In real money, British house prices are down by 70%

StevieJ

I hope it cheers up all those STR's who Moneyweek advised to sell there houses (for a realistic price) last year

Loopgames

Cleaver wrote: »

There is no 'bigger picture'. I guess it's vaguely interesting to compare one asset to another, but if you never own one of those assets then it's pointless, isn't it? I get paid in sterling, I buy stuff and pay bills in sterling and I buy and sell properties in sterling. Sterling is therefore my measure of how much a house is worth. I think it's fair to say 99.99% of the population would agree with me.

Exactly - the markets actually depends on us the general population to do nothing now until it's too late. That's the unfortunate nature of the masses. Then the rich get richer while the rest of us may find out the hard way this financial education.

Gold isn't a random commodity - it is the bases of all money historically and the nature of gold is that it will correct itself. As history has shown us. But again this requires personal research.

Of course this is clearly my opinion and I could be wrong but I am more convinced that sterling will devalue further so I prefer to lock its value today by trying to convert it into gold even though the price of gold seems to be high.

Loopgames

Cleaver wrote: »

Oh for goodness sake. Most people buy a house because they work nearby. And because they like their garden. And it's a good place to keep their stuff. And because their kids go to the local school. They don't own it because they think it will outclass gold as an asset.

So your 'gamble' doesn't depend on whether you are risk averse or not, it depends on whether families want to uproot their entire life to make a bet on gold. And none of them will want to do that.

Some of us are trying to do that;)

There are always exception to the rule.

Cleaver

Loopgames wrote: »

Exactly - the markets actually depends on us the general population to do nothing now until it's too late. That's the unfortunate nature of the masses. Then the rich get richer while the rest of us may find out the hard way this financial education.

Gold isn't a random commodity - it is the bases of all money historically and the nature of gold is that it will correct itself. As history has shown us. But again this requires personal research.

Of course this is clearly my opinion and I could be wrong but I am more convinced that sterling will devalue further so I prefer to lock its value today by trying to convert it into gold even though the price of gold seems to be high.

Great, then you should do that. I was just pointing out that most families aren't interested in selling their houses and converting all the money in to gold. You can class that as the general public doing nothing until it's too late, I think it's just people getting on with their lives in a normal way.

purch

Whether you have 100 ounces is irrelevant

My 400oz certainly are not irrelevant mate !!!!

What the article is pointing to

From this I am assuming you actually wasted some of your life (time you will never ever get back) reading the absolute drivel that makes up every single article in Moneyweek.

P.S. If I sell my House, where will I live ??

Loopgames

Cleaver wrote: »

Great, then you should do that. I was just pointing out that most families aren't interested in selling their houses and converting all the money in to gold. You can class that as the general public doing nothing until it's too late, I think it's just people getting on with their lives in a normal way.

And I completely agree with you.

It is seen as a gamble by many of us. Most of us don't care as change is not something we want when we work so hard at developing a lifestyle we are more than comfortable with. I understand that.

What I am saying (and not very well at all) is that this is actually a window of opportunity for those who may want to take this risk. They will probably - in my opinion following some historic research of the financial market for an amateur - I think the risk is worth it and potential wealth increase is worth it.

Loopgames

purch wrote: »

My 400oz certainly are not irrelevant mate !!!!

Then you're sorted with 400oz! lol. What I meant by irrelevant is that not everyone can afford to by 100oz of gold at today's prices but buy what you can and at least when the value of 100oz is the same value of an average priced house - then sell...in your case you can buy 4

purch wrote: »

From this I am assuming you actually wasted some of your life (time you will never ever get back) reading the absolute drivel that makes up every single article in Moneyweek.

I was curious at what he meant - I learned quite a bit actually.

purch wrote: »

P.S. If I sell my House, where will I live ??

Up to you - where there is a will there is way.

purch

Funny this, but when I received the Bar in 1991 it was worth about $160,000

If I'd sold it and bought IBM stock they would be worth $ 715,000 today, and I'd have received 20 years worth of dividends.

All I've got is a stupid lump of metal that's worth far less..........I feel a bit of a tit really

Loopgames

purch wrote: »

Funny this, but when I received the Bar in 1991 it was worth about $160,000

If I'd sold it and bought IBM stock they would be worth $ 715,000 today, and I'd have received 20 years worth of dividends.

All I've got is a stupid lump of metal that's worth far less..........I feel a bit of a tit really

Opportunities come and go.

I could have bought a bed flat for £72 k in croydon in 2000...but didn't:(

Hindsight is a great thing...but again this issue with gold is another opportunity...I'll regret it personally if I don't look into it before I miss out on another opportunity.

In anycase there are other opportunities out there...not sure what yet:D

benb76

Gold as an asset is something that I've always struggled to get my head round. Aprart from being nice to look at, it is actually fairly useless as you can't eat it, live in it or use it to make fuels. Another thing is that whilst it's supply is not infinite, it's never going to become scarce as we don't actually do anything with it, it just sits there either gaining or losing a perceived value.