Gold and platinum prices have risen more than 200 percent since 2001 and are hitting historic highs this year. A recent Bloomberg headline that I thought was right to the point: "Gold beats financial assets on global distrust of central banks." This is why people need to own gold. You can't trust central banks to preserve your dollar's purchasing power. The Fed is now cutting interest rates as fast as it can. Seems the government believes easy money is the way out of our housing induced mess.
Was it NOT easy money that got us to this point? Yes, 125% re-fies, No doc (liar loans), fog-the-mirror qualifying loans were the darlings of the mortgage and real estate industry. After all, real estate always appreciates in value, doesn’t it?
Does a homeowner whose home is now valued at $100,000 below the mortgage, really care if the interest rates are way below their original rate? Well, if they have an adjustable rate loan they care, because their monthly payments will decrease. But, they still cannot re-finance their mortgage. Plus, even at a somewhat lower rate, with negative equity, moving and renting at lower monthly costs looms as a real alternative.
I have no idea how high gold can go, or when the San Diego real estate market will improve, but, I think intelligent people will need to own gold for quite some time to come.
Well maybe Gold IS the better investment nowadays!
Mary
San Diego County Lasik Surgeons
At this point, I agree. Lets go with gold. Forget all that crap about Real Estate being an investment, I’m sick of the real estate market!
-carrie
San Diego Plastic Surgery
Woah, woah, woah… Real Estate should always be thought of as a LONG TERM investment. I’m a firm believer in that.
-Ross
San Diego California Clinical Trials