Tag Archives: gold:housing ratio

In a long-term strategy which employs both investments, there is a case for putting an over-weight on housing, and an under-weight on gold, given current relative price levels unless one is specifically investing for financial crisis.

The information provided by the Gold/Housing ratio in 2015 flat-out contradicts many widely held perceptions about market valuations today.

When real estate is "cheap" and gold is "expensive", relative to their long-term averages and each other, real estate is likely to powerfully outperform gold as an investment and inflation hedge over the long term, all else being equal. [That being said, however,] what exactly is "cheap" and what is "expensive"? Answering that question is where the Gold / Housing ratio comes into play. [Let's take a look at it and determine whether gold or real estate is a buy at the current time.] Words: 3516