Is gold too high or are home prices too low?

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rci2145's picture
rci2145
Status: Member (Offline)
Joined: Jan 3 2009
Posts: 24
Is gold too high or are home prices too low?

http://pricedingold.com/us-home-prices/

 It looks like home prices and gold have reverted back to an equilibrium level.  I know most on here expect home prices to keep going down and gold prices to keep going up but maybe we are right where we are supposed to be.

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: Is gold too high or are home prices too low?

in the near-term I think both will go down, with gold retracing to 600-700.  long-term gold will shoot up as the banksters destroy the dollar...but the government can screw things up and make you a criminal for owning it which is why I'll have it in switzerland or the perth mint in australia.

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Au Thou (rhymes with 'Dow Thou')

Very comforting charts -- looks like some measure of equilibirum is
being restored. Though 'equilibrium,' contrary to classical economics,
is not the normal state of markets. It's merely an accidental point
they pass through in transitioning from overvalued to undervalued, and
vice versa.

Meanwhile, Professor strabes's 'long term' has
arrived for gold today -- it's knocking on the door of 'Au Thou.' The
all-time record (in greenbacks) is only 4 percent away. In many
other currencies, gold is already setting records daily. Here in
dollar-land, we are probably the laggards in this trend.

Y'all
join me in Club 1033 -- membership is free. And you'll love the
confidence, self-esteem and admiring glances from the beautiful and
handsome that it brings.

KissHave you hugged a goldbug today? Kiss

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2244
Re: "Warning about Perth Mint Gold Certificates"

Hi Folks-

    I just came across this acrticle on www.marketskeptics.com:

"Friday, February 20, 2009

In his commentary, Eric deCarbonnel references an article from Golder that discusses three problems with Perth Mint Gold Certificates, at https://www.igolder.com/glossary/perth-mint/ .  I don;t know how credible these warnings are, but I wanted to give anyone who owns or is thinking about owning Perth Mint Gold Certificates a heads-up that they may want to check into these allegations.

Here are Eric DeCarbonnel's conclusions at the end of his commentary:"My reaction: The whole point of owning gold is safety. Investing in gold in an unsafe way negates this purpose. The four problems with Perth Mint are:

1) Perth Mint sells paper gold (Paper gold refers to any investment in gold which can default). Certificates for unallocated gold (like those sold by Perth Mint) are a mint’s equivalent of a bank’s certificates of deposit (CDs), except they use gold instead of dollars (or paper other currencies) and they don’t pay interest. When a bank/mint goes under, the same thing happens to the holders of these certificates: they become general creditors, with no lien/claim upon any portion of mint/bank’s assets.

2) Australian law already has a mechanism in place to confiscation gold, by requiring delivery of gold to the Reserve Bank of Australia (RBA).

3) The Australian Government is running big deficits

4) Australia's gold reserves are in doubt

Conclusion: Avoid Perth Mint gold certificates, especially for unallocated gold (allocated gold is much safer, but still risky). There are much better and safer alternatives for investing in gold." 

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: "Warning about Perth Mint Gold Certificates"

Yeah Switzerland is and will always be the safest.  But it can be expensive and require too much in asset size unless you use one of the newer annuity type products that allow borrowing gold against the value of the annuity.  

Perth has a direct program that avoids the paper certificate if you have > $250k to put in gold.  Allocated is always the safest, but it allows you to convert from unallocated to allocated on short-term notice (though in a run on the mint, you would be too late) if you want to avoid allocated fees. 

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