 , at which point you'll get ever more house for ever less Gold ( or Silver ) .!!
I did a similar exercise for Sydney Australia. I believe it shows by just how much fiat has lost purchasing power. Houses would be higher if they were affordable. Affordability used to be 3 times annual salary, now in some places you need 10- 12 times annual income for an average house. It's the biggest loan most people will ever make.
Oil ratio seems to be similar albeit not as linear as house prices