Seems like a lousy investment.
Let’s be real, hordeing physical gold is just something elderly people do because of scam advertisements they see on cable TV.
Oh look the gold bugs are back
I’m in Canada. 25 years ago my parents bought a home for $130k, they sold it 15 years ago for $500k, it’s now listed for $1.1 million. We are so fucked.
My last house I bought in 2012 for 545k CAD. Sold it 10 years later for 1.3 million. Agree. We are collectively fucked.
Sounds like you’re not doing too bad
Nah that’s in maple dollars
That’s still about 1mil freedom dollaridoos.
I mean, yeah, you could buy a lot of poutine with it but what else are you gonna do, buy maple syrup?
I am not. The problem is everyone else is not afforded the same luxury. What is the point of wealth if people are still struggling?
It’s frustrating.
If you include maintenance and taxes, it actually sold for less than the same amount of money invested in an index fund.
Still a tough bind for someone who isn’t already a homeowner. I’ve put a lot into index funds which have performed really well, but if I sell them now to buy a house and the real estate market shits the bed (which it really should), then I’m in an even worse place. I remember talking to people in 2007 who complained they would “never be able to afford a house”, but three years later their local listings fell by 30-40%.
For sure, it just illustrates that as much as the market can feel fucked up, as an investment housing isn’t necessarily the best. I’ve committed the numbers many times when I hear people talking about their parent buying a house for X$ in 19XX and it’s very rare that they beat the market. It’s the people that bought in 2009/2010 or right before COVID that are the real winners when it comes to real estate as an investment because they made a lot of money for the amount of time, but people who buy as an investment to hold it long term? Nah
Look, unless you’re renting it out, your house isn’t an investment. It grows in value and that’s nice, but you’ll spend more on maintenance and improvements than it will increase in value.
Your house is your house.
It will cost you less than paying rent, so it’s absolutely an investment
Housing can’t be an investment (i.e. exponential growth above inflation) AND an affordable place for people to live for future generations. This mentality is absolutely brain-dead.
That’s kind of silly comparison, as that money wouldn’t have been available to invest if it hadn’t been spent on a home. It would have been spent on rent instead.
I’ll trade my RuneScape account for one.
If I was lucky enough to be in your shoes, I would hold onto the RuneScape account. Gold may go out of style at some point. /s…sort of.
Alright. You drive a hard bargain. 2 bars of gold then!
Ignores that common folk can neither buy at spot nor sell at spot.
This post feels like it’s sponsored by the World Gold Council to encourage people to buy gold.
Fucking big gold
FR though, I’ve seen those “BUY GOLD” advertisements on Cable TV aimed at the mentally feeble and elderly, it’s really not cool.
Just ignore that general index funds have higher ROI.
And you don’t need armed guards to keep index funds.
Well, it’s working.
Gold prices must be high
In 1920, the average price of gold per troy ounce was $20.68USD[26.2 kB pdf]; 1 Kilogram = 32.15075 Troy ounces. Average house price in the 1920’s was $6,296.
$20.68 USD * 32.15075 oz t = $664.87751 USD * 10 = $6648.7751 USD
In 2023, the average price of gold per oz t was $1,940.54 and the average home price was $495,100.
$1,940.54 USD * 32.15075 oz t = $62,389.81641 USD * 10 = $623,898.1641 USD
This meme is credible, excepting errors in my assumption that 1 kilogram of gold is equivalent to 1 kilogram of common material.
At the same time, it picks and chooses its dates. Gold has been volatile, with the price oscillating between $2,100 USD in 1980, $470 USD in 2001, and back up to $2,200 USD in 2011.
wood for sheep?
I almost missed this.
I’ll just quote myself from my last game where I had a monopoly on the sheep…
YOU DARE COME TO THE MASTER SHEPHERD WITHOUT A TITHE IN HAND?
This is Catan meme? Because there’s no gold in Catan, or im confusing it with other game.
The title is “gold for house” and the body is “wood for sheep” implying they are a similar type of trade, not implying both are from Catan.
Neither “gold” nor “house” exist in Catan.
I feel like one of these is off by a 0
Is it me?:(
Currently worth $650,000. I don’t think it’s off.
Which one? Gold was $20.67 per Troy ounce in 1920, that’s about $664.55 per kilo. 10 kilos about $6,645.55 I’m believing the first search result https://www.countryliving.com/life/g33398396/what-things-cost-100-years-ago/ says that matches up. Gold is about $64,900 per kilo today so $649,000 for 10 bars, that’s a low cost of living middle class place or HCOL very small house that needs renovation. I could see you meaning these days and houses in some areas are in the $6 million range, guess they should be location specific.
