Results 1 to 1 of 1

Thread: Inflating your way to prosperity

  1. #1
    Senior Member
    Joined
    Mar 2005
    Posts
    166
    Thanks
    79
    Thanked 42 Times in 30 Posts

    Default Inflating your way to prosperity

    The median housing price in 1973 = $32,500
    1980 = $64,600
    1990 = $122,900
    2000 = $169,000
    2006 = $246,500** peak
    2009 = $217,400

    The median housing price is a good gauge of inflation because it includes the cost of labor, materials, and land. Consumer price index is distorted and I think unreliable due to the way government fudges the numbers.

    Housing prices tend to be less volatile then other materials prices, but in the long-run all asset prices that have an inherent demand should rise in the same proportion.

    If you look at the peak price of gold in 1980 = $887/ounce. Today is $1,094/ou. Just to match the proportional rise in housing prices, from 1980 to 2006, gold will need to reach $3,371/ounce, Silver to $191/ounce, and Crude Oil to $284/barrel. Crude is presently at $74/bbl. A four fold increase in the price of oil from present levels would approximately equal a > tripling of what you pay at the gas pump. If you're currently paying $2.60/gallon, then expect to pay $8/gallon sometime in the next 10 years. The futures markets are too risky (you'll lose everything). Best way to play this would be to own some good oil service, oil exploration, gold/silver mining, or fertilizer company stock.
    Last edited by 1st_samurai; 01-24-2010 at 04:33 PM.

Similar Threads

  1. Sketchy clubs: Worth the prosperity?
    By mollyzmoon in forum Stripping (was Stripping General)
    Replies: 11
    Last Post: 12-12-2007, 09:51 AM
  2. "Do I Have a Prosperity Consciousness?"
    By PhaedrusZ in forum The Lounge
    Replies: 4
    Last Post: 07-21-2006, 09:17 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •