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

Wheezy_2

jenner wrote: »

oh, im glad i read this, i read the article and was thinking 'eh?',

Everytime I read an Asheron thread I think 'eh?'
It's the same old, same old....Prisonplanet, Alex Jones, Illuminati, Rothschilds, New World Order, False Flag Operations...etc...etc...
If this wasn't the house, economy & recession board, he would be posting about how GW Bush organised 9/11 and how the moon landings were staged.

It's funny.

Asheron

http://www.youtube.com/watch?v=mouUUWpEec0&feature=related

zappahey

Loopgames wrote: »

It took me a while to work it out. But it does require some personal research and financial education to understand the reason why gold is true money and not paper currency.

But, it's not real money though, is it?

It's just a lump of metal with no intrinsic value, just like paper.

Raggs_2

Gold is just another commodity, not even with a true historic use of money (silver was used since it was more common, but still rare and pretty).

It's very useful in electronics and jewellery, since it doesn't tarnish and conducts electricity very well. Whether anyone has used it in electrical jewellery I don't know.

Money, gold etc only have the value that people place in them. Whereas a house has a permenant, intrinsic value. It gives me a roof, it gives me a home, it provides some warmth.

I'm not some crazy planning to go off with a rifle into the woods, but personally, I dream of investing my money in a home with a fresh water source, renewable energy devices, insulation and a smallholding. I'll have a home, and a way to live, regardless of whatever else decides to go on with the economy. I may not end up rich, but I won't end up poor.

Heyman_2

Asheron wrote: »

"The crash never really came. This is insane. You're talking rubbish."

Am I?

http://www.moneyweek.com/investments/property/uk-house-prices-in-ounces-of-gold-02110.aspx

This part of your post is a bit of an Oxymoron.

JamesU

carolt wrote: »

It's a stupid article because houses are one of the very few things which are not tradeable globally - it makes sense to look at the value of petrol, clothes or other things that you can move easily from 1 area to another, in terms of worth in other countries' currencies, or against some theoretical 'gold standard'.

Not sure if I understand the relevance of your comment.

Why would anybody want to sell a home globally when the estate agent can do it around the corner? And I do not know many people that trade their petrol and clothes internationally either.


JamesU

Lotus-eater

benb76 wrote: »

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.

phil_b wrote: »

And eventually the rest of the world will realise that.

I think you'll find gold has been revered since Roman times and probably well before that if I could be bothered to look.
Probably the only time money and gold didn't matter so much, was when we had things like the black death, human labour was scarce then and that was the type of thing that was valued.
Human nature, gold is ingrained into our psyche, nothing short of a major catastrophe will change that.
Only my view of course and I welcome being put right.

StevieJ

Heyman wrote: »

This part of your post is a bit of an Oxymoron.

You mean Moneyweek and facts

StevieJ

JamesU wrote: »

Not sure if I understand the relevance of your comment.

Why would anybody want to sell a home globally when the estate agent can do it around the corner? And I do not know many people that trade their petrol and clothes internationally either.


JamesU

Then again there are a lot of foreign house buyers in London

Loopgames

zappahey wrote: »

But, it's not real money though, is it?

It's just a lump of metal with no intrinsic value, just like paper.

Money is just a medium of exchange - it doesn't in theory matter what that is.

Throughout history people have used silver and gold as money - even the currency used to be set against the gold standard. But this isn't about a history lesson it's about today and why some view gold as a better vehicle to hold the spending value of our money than currency in the foreseeable future. It is not a permanent state.

I personally believe that within the next 1-2 years gold will increase dramatically in relation to the sterling currency. In which case I would like to lock today's value of my pound into gold for that eventuality. Of course people do not all believe or care what happens to the value of gold in relation to currency and they may even be uneffected by it economically (more so if they have no debts).

The people who are excited about gold may all believe that they have a window of opportunity to make a modest to substantial amount of wealth depending on how much gold they have reserved for themselves.

The risks are for those buying gold as an investment:

1/ Expecting an increase in gold in the short term (1-3 years)

2/ Being able to sell the gold in time as close to the peak before the markets recover again.

Some analysts say the peak has come and is going..it's now over. Others are saying that value of gold is growing stealthily and history will repeat itself when the gold value corrects itself again as it has done throughout history (1980s is the nearest we have of a correction).

My take on this is that the peak will be soon but there may be a major dip before the peak happens and it will all happen very quickly. I don't know time scales or even estimates as I'm still researching all this and looking at what exactly happened in January 1980 plus the prices running up to that. Appreciate anyone's links on this area.