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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Valuepro who wrote (304057)2/8/2011 8:47:26 PM
From: John VosillaRead Replies (1) of 306849
 
How exactly do you value gold? Where is the cash flow? Where is the utility use in society? Why did gold crash for two decades 1980-2000 while everything else did well and dollar printing and fed borrowing continued to take place? I think the federal defecit went up six fold in those 20 years. I guess you need to 'bet' on the real economy continuing to be in the tank, continued very high deficit spending, high monetary expansion, inflation pressures on things you need continuing to rise and the world not at peace for the next cycle that together would replicate the playbook of what has just happened in the post 9/11 world? I am not one needing to 'bet' on something that already went up 6-7 fold in nine years nor would I care if Soros, Trump or the Koch brothers gave me the inside scoop on heads or tails going forward.. Dow to gold ratios in 1980, 2000 or back when the price was fixed in the 1930's gives a very wide range too from like 1:1 to near 50:1 with an average closer to the ratio today. Odd that most all gold lovers hate RE, the ultimate inflation hedge in normal times, expecting it to continue down for years to come. Something has to give this next cycle so one of the clues worth watching..Best of luck with it..
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