500 oz Silver To Buy A House? – Mike Maloney – Silver vs Real Estate

500 oz Silver To Buy A House? – Mike Maloney – Silver vs Real Estate


like I said everything is waves in cycles and the great news is that the greatest wealth is created in the shortest period of time when we’re going back through these crises the first phase of any bull market is sort of a stealth phase where it’s quiet accumulation then the second phase is usually the longest duration and the greatest growth and then the final third phase is a blow-off top where the market just goes vertical you remember the Nasdaq in the last three months of 1999 it just went vertical and that the public everybody rushed into it and they all got slaughtered the herd always comes rushing in at the end and they always get slaughtered and that’s the time you want to sell you don’t want to hold on to gold and silver forever you want to hold on to it until a median price single-family home cost less than 40 ounces of gold or less than 500 ounces of silver and then you want to trade your gold and silver for real estate cash flow real estate yes it was it was like eight sixteen I think would buy a single-family medium price home except there was a lot more silver and we aren’t we weren’t in is it I don’t think that that bubble is going to be anything compared to this next bubble so in my book I said it wouldn’t surprise me to see less than 500 so once’s of silver buy a single-family medium price home which is pretty amazing because you’re talking about setting excuse me talking about setting aside somewhere between eight and nine thousand dollars today to be able to buy a trade that straight over for a single family medium price home in the United States which peaked at about two hundred and twenty eight thousand dollars and now it’s falling probably about two hundred thousand or 195 today I’m not I haven’t checked but it’s Realtors Association data you can go to their website and get the data but you know if gold goes where I think it’s going and silver goes to the 10:1 valuation which is entirely possible it could be that just a couple hundred ounces like two hundred ounces of silver buy as a single family meeting price home so you know each hundred ounces is only fifteen sixteen hundred bucks so you’re talking about sometimes when I say these things I can’t believe I’m saying them but they’re just entirely logical things and it’s just yeah and it’s stuff like this has happened before but it would be like you’d set aside three thousand four thousand dollars today in silver and trade it for a home someday in the future and I don’t think it’s going to be that long it’s going to be probably between two and five years maybe a little bit longer six years 2015 at the latest I think it just you know that’s what it feels like if they are not financially literate if they’re not financially educated this should be you know I’m with the Rich Dad team and Robert is a big real estate investor but he gets cash flow real estate and he gets it in the right sectors I mean you know he moved out of class-a properties several years ago and started moving into B and C rental properties this is working-class properties these are apartments that rent for less than $500 a month us you know that’s where he’s at well with the whole popping of the real estate bubble everybody that gets foreclosed on has to live somewhere so right now there’s this huge shortage of his type of real estate and high demand so if you know what you’re doing real estate is still an excellent investment but for the uneducated investor yes your real estate and getting the precious metals as soon as possible I am NOT a Gold Bug or a silver bug I’m a cycles guy this is the cycle right now for commodities and precious metals and all you have to do to prove that to yourself is take a single-family median price home and divide it by the price of gold a barrel of oil bushel of wheat ton of iron a pound of copper and what you’ll find is that real estate and stock markets have been falling since somewhere between 99 and 2 someone depending on what you choose to measure it with but they have been going down against anything tangible they have and people think that they’ve been going up but people always chase yesterday’s news and that’s what they’re doing right now they’re chasing yesterday’s news you know I’ve been just very very consistent since 2002 I’ve been by preaching and buying precious metals and there’s going to come a time when it’s over with and when I won’t be able to honestly go out and look somebody in the eye and tell them that precious metals is a good investment and instead I’ve set up my business so that I’ll be able to tell them that no precious metals isn’t a good investment get out it’s time to buy real estate it’s time to buy stocks so the main thing get a financial education get financially literate and right now we’re in the portion of the cycle that’s the easiest gold and silver are just really I mean they’re good investments but at the same time they’re dumb investments they don’t take a lot of financial literacy to the I mean you buy them and you sit on them until they’re overvalued and then you sell them and buy something else so they don’t take a lot of work it takes more of a financial education to be a landlord or to be in the stock markets or the currency exchanges or something like that this takes a lot of talent knowledge and maintenance where with gold and silver you know you buy it the hard part is selling it when when the table where is the top you know I can measure those things and I have a team of researchers that that’s their job is every day is just to try and figure out how to measure this stuff so that we can pick the top and get out of it because like I said in my company we’re a group of cycles investors we’re not precious metals bugs and if there’s one piece of advice that I would give to your viewers it’s that we’re still early on in the cycle of moving on financial assets moving into tangible assets of all sorts and easiest way to acquire tangible assets is to accumulate gold and silver so when money does start flooding into gold when gold gets to 1,500 or 2,000 a lot of people are going to start looking over it silver there will only be 50 bucks an ounce buy them and start buying silver when’s when everyone realizes what’s happening is going to be a gold rush into this thing that will be just it’ll just blow people away it’ll be the biggest one in history yeah it’s going to make that even and the shares it’s going to make the Nasdaq boom look like nothing and the difference will be this will be for real and that was you know that really was a bubble now doesn’t mean that we won’t have a bubble in the gold market and silver markets but the move itself will be intrinsically real and and I believe that this is the next big bubble as the precious metals commodities but precious metals especially because the helicopter drops they’re doing right now for all the money they’re creating that has to find a home well the shocks had their bubble in 2000 real estate had its bubble in 2006 and you know what what’s the next asset class to go into a bubble well then the real difference is the gold and silver are tiny little markets and as you say so is this is investing money in the horns institutions and pension funds and even the general public when they when I actually realize what’s going on and they all try to get in this little market that’s when you get the ballistic kind of move yeah extraordinary fireworks I think so yeah well like I said there are these brief moments in history where the safest place to be the safe haven investment for every second of the last 5,000 years the only thing that has never gone to zero and can’t go to zero

