Golds purchasing power

[ppnewbie]

I did an interesting thought experiment the other day. I live in a very over heated housing market. My home has appreciated significantly in the last 10 years. However, when I compare the price of my home in the price of gold 10 years ago to the price of gold today, the house cost approximately the same amount in gold.

[Libertarian666]

I did an interesting thought experiment the other day. I live in a very over heated housing market. My home has appreciated significantly in the last 10 years. However, when I compare the price of my home in the price of gold 10 years ago to the price of gold today, the house cost approximately the same amount in gold.

While I'm a big gold advocate, that result is coincidental.
As an example, when I bought my house in 1998, gold was a bit under $300/oz. and the house cost $125,000.
I've put in about $30,000, so my basis is about $155,000, which would have been about 500 ounces of gold at that time.
My current house value is $210,000, or about 128 ounces of gold.
I'm glad I didn't sink everything into real estate!

[Hal]

A quick post and run

http://pricedingold.com/us-home-prices/

[ppnewbie]

Thanks Hal very interesting site. And thanks Libertarian666. That is also very useful information. I am starting to develop a thesis using gold as a baseline so the more info I have the better.