Tuesday, January 13, 2009
Gold Climbs Again - Eight Years in a Row
This article has an excellent table which shows how much gold has risen almost continuously against a host of currencies over the past eight years - from the "GoldMoney" web site by James Kirk.
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2 comments:
Gold is up between 10 to 17% against the various currencies in the last 8 years from 2001. What's the big deal?
Real estate in New Zealand is up at least 30% ( despite current weaknesses in price) not just in NZ$ but also in other currencies ( though not as much. Same applies to properties in Singapore. The real draw of real estate is beside possible capital gain it also yields income stream. Not gold which is 100% play on capital growth which may or may not happen.
Any comment?
Are you saying New Zealand real estate has been up by 30% for 8 years in a row? Somehow I doubt that. Also what has it done the past year? Vancouver real estate went up a lot as well but has backed off 15% this past year and is set to fall much more once the Olympic hype blows over. Also there is the cost of maintaining the property, land taxes, etc. to take into account.
That being said - I'm not saying there hasn't been some great gains in real estate.
But I will take 10% to 15% for eight years in a row anytime...
And going forward there is reason to believe real estate won't be the investment it has been - due to demographic changes coming there may be far less demand going forward starting in 2013 when the numbers of home buyers starts to ebb. Check out the book called "The Great Bust Ahead" for more about this...he has a great free article on his web site that explains this.
cheers
Lou
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