Precious Metals Forum

Go Back   Precious Metals Forum > Bunker Talk > STS

Like Tree2Likes
  • 1 Post By Unobtanium
  • 1 Post By benjamen

LinkBack Thread Tools
Old 11-26-2012, 11:28 PM   #1
Big-eyed bug
Unobtanium's Avatar
Join Date: Nov 2011
Posts: 451
Liked: 344 times
Ratio of home prices to annual income

This chart was one of 50 that was assembled by Marc Faber at:

The person that lives in L.A. making 100k per year, lives in a $570k house. The person living in Beijing making 100k per year lives in a $2.23M house. Or the person in Beijing making 10k per year lives in a $223k house.

swissaustrian likes this.
Unobtanium is offline   Reply With Quote
Old 11-27-2012, 07:13 AM   #2
Golden Cockroach
PMBug's Avatar
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,168
Liked: 2464 times
It's a rarified air up there at the top of the bubble.
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 11-27-2012, 07:18 AM   #3
Yellow Jacket
Join Date: Oct 2011
Posts: 2,053
Liked: 925 times
Zürich, Switzerland is probably not so far behind the eastern boom cities.
The ratio for Switzerland as a whole is over 6.
See p.2 chart 2:
swissaustrian is offline   Reply With Quote
Old 11-28-2012, 11:03 PM   #4
Big-eyed bug
Unobtanium's Avatar
Join Date: Nov 2011
Posts: 451
Liked: 344 times
More rarified air at the top of the bubble in Hong Kong:

Parking spot in suburban Hong Kong sells for $168,000
Unobtanium is offline   Reply With Quote
Old 11-29-2012, 10:36 AM   #5
Predaceous stink bug
ADK's Avatar
Join Date: Apr 2012
Location: Backwoods of NY
Posts: 223
Liked: 123 times
I like living in the boonies. The real estate market really doesn't go up or down much.

I'd venture to say that, on average, the ratio here ranges from 1.5:1 to maybe 3:1, house:income. Lot's of folks making $40k-$60k/year living in $65 to $85k homes which are pretty nice.

I like the idea of trading silver with the gentlemen while keeping gold like a king and always appearing as a peasant...
ADK is offline   Reply With Quote
Old 12-03-2012, 09:47 AM   #6
Super Moderator
benjamen's Avatar
Join Date: Mar 2012
Location: Migratory
Posts: 1,620
Liked: 685 times
How about the home to gold ratio...
bushi likes this.
I drive men mad
For love of me,
Easily beaten,
Never free.

PMBug 101 *** Forum Rules
benjamen is offline   Reply With Quote
Old 12-03-2012, 10:29 AM   #7
Ground Beetle
bushi's Avatar
Join Date: Nov 2011
Posts: 971
Liked: 554 times
Originally Posted by benjamen View Post:
How about the home to gold ratio...
The only thing is, that this kind of technical-only analysis (re: historical lows/highs etc.), is quietly assuming, that the rest of the circumstances are the same, as they were "historically" - and only the selected commodity values are different, and they "should", at some stage, revert to these "historical" values.

Which, IMHO, kinda misses the big picture. Which is; enormous debt overhang in the developed countries, regulatory/legal capture, preventing us from resolving the most pressing issues the RIGHT way, demographics, that won't support the current system(s) for too long anymore (in the West - in the East/Third World/Emerging markets, demographics is in a serious fookin' bubble - and as we know, bubbles tend to burst...).

So I don't know, maybe it is, that long term, these trends, tend to influence people in such way, that they in turn tend to elect the RIGHT people to the offices, and these right people tend to do the RIGHT things, after elected - but it is all very, very indirect, as you can see above.

And the immediate issues that we face, won't wait until people sober up - I think hard shock/collapse of the system is granted at this stage, and it really is uncharted territory...

While arable land/farms might go up&up from now on (that I think will be the case for the next decade, or decades - and legitimate, organic case for that - more people to fed on the planet), but the housing market - I do not think so. I think that we will rather see these house price/gold ratios going down, and well below historical lows - not necessarily because of prices continuing to fall, but gold will most certainly go up - thus bringing the ratio down again - and quite possibly, well below the historic lows). I mean, I cannot imagine worse fundamentals for housing bull market, nor I can imagine better fundamentals for metals bull market.
“...the issue which has swept down the centuries and will have to be fought sooner or later is the People versus the Banks.
Lord Acton
bushi is offline   Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
I don't think you should compare home prices to gold Unbeatable PM Bug 4 11-25-2012 11:44 AM
you cant go home- or can you. no Penn STS 3 10-22-2012 03:46 PM
she comes home tonight! I am so happy! Penn STS 12 09-18-2012 09:19 PM
Home Smelting Mark Silver Bug 5 06-14-2012 07:36 AM
Ron Paul @ CATO's 29th Annual Monetary Conference PMBug Fiat Ponzi 0 11-19-2011 11:50 AM

All times are GMT -5. The time now is 01:02 AM.

Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of copyright © 2011 - 2020 Measuring Up. All Rights Reserved.