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Gold Forecast Versus Real Estate Forecast
An important question all investors must ask: Which asset class has performed the best during the past 42 years? Answer: Gold Price Performance Leaves Other Assets Dead In The Water Since 1972 This begs the question: What type of performance might investors expect going forward? This analyst believes future performance will closely mirror the past…to wit: Gold will far out-perform US Real Estate. And here are several fundamental reasons for this GOLD Prediction & Real Estate Prediction: Real Estate Experts Predict US Housing Recovery Is Slowing http://www.usatoday.com/story/money/business/2014/04/29/housing-recovery-slows/8411483/ http://independencetitle.com/why-the-national-real-estate-recovery-has-slowed-this-year/ Reasons Why Gold Is Preferable Investment Over Real Estate Benefits of Gold:
Other considerations: http://www.gold-eagle.com/article/real-estate-boon-or-boom-vs-gold-asset-or-liability But what about since 2000…Which Gave Better Return? Since 2000 US Real Estate in 10-major cities appreciated 70%, equivalent to a Compound Annual Growth Rate (CAGR) 3.86%. However, during the past 14 years GOLD appreciated 357%...literally 5 times more than US Real Estate (equivalent to a CAGR of 11.04%)
Cost Of A House In Gold: Cost Of A House In Silver: (Charts courtesy of http://www.sharelynx.com/ )
Real Estate giant predicts slow home sales for months to come: Housing Starts are way down from the 2006 Peak: http://www.tradingeconomics.com/united-states/housing-starts Weak housing market to affect US economy in 2014, warns Fed: Furthermore, CNBC's Senior Commentator Ron Insana recently predicted, "Housing weakness may change the Fed's game." Gold Forecast and US Real Estate Forecast The following forecasts assume Gold and US Real Estate will continue performing at the same CAGRs they experienced during the past 14 years – to wit: To better understand the difference of CAGRs, the following example assumes a $100,000 investment in GOLD and in Real Estate for the next 5 and 10 years. After 5 years: $100,000 in Real Estate would appreciate to $120,849 $100,000 in GOLD would appreciate to $168,810 After 10 years: $100,000 in Real Estate would appreciate to $146,044 $100,000 in GOLD would appreciate to $284,967 A related Silver Price Forecast study is Silver Global Price Forecast: The Sterling Opportunity
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