Market Analysis by covering: Gold Spot US Dollar, Silver Spot US Dollar, PGS ASA, Gold Futures. Read 's Market Analysis on Investing.com
Bitcoin price today: subdued below $89k amid risk-off mood; key US data awaitedA generation ago, a single income could support a family, buy a house and pay for a vehicle or two in the driveway.According to a recent report from Bankrate, a household earning $80,000 a year is now priced out of 75% of allon the market.
A family now needs to earn at least $113,000, and in some major metros, it’s closer to $200,000. Meanwhile, the homeownership rate has slipped to a six-year low, with further declines expected next year. Families are being squeezed from every angle. The point I want to make here is that the so-called affordability crisis isn’t just about the cost of homes or other assets. It’s about the cost of money.Take a look at the chart below. It compares the purchasing power of the U.S. dollar since 1915 to the price ofPoliticians and pundits may blame greedy corporations or inefficient supply chains, but here’s the truth: when a government runs endless deficits and finances them with fiat created out of thin air, the currency itself becomes the source of the problem. We can trace it all back to 1971 when President Nixon suspended the dollar’s convertibility into gold. As IIn short, when money becomes untethered from reality, everything priced in dollars becomes harder to afford.The next chart might surprise you. It shows the ratio of the median price of a new home divided by the price of gold. Essentially, it tells you how many ounces of the precious metal it takes to buy a typical American home. We all know that, in dollar terms, housing is expensive right now. According to the Census Bureau, the median price for a new home in August was $413,500, a nearly 5% jump from the price in July. Remember, that’s the median price, meaning half of all available homes for sale are even more expensive. But the chart shows housing priced not in dollars but in gold, and you’ll notice three instances when the median home cost roughly 100 ounces: 1980, 2011 and 2025. This tells me the affordability crisis isn’t necessarily being driven by runaway home prices, but by the continued weakening of the dollar as well as the cost of borrowing.That’s why I, along with many others, consider gold to be real money. It doesn’t lie, and it doesn’t get revised by government bureaucrats. It doesn’t depend on congressional budget committees or Federal Reserve projections. Think about that next time you hear about a housing bubble. The real bubble may be the debt-fueled system we’re using to measure value.The chart below, taken from a Deutsche Bank report, shows average annual inflation for 152 countries since 1971. Not one major economy has kept inflation below 2% over the past half-century. Most countries have averaged between 4% and 10%, but some—Argentina, Brazil, Turkey—have suffered a “near-total currency collapse,” according to Coin Bureau.Since Bretton Woods ended in 1971, no economy has kept inflation below 2%. Once again, gold is real money, whereas fiat is temporary. In an era of record national debt, rising inflation and geopolitical uncertainty, I believe it’s prudent and rational to follow the Golden Rule: a 10% weighting in gold—half in bullion, half in high-quality gold mining stocks—rebalanced annually. This simple strategy has helped preserve wealth across every monetary regime in history, from the Roman Empire to Bretton Woods. President Donald Trump calls the affordability crisis a hoax. In truth, the lack of affordability is real for many families right now, but the cause isn’t homebuilders or landlords or banks. The cause is the steady erosion of fiat’s purchasing power. Gold is simply the mirror reflecting the truth.All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the links above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by these websites and is not responsible for their content.) is a measure of the average change over time in the prices paid by consumers for a representative basket of consumer goods and services. The CPI measures inflation as experienced by consumers in their day-to-day living expenses.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes.and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Silver Spot US Dollar PGS ASA Gold Futures
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Near Key Inflection: Time Cycles, Square-of-9, VC PMI Signal UpsideMarket Analysis by covering: Gold Futures. Read 's Market Analysis on Investing.com
Read more »
S&P 500 Enters the Santa Rally Window as Rate Cuts Support Seasonal OptimismMarket Analysis by covering: Gold Spot US Dollar, Silver Spot US Dollar, S&P 500, Oracle Corporation. Read 's Market Analysis on Investing.com
Read more »
Gold’s Uptrend Remains Intact, but Bond Yields Hold the Key This WeekMarket Analysis by covering: Gold Spot US Dollar, US Dollar Index Futures, Gold Futures. Read 's Market Analysis on Investing.com
Read more »
Bull Market Genius Is a Dangerous ThingMarket Analysis by covering: . Read 's Market Analysis on Investing.com
Read more »
Financial Market Analysis and TrendsThis article examines recent trends in the financial market, including analysis of stock performance, market fluctuations, and potential economic impacts. It explores various factors influencing market behavior and offers insights into investment strategies.
Read more »
Gold Bulls Are Still Swinging, but the Ceiling Isn’t Giving Up EasilyMarket Analysis by covering: Gold Spot US Dollar, Gold Futures. Read 's Market Analysis on Investing.com
Read more »