Some friends question me on why they should buy gold over real estate, because our NZ prices keep on rising....
I explain about how to look at the "property to gold ratio" as opposed to the property price in $$$. I then show them a real live example of how we put an offer on a property just over a month ago for $1.2m and missed out because someone went up another $12,500 - so we pulled out. Here is exactly what has happened since then...
and, in another way...
My friends were speechless. I continue to track this ratio because I expect to get a whole lot more property with less gold later in the year.
People need to get educated about the importance of gold. Real estate will keep losing....
