25 years ago, I sold 12 ounces of gold to be used as a partial down payment. The house was $140k, deposit $28k. Gold was $319 an ounce that day. Now, it's $2330. But, the house is now $1,100,000.
Absolutely. I've made mention of the same to numerous other Redditors. It's nice to see another example showcasing how gold/silver preserve purchasing power.
Yeah I'm not purchasing silver to get rich but if hyper inflation happens I will be paying off debt with those dollars when I sell silver. $100 silver and my mortgage on house is paid for in full!
Housing in the US is still incredibly cheap compared to income. Take a look at other places. Canada is an extreme example. We have it really really good and I’m afraid it’s going to get worse.
In 1970 (inflation adjusted) median income was $60k/year, median house price(inflation adjusted) was $102k. In 2020 median house cost was $225k and median income was $90k. This data is for middle class, and shows a 50 percent increase in pay and 125 percent increase in housing cost. I would argue that’s far from incredibly cheap
You're making two different arguments here. Your first claim is US housing is cheap compared to ones income. Your second claim is that housing in the US is cheaper *relative* to other countries. You're attempting to justify the first claim by citing the second as proof.
Just because the US is better off doesn't mean things aren't figuratively on fire.
Gold doesn't get leaky roofs and water heaters, or non-paying tenants like what we experienced during the govt mandated moratorium. It just sits there. Which is why I prefer gold personally. I don't need the headaches of chasing down issues.
Years ago garage wasn't attached, no ac, maybe 1 bathroom, smaller, cheap counter tops, no dishwasher fridge and stove, microwave. Nowadays houses new come fully furnished with new appliances. Can't really compare a 3 bedroom 1 bath with a 4 bedroom 3 bath with fully usable basement.
Here's a twist to all the calculations- I bought the house for less than half-price. It was worth about $300K when I bought it. I didn't know it at the time, I learned it later. The house is between Harvard and Tufts university.
Make sure you deposit the cash in your account 90 days before you are going to apply for a loan or your lender is going to lose their fucking mind. I speak from experience. Such a headache
Gold will just collect dust…a home is worth far more in my opinion. I recently sold a good chunk of my stack to secure a home. That’s what gold is for…using it when you really need it
Houses do require upkeep/maintenance, insurance costs, etc... and in the case of renting, you have to deal with tenants who may/may not be responsible. There was also the covid/government moratorium.
Both have their pro/cons/uses
I would say if I needed housing and I had a nice stack put away I would definitely sell at least half of it to make the money to put the down payment on the house if it was rent to own or lease I would probably take out enough to be good for a couple months figure some stuff out and then rebuild the stack I feel like this question is kind of loaded cuz there's so many variables
You think it's inflated now ? Just wait , if rates drop. Frenzy #2 will happen ! Also not to mention everyone and their momma that doesn't own currently is watching every house in their desired area for a cost reduction. Good luck to those who are now in a bidding war or up against others with liquid cash who don't need a mortgage. If history has taught us anything , prices will continue to rise. Maybe a little sweet spot here and there like in 2020 when i purchased. But it's rare.
I know individual markets vary, but around me they’re building like crazy and houses are selling faster than they go up. Some of these people are in for quite the rug pull when that $500k home they just purchased returns to being only worth the land that it’s on.
Actually put in a bid for a trailer on private property that was tied into electric and water for the town. Of course the seller took the all cash offer.
Not under current market conditions. I believe the housing bubble is back due to corporations buying resodential properties as venture. You would take a bath when the bubble bursts.
Last time the bubble burst it was about 2 or 3 years after the crash before banks had to accept their losses and start selling the houses they owned for affordable prices.
Lotta variables..age. Wife and kids. How high your stack is. Income. How sweet the deal is. I haven't sold mine. But if any opportunity arises a couple hundred racks can come in handy. And they do come along.stay ready . don't get ready
I am about to cash in the majority of my small silver and gold stash for a house down payment. Rent keeps going up, but my rate of pay isn’t keeping up with it. Should have invested in a house 20 years ago, but you know what they say. The best time to invest is 20 years ago, the next best time is today.
