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By Stefan Gleason web posted April 19, 2021
Anyone who says inflation isn’t a problem hasn’t tried shopping for a new home recently.
Housing costs are skyrocketing. The median sales price of existing homes has spiked 16% over the past 12 months (from $270,400 to $313,000) – the fastest pace in 15 years.
The real estate market is being pressured not only by a low inventories of houses listed for sale, but also by rising prices for construction materials.
Home builders must deal with a massive 200% increase in lumber costs since the onset of the COVID-19 pandemic. According to the National Association of Home Builders, lumber’s elevated price adds about $24,000 to the final quote on a typical new single-family home.
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
Gold and silver markets are exhibiting more signs of breaking out into a rally.
On Thursday, bond yields pulled back sharply. That helped fuel a new record in the Dow Jones Industrials. But the precious metals sector was an outperformer on the day, with mining stocks leading gold prices to a fresh multi-week high.
As of this Friday recording the upward momentum has continued and gold spot sports a weekly gain of 2.0% to come in at $1,786 an ounce. Silver is up 3.2% since last Friday’s close to trade at $26.23 per ounce. Platinum is unchanged for the week to trade at $1,223. And finally, palladium is trading up near a record high at $2,807 an ounce after advancing 4.7% so far this week.
Tom welcomes Stefan Gleason, president of Money Metals Exchange, to the show. The idea of sound money is something that holds it’s value over time in contrast to fiat currencies. The market has chosen gold and silver over thousands of years as the money that sustains and preserves purchasing power.
They focus on improving public policy at the state level via the Sound Money Defense League. There are more options for improving laws at a state level than at the Federal level, and they have had several successes. To that end, they have created a Sound Money Index that measures differences between states regarding policies like sales taxes. He outlines why sales taxes on investments like bullion is a silly idea.