Houseprices have fallen 80% in the past 7 years relative to gold prices

http://www.moneyweek.com/investments/property/uk/uk-house-prices-valued-in-gold-20700

In gold terms, UK housing has fallen by just over 78% from its high of 725 ounces in 2005 to 156 ounces in January. It is below its lows of the early 1990s, but has not yet reached its lows of the early 1980s or 1930s (50-100 ounces for the average UK house) - where, by the way, I am convinced it will be in a few years’ time.

 

We all know however, that the housing markets of London and the rest of the UK are very different beasts.

If measured in gold.

Wage inflation is now required for labour to realise its value in gold.

Productive business shall soon be the best investment.

People can then resume trading their labour for housing.

Afterall a house is not even 1000 hours of labour and a few bits of machine mined and cut earth thrown together. Current price for an hour of labour?

£6.08*1.138?

£6.08?

£2.60?

0?

Which type of gold do you invest in Chem1st?

Acapulco gold, Quebec gold or Pot of gold?

It's rather bizarre to find someone willing to reduce the concept of housing to its basics of manual labour, bits of earth and some machinery, and yet, at the same time, thinks that lumps of yellow metal dug out of the ground have some magical property that makes them an ideal currency.

Old legends say that in a land far away, in a time long ago, at the end of the rainbow there is a crock...

http://www.moneyweek.com/investments/property/uk/uk-house-prices-valued-in-gold-20700

 

 

 

If measured in gold.

 

Wage inflation is now required for labour to realise its value in gold.

 

Productive business shall soon be the best investment.

 

People can then resume trading their labour for housing.

 

Afterall a house is not even 1000 hours of labour and a few bits of machine mined and cut earth thrown together. Current price for an hour of labour?

 

£6.08*1.138?

£6.08?

£2.60?

0?

You should have bought some gold when Gordon the Moron was flogging it at £200 ounce then you would be able to trade it in and buy Chatsworth.

I' m going to browse the "I'm Bored" Section-it's more interesting than this.

Interesting connected article!................

Repression is in full swing, rioting is spreading and revolution is almost upon us. The next ten years will bring extraordinary change which hopefully will be for the better, however, there is the small matter of getting through the worst of it first.

By the time 2022 rolls round there will be a gold backed Dinar, a silver backed Peso and a number of forms of digital currency led by Google's vary own cyber Dollar.

The current fiat currencies, much loved by the sovereign states will have been consigned to the history books. Government policies will be dictated by a conglomeration of international big business. There will be no need for elections as all matters will be 'managed' for you. Drugs will have been legalized and television will be in 3D, as once proud nations lapse into a sedated trance of apathetic lethargy. Birth control will be compulsory with child birth limited by a quota system. The occasional outburst of dissent will be dealt with by an international rapid response force. The words liberty and freedom will be will no longer appear in dictionaries, just as the words 'English Channel' will not appear on future maps of Europe as the Brits will acquiesce to calling it by its European regional name of 'La Manche'

To a political bureaucrat the above probably reads like some sort of administrative utopia, to us it reads like our worst nightmare.

When social exclusion reaches epidemic proportions and we hit 'Peak Poverty' levels, revolution will be the last resort.

The situation beyond the next decade is nigh on impossible to predict, we can however let our imagination take the positive road and hope that tiny pockets of individuals will push for a more independent way of life. Similar to the movement that favours organic produce over the allegedly less nourishing everyday offerings from the chain stores.

Our concern though is for the next decade, how do we get through it, how do we survive, because its coming down to a matter of survival. The safety net of social services that the western world as grown accustomed to will no longer exist in any useful form, as the money is long gone, its over to you now.

Ripping up the patio in your back yard in order to create a veggie garden to supplement your own well being is the sort of thing that springs to mind, but we will leave that subject to those who are way better qualified than us to cover.

What we can do though, given that our premise encompasses the demise of paper currencies in their current form, is look to alternative stores of wealth.

Have you noticed the recent uptick in robberies in the world of fine arts. There are many who consider art as a store of wealth and therefore a good investment. Again, this is not an area we are familiar with, so if you do take that route, do get some seriously good advice. Classic cars are the choice of some investors and can be fun, however, with petrol prices being what they are, using them would be somewhat limited. Both of the above investments are not that easy to sell, should you you need to do so, you may have to wait awhile in order to achieve your price targets.

As you have probably guessed by now we are heading down our well worn path in terms of how we deal with preparing for the future. We favour the precious metals, both gold and silver. As we see it the prices are known for both on a 24/7 basis, with small bars and coins offering sufficient liquidity for most retail investors to be able sell at short notice, should it become necessary to do so. And we do mean physical gold that you can see and touch, a paper certificate carries with it additional third party risk, that you must be fully familiar with if this is your investment vehicle of choice.

The second part of our strategy is to invest in quality gold and silver producers, although we must remain vigilant as to the many risks inherent in the mining process and the ever growing risk of government intervention as sovereign states seek a larger slice of the pie. We will not hesitate to dispose of our stocks should the outlook become onerous and impinge on the profitability of even our most favoured companies. It is extremely dangerous to fall in love with a stock, especially a mining st

It's rather bizarre to find someone willing to reduce the concept of housing to its basics of manual labour, bits of earth and some machinery, and yet, at the same time, thinks that lumps of yellow metal dug out of the ground have some magical property that makes them an ideal currency.

Poor Germans,after two failed major attempts at domination.they thought the third attempt would succeed more on economic sooner than military might!......................alas!

Things would not be in such a dreadful mess if paper currencies had to adhere to a gold standard!

No, indeed. They'd be worse, just as they were in 1931 when we took the decision to get rid of it so that we could actually do something about the depression.

Gold prices,house prices,foo. pri.......zzzzzz!

No, indeed. They'd be worse, just as they were in 1931 when we took the decision to get rid of it so that we could actually do something about the depression.

what if you'd built your house from gold?