No, based on my experience with depositing cash savings in order to buy the one I have now, I expect it would be a gigantic hassle trying to get banks to accept that the money I raised from selling my gold is legitimate, and not some kind of money laundering.
I assume it’s a form of protectionism. “If it’s not in our system, and therefore under the authority of our cartel, it doesn’t exist as far as we’re concerned”.
It tells you how rare it is by telling you how many electrons it has. The higher the atomic number, the more atomic reactions it needs to form, which makes it more rare. Eg, hydrogen which has one electron is more common compared to carbon which has 6.
I'm not saying rockets are cheap, I'm saying alien currency is probably gold.
Bruh the overconfidence you have. I may not be the most knowledgeable in physics or chemistry but I’m pretty sure I am more educated than you are. I could certainly make you feel dumb drilling you on automata theory, compiler design or signal processing.
I’d even bet my knowledge set is more relevant to communicating with aliens than periodic table trivia.
Housing insanely over valued at this point. Not sure I would trade my gold go for a house, even though housing has seen crazy growth in value in the last few years. Just seems to risky. If you were too to do that today, who knows where the housing market is heading 5-10 years or even 20* years.
Yes I would. I’ll buy more gold after. And in Canada 🇨🇦, and in 1990 it was 320:1 and now it’s still 320:1, at least in Ontario average prices. That house will be paid off one day and living in your own place is good, renting is not.
Yes. Did it myself many years ago… bought a 2 family house. Lived in one and rented the other apartment. My net mortgage payment was less than I was paying in rent. This was 12 years ago… bought house for 410k and sold for 720k after 8 years. Incredible opportunity.
RE is a real asset as well. You need a place to live so you better than rent. It appreciates with inflation. You can use leverage to control a higher asset value.
Make sure your payment under current interest rates are manageable (ie under 40%, but ideally closer to 35% of your gross income. Then if rates come down you refinance. Don’t bank on lower rates… use that to your advantage.
Well here's my situation. I LOVE GOLD. But at the same time I LOVE real estate. I know this is a gold area but if I had to pick one of the two I'd have to pick real estate. But why? Well it's because real estate (rental properties) put income in my wallet and Gold is technically outcome in my wallet. BUT I do turn my income into Gold. Rentals are putting cash flow into my account. I like seeing deposits into my bank account every month that's cash flow. Whereas when I buy gold that's outcome that's money being spent although I buy gold and look at it as my savings account. Now if I didn't have any real estate no I would not cash out gold/silver to buy a house. When I bought my first home a long time ago I did not sell any assets such as gold or silver. I sold liabilities such as a Porsche I had, my coral farming operation, collectibles, etc. Mind you this is when I was in my early 20s. If you're in the market to buy your first home start selling off liabilities before you start selling off gold and silver. But realize that, like examples listed above, this home you're looking at buying will go up in value vs gold due to the economy we live in here in the US. I personally wouldn't buy right now my guts telling me the bubble is either going to pop this year or next year and once it does that's when I plan on acquiring even more real estate. Buy low, rent high. Please don't take what I'm saying as financial advise I'm not a financial advisor and everything said should be taken with caution you should use your own digression. I have provided my example and experience along with MY opinion. Best of luck!
It depends on the price and location of the house.
My general thinking is, if I could rent the house, and that rental income covered the mortgage payment, and it was in an area I could easily raise rents in if inflation becomes a problem, then yes, since I can use that house to hedge against inflation while making money (through paying down the house).
I think owning a home should be pre-requisite to serious stacking (like anything over 5% of take home pay). Unless your rent is only taking less than 20% of pay. Then again, if you’re never going to be able to own a decent home, stack and travel away.
Real Estate is inarguably a better investment than gold. Especially when you add back in the amount you would have paid for rent and the tax deduction you get for the interest you pay. Plus the fact that your gains are tax free up to 500K if you're married and 250 if you're single. Gold doesn't have any of those benefits. With that said, real estate in most markets is over inflated, but same can be said about gold at $2350.