Median home price in the US last year was about 450k, so I’d say your scale is a bit skewed.
Yeah I was going to say Upper Middle Class but I’ve seen some dumpy houses for those prices and it’s really titled by if you bought when interest rates were low vs the last year or so.
Jesus. Got my house 7-years ago on a Habitat for Humanity mortgage, for which you pay cost. ~85K? Also, no interest on the loan. Also, no property tax.
3-bed/2-bath/80’x200’ lot/1,140sq. ft. living space/$550mo.
Call your local Habitat chapter, go to the next meeting and learn. Keep going with the program if you can. Took my ex-wife and I 14-months, start to finish.
I can’t tell you the qualifications, they change and are different from one area to the next. I can give you some basic answers, at least I’ll try.
$649,000 for 10 bars, that’s a low cost of living middle class place or HCOL very small house that needs renovation.
What the fuck is going on with house prices up there
Sub 2% interest rates for 2 years for loans and then jumped to ~8%
Market is wildly variable.
And probably the fact that post 2009 the construction industry collapsed and a lot fewer homes are getting built
Where did you get the gold price? This page says $269.
He’s taking kilograms, you’re talking ounces.
The bar in the picture is one kilogram or about $65,000 US dollars. Ten bars would buy a very nice house in my area.
it might get you a small fixer upper in my home town.
Meth lab or woop woop in mine
10 of these will buy you a house in 20230
Memes from the alternate universe where we still use the gold standard
monetarist cope
They’d actually also be very likely to get you targeted by thieves as well. Even if you tried to keep quiet about them, there would be an entire chain of custody which would be required inform when such a large quantity of gold bullion where sold or bought, as well as their transportation and the transportation’s insurance, if you don’t get scammed in the process.
This is always my question. Like you see these movies about gold and diamond heists, but then… Wtf do you do with them? Who are you selling this shit to at retail value, or anywhere close to it?
I feel like if somone handed me a bag of diamonds right now I’d have no idea wtf to do with them.
You’d have no idea what to do with them because you’re not in organized crime. I would go look at Larry Lawton on YouTube. I think he posts a lot but if you go to his earlier posts he talks about his organized crime life. Wild.
I’m reminded of so many fiction subplots where a character has acquired an extremely valuable XXX they want to sell.
More often than not, it’s such an important object that any interested parties would sooner hire mercenaries to get it, and kill its owner as a witness (and in many of those stories, exactly that happens). Past a certain value, many items are not actually valuable for common people.
10 kg gold Dec. 2023 = ~$727,591 = $2062.92 * 10 * 35.27 oz/kilo
10 kg gold June 1920 = ~$105,810 = ~$300 * 10 * 35.27 oz/kilo
seems much higher than the respective housing cost for an average home in both cases
$300/oz in 1920?
If you had of invested the equivalent amount of money in the Dow Jones index instead of purchasing 10kg of gold and kept it invested from 1920-2024 you would have ~$15 million.
Not only that, but SP500 pays dividends practically every year, whereas gold costs money to store securely. $15M in SP500 would have netting something around $300k last year in dividends alone.
This, precious metals are a hedge against hyper inflation. Not an investment.
So I get the idea of a hedge, but I guess the question on my mind whenever I hear talk about hyper-inflation is “what are you going to do with the gold if society collapses?”. My thought is that if the world economy got so fucked up that the US dollar was worthless, and the government didn’t step in, then wouldn’t we sorta be in a failed state? And if we were in a failed state is the plan to sit on the gold in some sort of fortress to wait for civilization to come back? Hoping that you can defend it and that the incoming civilization doesn’t just take it?
As far as I know, the idea with holding gold in bank storage is, that if hyperinflation occurs, the currency becomes worthless and there will be economic upheaval, but it will not be the apocalypse. And then a new currency will be created and everybody who held physical assets instead of the old currency will be in a way better position.
I’ve always assumed you’d melt the gold down and create coins or other tradable sub-amounts of the gold that you could exchange for goods and services. If people are still peopling, they’ll still want a currency to transact with; if the dollar has failed then gold has a historical precedent that would probably make it easier to convince people to trade with you using it as a medium of exchange. It always seems like it’s more suited to be an emergency measure than a plan A to me.
