Real Estate as an inflation hedge

[AJ Wong]

Fun Fact: The US National Debt totals more than the total value of ALL gold and silver on earth. 

Another one? There is a proposal to raise the annual military budget by 50% to $1.5T - an inflationary policy. 

Gold and Silver are monetary metals and canaries in the proverbial financial markets mine...I think we first posted here about AG at $1200 and AU the $20's..anyhow..clearly elements do not change but the denomination does and if priced in money (not currency) prime real estate in many markets could be undervalued - particularly when investors consider the exceedingly exotic methods of leverage and abundant tax incentives available. 

If, as we anticipate, mortgage rates continue to fall, inflation increases or at a minimum USD purchasing power continues its downward trajectory, expect luxury markets to strengthen as wealthy investors diversify from equities -with an emphasis on luxury STR rentals that can off set costs and/or contribute to debt satisfaction.

For 'value' reference there are nearly zero new US cars that cost below $20K and the AVERAGE new vehicle is nearly $50,000 (or ten ounces of gold) with an average payment north of $700. 

The point is: prime real estate of quality construction, with updates, utility, development potential, strong income or optimal location are likely undervalued assets in 2026 and beyond.

*Inflationary outlooks could be offset by a revaluation of US gold holdings to current price levels. As an example the US Mint increased the premium on Silver Dollars by nearly 100% as of yesterday, to a cost of $169/oz.