Jump to content


Photo

As Uk House Prices Fall They’Re Now Back To 1986 Prices When Priced In Gold


  • Please log in to reply
13 replies to this topic

#1 Asheron

Asheron

    HPC Veteran

  • New Members
  • PipPipPipPip
  • 1,084 posts
  • About Me:As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.

Posted 15 April 2012 - 07:57 AM

It now takes 147 ounces of gold to buy the average UK house – a new low for the move.
When gold peaked back in 1980 this ratio got as low as 85 ounces to buy the average UK house.
For gold to get back to that ratio today would require a gold price of over £1900 or a home with an average home price of just £93,000.

http://www.goldmades...d-in-gold-5864/
Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#2 Pent Up

Pent Up

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 5,993 posts
  • Location:Essex

Posted 15 April 2012 - 07:59 AM

As great as that sounds its totally irrelevant.
Remember that buying a house is a highly leveraged investment and can result in losses that exceed your initial deposit. Buying a house may not be suitable for everyone, so please ensure that you fully understand the risks involved.


"The time to buy is when blood is running in the streets" Baron Nathan Rothschild

#3 Asheron

Asheron

    HPC Veteran

  • New Members
  • PipPipPipPip
  • 1,084 posts
  • About Me:As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.

Posted 15 April 2012 - 08:00 AM

I disagree it's important for people to see the £££ has lost value :)
Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#4 Asheron

Asheron

    HPC Veteran

  • New Members
  • PipPipPipPip
  • 1,084 posts
  • About Me:As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.

Posted 15 April 2012 - 08:10 AM

In fact the government is laughing at everyone because really it doesn't matter how much a house costs in pounds if they keep printing money the houses might even go up :)

But so will food prices :) And Oil :)
Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#5 Asheron

Asheron

    HPC Veteran

  • New Members
  • PipPipPipPip
  • 1,084 posts
  • About Me:As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.

Posted 15 April 2012 - 08:22 AM

What would be great is to see different Graphs on the front page of the website, with Houses priced in different commodities.

For example... an average UK house priced in Garlic :)

Edited by Asheron, 15 April 2012 - 08:22 AM.

Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#6 Pent Up

Pent Up

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 5,993 posts
  • Location:Essex

Posted 15 April 2012 - 08:52 AM

An easy comparison to make. Price them against a Ferrari 260 Californian and they're virtually being given away.

Seems to me the only thing prices should be compared against is average earnings.


Exactly, I really don't care what a house cost in oil, gold or whatever. It makes no difference to me whatsoever.

What does matter is houses priced in £.
Remember that buying a house is a highly leveraged investment and can result in losses that exceed your initial deposit. Buying a house may not be suitable for everyone, so please ensure that you fully understand the risks involved.


"The time to buy is when blood is running in the streets" Baron Nathan Rothschild

#7 plummet expert

plummet expert

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,665 posts

Posted 15 April 2012 - 09:03 AM

An easy comparison to make. Price them against a Ferrari 260 Californian and they're virtually being given away.

Seems to me the only thing prices should be compared against is average earnings.

CORRECT!

#8 Asheron

Asheron

    HPC Veteran

  • New Members
  • PipPipPipPip
  • 1,084 posts
  • About Me:As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.

Posted 15 April 2012 - 09:40 AM

Exactly, I really don't care what a house cost in oil, gold or whatever. It makes no difference to me whatsoever.

What does matter is houses priced in £.


But what about the purchasing power of your £

Does it not matter ?

Yes! we get paid in £ we buy houses in £ .

I'm trying to explain the devaluation aspect and it's difficult :)

Edited by Asheron, 15 April 2012 - 09:57 AM.

Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#9 culvers

culvers

    HPC Poster

  • Members
  • PipPip
  • 127 posts

Posted 15 April 2012 - 09:43 AM

if you cant see the significance of this, then you are in trouble... the price of a uk house in pounds may never fall much if QE continues, as it is just bits of paper and numbers on a screen.

