MILLIONAIRE METRIC Vancouver, Calgary & Toronto Single Family Detached and a Millionaire all priced in $CAD Ounces of Gold
The chart above attempts to look for breakouts or breakdowns in the hot Canadian real estate markets when valued in a globally traded "currency".
Bullion attracts investment when credit markets contract because of its classic use as a hedge against currency depreciation and its ability to act as a store of value.
In October 2020 the nominal price of gold dropped 3.6% denominated in USD and down 3.7% in CAD and the TSX Gold Index turned down from the August 2020 high after failing to break above the 2011-2012 peak but remained well above the midpoint of the last 6 year price channel and well above the 2016 high.
Gold pricing is being liberated by the underlying price of oil which after rallying into January 2017 has been heading lower on growing supply and now with the Covid 19 drop in demand. But Interference to this gold rally is the need for global USD debt holders to sell gold to offset the need to raise USD for debt repayment.
This chart downtrend is your friend if you own gold and are looking for an entry into the single family housing market. Calgary housing has been heading towards a value proposition since 1Q 2016 especially with Employmment Earnings in Alberta that remain the highest in Canada and 9% above the national average.