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 But what we're seeing with all of this evidence, if you sell a home, it's more affordable to rent right now. And so you rent while you're invested in gold and silver and and then you buy uh once uh the price of homes has come down by 80 or 90% measured in silver so that you can buy five or 10 times more homes and have all of this rental income from cash flowing real estate. Throughout human history, gold protects your purchasing power. And right now, we're in one of these cycles where the safe haven asset

becomes the asset class with the maximum potential gains in purchasing power. So, these are rare moments in history, very rare. Hi everyone. Alan's got a great presentation that sort of continues the information that I was giving you on the update about the state of the uh economy currently and this continues in in that previous video uh I focus on real estate near the end of it and this continues uh showing us what all the troubles with real estate are right now. So Alan, why don't you hit me with your presentation?

>> Yes, we'll do Mike. Well, it's basically good news for gold and silver investors because purchasing power for them is increasing and purchasing power for everyone else is decreasing. And that's really the story of the economy. And as we look at real estate, we have a great chart here from Nick Lair of uh gold charts us.com and he's got the housing price measured in ounces of gold. So, how many ounces of gold would you have to spend to buy a house? And in general, it's getting cheaper and cheaper and

cheaper, but we're still not at the peak. So anyone who's holding gold is seeing their purchasing power going up measured in houses, but there's still a little bit more to go, >> right? So this is basically uh house price in inverted the because it's in gold. So gold's maximum purchasing power and the home is super cheap when it goes down to the bottom. And we looked at this a little bit and discussed it uh before the video here and we you you looked very closely at this and it looks

like there's about 12 data points per year. And so this is a monthly chart putting the peak of gold at around $600 or $650, not $850. So that spike at the bottom at 1980 where homes become super cheap measured in gold actually goes much lower than what it's showing. Probably down to 50 or below, right? Yeah, I would I would think so. I'd have to do some more math around it, but yeah, absolutely. So what gold holders should expect is that their purchasing power might continue to double to approximately uh meet, you

know, the purchasing power back in 1980, you know, measured in houses. So Absolutely. However many houses you can afford now, you should be able to afford twice as many if you keep holding gold. >> Yeah. Uh except I do want to say that um it it it should probably go down to that area if we had 33% debt to GDP like we did in 1980. If the stock markets were super undervalued like they were in 1980 with PE ratios of like 7 8 9 10 uh where a brand new bull market is just forming instead of one that is hyper overvalued

and overextended and about to crash. Uh this time I believe that we're going go going to blow way past that 1980 uh spike down on the bottom. So when you're looking at the value of your gold compared to real estate, you sort of in your mind have to flip this chart upside down. Those are the gains in value that your gold is making against real estate. This is how cheap a house is becoming if you're if you're owning gold. So yeah, >> exactly. >> Any other comments on that?

>> Yeah. No, that I think you said it and basically this is about the purchase price of the house. I also want to look at the monthly payment that you'd expect to make because I did that calculation a few months ago. I just want to remind our audience or maybe show people for the first time if they're new to the channel. What you see here in the red line, let's look at the red line. This is the monthly payment you'd have in dollars. Okay? And this is taking the median sales price of a home in the US

and the 30-year fixed rate that people are paying nationally and basically calculating what that monthly mortgage payment would be. And that's the red line. And you can see it has it rose a lot in the 70s after we unpegged the dollar from gold. And then it rose a lot right after 2020 basically when fractional reserve lending completely disappeared and uh infinite cash could be created. So things are getting out of hand. However, when you measure it in gold, you know, it used to be a three or

4 ounces uh of gold per month and now it's down here below 1 ounce of gold per month and getting cheaper. So again, we see the same story playing out. If you're paying in dollars, things are getting more and more expensive. If you're paying in gold, things get cheaper. >> Yeah. I do want to point out for everybody that uh you made this chart a few months ago, you said. And so it's before gold rose from like uh $3,300 up to $3,800. Yeah. And so it doesn't have that data

in it. And that means that uh that yellow line just fell below the uh we're we're probably at like less than about half an ounce of gold now. >> Uh something like that for a mortgage payment. And so um uh yeah uh it just shows you uh that you know throughout the century throughout the centuries period throughout human history gold protects your purchasing power and right now we're in one of these cycles where the safe haven asset becomes the asset class with the maximum potential gains

in purchasing power. So these are rare moments in history. Very rare. >> Absolutely. Absolutely. And it's not just gold, it's also silver. So, let's look at home prices measured in silver. How many ounces of silver would it take to buy a house? Um, right now it's about 10,000 ounces of silver. But in the past, it's been as little as maybe 2,000, something like that. So, we could see the purchasing price, purchasing power, excuse me, of silver increase five-fold easily from where it is today.

