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.



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