100 Comments

  1. It 1980 took 816 ounces of silver to buy a median three bedroom family home in the United States during silver's peak. This time I think it will take less than 500 ounces to buy a median three bedroom house for the following reasons:
    1. The FED is monetizing debt which will lead to hyperinflation.
    2. Silver is at least four times rarer than gold.
    3. Silver is leveraged at least 100 to 1.
    4. The USGS estimates that there are only about 8.5 to 18 Billion ounces of unmined silver remaining!

  2. I went to the bank and bought my future home(2 X100 ounce bars) . The financial analyst for the bank said i'm still the only person she has ever sold silver to. That just blows my mind! Why isnt she buying? Why am I the only person in my city buying silver? Anyone? bueller?

  3. In 1980 it took 816 oz of silver to purchase a median family home. This time around, it could be 500 oz or less because the precious metal manipulation is more severe and there are less silver than there were in the 1980.

  4. It took 816 oz of silver to buy a median 3 bed family home in the USA in 1980 during silver's peak. I totally feel it is not only possible, but probable that we will be able to do that again & for 500 oz or less! There are so many factors now that were not around in 1980's: the Fed's crazy QE strategy, the world-wide market that now can buy silver with a few clicks on their computers, the low remaining above-ground inventory of silver, the manipulation of silver's price by the banks, etc. etc.

  5. it took 816 ozs. of silver to buy a median family home in 1980. How many ounces it will take at the top of this cycle is difficult to predict, since no one knows how high silver will go or how far home prices will fall. Buying a home for 500 ozs. may certainly be possible due to the scarcity of silver.

  6. Only 816 silver ounces at this time. The FED is printing so much money than the commodities and precious metals are rising, I think is very likely that a single family home will cost the 500 ounces you said.

  7. wtf is up with all the paraphrasing and repetativeness in the comments? everyones just repeating what was said in the video almost word for word

  8. Wouldnt it be smarter to trade your gold and silver for a farm where you could grow your own food and be self sufficient rather than an average family home where you would be surrounded by other desperate people with no means to survive?

  9. I inherited 10 1oz Krugerrands. I think I want to trade at least some of them for silver. Your thoughts? I have a 3 to 30 year time horizon. THANKS.

  10. I don't understand what cash flow real estate or b and c level properties can someone point to any resources for further understanding? Or should I just ask the wise but verbose God of information, Google?

  11. @jsobiranski it's too bad property taxes make homes a liability. maybe i'll have to look at states that have low taxes. i currently rent in nj and sincerely doubt i'd buy a home here even i could afford it.