Um, so lot of lot of gains still left on the table. >> Okay. Well, you did a a chart recent recently of how many days silver spent above 40 bucks and um that this is monthly data. So that spike actually goes much further down to the bottom of the chart than what you're seeing here. This is monthly data, not daily. And then uh on top of that um back in 1980 when we had that spike there was a lot of uh above ground silver. There were enormous government stock piles still. Uh the economy wasn't in trouble. Uh

like I said debt to GDP and all of those fundamentals. Um, and we we didn't have the entire world is about to rush into the precious metals to protect like in China. It's already happening. The West for some reason has been totally asleep and it's really too bad that people weren't jumping on gold a couple of months ago before the last big rise. It's really too bad that people weren't jumping on silver back when it was 20 bucks instead of, you know, 47 bucks. um uh we are about to break that $50

barrier and it's going to be in the news over and over and over again and you're going to see this very rapidly. Uh it especially if it's coincident with you know in 1980 real estate wasn't in a hyperbubble and it is today. It's in a gigantic bubble. And if silver is going north at the same time that real estate is crashing, we could see a day come where uh uh less than half the amount of silver is required to buy a single family median price home uh versus the this chart in 1980. So, you know, this

chart says that you you probably have five times gains. In other words, you could sell a house today, invest in silver, and if you are able to nail the the peak, uh you'd be able to buy five homes with the proceeds from your silver. Well, it's probably going to be more like 10. That's my point because the fundamentals are there this time. So, anyway, okay, let's >> Yes. So, so that could even be 1,000 ounces of silver, right? A 10x move from here is 1,000 ounces of silver. That's

two monster boxes. A lot of people have two monster boxes. So >> yeah, >> right >> that's doable. That's doable. >> It is doable. >> Yeah. So what >> you know it's just math and then you you you take what happened before. So it's a repeat of history adjusted for inflation and then you add the difference in the fund underlying fundamentals. Uh real estate was not in a bubble. The stock markets were way undervalued and gold and silver went into a hyperbubble. This

time, gold and silver are going to go into a hyperbubble, but real estate and stocks and bonds are also in hyper hyperbubbles, the biggest in history. And when those bubbles pop at the same time that gold and silver are going north, you're going to see some amazing based, you know, priced in gold, priced in silver, fire sale prices on everything, stocks, bonds, which you probably don't want to touch, and real estate, which you probably want to uh consume as much as possible. Get fat on real estate. I can't wait. I can't wait.

Uh our next chart here, renting is now significantly more affordable than buying a home by one of the widest gaps ever recorded. So we can see here uh wow >> yeah the dark blue line the rent to income ratio and the light blue line is the mortgage payment to income ratio. So you can see that owning a home got significantly more expensive like twice as expensive or I'm sorry it's not a true zero so it's not twice but significantly more expensive than renting and it's happening again now. So

that was the same as the global financial crisis and uh are we having another crisis >> now? We're way up past the peak of the global you know we're way up past the peak right now of the global financial well that wasn't the global financial crisis that was the peak of the real estate bubble. Uh that's above it's like 32 I guess on this uh chart and or 30. Yeah. But we're above that. We're up at like 30 32. We're up above it just slightly. But the thing is uh to be up above the 2006

2007 real estate bubble that led to the global financial crisis when we weren't in a stock market bubble. Uh this is uh something amazing and scary at the same time. >> Exactly. And if it comes down, I mean, what is going to cause it to come down? Like something has to give, right? Something has to crash. Things have to uh move fairly rapidly to bring bring back into balance. So, we'll see what happens. >> Yeah. Okay. >> Our next uh chart here, home prices need to fall 40% or incomes need to rise 60%

just to return the housing market to 2019 levels. Generational crisis. So, let me let me elaborate on that by reading this paragraph here. according to Fanny May calculations. Okay. Government numbers. >> Well, government agency basically one of the uh government sponsored entities. >> Yeah. But all the all the government numbers are wrong anyways. No. Okay. Let's let's use their numbers. >> Right. But when they fudge things, they try and make them look better. >> Yeah.