#10 Asheron

Asheron

    HPC Veteran

  • New Members
  • PipPipPipPip
  • 1,084 posts
  • About Me:As an investor, you know that any kind of investment opportunity has its risks, and investing in Stocks or Precious Metals is highly speculative. All of the content I post is for informational purposes only.

Posted 15 April 2012 - 09:57 AM

Yes, this is why QE is so brilliant @ stealing wealth

Edited by Asheron, 15 April 2012 - 09:58 AM.

Max Keiser --- http://maxkeiser.com/
Peter David Schiff --- http://www.europac.net/
Gerald Celente --- http://www.geraldcelente.com/
Jim Rogers --- http://www.jimrogers.com/
Bob Chapman --- http://www.theintern...om/Bob_Chapman/

Investors should abide by money management principals & never risk more than they can afford to lose.
There are No guarantees when investing in the Stock Market or Precious Metals. You might lose all your money and cry.

#11 silver surfer

silver surfer

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 3,147 posts

Posted 15 April 2012 - 10:11 AM

As great as that sounds its totally irrelevant.


+1

#12 Take Me Back To London!

Take Me Back To London!

    HPC Veteran

  • Members
  • PipPipPipPip
  • 2,184 posts

Posted 15 April 2012 - 04:16 PM

Exactly, I really don't care what a house cost in oil, gold or whatever. It makes no difference to me whatsoever.

What does matter is houses priced in £.


£???


It takes 625 pound coins to buy the average UK property, well the original £1 coins, the gold sovereign. :lol:

It might not make no difference to you, but it does to anyone who transferred cash savings out of bank or building society into the world's premier reserve currency. Many on here have been in this for a number of years, looking at the trend and past history of gold VS bricks and motar. We have taken a lot of flack being in the gold bubble :lol: , but year after year the the amount of gold to buy an average UK property has gone down and down. When I started with gold it took 600 ounces to buy a house, now it's 147 ounces with a target price, as has happened before in the past of 50-60 ounces.

I would be in paper sterling if I thought it was a sound place to be, but it is not in the present financial climate.

Posted Image

Edited by Take Me Back To London!, 15 April 2012 - 04:25 PM.

Bankers may well have acted as if they’ve been sitting in the casino during the boom years. But it was a state-owned casino, with governments as the croupiers, and central bankers behind the bar giving out free booze.

John Stepek

#13 Crashman Begins

Crashman Begins

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,651 posts
  • Location:Crasham City

Posted 16 April 2012 - 06:54 PM

It now takes 147 ounces of gold to buy the average UK house – a new low for the move.
When gold peaked back in 1980 this ratio got as low as 85 ounces to buy the average UK house.
For gold to get back to that ratio today would require a gold price of over £1900 or a home with an average home price of just £93,000.

http://www.goldmades...d-in-gold-5864/


For months ive been I've been thinking about the about the
clued up older generation and what they did during the 80's gold boom

And Im very sure I know of a town where most of the former locals were goldbugs (they've moved to nicer areas now)

The fact that gold peaked in the 80's ties in perfectly with the history and change of this town since the 80's and maybe in the 70's as a couple of ounces Would have got you a large deposit.

Edited by Crashman Begins, 16 April 2012 - 06:55 PM.

precious-metal-investment.blogspot.co.uk

BBB @ Dec 5 2004, 05:30 PM: some credit crunch guys....not my idea of a credit crunch......is it yours?
''first this will happen, then this will happen'' you all said..kind of throws all your baloney theories out of the window doesn't it?

They will do anything to avoid suggesting that the size of the pie is not the real problem, it's the way it is sliced.


#14 Monkey

Monkey

    HPC Veteran

  • Members
  • PipPipPipPip
  • 2,989 posts

Posted 17 April 2012 - 02:52 PM

Going by the graph, it looks like every 30 or so years it resets back to approx 140-150oz to buy an average UK house

Posted Image

how many oz's was the average wage in 1952, 1986 and today?




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users