Buying a Home with 1600 ounces of Silver – May 2017
In January of 1980, a home-buyer could purchase a median-priced US home with only 1603 ounces of silver (at that month’s average price of $38.80). Silver’s price subsequently declined and by the time real estate peaked in July 2006, 1600 ounces would purchase only 9% of an average home.
Since 2000, silver has been rising with gold under economic conditions that are even more difficult than the late 1970’s, and at May 31,2017 price of $17.51, 1600 ounces of silver will now buy 11% of an average $244, 800 US home. (Using the National Association of Realtors median reported sales price, with a 1-month lag.) Rather than trying to estimate how high silver will climb in dollars, we’re tracking its progress against something we believe can be predicted: that 1600 ounces will once again allow the holder to purchase a median-priced US home.