Re: Buy gold or pay off mortgage?
As has been stated many times, during the Wiemar Republic episode people were buying whole apartment buildings with 1oz of gold.
Is that really true? I can understand how 1 oz of gold could pay off an apartment buildings debt that was incurred before the hyperinflation but it makes no sense to me for that to be the case in general. Why would someone sell an apartment building (clearly has utility value) under any circumstances for only one once of gold? Gold can not provide shelter from the elements and is not necessary for life.
The only way I could imagine this happening is if the market for gold was like the market for tulips in Holland during tulip mania.