Can't eat gold
- Thread starter John_Doe
- Start date
Quote from sle:
Do you think if you would have buried an ounce of gold 50 years ago, it would buy you more or less real estate in Manhattan today?
Again (and I am sure someone wrote this before me) gold is a commodity. As commodities go, it might be perceived as a way to store wealth but overall it has very little intrinsic value. Also, don't forget that gold is not being consumed, but rather overall gold in "circulation" increases 2% a year due to mining.
I am not saying gold is a bad investment, I am just saying that one should have other investments in their portfolio.
Well, according to <a href="http://web.mit.edu/CRE/research/papers/WP90wheatonbaranski.pdf">this paper</a> Manhattan commercial real estate has on average not appreciated any faster than inflation. Over the past 50 years the official inflation has reduced the value of the dollar by a factor of 7.4. In 1960 gold was pegged to the dollar at $35 an ounce. $35 * 7.4 = $259. Gold is now over $1700. So gold has done much better than Manhattan real estate.
Glad you asked.
=============
Good points;
i also think they have proved , golden Twinkies keep for many decades
Good time to sell gold; however uptrend probably has further to go.You can eat /enjoy silver king corn or golden corn;
but expiry date is rather short.
Prove it. What was the price of Manhattan real estate in 1961 then? And remember...you are saying "way more" not even "slightly more" So an apartment better have cost less than $5k in 1961 for your assumption to be correct.
Median home price is $840k as of early this year. Might be less now but $840k is a good start.
http://money.cnn.com/2011/01/04/real_estate/Manhattan_market_prices/index.htm
I'm reasonably certain that the assertion is false, based on a price appreciation of specific, known properties in other high-appreciation areas over the past 50 years (e.g., Los Angeles, metropolitan Boston). But I don't have readily available analogous pricing data for NYC. Does anyone know where historical aggregate numbers are available?
ok, but gold is at an all time high and real esatate and stocks are off their highs.
check gold vs stocks at march 2000.
or gold vs real estate at around 2006
but at any rate, if you bury gold in your back yard, it will buy just about as much when you dig it up as it did when you buried it.
check gold vs stocks at march 2000.
or gold vs real estate at around 2006
but at any rate, if you bury gold in your back yard, it will buy just about as much when you dig it up as it did when you buried it.
but now a good one would be,
when they let the dollar float, IBM was considered both a hot stock and a good conservative dividend paying stock.
check out how much gold 100 shares of IBM would have bought the day it started trading at $35
or visey versey
I suppose a better would be gold vs the DJ over the last 50 yrs.
either way, you cant' eat any of it.
and by the way, you can't eat most of the corn they grow in the cornbelt, it's all for ethenol and livestock feed and corn syrup.
Down south you very rarely see corn, but you can get grits everywhere.
Go up to Illinois and look out the window and all you see is corn, but they have no grits.
when they let the dollar float, IBM was considered both a hot stock and a good conservative dividend paying stock.
check out how much gold 100 shares of IBM would have bought the day it started trading at $35
or visey versey
I suppose a better would be gold vs the DJ over the last 50 yrs.
either way, you cant' eat any of it.
and by the way, you can't eat most of the corn they grow in the cornbelt, it's all for ethenol and livestock feed and corn syrup.
Down south you very rarely see corn, but you can get grits everywhere.
Go up to Illinois and look out the window and all you see is corn, but they have no grits.