Everyone keeps talking about the Toronto Real Estate Market in terms of a real estate bubble and a price correction. Nobody talks about a gold bubble and a possible price correction for gold. Why not?
In 2000, gold was selling for $272 an ounce. Today it sells for $1590! Back in 2000, the average price of a single family residence in Toronto was $243,000. Today the average price is $476,000. So in ten and a half years, gold has appreciated by 18.3% per year. Real estate on the other hand has appreciated by 6.7% per year.
How can people keep buying gold if the experts keep telling us that we cannot afford Toronto real estate? Have incomes kept up with the increase in gold prices? That’s all I hear about Toronto real estate prices.
What do you do with gold anyway? Make jewellery or just hoard it. On the other hand, everyone needs a place to live – whether they own it or they rent it from someone else (who had the foresight to buy it and rent it out).