Gold Just Proved It (Uncut) 02-27-2025

Houses aren’t getting more expensive, your dollar is getting weaker. Over the last 50 years, prices of houses in gold has gone down, while in dollars they’ve skyrocketed, pricing out an entire generation. But the truth is, houses aren’t getting more expensive, you’re getting poorer.

But it’s not your fault, think about it. You work harder, you take home more money in U.S. dollar terms, yet somehow everything feels further out of reach. But this isn’t an accident, it’s the design of a debt-fueled system reliant on government overspending.

Right now, you’re losing 3% of your wealth to inflation, which means at that rate that you will have lost over half of your wealth in the next 20 years. But that’s if, and only if, inflation rates stay the same, but history tells us that they won’t. In fact, right now, Bank of America is estimating that in the next six months, we could see inflation rise back up to 4.3%, meaning the rate at which your wealth is disappearing will accelerate.

But what does that mean for your future buying power? Is there any way out? Is this just a housing crisis or is it actually something much bigger? And most importantly, if your wealth is being eroded this quickly, what action can you take now to protect yourself so that you’re set up for the future? Let’s get into it. Looking at this chart together, what we are seeing here is a comparison of the medium price of a home sale in the United States in USD compared to gold. So essentially, the way I’m looking at this is how much gold does it take to buy the median price of a house in the United States at different points in time? And this only goes to 2020.

I will talk about what 2024 looks like, but I thought this was such a great chart because it really clearly shows how prices in gold have actually gone down, but in USD, they’ve skyrocketed. So over here on the left, if we start on the left, we have this USD costs $4,300 to buy a home back in 1900 or 6.5 kilograms of gold. Now, if we jump over to 2020, we can see here we have USD $313,000 or 5.8 kilograms of gold.

So if you held tangible gold in the 1900s and you held tangible gold in 2020, it actually would take less gold to buy a house. And you have to think about the house that you’re buying. Houses have only gotten bigger and more complex.

And on average, if we’re looking at the median house, chances are you’re getting even more bang for your buck for less gold. Whereas if you were buying in fiat currency, well, $4,300 versus $313,000, that is an astronomical difference. But as I mentioned, this chart only goes to 2020.

And we know for a fact, things have gotten a whole lot worse in the last five years as everything has escalated and accelerated. So this chart 2020 stops at $313,000. Well, we know today this chart doesn’t even go high enough actually in the last five years.

It’s sad. I mean, I laugh because I’m uncomfortable. Right now we know the median home price is $418,000 USD.

I mean, think about that. That is absolutely insane. In just five years, the median price of a home has jumped $100,000.

It’s no wonder no one can afford this. Now, as far as gold, I already did the math. I cheated a little bit, but I’m looking at the spot price today, which is just under 3,000.

We know there are 32 troy ounces in a kilogram of gold. So when I do the math, it comes out to 4.42 kilograms of gold. So what does that tell us? That tells us that in just five years, again, if we look down here, $313,000, if you had USD and you were to buy a house from 2020 to today, it’s going to cost you $100,000 more to buy that house in USD.

Or if you had gold, you actually could hold on to 1.4 kilograms of gold and buy the exact same house for less. That is absolutely mind-blowing. So let me ask you again, are the houses getting more expensive or are the dollars worth that much less? Now, before we move off of this chart, because there’s another chart I want to show you, I always think it’s important to look at when these changes really start to take place because history doesn’t repeat, but it rhymes and it gives us a good clue of what’s coming next.

Now, over here on the left in the 1900s, if we start over here to about 1970, these lines were pretty close together. They were following each other really closely. It’s in the 1970s when you really start to see this huge split between prices in dollars and prices in gold.

Why would that be? I directed Secretary Connolly to suspend temporarily the convertibility of the dollar into gold or other reserve assets. In 1971, the United States delinked the dollar from gold. They ended the gold standard completely.

And it was during this period of time, from the beginning of the 1970s to the end of the 1970s, that gold actually jumped up over 2,000%, from roughly about $35 an ounce to over $800 an ounce. Why? Well, inflation, right? We had the metaphorical printing press handcuffs were broken. So suddenly we have all of this overspending in the United States.

It became clear that the dollar is really not backed by anything. It’s all made up. And economic instability and uncertainty led to this rapid decline of the dollar through inflation and a rapid rise in the price of gold as people flocked to a safe haven asset, something they knew would protect their wealth.

Any of this sounding familiar? But the truth is, once this happened, we never went back. We never found our way back. All the United States did was continue to print.

And even if printing slowed or inflation slowed, wages did not keep up with the rapid decline of the dollar. And this is something that we’re going to look at current day. But again, back in 1970, just to give you a frame of reference, the median household income was $8,730.

The median house price was $17,000, or roughly 2x your income. Today, just 55 years later, the median household income in the United States is about $80,000, whereas the median house price is $418,000, meaning that it’s about five and a quarter times your annual income. So in theory, it would take you two and a half times longer to buy a house.