  12. Lets see here based on my math 500oz to buy $200K would be $400.00 an Oz

    Silver isn't going to $400.00 oz that at 2k gold is 4-1

    10-1 at 2k is ($200.00) (500oz) = $100,000

    You are going to need about 1000oz or more to reach that. Gold is currently hovering around that price of $1400.00

    Now I am no expert when it comes to commodities but I am a Student Mathematics Major.. At current prices you need to put down about $15,000 and just hold and wait. Then keep an eye on things too come.

  13. @Seattle206723
    Dont forget the real estate market has not hit bottom yet, it is being artificially propped up by the fed
    with low interest rates and it will not last.
    Silver is going to get much higher than $200 an ounce.
    It is finite, it will skyrocket .Someday silver will be worth more than gold .

  14. @whygoldandsilver Yeah, but in what time? In 10? 15? And for then. The cost of the life will be at…?The inflation will be at…? The deflation will be at? And the svalutation will be at…?

    They can't declare the law without the X's…

  15. @WorldlyTyrant It means that they (the LMBA and the Comex) are selling something that they DON'T have very much of (physical silver) to the ratio of 100X or more the REAL SUPPLY.

  16. I've got silver I'm saving for just this instance. Problem is, I don't know where to unload it and who's going to take physical silver and hand me the deed. While I agree that the dollar's value was equivalent to a spec of dust, not everybody selling homes is going to understand the idea of such a trade off. What I'm saying is, the idea knowledge of buying a house in this manner is cool. Knowing how to do it in basic terms is elusive in these videos.

  17. @Seattle206723
    What makes you think that houses will be worth $200k when this happens.
    House prices are still crashing… the median priced house may come down to $100K which means that 500ounces would do the trick.

  18. @jrewert I wish I started last year. I just bought 5K maple coins last month at 34oz CND and Im still happy. I can sit on that for the next 10 years if I have too. It was cash sitting in a shoe box doing nothing.

  19. @raspberrybaggio Hey! Hey! Hey! I never said that silver isn't a good investment. I simply was pointing out that those figures didn't apply to-date. There isn't an argument in the fact that silver isn't a superb investment. The only thing I was pointing out was the figures didn't add up at the time. I apologize if my "Mathematics offended you" 🙂 They kick in rather quick at times lol…

  20. @Seattle206723 "Silver isn't going to $400.00 oz that at 2k gold is 4-1"

    Gold is going up too, just not as much as silver is.

    But do what you want. It doesn't matter what you or I say, what happens happens. When gold hit $800 an ounce in 1980, silver was $50 – that's 16 to 1.

  21. @101simar Buy low sell high. Everything is cyclical so you want to sell your silver, or in this case trade in for a cash flowing property, before the precious metals market goes down. That will happen when the USD is restructured or a new reserve currency emerges. Until then, the US is going to print money until they run out of trees… get silver/gold before the average people get wind of what's going on.

  22. @101simar Nothings lasts forever… The dollar will be gone if inflation continues. What matters is the real value in terms of gold. You wanna buy real estate and the like when it's cheap relative to precious metals, but when the cycle turns and things reaches the floor – and it will -, precious metals will lose its relative value to real estate. That's when you get the cheapest ticket for the next move in the real estate train or stocks train. As Unkn0wnGuy said: Buy low, sell high. Always 😉

  23. 500oz may be right, but won't house prices also have risen with inflation – or perhaps because it's also a tangible asset, even beyond the rate of inflation?

  24. @Kolbe71 Housing is only worth what the market can afford. High interest rates = low housing costs. Right now at 0% interest, housing is still in a bubble even though it supposedly popped, it has much further to go in areas with low employment.

    If gold/silver were to become currency backing, expect 3-4x the price they are now.

  25. I think when he was talking here in New Zealand, he had just finished his dinner.You can see he is picking his teeth with his tongue

  26. @Wifey 231 you said what phase we are in now we are actually in phase 3 look at the price of an ounce in 2002 $5 price of an ounce 2010 $25 By 2011 today price for an ounce is a whappying $41 dollars it just times it self 8 times from 2002

  27. I am asking is this a complete newcomer to this subject. He mentions that the gold &silver markets are very small…can we say then, that this small size leaves the Precious Metal market open to manipulation by the big players? If so will we not simply be played by these corporate outfits, just as we are in every other market? will they not just manipulate it to keep themselves afloat and their highly lucrative scams running? Trustworthy? How? any thoughts most welcome.

