Deb Stanitz Realtor

Lawrence YunLawrence Yun
• 2ndVerified • 2nd
Chief Economist at National Association of REALTORS®Chief Economist at National Association of REALTORS®
4d • 4 days ago • Visible to anyone on or off LinkedIn

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Inflation at 3% in September is not yet contained. But the Federal Reserve according to the predictions market is set to cut short-term rates two more times before the year end. The Fed shifted its focus away from inflation and into the softening job market. The September jobs data are not out due to government shutdown but may indeed be negative.

In addition the housing shelter component of consumer price inflation (essentially rent growth) is showing moderation. Up 3.6% from a year ago, the slowest gain in about 4 years. Further deceleration in this figure is likely based on private sector data showing virtually no rent growth.

Still because of the loosening monetary policy at a time of not fully contained inflation the gold prices - due to the inflation hedge characteristics - are at super high levels. Hard to believe that the gold price per troy ounce was in $200s just 25 years ago and now at above $4,000.

Aside from gold, other precious metals and jewelry, real estate can also serve as a good inflation hedge. One wonders if real estate prices could get a lift. Certainly the high gold prices is suggesting a lower chance of a sustained big home price correction.

In the meantime be cautious of the hawkers who want to buy gold from the elderly. Some older people may not be aware of the current market price and may think selling at a double or triple the price of what they paid for is a good deal.

I am sharing this post from LinkedIn from Dr Lawrence Yun, Cheif Economist at National Association of REALTORS® because I want people to be aware of the current value of gold. I was quite astounded when I read this. Deb