>> And this thing is sort of bad news for the economy. Go ahead. >> Exactly. Let's see how bad they admit that it is and maybe it's even worse. So according to them, it would take one of three things or a combination of them for affordability, housing affordability to return to the 2016 to 2019 levels. Okay, here are the three things. Either the median price of a single family home would need to fall 38%. 38%. Oh, >> to about a/4 million. Okay, that would have to happen to make houses

affordable. Or median household income would have to rise more than 60% to 134,000. I don't see that happening. Or the third thing, mortgage the mortgage rate would need to fall to 2.35% from roughly 6 and a half where it is today. >> Okay, you know, looking at this in my this is just an opinion. So, uh, take what you will from it, but I feel like the only one that could possibly happen and will most likely happen is that all of the real estate will fall. We are in for a crash because that is what is in a

hyperbubble. Uh, right now incomes are depressed, but if you go into a crisis, and there is one brewing right around the corner, uh, incomes do not rise in a crisis. unemployment rises. And so, uh, I have a feeling it's probably going to be bigger than that 38%. We're going to see something similar to the global financial crisis, but even worse, because it isn't just real estate, it's real estate, stocks, and bonds. Okay. Yeah. >> What's your take? >> Yeah. No, I agree with you completely.

Um, I don't see mortgage rates dropping. I don't not to that extent anytime soon. I mean, we're we're just in a 40-year, you know, declining interest rate environment. We're probably entering a 40-year rising interest rate environment, you know, despite recent rate cuts. It's probably a long-term rising rate environment. Um, I don't see incomes rising. Uh, the only way incomes would rise is as a result of like a lot of inflation, like massive massive currency creation, but then the price of

homes would probably go up even more than incomes, which is exactly the crisis we're talking about, right? Home prices are rising faster than incomes. So gosh, >> yeah, you know, in the previous chart where where you were talking about the uh affordability as far as rent uh versus or or mortgage payment uh I can't remember what the chart was, but you said something has to give and it's that 30 fall to 38%. Yes. So uh rent uh versus income ratio and mortgage payment versus income ratio, something has to

give there. And the only thing that's going to give without the economy getting more screwed up than it is is real estate is going to take a giant crash and it's going to be greater than that 38%. >> Okay, I think so too. And how did we get into this mess? Huh? Is it because of massive currency creation? H >> wow. Hi, it's Mike here. Just a quick message. I wanted to welcome the huge number of new visitors to our videos, but point out that less than 15% of our viewers have subscribed to this channel

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from us. Check out golds.com in the link below. Thanks. And now back to the video. The median sales price and the M2 currency supply. And look at that correlation since 2020, since the pandemic. Oh my god. I can't believe it. It's unspeakable. >> This is 100% uh Jerome Powell's fault and the Federal Reserve and them screwing with the economy instead of letting the free market work that them and the the Treasury Janet Yellen. uh this is the the the blame all lies on the shoulders of very few

people when we h experience this next thing the Bernani bust it's Bernani Powell yellen and these people that think they're masters of the universe that think they know more than the free market the sum total of all the transactions that go on in a society nobody has more information than that and uh and yeah so this This is going to be an absolute disaster. >> Yeah, this is what we call a systemic problem. Like you you got to change the system. You got to change the monetary system. Otherwise, it's just going to

get worse. Things get more volatile. The bubbles get blown even bigger. The crashes are even bigger over time. >> It's not pretty. It's not pretty. >> Okay, >> our next chart. Home sales are headed for their worst year since 1995. That's 30 years. 30. That's an entire generation generation and a half. These is the worst year we've had for home sales. No one wants to buy. It's ugly. >> Wow. I didn't know that. Amazing. >> Yeah. That's according to Red Fin. So,

>> that Yeah. And that creates downward pressure in pricing. >> Exactly. >> And we're And we're up in a hyperbubble. >> Exactly. Exactly. And very fascinating, 54% of Americans, that's more than half, by the way. That's most said there is no mortgage rate at which they would feel comfortable selling their home. None. You know what though, and this is true, but the public is generally wrong. Now is the time to sell your house like tomorrow. If if it was me, I I do not give it

financial advice, but I would be selling uh uh re residential real estate like tomorrow and buying silver and gold in in that order. Silver first then gold because of the gold silver ratio. Silver is a screaming bargain. Wow. That's per bank of America. >> Mhm. >> Wow. >> Yeah. >> This is >> and that's up 12 points from last year. So last year it was apparently 42% of Americans that said that. Now it's 54%. So that's a huge increase in a year. That's huge.

