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**ALERT** THIS Is Why SILVER Beats Real Estate · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

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  Silver right now is is so undervalued it almost doesn't
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  make sense. Silver and gold are safe haven
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  investments. Many of us put our money into
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  the precious metals to protect ourselves against things like
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  hyperinflation, economic doom. But what about our houses?
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  What about residential real estate?
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  Many of us look at that as well as a way to protect ourselves.
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  Today, we're joined by our friend Brian from Mountain
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  Bullion Entertainment. We're going to talk about
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  residential real estate and what's going on in that market.
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  Will it protect us from economic calamity, hyperinflation.
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  Brian, welcome back to Ron's Basement.
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  Hello, Ron. Thank you for having me back in
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  the basement. It's an honor to be here with
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  you today, and it's my pleasure. Well, it's it's our honor to
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  have you as well. So I'm sitting here in my
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  basement of my house. Am I sitting in a safe haven
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  asset? Any?
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  Any thoughts on what might be coming down the road for the
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  real value of residential real estate?
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  Yeah, unfortunately it's looking like there's a lot of warning
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  signs we're going to have a downturn in the housing market.
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  Some folks are calling it housing crash and I think in
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  some areas it will be at that level.
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  All the different areas will probably behave differently.
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  So some might be affected more than others.
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  Right now the mortgage rates are the highest they have been in 23
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  years. On top of that, of course, we
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  have very high interest rates and it's just a very
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  unaffordable housing market for people who are looking to park
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  their money in housing as a safe haven asset as opposed to the
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  precious metals they say that you're not.
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  Go, go ahead, Go ahead. Sorry.
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  They say that in October, the amount of home sales dropped to
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  the lowest level since the Great Recession.
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  And right now the new home listings are rising faster than
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  demand. So we're kind of seeing this
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  vergence as the inventory just now is starting to pile up and
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  the price cuts have already started in several areas, most
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  of them being in the Western United States.
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  Yeah, you know, I think it's important to point out not only
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  are mortgage rates higher, which makes owning a home if you need
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  to borrow money much more expensive, but the actual price
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  of the homes have gone up as well.
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  I like to use the example and I live in a middle, upper middle
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  class area of Saint Louis and and we've not had these
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  astronomical price increases. But I can tell you that three
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  years ago the average house in my neighborhood would sell for
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  about 300,000. Now those same houses are
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  selling for $500,000. So a person who three years ago
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  bought the house for 300,000 with a 3% mortgage compared to
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  the person today who wants to buy that exact same house, but
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  now it cost them 500,000. But as an extra added bonus by
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  Dynamics kicker, they're going to have an 8% mortgage rate.
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  The the, the monthly payment on the same house compared to three
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  years ago is at least twice as high and could be as much as
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  three times as high. I mean because when we when we
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  talk about these mortgage rates that we hear too, those are for
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  people with really good credit and there's fewer and fewer
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  people in the United States with really great credit.
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  So it's a big, big problem right now.
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  Absolutely. And that's a really good point.
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  The advertised rates, a lot of times people aren't going to get
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  those. A lot of a lot of people right
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  now are over 8% on just their interest rate.
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  And the price increase that you're talking about, it is so
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  big. We are looking at the biggest
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  housing bubble of all time in the United States.
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  Even when you adjust it for inflation, the rate of price
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  increases was is just off the charts and so there will be some
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  correction in regards to that. Housing right now is just
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  unaffordable for most people and so go ahead.
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  Oh, I was going to say when I when I when I, when I think
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  about the, let's say, physical silver that I own.
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  And I also think about my house because I own this house.
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  And I have an idea, you know what it would if I if I sold it
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  today or maybe it sold it a month ago because I think the
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  market's turning already. I feel much more comfortable
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  with the value that I have in silver as opposed to what I
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  consider the value of what I have in my house that that that
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  silver is, is is positioned much more favorably right now.
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  And the value of the house at the quote, UN quote, current
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  market price, does that, does that make sense?
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  If you're looking to buy gold, silver or platinum, do yourself
• 5:23
  a favor and check out Pinbex, the online precious metals
• 5:27
  bullion dealer and sponsor of Ron's Basement.
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  I was a happy customer before they offered to support the
• 5:34
  channel. You'll find they have the best
• 5:36
  prices, quality and service. I think Pinbex is best and you
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  will too. And be sure to tell him that
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  you're from Ron's basement and that's a really good point to
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  bring up silver right now is is so undervalued it almost doesn't
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  make sense. You know and a lot of that has
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  to do with the what's going on at the COMEX with these big
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  bankers like JP Morgan. So, so silver right now is you
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  know it's just dragging along it basically the lowest price it
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  can where is housing is really set to to lose some of that over
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  inflated value. Right now there is more housing
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  inventory than there was last year at the same time a 6% more.
