{"id":36614,"date":"2025-02-27T10:05:08","date_gmt":"2025-02-27T17:05:08","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=36614"},"modified":"2025-02-27T11:52:22","modified_gmt":"2025-02-27T18:52:22","slug":"homes-arent-getting-more-expensive-and-gold-just-proved-it","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/homes-arent-getting-more-expensive-and-gold-just-proved-it\/","title":{"rendered":"Homes Aren\u2019t Getting More Expensive and Gold Just Proved It"},"content":{"rendered":"<h3><strong>QUESTIONS OR CONCERNS?\u00a0Talk With An ITM Trading Analyst Now:\u00a0<a href=\"https:\/\/calendly.com\/itmtrading\/500?utm_content=TK02272025\" target=\"_blank\" rel=\"noopener\">Schedule a Free Strategy Call<\/a>\u00a0or Speak to Someone Now at 866-706-9061.<\/strong><\/h3>\n<hr \/>\n<p>It\u2019s not just home prices that are affected by inflation\u2014wages have failed to keep pace with economic growth. Up until the 1970s, housing prices in gold and dollars moved closely together. But everything changed in 1971 when the U.S. government fully detached the dollar from gold. Without gold backing, the Federal Reserve could print unlimited amounts of money, leading to rampant inflation. Why is this happening, what does it mean for your wealth, and how can you protect yourself from the ongoing US dollar devaluation?<\/p>\n<p><strong>The Housing Market Crisis: Are Homes Really More Expensive or Is Your Dollar Just Weaker?<\/strong><\/p>\n<p>For decades, Americans have felt the financial squeeze, watching housing prices climb to levels that seem unattainable. But the reality is, homes aren\u2019t getting more expensive\u2014your dollar is losing value. This phenomenon, driven by inflation and reckless government spending, is making it harder for everyday Americans to secure financial stability. Let\u2019s break down why this is happening, what it means for your wealth, and how you can protect yourself from the ongoing US dollar devaluation.<\/p>\n<p><strong>The Hidden Truth About the Housing Market<\/strong><\/p>\n<p>If you\u2019ve been struggling to keep up with rising home prices, you\u2019re not alone. Over the last 50 years, the price of homes in US dollars has skyrocketed, effectively pricing out an entire generation. However, when measured in gold, housing prices have actually declined. This tells us that the issue isn\u2019t with housing\u2014it\u2019s with the purchasing power of the dollar.<\/p>\n<p>The root cause? A debt-fueled economic system that relies on government overspending and the continuous erosion of the dollar\u2019s value. Right now, inflation is stripping away 3% of your wealth annually, and if this trend continues, you could lose more than half of your purchasing power over the next 20 years. But history tells us inflation won\u2019t remain steady\u2014it will accelerate. In fact, recent estimates suggest inflation could rise back to 4.3% in the next six months alone.<\/p>\n<p><strong>The Role of Inflation in the Housing Market<\/strong><\/p>\n<p>One of the most revealing ways to understand this crisis is by looking at home prices over time in both US dollars and gold.<\/p>\n<ul>\n<li>In 1900, a median home cost $4,300, or 6.5 kg of gold.<\/li>\n<li>In 2020, that same home cost $313,000, or 5.8 kg of gold.<\/li>\n<li>In 2024, the median home price has surged to $418,000, yet in gold terms, it has decreased to 4.42 kg.<\/li>\n<\/ul>\n<p>What does this tell us? Gold retains its purchasing power, while the dollar continues to lose value. If you had saved in gold instead of US dollars, you could afford more today with less gold than it took in 1900. Meanwhile, the average American is being forced to work harder just to afford the same things their grandparents could buy with a fraction of today\u2019s wages.<\/p>\n<p><strong>The 1971 Turning Point: The End of the Gold Standard<\/strong><\/p>\n<p>The disparity between gold and US dollar prices didn\u2019t always exist. Up until the 1970s, housing prices in gold and dollars moved closely together. But everything changed in 1971 when the U.S. government fully detached the dollar from gold.<\/p>\n<p>Without gold backing, the Federal Reserve could print unlimited amounts of money, leading to rampant inflation. By the end of the 1970s, gold prices had surged over 2,000%, while the purchasing power of the dollar plummeted. Since then, inflation has continued to erode the value of your savings, making homeownership, retirement, and everyday necessities more expensive in dollar terms.