>> Well, you know, they're seeing the value of their homes go up and up and up. And humans always just take whatever is happening today and project it infinitely into the future. And it doesn't go like that. You and I spent a long time on cycles in a chapter that was cut from our book because it was just getting it was putting too much space. That chapter ended up being like a 100 pages or something. It was ridiculous. Uh but it was really about all of these different cycles that we go

through. And uh people, you know, they haven't experienced uh a big crash since 2008. So it's been a long time. Uh and um and so they just think that their the past few years of experience, they're seeing how much more it would cost them if they sold a home and bought another one to replace it. But what we're seeing with all of this evidence, if you sell a home, it's more affordable to rent right now. And so you rent while you're invested in gold and silver and and then you buy uh once uh the price of homes

has come down by 80 or 90% measured in silver so that you can buy five or 10 times more homes and have all of this rental income from cash flowing real estate. >> Yep. But the public, to your point, they're usually wrong and they they don't understand uh the cycles. So, >> there was a whole chapter about that in my first book. So, yeah. Yeah. Okay. >> Excellent. Got a chart here from Nick Gurley. It currently costs about $800 more per month to buy a house with a new mortgage than to keep your house with an

existing mortgage. That is a huge deviation. >> It's huge. And that is the reason for the the last statement by the public. They got trained by this, but this is about to change and it's going to change dramatically. >> Yeah. So, he also says this helps explain why home buyer demand is so low and why Fed rate cuts aren't restimulating demand. Mortgage rates need to be 4% to unlock this market. So, >> yeah. Well, they're going to have to be actually lower than that, which just

isn't going to happen. One of the things that uh you and I did uh was we um did a chart of um mortgage rate cycles and we went back over a hundred years of long-term mortgage rates and uh we found that there is this cycle and I actually when I bought my farm here I actually pegged the month that I thought mortgage rates were going to bottom and uh and I did a lease to buy with the cost of the lease uh being uh applied to the down payment on the property. And I delayed the uh the actual purchase of the

property by about 9 months. And I actually nailed based on this historic data, I nailed the lowest mortgage rate that was that's been available in the last hund and something years. >> Wow. Well, congrats. Right. Sorry about the cough. But anyway, uh this chart is the reason the public is um has been trained and uh so this big divergence happened in 21 after all of these sty checks came out of hiding and after the Fed so inflation started to rage and the Fed raised interest rates. >> Exactly. because of it and that caused

that divergence. >> And and in March of 2020, that's when the Fed eliminated reserve requirements completely. So fractional reserve lending went to zero. Banks didn't have to hold any reserves at all and any reserves they had were considered excess reserves. So they could lend out like crazy. And I think that's what contributes to this divergence as well. It also when they um stopped requiring reserves, they stopped requiring any vault cash as well. So some banks run very very lean on vault cash and and

that during any type of panic that can lead to a very dangerous situation. >> Yeah. Yes. Another one. Mortgage rates have climbed since the Fed has cut rates on Wednesday. Yikes. That's moving the wrong direction. They are now at six and a quarter percent up from 6.1% according to Mortgage News Daily. >> Not good. >> So that means the Fed the Federal Reserve has totally lost control of this. They think they've still got, you know, that guy behind the curtain in the Wizard of Oz pulling all those levers,

pushing buttons and cranking little wheels and stuff. Uh the the control is completely gone. the curtain has been pulled back and uh you know we've we've found out that the entire monetary system is a fraud. >> Exactly. Exactly. And that leads me to our meme of the day. We got a talking dog here. He says, "I got into the human world to find purpose, but this whole thing is just an elaborate version of fetch." >> And for most people it is. Um, you know, I I enjoy what we do. I feel like we're

helping people. So, I don't feel like my life is an elaborate version of Fetch, but boy, if I just had a regular grinding job, uh, this would really hit home for me. I want to thank you for this presentation, Alan. It was great. >> Yes. Thank you, Mike. Thanks everyone for watching. Invest and earn up to $2,000 in bonus silver at goldsilver.com. It's easy. Step one, open any gold silver storage account excluding IRA. Step two, purchase your precious metals. Step three, get up to $2,000 in bonus

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