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  But what the kicker for that one is, is a lot of these big multi
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  family structures are going to be coming on the market over the
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  next few months and of course winter is typically time of year
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  when we see a downtrend in pricing anyway.
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  So as this inventory starts to pile up with these higher
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  interest rates and these higher prices, it's going to put a lot
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  of downward pressure on the price of housing.
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  And it is something where you know for your comparison, you
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  know if you're sitting on silver right now, it has a lot of
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  upside potential property right now is most likely going to be
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  losing value over the next year or two.
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  Yeah, boy. I tell you what, Brian, I almost
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  abruptly ended this interview 'cause I couldn't believe you
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  said something derogatory about the Comex.
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  You know, those guys at the Comex go in there every day, and
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  their number one priority is to determine a fair price for
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  silver and gold and all the other commodities that they
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  trade. So I just wanted to set that
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  straight. Yeah, they're they're such
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  honorable folks over there, you know, just just helping the the
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  fair market value of the metal shine through.
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  Absolutely that's the case. We'd like to thank our no.
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  Anyway the other thing that you brought up which is a great
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  point and and I didn't think about this and I'm sure the
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  viewers, I I hope they caught this as well.
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  When you look at the the value of residential real estate and
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  you compare that to the value of let's say silver.
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  Silver is one of the most undervalued assets in the world
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  right now, whereas residential real estate, I think the
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  argument can be made as one of the most overvalued assets in
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  the world right now. Now, in terms of looking at your
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  house still as a store of value or a hedge against, you know,
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  oncoming calamity, whatever. I'm not saying a house is a real
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  asset. It will retain.
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  Some level of value and it does have that benefit that it is a
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  real asset. It's not you know paper Unicorn
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  fart does paper Fiat money or anything like that.
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  So it is going to retain some level of value.
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  But when you compare the two right now you've got one of the
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  most overvalued assets in residential real estate and one
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  of the most under. So I'm thinking the idea is that
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  I sell my house and live in A and buy silver.
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  And live in a very heavy trailer for the next couple years.
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  But you know, some of the people who sold at the peak, you know,
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  that are kind of on the sidelines right now renting.
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  I'm not sure if they parked their money in silver, but
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  they'd probably be counting their blessings here in four or
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  five years had they made that move.
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  Because I think the way that you put that was really good.
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  It's so overvalued right now and you know you're looking at one
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  Safe Haven asset that's going to be going up in value and another
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  one that's going to be going down.
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  Yeah, yeah, yeah. They sold their house and maybe
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  they'll be able to buy that condo for 75 ounces of silver in
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  the future. You know something else that I
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  like to point out and I want to get your thoughts on this as
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  well as we look at. The construction industry,
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  right, and it's a pipeline, right, resident, you talked
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  about that pipeline kind of we got a lot of new inventory
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  coming on the market in a couple of years.
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  If you take a step back in that pipeline, the company
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  Caterpillar about four weeks ago had their earnings release.
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  And they, they painted a not too rosy picture in terms of their
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  their order flow in terms of, you know, who's ordering this
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  big earth moving equipment. And maybe I dive in too deep and
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  and try to see too many forests through too many trees.
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  But what that told me was, you know, the beginning phase of any
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  new construction project is Earth moving, right.
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  That's the first thing. That has to be done.
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  And if Caterpillar's throwing up a red flag saying, hey, our,
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  our, our order flow is going down, I think that tells us that
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  that that that whole industry could be moving into kind of a
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  a, a period of contraction. You know, that's a really good
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  point and I'm glad that you brought that up.
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  So Caterpillar is already seeing that at the very first stage of
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  construction for these big projects.
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  And yeah that I think that's a smart thing to look at.
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  I mean they say that 32% of home builders cut their prices last
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  month and you know the affordability as as at a 39 year
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  low they're going to have to. I mean it's just it's just a
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  matter of time till the vast majority of these home builders
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  are cutting their prices unless you know they're in an area that
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  really didn't get affected by the bubble which is you know
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  they're going to be few and far between.
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  And so, yeah, that's a really good point, you know, and I and.
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  And I think we're just in this like little oh, you know like
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  when the on the Roadrunner cartoon or was it Wiley Coyote
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  when he would run off the Cliff and he would kind of sit there
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  for a second before he dropped. Yes.
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  Does does that make it feels like maybe we're there now
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  because because I know you know I know some some some very
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  successful real estate agents that are here and one of them
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  lives in my neighborhood. I see him walking by once a week
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  and. It it, you know, they're they're
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  like, they're telling like the volume right now of transactions
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  is like, I'm for lack of a better way to describe it, a
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  fraction of what it was like 18 months ago, two years ago.
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  You know, we're in this weird situation where prices have
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  skyrocketed. Everybody thinks their house is
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  worth twice as much as it was three years ago.
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  But everybody's and we, and I think this is an important point
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  for us to touch on. Everybody's trapped.
