House prices have crashed 80%

Flight2quality

House prices have fallen by 80%, measured in gold

According to the August data from Nationwide, the average UK house now costs £165,914. (That is considerably more – over six times more, in fact – than the average UK salary, which according to the Office for National Statistics, is £25,900 before tax).
Yesterday's London PM gold fix was £1,182 an ounce. So the average UK house now costs 140.4 ounces of gold. (And the average UK wage earner takes home the equivalent of 22 ounces of gold per year).

moneyweek. combritains-secret-house-price-crash-13701

Really2

How much in Goats Cheese?

Loughton_Monkey

Flight2quality wrote: »

House prices have fallen by 80%, measured in gold

Not in my case. I replaced all the lead on my flat roof with gold in 2005.

Flight2quality

Really2 wrote: »

How much in Goats Cheese?

I dont know, is goats cheese money?

yes, I know that because you buy and sell houses in pounds, it is the pound price that is important. But it is vital for people to see the fraud that is 'pound price'. The pound, our national system of money, is flawed. No, worse than that, it is corrupt, dishonest and unjust. It is being systematically debased. It benefits the issuers at the expense of the holders.
You need to stop measuring markets in terms of flawed currency, and start thinking in sound currency. Otherwise you're falling for the con. The sooner large swathes of the population start seeing this, the sooner money gets reformed and the better off we'll all be – not only financially, but socially and morally. So spread the word, rise up, revolt, if necessary. Or if not that, at least measure markets in gold or silver honest money.

Really2

Loughton_Monkey wrote: »

Not in my case. I replaced all the lead on my flat roof with gold in 2005.

Check again, I have stolen your gold and replaced it with goats cheese.
I must admit it may not weather as well, but you will see an increase in wildlife.

Really2

Flight2quality wrote: »

I dont know, is goats cheese money?

Is gold? or does it hold a monetary value like cheese?

If not how much gold does gold cost.;)

ILW

Loughton_Monkey wrote: »

Not in my case. I replaced all the lead on my flat roof with gold in 2005.

Your in Essex, must have been a a great disappointment for the lot at Dale farm when they found it wasn't lead.

Really2

Flight2quality wrote: »

You need to stop measuring markets in terms of flawed currency, and start thinking in sound currency. Otherwise you're falling for the con. The sooner large swathes of the population start seeing this, the sooner money gets reformed and the better off we'll all be – not only financially, but socially and morally. So spread the word, rise up, revolt, if necessary. Or if not that, at least measure markets in gold or silver honest money.

Does that mean I have to get a mortgage from Elizabeth Duke?

Flight2quality

If the average UK house now costs £165,914 and todays price of silver is £26 per ounce, then the silver/house price ratio has gone down to 6381.3 ounces of silver worth the same as an average house.

I can see it going below 1000 ounces of silver worth the same as an average house, maybe even 500 ounces as many are predicting.

Yesterday's London PM gold fix was £1,182 an ounce. So the average UK house now costs 140.4 ounces of gold. (And the average UK wage earner takes home the equivalent of 22 ounces of gold per year).
Here we see the latest charts from Tom Fischer, professor of mathematics at Wuerzberg University, which show UK house prices measured in gold since 1930. In the six weeks since 19 July when he completed this chart, UK house prices have actually fallen by about 6% (!), ie nine gold ounces.

What a bubble our housing market was. In 2005 the average house cost 720 ounces of gold. So that’s a drop of 80% already. But from today’s prices, measured in constant money, I would say we have at least another 30% to fall, (that takes us to 100 ounces) or possibly 60% (which gives us 55).
Regular readers will know that one of my long-term targets is 100 ounces for the average UK house. I actually think it’ll probably go to 55, as it did in the 1930s and in 1980. But I’m saying 100 as I’m utterly confident that target will be hit and I want to bask in the glory of an inbox of congratulatory emails when it does so.


Dom Frisby MW.

Really2

Why do you keep going on about everyting in £'s etc. and valuing them in £'s?

Flight2quality wrote: »

But it is vital for people to see the fraud that is 'pound price'. The pound, our national system of money, is flawed. No, worse than that, it is corrupt, dishonest and unjust.

If gold and silver are the real money you have gained nothing.

You still have the same amount of gold silver you used to have?


Shall we start on about beans and guns now?

Cleaver

Just so you're all aware, this is the 3,727th time we've had a "houses have fallen in value by this much when measured in gold or silver and not by money which is what people buy and sell them in" thread.

My understanding is that when we hit 4,000 individual threads on this subject the universe divides by zero and we all implode in to a black vortex of the densest gravity you're ever likely to come accross. Whilst this obviously won't be very pleasant, at least you'll never again read how much your house is worth compared to the price of gold or silver. Swings and roudabouts really.