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

carolt

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

Eh? I don't get what you don't get...

If houses were truly sold globally, then what matters is not where your EA is located, but where your potential buyer is located.

The fact is, not many foreign buyers are interested in buying a 2 up 2 down in Huddersfield, say - no matter how many countries you advertised it in. Or where your EA was located.

Which is why only prices in sterling matter for housing.

The cost of anything we import (or export) is affected by the relative value of sterling. Which affects oil, clothes, etc. (do you really buy only clothes entirely made in the UK? And is your petrol all UK-sourced? I doubt it somehow...)

Pretty obviously, though, houses cannot be imported or exported.

Is that simple enough?

ninky_2

Loopgames wrote: »

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.

.

or people decide they don't actually want to buy gold because it no longer has a use value. the emperors new clothes and all that.

nearlynew

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.

The point which you, and others, have overlooked is that the value of gold is decided by a market of freely trading individuals.

Its value cannot be dicked around with by governments or banks, which is why they prefer paper fiat currencies.

That way, they can steal your wealth through inflation and taxation without you noticing.

Sound money and small government are all we need to sort out the economy


Remember........

inflation is theft and

all politicians and bankers are lying thieves.

Loopgames

ninky wrote: »

or people decide they don't actually want to buy gold because it no longer has a use value. the emperors new clothes and all that.

In fact that's why people will leave the currency not the gold metal. It's the sterling pound that is backed by nothing but trust. And when that trust waivers gold increase in value. Gold is always the standard by which people go back to you as soon as there are concerns over the economy. As someone said it's something that no government can control.

Unfortunately we're all conditioned to live by the current system and know no other hence the lack of understanding surrounding gold.

purch

And when that trust waivers gold increase in value

No.

Gold doesn't change in value.

The currency devalues.

Gold is absolute.

the lack of understanding surrounding gold.

..continues to amaze me !!!

Loopgames

It's all relative. Gold increases in value in relation to the currency. Yet I do understand that it is the bench mark to measure money against.

For example gold doesn't really change in value in relations to food for example. In that case - yes I agree there is no change. But I was referring to currency. And you are right it is the currency that depreciates not the gold that increases.

PhylPho

Moneyweek omitted to mention that if you live in a house made entirely of gold then its value will have dropped due to its substandard construction. Values will have gone up in Aberdeen though.