Are The Wheels Coming Off The Fiat Dollar? Bullion Bank Gold Shorts Soar to New Record High

The gold price is starting spinning out of control. The dollar doesn't have much longer.

Real Estate in Gold Terms Breaks 2020 Low

A couple we haven't seen in years came over this morning, looking to buy a house in our neighborhood. He is understandably complaining about how expensive housing is, same thing in Southern Syria (Israel, Syria, whatever) over here in the Golan. I told him that he's wrong, and the price of housing has been nearly cut in half since the last time we saw him and his wife.

"What are you talking about?" he says, incredulously. "Are you insane? What planet are you on?"

"In gold terms," I say. "It now costs 183oz per house. In 2022 it was 340."

We have just broken below the 2020 low of about 190oz per house. The 2011 low was 140. The only other times it was lower was late 1982 and in 1980 at 100oz. It's going into the double digits this time. If we get to full blown hyperinflation, we'll get all the way down to 5-10oz a house.

The importance of having a decent amount of gold is to not have to time the ultimate top, and there will be one. 5-10oz will not last long. Maybe a month or two at most. That will signal intense desperation to distribute real money and will mean that crime rates are very high and the world is very dangerous. You want to have enough gold to buy a handful of houses at 5-10oz a house, not necessarily so you can have many houses (I have no desire for this, personally), but so you don't have to wait for complete mayhem in order to pull the trigger, and you'll be comfortable buying one for, say, 15-30oz and not kill yourself for missing the tippy-top. Very few people will hit the tippy top. It's a dream we all tell ourselves, but it’s not very realistic.

The world will be in an intense fever if/when we get to to the 5oz per house reality, and transactions like those will be shrouded in chaos and fear. Ideally, for emotional stability for ourselves and those we are buying from, it is probably best to buy on the initial thrust out of the End Game, as things are just starting to barely stabilize.

Hitting the tippy top should not be our explicit goal. If you think you can do it, go for it. You have my blessing.

How will we identify the way out? I don't know for sure, but my guess is once old currencies are ditched, and all old debt is liquidated, things will be more stable and we can start buying. But by all means, if houses cost only 5oz of gold, buy what you can, if you can handle the stress.

Bullion Bank Gold Shorts Soar to New Record High