  28. What really amazes me about Mike Maloney is he explains how the gold/silver bull run might end. The whole market thing is a challenging issue.

  29. the crash want come untill the usa is spending between 30-50% of the tax revenue to pay interest. now they pay under 10%. It can take 5 years untill the crash/end of inflation comes. That means: keep buying silver

  30. watch?v=Lrou6Onej7g to understand the purchasing power of Fiat Currencies vs Gold and Silver and how we can still buy 1.5 gallons of gas using a 1964 quarter.

  31. @bandcreator28 In a hyperinflationary environment – and in a deflationary environment, for that matter – the cost of living relative to income rises dramatically. Even with wage inflation, income always lags behind the cost of food and energy. There comes a point where something has to give. When a family can no longer feed themselves, or stay warm, the last thing they can afford is an increased mortgage or rent payment. This produces a downward pressure on house prices, relative to all else.

  32. @bandcreator28 In a hyperinflationary environment – and in a deflationary environment, for that matter – the cost of living relative to income rises dramatically. Even with wage inflation, income always lags behind the cost of food and energy. There comes a point where something has to give. When a family can no longer feed themselves, or stay warm, the last thing they can afford is an increased mortgage or rent payment. This produces a downward pressure on house prices, relative to all else.

  33. @hfb89ify Hey I think that he is referring to studying how finances work on your own, finding reliable sources to work off of and learn from. I don't think he is really saying go out and get a degree in finance. From my perspective, learn on your own, talk with your family about it and with those friends that may know more than you. One negative about gold and silver is that they don't pay dividends and they are not as easy to liquidate as stocks/ bonds. mutual funds.

  34. WEDNESDAY, MARCH 07, 2012

    Gold Price Gained Today as did the Silver Price Pushing back Yesterday's Losses
    Gold Price Close Today : 1683.30
    Change : 11.90 or 0.71%

    Silver Price Close Today : 3354.30
    Change : 80.2 cents or 2.45%

  35. Silver is a great bargin, today. I believe in 5 years when deflation becomes more pronounced then the buying power of silver gain greater strength. The bond and stock bubble is not sustainable, therefore, deflation will be inevitable. Logically, 500 piece of silver will be worth 250,000 in the future.

  36. we got a good taste of the herding instinct when silver hit $50 last year. Back then everyone knew silver was a sound investment, now it's $28. But yeah in the long run, I agree with Mike, it'll hit 100, 200 bucks easily. Would love to see JPM go bankrupt first though.

  37. Everything is relative. But yes, you are right. Since people still get their income from fiat currencies we still must compare it to our income.

  38. it is my hope that freedom 35 is and will be a solid plan. its to bad I may have to wait till 65-75 to see if freedom 35 was solid. 39 years to go.

  39. better hold some silver back to cover the property taxes. The thing that sucks about real estate is that you never really own it outright even if there is no mortgage.

  40. I think your wrong about 500 ounces of silver buying a house. I think its gonna be ALOT lower lol. 100 ounces or less i feel. Mike's book was a great read, i just wish it had been longer 🙁 He better be writing another book, or his cycles friend Brent that was mentioned in the book. I would love to read his info too

  41. Thanks for the info.. i have 5 oz of gold and 10oz of silver.. I wanted to buy a monster box last month but couldnt.. now its going up everday..

  42. How freaking sweet would it be to see a house you want, hand over 500oz of silver to the seller, and never have to step foot into the bank for a mortgage loan??

  43. yeah. but watch out for your rates. Also, Mike says in later videos, you may get a chance to purchase the DOW at the equivalent of 1 ounce of gold or less in a blow off top scenario. It's been a while since I watched the vid, but I'm sure I got that correct :S I only have 250 ounces 🙁

  44. When baby boomers die or move in with family or live in nursing homes the housing market supply is going to explode and add on the current surplus of housing built in the last ten years during the boom and bust. Should be able to pick up a lot of foreclosed homes and rent it out. There's such a huge supply nationwide that there would be no profit from flipping homes if people are still paying student loans and job security is shaky.

  45. Do you consider old (pre 1964) silver US coins to be a good place to put money? My thinking is that the smaller increments will be better for bartering. Is this correct thinking?

