Thursday, July 17


Five years ago you could buy an ounce for about 300 dollars. Today? $934 per ounce. I was reading Garth Turner's Greater Fool this morning about real estate, the bubble, the burst, the US economy and it's difficulties at this time and how real estate in Canada has thusly been affected. In Vancouver real estate listings are up 20%, he says, and sales down 42%. This is echoed elsewhere in Canada with other major cities also seeing less sales (20% less sales across the board in Canada). I'm thinking that buying this affordable condo was a good idea now... Depending on interest rates I'm wondering, though, if this decrease in the real estate market won't work out for potential buyers like myself who may be interested next year in upgrading to a house?? I think in order for that to happen (housing to be "affordable") mortgage rates would have to climb to around 7-8% like they did back in 1995. Right now a good deal on a 5 yr closed is at about 5.6%. No wonder we have this "bubble" - I recall just 4-5 years ago the 10 year rates were roughly that much and 3yr rates were around 4% which was unheard of. Everyone plugged in to low rates, for 30 and 40 year mortgages and bought the biggest, most expensive house they could afford because "you can't lose on real estate".

They've always said that gold and silver and resources that are "finite" are solid investments. (Hence oil and gas prices increasing? Right?) Being that I live in the same city as the Mint I've been thinking perhaps I should be purchasing gold and silver coins, wafers and or bars (based on what I can afford of course). Likewise it's almost time to get involved in the Canada Savings Bonds program and purchase them. Time to get into some investments that offer protection against "market bubbles" and have longevity, reliability and are mainstays...

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