Mark Wadsworth: As we have been saying about house (Aka land) prices being primarily driven by government and bureaucratic failure with OUR money....

Wednesday, 30 June 2021

Remember, all paper money always trends to zero value

Bayard said...: Presumably, once the gold standard was abandoned, gold has fluctuated in value like any other readily convertible commodity.; 30 June 2021 at 17:14
Lola said...: B. It's the other way about. Gold has maintained a fairly level value in respect of purchasing power of things as diverse as the pay of a Lieutenant in Napoleon's army v the USMC today, and a hand suit of clothes in the 1600's and now. It's every other (fiat) currency that has fluctuated (in value relative to gold). Or more accurately descended into worthlessness. e.g GBP has now less than 2% of the value it had in 1945.; 1 July 2021 at 10:16
Mark Wadsworth said...: L, I'm not sure whether this post is specific to house prices, or whether that's just an example of price stability in gold.

Far more useful is comparing something to average wages.

Houses have got much more expensive as multiples of average wages, and by the looks of that chart, so has gold.

On the other hand, manufactured stuff (cars, electronics) gets steadily cheaper compared to wages.; 1 July 2021 at 10:28
Lola said...: MW. Exactly. This was showing how the collapse in the market value of GBP is part of the story of 'high house prices'.; 1 July 2021 at 10:29
Robin Smith said...: When they say 'Gold', what exactly do they mean by it.

There are several versions. Some of it is paper(most of it). Some is bullion(BullionVault)???; 6 July 2021 at 20:21

Wednesday, 30 June 2021