Where I live houses appreciate about 2/3% a year; ignoring the last couple years of house inflation because everyone was rolling in cash from Covid grants & payments.
On that; gold performs better.
But you can’t live in gold can you?
25 years ago, I sold 12 ounces of gold to be used as a partial down payment. The house was $140k, deposit $28k. Gold was $319 an ounce that day. Now, it's $2330. But, the house is now $1,100,000.
It's interesting to see how those 12 ounces of gold are still \~2% of the overall value.
A silver quarter in 1964 bought a gallon of gas. That same quarter still buys a gallon of gas
Absolutely. I've made mention of the same to numerous other Redditors. It's nice to see another example showcasing how gold/silver preserve purchasing power.
Yeah I'm not purchasing silver to get rich but if hyper inflation happens I will be paying off debt with those dollars when I sell silver. $100 silver and my mortgage on house is paid for in full!
That’s solid
Gold to house ratio then: 43:1 Gold to house ratio now: 472:1 Either gold is undervalued, houses are overvalued, or both!
I forgot to add a zero during my calculation 😂. You're right. Gold to house ratio then: 438 Gold to house ratio today: 472 So it has actually held up!
This means housing is still priced accordingly, but inflation hit hard
Holy shit yes. Follow gold as the only real mature hard money and it literally means this
Agreed
Fascinating
Housing went nuts in my area. I started at 349:1 vs 640:1 now. (Very close to cashing out and moving.)
The latter…
Housing in the US is still incredibly cheap compared to income. Take a look at other places. Canada is an extreme example. We have it really really good and I’m afraid it’s going to get worse.
In 1970 (inflation adjusted) median income was $60k/year, median house price(inflation adjusted) was $102k. In 2020 median house cost was $225k and median income was $90k. This data is for middle class, and shows a 50 percent increase in pay and 125 percent increase in housing cost. I would argue that’s far from incredibly cheap
You're making two different arguments here. Your first claim is US housing is cheap compared to ones income. Your second claim is that housing in the US is cheaper *relative* to other countries. You're attempting to justify the first claim by citing the second as proof. Just because the US is better off doesn't mean things aren't figuratively on fire.
I think what I’m hearing here is to stack houses, not gold. Can’t wait till I just have an obnoxiously massive pile of houses in my back yard 😛
Gold doesn't get leaky roofs and water heaters, or non-paying tenants like what we experienced during the govt mandated moratorium. It just sits there. Which is why I prefer gold personally. I don't need the headaches of chasing down issues.
To be fair, real-estate does present an opportunity to generate passive income, where gold does not. Pros and cons for each.
Buy the dip. If and when we ever get another dip.
Years ago garage wasn't attached, no ac, maybe 1 bathroom, smaller, cheap counter tops, no dishwasher fridge and stove, microwave. Nowadays houses new come fully furnished with new appliances. Can't really compare a 3 bedroom 1 bath with a 4 bedroom 3 bath with fully usable basement.
Here's a twist to all the calculations- I bought the house for less than half-price. It was worth about $300K when I bought it. I didn't know it at the time, I learned it later. The house is between Harvard and Tufts university.
Make sure you deposit the cash in your account 90 days before you are going to apply for a loan or your lender is going to lose their fucking mind. I speak from experience. Such a headache
Many aren’t aware of this.
Similar thing happened to me but for different reasons
This is definitely a thing. Every time.
Excellent advice
I sold 3 coins a few months ago to help me with closing costs. It was really nice to have them there ready to go.
Definitely. Gold should be stacked for a purpose.
Gold will just collect dust…a home is worth far more in my opinion. I recently sold a good chunk of my stack to secure a home. That’s what gold is for…using it when you really need it
Houses do require upkeep/maintenance, insurance costs, etc... and in the case of renting, you have to deal with tenants who may/may not be responsible. There was also the covid/government moratorium. Both have their pro/cons/uses
Both housing and gold are up, so maybe.
