The Economist recently reported that “house prices are falling even faster than during the Great Depression”. The housing bubble kept inflating for far longer than most expected.

Like the Energizer Bunny, it just kept going and going. Now the unwinding is taking longer than expected, too. (It takes time for sellers to throw in the towel and accept a lower price.)

This is more evidence that consumer pain is near the start rather than the finish. There is plenty more pain to come… and that means the Federal Reserve will be cutting rates and flooding the system with paper money again later this year.

That’s good news for gold and bad news for the U.S. dollar. It’s also something Wall Street hasn’t fully priced in yet, which means there’s still plenty of upside for gold.

Justice Litle
Editorial Director, Taipan Publishing Group

Source: Housing’s Fall Means Gold Will Rise