Gold…good or bad investment?

[Mountain trapper]

I would like to see real-estate prices "crash". Especially since I'm in the market for another chunk of land.

 

[Tacitus]

Like metals, I think we need to think of real estate prices as consisting of two additive values:

• Demand Value: Greater demand drives up prices.
• Dollar Value: Inflating dollar drives up prices.

Price = Demand Value + Dollar Value

(Those are my terms. Some economist somewhere probably has formal names for these concepts. I know I didn't invent the concepts.)

In other words, demand for property could go up, and so prices of real estate will go up. It takes more dollars to buy property because more people want to buy it, and its demand-driven value increases.

Or, demand for property could remain the same, while the dollar inflates (i.e., the dollar loses value), and so prices of real estate will go up. It takes more dollars to buy real estate than before because each dollar isn't worth as much, and you need to have more of them to buy the same property.

Real estate is a non-USD way to hold wealth. If inflation is coming, the rich will want to buy real estate which creates greater short term demand and therefore higher proces, and later inflation will create longer term higher prices. The key is to hold real estate before the inflation comes. I have seen articles indicating that pension funds, investment firms and Wall Street banks have been buying up family homes for a few years now. Could be because they see inflation coming. Could be because they are moving out of commercial real estate due to covid/work from home trends. Who knows?

 

[Mountain trapper]

Right after the elections the price of gold immediately started dropping. That created a great short term buying opportunity.
Then, since Biden is determined to start WWIII before he leaves office, the price of gold has started back up again. It's now only $70 shy of the all time highs. I'm still considering selling off most of my gold and buying land somewhere with a milder climate. And buying more silver.

 

[montanabill]

I was just talking to a local PM dealer...He sold a lot before the election, especially when kamala was anointed, then the big sell off when trump made it.. now sales are going back up....

 

[Supervisor42]

I was just talking to a local PM dealer...He sold a lot before the election, especially when kamala was anointed, then the big sell off when trump made it.. now sales are going back up....

Looks like gold is recovering from the 'election slump'.
Remember when it was at $2,800 at the beginning of November? Those were the good days.

 

[Mountain trapper]

Gold is up $33 today to $2700. That's getting close to its all time high. As long as there's a chance the US (biden) will start WWIII it will keep going up. Hopefully we can hang on until Trump takes office. Then I'd expect to see PM prices drop, and the threat of war diminish. But who knows? I certainly don't, just guessing here.