How many ounces of silver does it take to buy the averaged priced home in the United States?
Homes Priced in Silver
In late 1979 early 1980, a home selling at the average sales prices could have been bought for about 2,500 ounces of gold. In 2003, it took over 52,000 ounces to buy a similar house.
Home Prices Measured in Ounces of Silver
Silver and home prices are sensitive to interest rates and monetary policy. Silver prices are also subject to industrial and investment demand. The silver market is extremely volatile due to its relatively small size. Silver’s price is also loosely tied to the price of gold.
High interest rates are a negative for the prices of silver and real estate.
Silver and primary residences do not produce income and therefore should not be considered investments, rather assets that have the ability to appreciate based significantly on monetary, fiscal and tax policies.
Low interest rates and loose monetary policy have lead to higher silver and home prices since 2000. During the past sixteen years silver and home prices have experienced meteroric rises and spectacular declines.
Home and silver prices, however, have diverged as the charts below show.
U.S. Home Prices in Dollars 1963-2014
Home prices have risen almost without interruption since 1963.
Click here for updated chart
U.S. Homes Priced in Ounces of Silver 1963-2014
At the current silver price of about $17.50 an ounce, it would take about 17,000 ounces of silver to buy the average priced home in the United States.
Steadily rising home prices and spiking and diving silver prices have made homes very cheap and very expensive when priced in silver over the past fifty years.
Click here to see an updated homes priced in ounces of silver chart.
Click here to see National Association of Realtors median home prices