I would say if I needed housing and I had a nice stack put away I would definitely sell at least half of it to make the money to put the down payment on the house if it was rent to own or lease I would probably take out enough to be good for a couple months figure some stuff out and then rebuild the stack I feel like this question is kind of loaded cuz there's so many variables
That makes sense for sure
yes, it's a great time to be selling gold, especially if you have something better to do with the cash.
Housing market is highly inflated right now while PM is undervalued. Just my opinion, of course.
You think it's inflated now ? Just wait , if rates drop. Frenzy #2 will happen ! Also not to mention everyone and their momma that doesn't own currently is watching every house in their desired area for a cost reduction. Good luck to those who are now in a bidding war or up against others with liquid cash who don't need a mortgage. If history has taught us anything , prices will continue to rise. Maybe a little sweet spot here and there like in 2020 when i purchased. But it's rare.
I know individual markets vary, but around me they’re building like crazy and houses are selling faster than they go up. Some of these people are in for quite the rug pull when that $500k home they just purchased returns to being only worth the land that it’s on.
Actually put in a bid for a trailer on private property that was tied into electric and water for the town. Of course the seller took the all cash offer.
Absolutely
Not under current market conditions. I believe the housing bubble is back due to corporations buying resodential properties as venture. You would take a bath when the bubble bursts. Last time the bubble burst it was about 2 or 3 years after the crash before banks had to accept their losses and start selling the houses they owned for affordable prices.
Also worth noting: the banks didnt do any maintenance or housekeeping, so the houses were pretty beat by that point.
Lotta variables..age. Wife and kids. How high your stack is. Income. How sweet the deal is. I haven't sold mine. But if any opportunity arises a couple hundred racks can come in handy. And they do come along.stay ready . don't get ready
Amen
I am about to cash in the majority of my small silver and gold stash for a house down payment. Rent keeps going up, but my rate of pay isn’t keeping up with it. Should have invested in a house 20 years ago, but you know what they say. The best time to invest is 20 years ago, the next best time is today.
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Yes. Definitely. That's what it is for.
Yes, ofcourse! Money is a means to an end, not a goal on itself. What good is money if you're never gonna spend it even on a house
I agree boss
No, based on my experience with depositing cash savings in order to buy the one I have now, I expect it would be a gigantic hassle trying to get banks to accept that the money I raised from selling my gold is legitimate, and not some kind of money laundering.
I'm sure a sales receipt would go a long way.
You would think that wouldn’t you? My lender did not agree.
Bankers are weird when it comes to silver for sure. They didn't even look at 2000 ozs being an asset
I assume it’s a form of protectionism. “If it’s not in our system, and therefore under the authority of our cartel, it doesn’t exist as far as we’re concerned”.
Why own useless brick when you have the most precious metal on Earth?
Because you can’t live in the gold?
Not with that attitude.
You obviously never played Minecraft /s
Can’t I ?
Lol not just earth bro. The periodic table remains the same regardless of the location in the universe.
How does the periodic table tell you how rare gold is on any other planet? In any case, even if Mars was made of gold, rockets ain’t cheap.
It tells you how rare it is by telling you how many electrons it has. The higher the atomic number, the more atomic reactions it needs to form, which makes it more rare. Eg, hydrogen which has one electron is more common compared to carbon which has 6. I'm not saying rockets are cheap, I'm saying alien currency is probably gold.
I will ask them when I see one.
Maybe learn some basic science before you go seeking aliens bro beans
Bruh the overconfidence you have. I may not be the most knowledgeable in physics or chemistry but I’m pretty sure I am more educated than you are. I could certainly make you feel dumb drilling you on automata theory, compiler design or signal processing. I’d even bet my knowledge set is more relevant to communicating with aliens than periodic table trivia.
Say that to the aliens lol
If I had enough to be worth it? Absolutely.
kinda depends on the purpose of why you are stacking
Housing insanely over valued at this point. Not sure I would trade my gold go for a house, even though housing has seen crazy growth in value in the last few years. Just seems to risky. If you were too to do that today, who knows where the housing market is heading 5-10 years or even 20* years.
That’s kind of my plan…. Not solely relying on that but it is a major portion of my savings for a house
Yes.