  46. I was around in 1980 and witnesed home sales with gold and silver. sellers were anxious to sell to get metal because they thought gold was going to 1400. they lost quite a few holmes and boats

  47. I agree but what about the bullish traders selling hundreds of tons of silver which they dont even hold. SO much silver and gold is short sold A slight jump in NASDAQ, and people will rush into the shares again. I would invest only 15 to 20% (max) of my investment in silver and gold. I have seen silver slipping from $30 an ounce and gold $1920 an ounce last year when all investment pundits were convinced that gold will cross $2000 mark but today you get it for some $1250. SO, nothing is guaranteed in todays market. Be careful.

  48. Selling silver to buy a house will cause an enormous tax hit.

    Using silver as collateral to raise money to buy a property is tax free.

    After you pay the loan off, you still own the silver…

  49. may 2014 silver is AT THE BOTTOM   NEAR 20 DOLLARS….. oil  is at 100 dollars per barrel….. it takes oil to find /process/mine/ smelt/ship/ silver….  if u believe  oil is going up in future… at the minimum silver will match oz per barrel value..

  50. Well…it's 2015, and it would take about 15,000 ounces of silver to buy a house where I live (the metropolitan NY-NJ area).

    But, ignoring ill-advised timing, your principle is correct: There is a lot to be gained by the long term investor of comparing two commodities (houses vs precious metals in the case), and exchanging commodities near likely high/low peaks.

    I want to add one thing though: The world is changing, and I believe quite firmly that there could be a real breakdown in things — a nasty and prolonged breakdown, where even general financial rules could breakdown. For example, real estate might become "difficult" to own or transfer, for reasons of taxes, hyperinflation, or asset confiscation by authorities. That being the case, I believe that precious metals are now worth buying and HOLDING as probably the best storable wealth available (as long as, of course, one has the necessities of life covered, as well).

  51. Great video and channel, i sub'd from my phone… my phone has issues subbing, so if the sub didn't post I'll try again from my computer soon!

  52. I keep seeing people comment about 1980 silver price. What people and Mike fail to realize is that even in the 80s, The dollar was still suuuuupppperrrr inflated. So u can't go buy any 1980 #'s. In the early 1900s it cost around 3-5000 dollars for a median siZe family home. The average wage was about 490$ for the year… THAT ladies And gents is what we are heading back to… remember everything after 1913 is FR inflated prices.. if there was no FR. Bank the true value for most of this stuff is far far cheaper.. And this is not only in the USA, but look at history for the whole world for 1000s of years housing,land,foods,goods were relatively cheap cuz there was no bank super inflaming The prices of goods.. And unfilled they did things were very uptainable.. after this collapse imo this will come back go the way it use to be!!! Very hard labor intensive, and localised. But the difference is now you are starting on top were as the rest of the people will have to slave hard all day at very low wages just to get buy, god willing will be the Greatest opportunity of a lifetime!!! 500oz silver for a house.. nasal try 500oz silver for a small town..

  53. Watch out for last six month of 2015. All the Billionaires now are telling people to buy Silver and Gold. Co incidence?

  54. the day is coming when if you are stuck with a safe full of c notes,you're screwed,they're too small for good toilet paper,this crash is coming,nothing will stop it,all the signs are right in your faces,bankers are killing themselves every day,old news,the reason they do it is shame,honest old fashioned shame,this will be a planned event,for along time,if you hide anything hide metals,mines are failing everyday,they pay the same high price for fuel that you do,if you own house or houses you will have to defend them,think

  55. Hello Mike, and hello Youtubers,
    I got a question here. The gold tosilver ratio right now is about between 75 and 80.
    Mike, you talk about 40 OZ of gold having the same purchasing power than 500 OZ of silver.
    That is a ratio of 12,5. I know that silver is supposingly undervalued, but I never would have imagined this shift.
    Do you realy value silver being that much undervalued or am I missing a part of the equasion or some information?

    Thanks from Germany

  56. 2:32 "You can buy $3000 of silver today and between 2 and 5 years in the future, 2015 at the latest, you can trade it for a medium sized family home."
    LOOK IT'S ALMOST 2017…. LOLOLOLOLOLOLLOLOL.

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