The Gold To Housing Ratio
There was an article at Gold-Eagle published today by Daniel R. Amerman.
The main takeaway for me was this observation:
"In the 41 years prior to 2016, from 1975-2015 (inclusive), there were only nine years where the average Gold to Housing ratio was lower than the 180 we are currently seeing.
So, in very approximate and rounded terms and based on the preceding 41 years, about 25% of the time gold would be expected to increase in value relative to housing, roughly 50% of the time housing would gain between 0% and 100%relative to gold, and roughly 25% of the time housing would double or more in value relative to gold."
This makes me think that the current gold bull market, that started in December 2015, might be coming to an end sooner than I previously believed. I am still long gold and gold mining stocks, but after reading this article I might start selling some later this year.
I am currently expecting gold to make new highs past the July peak later this year. After (if) that happens, I plan to take some profits from my long positions.
This time period pretty much starts at the end of the gold standard. The property market has bubbled and bubbled up, it blew up in 2007, and it's still bubbling out. I would not be betting on houses right now. Half of them are empty.
Both gold and housing prices could come down.
You know, you might be right. And we could be sitting on the new gold here in cryptoland.
interesting perspective. This is something i need to research more. There is some real