<\/p>\n<p><strong>Productivity vs. Wages: Why You\u2019re Working Harder for Less<\/strong><\/p>\n<p>It\u2019s not just home prices that are affected by inflation\u2014wages have failed to keep pace with economic growth. Since 1974, productivity has risen by 80%, yet wages have only increased by 29.4%. This widening gap means Americans are generating more economic value per hour worked, but they\u2019re seeing far less of that value reflected in their paychecks.<\/p>\n<p>Additionally, the shift from single-income households to dual-income households has masked the true extent of the problem. In the 1970s, a single median household income could afford a home at roughly two times their salary. Today, the median home price is over five times the median household income, even with two working adults.<\/p>\n<p><strong>Why Gold Is the Best Defense Against US Dollar Devaluation<\/strong><\/p>\n<p>Given the dollar\u2019s continuous decline, how can you protect your wealth? The answer lies in tangible assets\u2014specifically, gold. Unlike fiat currency, gold cannot be printed into oblivion. It has historically preserved wealth through economic downturns, recessions, and periods of high inflation.<\/p>\n<p>Central banks and the financial elite understand this, which is why they are stockpiling gold at record levels. The question is: will you follow their lead or continue to rely on a currency that is rapidly losing its value?<\/p>\n<p><strong>Take Control of Your Financial Future with ITM Trading<\/strong><\/p>\n<p>At ITM Trading, we\u2019ve spent over 28 years helping Americans protect their wealth with time-tested gold and silver strategies. We understand the challenges of inflation, economic distortions, and currency devaluation\u2014and we\u2019re here to help you navigate them.<\/p>\n<p>If you\u2019re concerned about the future of your wealth, now is the time to take action. Call us or set a calendly appointment for our <a href=\"https:\/\/calendly.com\/itmtrading\/500?utm_content=TK02272025\" target=\"_blank\" rel=\"noopener\"><strong>free ITM Gold and Silver Guide<\/strong><\/a> today and learn how to build a resilient portfolio designed to withstand economic uncertainty. Our expert analysts are also available to provide you with a personalized strategy tailored to your financial goals.<\/p>\n<p><strong>Don\u2019t wait until it\u2019s too late.<\/strong> When you hold physical gold, you own real wealth\u2014outside of government control, outside of inflation\u2019s reach, and beyond the uncertainties of the financial system.<\/p>\n<p><strong>Taylor Kenney | ITM Trading<\/strong> Your Trusted Source for Gold, Silver, and Lifelong Wealth Protection.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>QUESTIONS OR CONCERNS?\u00a0Talk With An ITM Trading Analyst Now:\u00a0Schedule a Free Strategy Call\u00a0or Speak to Someone Now at 866-706-9061. It\u2019s not [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":36617,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[89,247,1375,1839,2716,2787,2869,3307,3467,3726,4087,4163,4274,4835,5082,5587,5588,5589,5590,5591,5592,5593,5594,5595],"class_list":["post-36614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-itm-trading","tag-gold-investment","tag-dollar-collapse","tag-currency-reset","tag-taylor-kenney","tag-economic-instability","tag-financial-security","tag-housing-crisis","tag-inflation-hedge","tag-financial-independence","tag-us-dollar-devaluation","tag-inflation-impact","tag-central-banks-buying-gold","tag-fiat-currency-decline","tag-purchasing-power-loss","tag-gold-vs-real-estate","tag-wealth-erosion","tag-gold-as-protection","tag-government-debt-crisis","tag-rising-home-prices","tag-productivity-vs-wages","tag-economic-policy-failures","tag-historical-gold-trends","tag-real-estate-affordability"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/36614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=36614"}],"version-history":[{"count":4,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/36614\/revisions"}],"predecessor-version":[{"id":36619,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/36614\/revisions\/36619"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/36617"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=36614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=36614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=36614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}