Gold Prices Surge: Real Estate is Discounted

Gold surpassed $5300 per troy ounce today. In plain terms this means that gold nearly doubled in value in the last 12 months. In my mind this signals that the dollar is losing its value and holders are losing confidence. Gold is typically purchased as a hedge or “insurance” to protect buying power/wealth during times of rapid inflation and/or eroding currency.

You know what else is a good hedge during inflationary times like these? GOOD REAL ESTATE.

It doesn’t take a rocket scientist to understand the real estate is both tangible and useful. In my opinion it is much less risky than other speculative assets like Crypto or stocks because you can’t use these “intangible” assets and their value lies in ones ability to convert back to relevant currency to buy things. Another reason I like good real estate is because as people make money they typically buy Real Estate (ie- Primary Homes, Vacation Homes and/or investments)

I am personally actively investing in real estate myself. I am also taking my weak dollars and using them to improve the condition and value of my real estate holdings because I believe labor and materials prices will continue to rise as the dollar continues to weaken. I’d rather have a property in good usable shape than a property that needs work with an amount of cash in the bank, that as each day passes, covers less and less of the needed repairs/upgrades.

Right now, the real estate market is soft and sellers are negotiating. But based on the above statements (like quick rising of Gold and rising replacement costs) real estate prices should technically be increasing. I don’t think this lull will last much longer because I feel, as more people catch on they will flee to safer assets, to get out of cash. To many Real Estate is about as safe as it gets. This could be a great opportunity to invest while also hedging your bets against a weak dollar.

If you are considering a purchase in the Texas Hill Country or if you are wanting to invest in your current property I’d love to chat. An old Coach used to say “As each day passes you either get better or worse but you never stay the same”. I think this quote rings very true to what we are experiencing right now. If you sit around and do nothing you will be worse off as each day passes. If you make smart, strategic moves today while everyone else “waits and sees” you will be better off because of it. There is opportunity in every environment you just have to find it.