Homes Have Never Been More Affordable (With One Footnote)

Tyler Durden's picture

We said 1 for a reason, because while indeed homes have never been more affordable... one must pay for them in constant gold. Yes, holding gold over the past century has as of this point effectively defeated any of the accumulated home price inflation over the years, and when expressing home prices in terms of gold, the average home is now more affordable than ever before. We said gold. Not dollars, not yen, not spam, not Nobel economics prizes. So for everyone who wants to exchange some of that shiny metal into the most valuable and capital intensive investment the average American will do in their lifetimes, this is your moment.

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egdeh orez's picture

did you account for rent?

egdeh orez's picture


I'm watching Final Destination 7... starring Bank of America

MarketTruth's picture

Carrying cost on gold = $0

Carrying cost on home = infinite tax increases by city/state, insurance premiums going up, needed normal upkeep, etc.

HoofHearted's picture

The prices of homes will get a whole lot cheaper in gold...bitchez.

Jack Kreuz's picture

And even if they don't go lower in gold, not one of the 7 million unemployed will be able to rent it from you anyway.

MarketTruth's picture

Maybe one of the 45 million people can pay you with their food stamps?

Manthong's picture

They will get cheaper faster in silver if you don't mind using a dolly.

A Lunatic's picture

Wake me up when you can buy a house with a mere three loaves of bread, a can of Red Feather butter, and one jar of raspberry jam. Until then they're still overvalued.

HomelessCEO's picture

I'd trade my $200/mo in stamps for a roof over my head. Any takers?

DC's picture

Not many landlords I know will rent to the unemployed, how about the 150 million or so employed?

CrashisOptimistic's picture

There will very soon be a carrying cost of gold.

Never EVER forget: The gov't will do ANYTHING to keep the balls in the air.  They will never outlaw gold or confiscate it.  They will tax it.  They will tax transactions at 70%.

If you were them, wouldn't you?

trav7777's picture

see "Greece"...or see "about anywhere else."

The government can TRY a lot of things; doesn't mean they can make them stick.  They tax drug transactions at "jail" right now and those seem to be sailing right along.

SilverRhino's picture

i believe I can speak for most Americans when I reasonably say.  

FUCK compliance with bullshit laws like that.   Say hello black market

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"All laws repugnant to the U. S. Constitution are null and void."  --  Marbury v.  Madison  1803

fallout11's picture

They just forgot. Pitchforks and torches will remind 'em though....ah, who am I kidding, that's another thing that will never happen.

LongBalls's picture

Retail investors by in large do not move the price of gold. Institutions do. They will never let this happen. Central Banks around the world are buying up gold like crazy. 

ferret's picture

They very well may institute a licence to possess gold, renewable annually, of course, for large fees.  Covers the big boys, and allows them to control the market.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

If I were them I would look for honest work, but you are right.  The demons will do whatever is necessary to stay in power.  It would not matter how many dead bodies piled up.    Tuco

samsara's picture

As If,   Ya,  Like they tax 70% on the transaction  when one buys an Oz. of pot.

You think like an Honest person.  While that may have been Admiral in other times,  it will get you killed in the future.      Learn to  Think Like an Outlaw.  

How do you  suppose those Wall Street guys got so much money?  THEY THINK LIKE OUTLAWS. 

Read your post.   Don't Do any 'Legal"  transactions.    Have no income 'On the Books'  Just like the big guys.  Nothing to Tax.

Black and Flea markets will be ubiquitious. 

Ironmaan's picture

Jesus said, "render unto Caesar, what is Caesar's"

Well, that begs the question, what the fuck is Caesar's and as far as I'm concerned anything above 20% is thievery and I'll do what I have to do to keep my cash/gold etc.

Bicycle Repairman's picture

Flipping houses made sense.  Being a landlord or owner makes you a target.

electronpaul's picture

that chart is going lower....

legal eagle's picture

Yes, I think the "moment" will be long and shaped like a hockey stick.....

unununium's picture

To be fair, 2nd derivitive looks positive.

