On April 23, chartoftheday.com had an interesting chart, shown below, that compares the median home price vs. the price of Gold:
Traditionally, houses have been viewed as “hard assets.” However, as one can see above, their recent (from a long-term historical perspective) price pattern seems more geared to that of a “paper asset” – i.e. strong performance during the ’80s and ’90s, while significantly underperforming Gold for roughly 7 years.
There are many other observations and interpretations that can be made from this ratio as well. It certainly “frames” home prices in a different light, especially from an investment standpoint.
Going forward, it will be interesting to see how this ratio evolves…
My previous posts on Gold can be found under the “Gold” tag.
back to <home>
SPX at 1189.38 as this post is written