Housing priced in gold

[jpatter666]

Nice article on housing prices when reckoned in gold:

http://seekingalpha.com/article/1631...priced-in-gold

The comments are also interesting. The war on whether gold is worth anything still continues! This gives me more confidence that I've still some time before the spike (I hope)

[jimmygu3]

Re: Housing priced in gold

"In 2001 the median house fetched 460 ounces of gold and the median price was about $115,000, a 4-to-1 ratio ounces of gold per dollar of house value. By the valuation peak in 2005 that ratio had fallen to 2.17-to-1. The boom period actually saw an overall loss in value."

I think he means a 4-to-1 ratio of ounces of gold per thousand dollars of house value. This is really a circular statement, as the only take-away is that gold was about $250 ($1000/4) in 2001 and was about $460 ($1000/2.17) in 2005. You could eliminate housing and it would still be true.

Thanks for the article.

Jimmy