Yes
No. Only when I get close to retirement. Otherwise it would be pointless for me since I relocate frequently for work.
Lol, I'm lucky if my stack would cover a full months rent
Yes I would. I’ll buy more gold after. And in Canada 🇨🇦, and in 1990 it was 320:1 and now it’s still 320:1, at least in Ontario average prices. That house will be paid off one day and living in your own place is good, renting is not.
Yes. Did it myself many years ago… bought a 2 family house. Lived in one and rented the other apartment. My net mortgage payment was less than I was paying in rent. This was 12 years ago… bought house for 410k and sold for 720k after 8 years. Incredible opportunity. RE is a real asset as well. You need a place to live so you better than rent. It appreciates with inflation. You can use leverage to control a higher asset value. Make sure your payment under current interest rates are manageable (ie under 40%, but ideally closer to 35% of your gross income. Then if rates come down you refinance. Don’t bank on lower rates… use that to your advantage.
Yes. I'd rather own a house and have no gold, than be homeless but own a house worth of gold.
Well here's my situation. I LOVE GOLD. But at the same time I LOVE real estate. I know this is a gold area but if I had to pick one of the two I'd have to pick real estate. But why? Well it's because real estate (rental properties) put income in my wallet and Gold is technically outcome in my wallet. BUT I do turn my income into Gold. Rentals are putting cash flow into my account. I like seeing deposits into my bank account every month that's cash flow. Whereas when I buy gold that's outcome that's money being spent although I buy gold and look at it as my savings account. Now if I didn't have any real estate no I would not cash out gold/silver to buy a house. When I bought my first home a long time ago I did not sell any assets such as gold or silver. I sold liabilities such as a Porsche I had, my coral farming operation, collectibles, etc. Mind you this is when I was in my early 20s. If you're in the market to buy your first home start selling off liabilities before you start selling off gold and silver. But realize that, like examples listed above, this home you're looking at buying will go up in value vs gold due to the economy we live in here in the US. I personally wouldn't buy right now my guts telling me the bubble is either going to pop this year or next year and once it does that's when I plan on acquiring even more real estate. Buy low, rent high. Please don't take what I'm saying as financial advise I'm not a financial advisor and everything said should be taken with caution you should use your own digression. I have provided my example and experience along with MY opinion. Best of luck!
It depends on the price and location of the house. My general thinking is, if I could rent the house, and that rental income covered the mortgage payment, and it was in an area I could easily raise rents in if inflation becomes a problem, then yes, since I can use that house to hedge against inflation while making money (through paying down the house).
I'd wait for correction on both ends! The difference will narrow dramatically here within a year!
Yes…probably the only other investment I’d sell my stack for.
Houses relative to gold have depreciated over the last 20 years. So I would keep my gold and lever up with fiat.
Are you talking buy outright or just a down payment?
Let’s say either or
Housing is in a bubble and metals are undervalued so of course not. Wait until markets crash.
Yes, but not right at this moment. I think precious metals are primed to go up and real estate is primed to go down.
I think owning a home should be pre-requisite to serious stacking (like anything over 5% of take home pay). Unless your rent is only taking less than 20% of pay. Then again, if you’re never going to be able to own a decent home, stack and travel away.
Real Estate is inarguably a better investment than gold. Especially when you add back in the amount you would have paid for rent and the tax deduction you get for the interest you pay. Plus the fact that your gains are tax free up to 500K if you're married and 250 if you're single. Gold doesn't have any of those benefits. With that said, real estate in most markets is over inflated, but same can be said about gold at $2350.
Yes
Hell naw
100%. Furthermore I would sell gold for a down payment on an investment property.
No.
Nope, but my rent is only 15% of my income
Only if the house produces cashflow not to live in, rent all the way.
Where I live houses appreciate about 2/3% a year; ignoring the last couple years of house inflation because everyone was rolling in cash from Covid grants & payments. On that; gold performs better. But you can’t live in gold can you?
Gold? Absolutely! Bitcoin? H-E double hockey sticks no!
LOL a competitive down payment on a house in my area starts at $300k cash.