Loading ...Typical houses here south shore Long Island, were $40,000 in 1970 (6%mtg) and still $40,000 in 1980 (18% mtg).
Take out your calculator.
Silver Bags $1,000 face were $25,000 at $35/oz. So two bags bought a house with change left over.
Gold at $700/oz meant 57 ounces of gold bought a house. These houses today run $400,000 to $600,000.
Houses cost 10 times more over 40 years. A very poor appreciation after figuring in interest property taxes and maintenance costs.
Most consumer products are 15 to 20 times more and higher. Look at cigarettes. .25 cents to $10. 40 times more making a $40,000 invest in cigarettes worth $1,600,000 a far better investment. If their stored well shelf life is ok.
Also in 1980 you could have bought 30 year gov’t bonds paying 16.8% with no call back provision. And no interest maintenance or property tax cost and very liquid.
You guys feel free to finish this. Duplicate those ratios or values for the next ten year cycle. Houses down and metals up in unison? Or houses stay flat and metals catch up? Wow on that one. Maybe I’ll go over that later myself.