Chart of the Day 03/11/2011
Single Family Home Priced in Gold

Today's chart of the day displays the relationship bewteen the average price of a single family home and an ounce of Gold by dividing one by the other.

It's interesting to note by looking at the data on the chart, that a long term Gold investor (or hoarder) who began accumulating gold prior to the mid-2000's would have had to spend 601 ounces of the gold they have accumulated to purchase an average priced single family home in 2001, yet currently, that same home would only cost them 120 ounces of their gold.

What a difference a few years can make... (Note: I've added a 6 month folow-up artilce for further review: Chart of the Day 09/09/2011 Single Family Home Priced in Gold.

For some perspective on the all-important real estate market, today's chart presents the median single-family home price divided by the price of one ounce of gold. This results in the home / gold ratio or the cost of the median single-family home in ounces of gold.

For example, it currently takes 120 ounces of gold to buy the median single-family home. This is dramatically less than the 601 ounces it took back in 2001.

When priced in gold, the median single-family home is down 80% from its 2001 peak (to a level last seen in 1980) and remains well within the confines of its six-year accelerated downtrend and not far off its 1980 trough.

Chart courtesy of Chart of the Day
Chart of the Day 03/11/2011 - Single Family Home Priced in Gold



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