Property vs Gold

[00:00:00]You think houses have gone through the roof in the last 50 years? Well, I'm going to show you why they haven't. And if you can understand this concept, well, you're going to be more financially educated than probably 99.9% of people. So, please listen carefully.

[00:00:10]But, we're not going to compare property versus toilet paper, I mean dollars.

[00:00:14]We're going to have a look at a comparison between gold and property.

[00:00:17]What do they have in common? Well, they're both real assets, okay? They're both a store of value. They're both priced in toilet paper, I mean Australian dollars. And they both made an all-time high in 2025. So, they're basically all-time highs. And of course, they're finite, okay? You can't make any more land, and you can't make any more gold. You can build more houses, you can mine more gold, but that's not the same as printing dunny paper, I mean dollars.

[00:00:40]Okay, now in 1975, a median house was $30,000, and that was the same as 7 kilos of gold. So, these three assets were equally interchangeable in 1975. Now, we're going to have a look 50 years later. And this isn't an asset performance as if you've held these three assets. We're going to have a look at what their purchasing powers are at different points in time. So, in 2026, well, your dunny paper, it's done pretty terribly, okay? Your 30 grand buys you a 30th of a median house, okay? Absolutely terrible.

[00:01:08]And 136 grand of gold, so it's quite pathetic, really. Now, your median house, well, that's now worth 1.1 million dollars, okay? Because of course, we've had property boom after property boom, all the billionaires hoarding houses, CGT from Howard, the negative gearing, everything the Australia Institute wants to push.

[00:01:26]That's why houses have gone up so much.

[00:01:28]So, of course, you need Well, hang on. 5 kilos of gold?

[00:01:31]How does that work?

[00:01:33]You needed 7 kilos in 1975. So, houses versus gold have actually gone down.

[00:01:38]That's interesting. And your gold, well, that's now worth 1.5 million. Oh, maybe there's Is there negative gearing in the gold market? Or CGT? Or maybe mass migration in gold? I'm not quite sure.

[00:01:48]Um but, your 7 kilos of gold gets you 1.4 median houses. So, what's the variable here? Is it the houses? Is it the gold?

[00:01:56]No, it's the dollars. So while you think houses are going up in value just because you need more dollars to buy a house, it's actually that the money is losing value cuz when you compare houses verse another real asset, they're actually pretty similar. Now if you can understand this concept, you're going to start to very quickly understand why people borrow money to buy houses, why asset prices outstrip incomes, and why they used to say cash is king and now they say cash is trash.