Time to buy real assets

Money Trust said:
What inherent properties does gold have besides people's belief that makes it a store of value? And saying that it's been around for millenniums doesn't cut it.
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It's had "precious" value for millenniums should be enough to "cut it". Gold conducts electricity, does not tarnish, can be drawn into wire, can be hammered into thin sheets, alloys with many other metals, can be melted and cast into highly detailed shapes, can't be destroyed.

If the price of gold dropped enough, it would be used for INDUSTRIAL USES BIG TIME! But the market won't let the price drop, because people demand a PREMIUM for it...because of it's beauty, scarcity, and wealth preservation appeal. Is this enough "inherent properties" for you?:)
 
BONECRUSHER said:
It's had "precious" value for millenniums should be enough to "cut it". Gold conducts electricity, does not tarnish, can be drawn into wire, can be hammered into thin sheets, alloys with many other metals, can be melted and cast into highly detailed shapes, can't be destroyed.

If the price of gold dropped enough, it would be used for INDUSTRIAL USES BIG TIME! But the market won't let the price drop, because people demand a PREMIUM for it...because of it's beauty, scarcity, and wealth preservation appeal. Is this enough "inherent properties" for you?:)
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Good points. Also, gold is portable compared to real estate which is advantageous when you need to leave your country.
 
algofy said:
Land, rental houses, apartments yes!!
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Agree but a little late now. Should get in back in 2012:

Inflation-adjusted house prices
united_states.png

The above chart estimates the market value of today's median-priced house over a 40-year period, thus controlling for the fact that housing sizes have changed over time. The thick red line represents real house prices. For those unfamiliar with economic terminology, "real" prices are prices that have been adjusted for inflation. The thick blue line represents nominal house prices. The thin lines represent the pre-bubble (1970-1999) trend lines.
 
ironchef said:
Agree but a little late now. Should get in back in 2012:

Inflation-adjusted house prices
united_states.png

The above chart estimates the market value of today's median-priced house over a 40-year period, thus controlling for the fact that housing sizes have changed over time. The thick red line represents real house prices. For those unfamiliar with economic terminology, "real" prices are prices that have been adjusted for inflation. The thick blue line represents nominal house prices. The thin lines represent the pre-bubble (1970-1999) trend lines.
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Looks like buying the dip after the market shows some strength to me.
 
the idea behind gold is that it'll keep you afloat on an inflationary scenario (think Venezuela). It's meant to provide a buffer. That and the notion that not all civilization goes to shit and as such a system of bartering would still be in place. IOW, ppl. will like shiny shit in the future 'cuz they're vain and shiny shit portrays power/wealth.
 
algofy said:
Looks like buying the dip after the market shows some strength to me.
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No, back in 2012 prices were in line with historical trend line so were fairly priced. If you plotted the curves to 2016, prices today are almost back to bubble level for many of the markets, even after accounted for inflation.
 
ironchef said:
Agree but a little late now. Should get in back in 2012:

Inflation-adjusted house prices
united_states.png

The above chart estimates the market value of today's median-priced house over a 40-year period, thus controlling for the fact that housing sizes have changed over time. The thick red line represents real house prices. For those unfamiliar with economic terminology, "real" prices are prices that have been adjusted for inflation. The thick blue line represents nominal house prices. The thin lines represent the pre-bubble (1970-1999) trend lines.
More...


High end real estate in Greenwich, NYC, Miami and SF slowing but entry level is still supply constrained.
 
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