How expensive is real estate-as compared to gold?
Also known as the real estate to gold ratio, let's take a look.
As of the last 3 to 4 years, real estate FINALLY passed up the prices back in 2007.....or has it.
When we are trying to decide how expensive gold-or even other assets-are, it is good to look at prices in recent history as compared to an ounce of gold.
For example, in early 2003 my wife and I bought a home in Gilbert, Az. We agreed at a purchase price of $290,000.00. At that time, with the gold market priced at $350.00 per ounce, it took 891 ounces of gold in value to purchase the house.
Let's fast forward to today, good ol' 2026.
Various real estate platforms value the home at $900k to about 1 million US dollars. At an approximately $4,500.00 per ounce gold market, using the million $$ valuation it would now take only 222 ounces of gold to purchase the same home.
Another example is from a friend that bought a home in Mesa, Az. I n 2007. Her purchase price was also $290.000.00. At that time gold was priced at around $700.00 per ounces requiring 414 ounces of gold for th ehome purchase. Today the house is valued at around $530,000.00, needing only 117 ounces of gold to pay for it.
So, although most people mainly look for the gold to silver ratio ( gsr ), it is also good to compare with other things needed in life. Gold to automobile ratio, gold to food ratio, etc.
Happy figuring!!