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.