But that’s just in theory, because it’s not even close to the full story. Since 1970, the workforce has changed. We have about 20% more women in the workforce, meaning that when we look at household annual income, it’s often now referring to dual income, instead of just single income.

And on top of that, back in the 1970s, women earned on average 60% less than men, whereas today, it’s 16% less than men, meaning that you have more people working for more dollars in nominal terms, but somehow being left with less. But that’s not all. It’s not just housing that’s unaffordable.

We have groceries, daycare, basic necessities, all skyrocketing in price while income remains stagnant. It is not keeping up with the inflation that we’re seeing. And on top of that, this happens at a time when the world as a whole is moving away from community, leaving people isolated and without support systems that in the past would have helped uplift them.

So again, the problem isn’t that housing has just gotten so expensive. It’s that the dollars in our wallet are worth less. Tell me what you think about this in the comments below.

Are you familiar with this feeling of working so hard, but somehow being able to afford less, not more? Tell me what you think, because there are a lot of people out there who are trying to outrun this, trying to work harder or put in more hours or invest wisely to get in front of it. And some will succeed, but many won’t. But it’s not their fault.

There are plenty of hardworking people out there who cannot get ahead because the system is designed to make it so hard. Let’s take a look at what I mean together. This chart shows the gap between productivity, which is essentially how much income is generated for everyone in the economy based off of one hour work and actual pay.

Now, in theory, these two lines should be moving together. There shouldn’t be a gap because as productivity grows, each hour of work generates more income and living standards should rise for everyone. Now, this was true up until you guessed it, the 1970s, right? Suddenly, we see the exact same thing start to happen again.

There’s this gap between productivity and pay, meaning again, that there’s more output happening. There’s more economic income happening, yet somehow pay is not keeping up with that. Why? How did this happen? It couldn’t be accidental.

No, it wasn’t. Policies that supported linking pay and productivity were abandoned, and it all comes back to two words, government debt. As the United States government overspent, what happened? Well, like I said, in the 1970s, there was this rapid inflation, so they needed to get it under control.

What did they do? They created all these different policies that actually delinked productivity from pay. They needed to slow everything down, so they didn’t care if there was high unemployment, anti-union, weaker labor laws, stagnant minimum wage, you name it. There were a bunch of things that happened, but what ended up happening is that productivity continued to trend upward, so productivity kept going, but the wages became stagnant, and all of this happened while the dollar’s value was plummeting on top of it, right? If you look over here on the right, productivity since 1974 has gone up 80%, whereas hourly pay since 1974 has only gone up 29.4%, right? That is this huge gap that we’re seeing here.

2.7x pay, so you have less pay, but the economy is growing. Inflation is continuing to take away your purchasing power, but the dollars that you are earning are worth less. Do you see how this doesn’t make any sense for the everyday American and how hard it is to outrun this? This is why it is so important to make sure that we own gold, because there aren’t a lot of ways that we can beat a system that is quite literally set up against us, because gold holds its value over time, unlike fiat currencies, which can be printed into oblivion.

It’s why when we look at house prices in gold versus USD, we’re going to see that USD has gone straight up, whereas the houses have actually gotten cheaper when pricing gold. You’re getting more for less, but if you think things are bad now, just consider this. Inflation isn’t going away.

In fact, it is likely only going to accelerate. That is what all the predictions are saying right now. When we look at the future, government debt is at an all-time high, and there’s a reason why those in power, the elite, already are stockpiling gold.

Look at what central banks are doing. Look at what those with inside knowledge are doing. They are preparing for this dollar collapse by setting themselves up with gold.

The question is, will you be prepared for it? Because this is not speculation. It is strategy, a strategy that is being used at the very top, and if you want to protect your wealth the way that they already are, it’s time to start thinking like them, where gold is not just an investment. It, again, is your strategy.

It is your insurance plan. It is your protection against what’s coming next. Now, hopefully you already have a plan in place, but if you don’t or you want a second opinion, I highly, highly, highly recommend that you download our free ITM Gold and Silver Guide.

We’ve created this with you in mind. It is a terrific resource on understanding how gold and silver can protect you from what’s coming next and help you achieve your goals. But not only that, I also highly recommend that you talk to one of our expert analysts because they have years of experience in preparing for currency resets, which is exactly what we are going through right now.

I always say that the dollar collapse, the dollar decline, it’s not an event, right? It’s a process that’s marked by events that leads to an event, but right now we are in that process and we all can feel it accelerating. And again, if you choose to protect your wealth in dollars or anything that’s dollar denominated or within the system, then you leave yourself vulnerable and at risk. And that is not a position that I want anyone to be in because we are truly all stronger when we’re together.

And that is why I, again, truly do believe in holding our own personal, physical gold and silver outside of the system, outside of their control, because you know the saying, if you hold it, you own it. Don’t wait until it’s too late. Download your guide today so that you always have a copy, scan the QR code, click on the link below, or talk to a member of our team, one of our expert analysts, so that you are prepared, you have a plan in place for what’s coming next.

And as always, I so appreciate you being here. I’m Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.