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Debate House Prices
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Out of PMs & back into UK property?
Comments
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LisbonLaura wrote: »Tongue-in-cheek wagging finger mode: Now look here Clever (& co), this is not helping me buy a country house in Sussex is it?! - The fact that I can buy a place for 3x less than it was in 2007 because of my fatal attraction to non-fiat money is not what this thread is about!!
As Kabayiri said, I know nothing about houses in Sussex so I can't really help.
Look, I have nothing against anyone investing in anything and making money. If you've had all your money invested in silver and it's worth three times what you paid for it then that's great, well done you. My silver ETF is up about three times over a three year period too. So well done to both of us.
It's your phrasing that bothers me. The house you're buying isn't 'three times less' the price than it was in 2007, it's about the same price. But you've invested (gambled?) in an asset that's risen and made you money. As another example, if I buy shares that quadruple in value then a loaf of bread isn't suddenly four times cheaper than it was before, it's just that I have four times as much money before with which to buy a loaf of bread.
You silver and gold people have a really strange way of looking at the world. You all sound like children if I'm being honest.0 -
You think that they are falling a lot against Silver? You should see how much houses are falling against Xcite Energy Shares.
Commodities like gold and silver were historically used as a currency long before the Chinese created fiat money which countries governments use today.
Many feel that the fiat system is fundamentally flawed as a valuation currency, the valuation of goods being too open to political interference.
The clever bears believe the valuation of items, including homes, to be better represented by comparing gold or silver. Fiat currencies are involved in a race to the bottom, the price of nearly everything (except homes) is increasing when compared to sterling.0 -
Commodities like gold and silver have historically been used as a currency long before the Chinese created fiat money which countries governments use today.
I know this. But now we generally all use paper currencies, don't we?Many feel that the fiat system is fundamentally flawed as a valuation currency, the valuation of goods being too open to political interference.
I'm aware of these people and, to an extent, I agree with them. The fiat system is open to being influenced by governments and rulers. I think where I differ from them is that although the system has its' flaws, it's better than other systems available to us, including using only gold and silver.The clever bears believe the valuation of items, including homes, to be better represented by comparing gold or silver.
That's great for them. The rest of the world tends to value houses in money though, don't they? And as that's what you have to buy a house in, wouldn't everyone be better to measure houses through that unit? But I don't really care, I guess anyone can measure the value of a house in whatever they like. Bananas, coffee, silver, XEL shares... whatever floats your boat. However, most people in the UK get paid in sterling, store some of their money in sterling, buy assets in sterling, sell assets in to sterling, sell houses in sterling and then buy houses in sterling. So wouldn't we be best to measure house value in, oooh, I dunno, maybe sterling?
By the way, what does investing in silver have to do with being a bear? If you're investing in silver because you feel it's rising then you're bullish about silver.0 -
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I know this. But now we generally all use paper currencies, don't we?
I know this. But valuing an asset in fiat money doesn't account for the opportunity cost does it? It's valuing against a depreciating asset and not taking into account investment return on cash.That's great for them. The rest of the world tends to value houses in money though, don't they? And as that's what you have to buy a house in, wouldn't everyone be better to measure houses through that unit? But I don't really care, I guess anyone can measure the value of a house in whatever they like. Bananas, coffee, silver, XEL shares... whatever floats your boat. However, most people in the UK get paid in sterling, store some of their money in sterling, buy assets in sterling, sell assets in to sterling, sell houses in sterling and then buy houses in sterling. So wouldn't we be best to measure house value in, oooh, I dunno, maybe sterling?
Valuing an asset in a nations fiat currency is misleading. It fails to reflect interest on cash. And an increase in home price of 2% is poor financial return if all other assets are going up by 10%.By the way, what does investing in silver have to do with being a bear? If you're investing in silver because you feel it's rising then you're bullish about silver.
It has everything to do with being a bear. Economic Bears forsee negative real term growth or stagflation. Government Bears feel the fiat currency will fail and believe commodities to be a better store wealth. What did you think bears thought?0 -
HAMISH_MCTAVISH wrote: »Not all of them.
Oh, but Hamish, you forget:
Australia's first two letters are Au. The letters Au are the chemical symbol for gold, which explains why the currency has only fallen 14% over the year.0 -
The three month graph is looking pretty lame though isn't it.
http://www.lse.co.uk/SharePrice.asp?shareprice=XEL
Wait until next week, and it may pick up.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
It has everything to do with being a bear. Economic Bears forsee negative real term growth or stagflation. Government Bears feel the fiat currency will fail and believe commodities to be a better store wealth. What did you think bears thought?
Yet you consistently talk about silvers worth in.... oh now let me see.... oh yeah.... £..... the very thing that is worthless and destined to fail apparently.
Can we have Mr Vendetta back please?0 -
JonnyBravo wrote: »Can we have Mr Vendetta back please?
Are you missing your boyfriend?0 -
What's a PM?Long live the faces of t'wunty.0
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