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How Much Is Your Home Worth In Gold?

Kitco News

How Much Is Your Home Worth In Gold?As Toronto’s hot real estate market seems to be on a lot of people’s minds these days, one Canadian bank asked how much a Toronto home would be worth in gold and the results were surprising.

BMO Capital Markets found out that Toronto homes are actually not at record highs when measured in gold.

“One curious factoid we unearthed this week is that Toronto home prices aren’t even at record highs when expressed in terms of gold,” BMO Capital Markets chief economist Douglas Porter said in a note.

Porter specified that it now costs only around 540 ounces of gold to buy an average home in Canada’s most populated city of Toronto.

Interestingly enough, after looking at historical data, Porter added that today’s total is below the roughly 600 ounces required to buy a home during the late-1980s bubble and also below the record of 655 ounces needed in the spring of 2005.

“The slightly more serious point is that gold is again close to a record high in Canadian dollar terms— and no one is calling the gold market a bubble,” Porter noted.

For Bitcoin fans, the deal is even sweeter, with only 284 needed to afford a home in the city, added Porter, while hinting at a possible bubble building in the cryptocurrency.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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