Infinite QE's picture

Still early in the game. I see the gold max/housing low point coming in 2013. Not to say it may go out lower and potentially not even be worth addressing if 'merica comes more and more unglued. 

DaveyJones's picture

I vote for your third sentence

Bicycle Repairman's picture

It will go much, much lower.  Real estate is dead for a generation.

Sokhmate's picture

+One Generation (in luie of voting)

fallout11's picture

Right you are. No bubble in economic history has ever reinflated. Ever.  

Bicycle Repairman's picture

Oh it'll reinflate alright.  Right after my generation (boomers) downsizes into urns.  See you in 2040.

Greater Fool's picture

Everytime I think we've seen the low home price / low interest rate sweet spot, I just wait 6 months or so and another one comes along. People have been trying to call a bottom on this thing for 4 years now at least...I see ample reason to believe that this isn't it, either. 2013 maybe, but when CSHPI started turning south, 2011 seemed an impossibly long time to have to wait for the correction to end, and yet here we all are....

NotApplicable's picture

Given that the US housing market has yet to be nationalized (officially), there's no telling how the market will look as we go forward. Well, other than that unglued part. That's pretty much assured.

George the baby crusher's picture

I'm surprised that spam hasn't done better.  But I'm sure spam will come into her own in the next few years.

fuu's picture

Spam still accounts for a decent percentage of Hormel's profitability.

Spastica Rex's picture

I love Spam, and I'm not even Hawaiian.

RobD's picture

Spam=Food of the Gods! Slice it thin and fry it in bacon grease until crisp on the outside. Yummm. In all seriousness spam is a great survival food. Protein and lots of fat and salt, all of witch will be in short supply when the SHTF.

Dane Bramage's picture

That (home/farm 4 gold) is the plan, but I'm still going to wait a bit (guessing it'll be even more advantageous to do so).

HoofHearted's picture

I'm holding out too. Keep getting offers for cheaper and cheaper farmland. When the Greater Depression hits, I'll be trading a few ounces of silver for the farmland and farmhouse plus some livestock. Until then...we just hold.

trav7777's picture

why in the fuck would anybody ever trade you their farm plus livestock for your stupid few ounces of silver?

Silver isn't that valuable ,nor rare.  And if the farm is not sustainable, why would you trade for it anyway.

You silverbugz are frickin idiots

tmosley's picture

There is more gold above ground than there is silver.  Silver is consumed in almost every industrial application where it is used.  It is mined as a biproduct of other metals, such that mining silver by itself is not economical (at these prices) for all but a few producers.  As the economy gets worse, and demand for base metals drops, silver production also drops.

But you never let the facts get in the way of your irrational hatred, do you?

Also, why would anyone trade you a farm plus livestock for a suitcase full of paper?  Just because you are (again) too stupid to see why something would happen doesn't mean that it won't.

Also, you are a fucking hypocrite, as you are on the record as owning silver.  Sell your silver.  You don't deserve it.

Nom de Guerre's picture

Yes.  And increasing amounts of silver are consumed in the healthcare industry.  I get pharma propaganda through my office daily, with more and more items that are promoted to be impregnated with silver ion.  It is a potent, broad-spectrum bactericidal.

Hook Line and Sphincter's picture

Trav is quite interesting these days.

For one who understands and expounds ad infinitum about the exponential function, he seems to play a devils advocate for his amusement. Yesterday, he was bent on embracing the statement 'that in no way could the collapse of the monetary system' be planned. The intersection of exponential function, fiat money and debt service as performed dozens of times throughout history hasn't been forgotten. The cyclical nature of the scam has been known for thousands of years.

Absinthe Minded's picture

Thank Christ you two kept it short tonight. You're like Archie and Meathead, but in a bad way.

NuckingFuts's picture

Agreed trav:  I own a farm. and livestock and there is no fucking way it is selling for a couple shiny coins WTSHTF.  Perhaps your silver might buy you some eggs, maybe even a chicken....... but a few oz buying property is a stupid plan for preparing.