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  Well, people with mortgages are trapped, right?
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  Because if you bought a house three years ago with a 3%
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  mortgage, right, you're you're sitting there now.
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  And if if your if your spouse is saying I want to buy a bigger
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  house, we need more room, we need a bigger house and you say,
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  OK, let's go out and look for a new house.
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  And and your spouse says, well, our, our house has gone up in
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  value by twice as much. You know, let's go buy a bigger
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  house and you go look at a bigger house.
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  Well, the value of that bigger house has also gone up
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  significantly. And if you look at the prospect
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  of getting rid of your 3% mortgage and moving up to a
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  bigger house at a bigger price at a higher rate, you can't do
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  it. So people are trapped.
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  People are trapped in. I mean, people with mortgages
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  are. Generally speaking, trapped
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  where they are. So we're in this, this period
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  where there's very little activity and and a very, what I
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  would say, delicate balance right now between buyers and
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  sellers, but that can change very quickly.
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  First, Mining Gold is a development company advancing
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  two of the largest gold projects in Canada, Spring Pole in
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  Ontario and Du Parquet located in Quebec.
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  Each already has. 5 million ounces of gold.
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  Reserves, but exploration? Initiatives are under way at
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  both projects to find even more gold.
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  First, mining is well financed. Has zero debt.
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  And owns an interest in four additional Canadian Gold
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  development projects. I love the the comparison, you
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  know, being in the air with your feet spinning like, oh, what
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  happened? I just ran off a Cliff.
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  You you know and because. Yeah, you that that really is a
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  a good way to look at it. You figure you know if you're
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  sitting on a 3% mortgage rate you know you're thinking well
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  I'm just gonna try and weather the storm cause The thing is is
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  I I watch my housing market pretty closely and what I've
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  noticed very similar to your market out there, there's not a
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  lot going on. The loan representatives at my
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  local credit union, they laid off half of them just 'cause
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  there, there's nothing for them to do.
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  And you know, if if you're sitting there on a 3% mortgage
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  rate and you're looking around, well, OK, maybe I'll sell my
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  house. And then you think, huh?
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  All right, well, I bought this in, you know, early 2022.
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  And the the homes in my neighborhood that have sold
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  recently, Well, let me see. There's eight homes on the
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  market. Only two of them have sold and
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  they've sold for less than what my home is worth.
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  So if I sell my home right now, well, I'm going to take a loss.
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  You know, I only put 3% down on this home as it's I'm not going
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  to be able to sell it for what I bought it for.
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  I'm going to have to pay all the fees when I sell this thing.
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  And then when I go to buy another home, I'm going to have
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  to pay all those fees again. And and so you'd feel really
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  trapped. And it, it makes sense that
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  people decide, well, I'm just going to weather the storm out
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  and hopefully in five or six years, I'll have paid down, you
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  know, the principal enough that that I'm not underwater on this
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  thing anymore. Because a lot of folks that
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  bought at the peak, they're already underwater whether they
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  realize it or not. If they went to sell, they'd
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  realize that they were. What I've noticed in my area is
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  the homes that have been selling, the only ones that have
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  been selling are the ones with big price cuts.
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  And it's gonna take a while for it to recalibrate, for the
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  market to recalibrate and go, OK, so the true value in this
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  area is actually 15 percent, 15% lower now than what we thought
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  it was at, you know, in October. Yeah.
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  And and and mortgage rates aren't going back to 3% anytime
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  soon most likely, right? I'm not offering financial
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  advice. I'm sure Brian would say the
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  same thing, but I would be very cautious about.
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  Buying a new house right now could be wrong, but if it were
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  me and I had the choice, I'd go with Silver.
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  Absolutely, yeah. And I'm not offering financial
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  advice either. I would definitely go with
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  Silver. Getting into real estate right
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  now would be very risky, yet you know, you'd probably end up
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  losing your butt. Even the Wall Street Journal
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  recently had an article saying that, you know, the Wall Street
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  investors think that the housing market is overvalued.
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  And it wouldn't surprise me if we start seeing some of these
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  big investment groups like Invitation Homes, you know,
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  which happens to be a 10% owned by BlackRock, offloading some of
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  their inventory, especially in cities where they've kind of
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  over saturated the market. You know, they're probably going
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  to want to start getting some of these homes off of their plate,
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  which will put additional downward pressure on the price
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  of housing. Yeah, I mean people just can't
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  afford it. I'll, I'll wrap up with this.
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  The I think it's Goldman Sachs puts out a housing affordability
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  index and it's been like the lowest and decades, right.
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  I mean people, if you just do the basic math, you know again
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  if I just look at my neighborhood, half $1,000,000
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  for a house and at seven 8% interest rates.
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  It just doesn't work. I mean, you know, especially
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  when you've got most Americans now are carrying credit card
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  debt, auto debt, student loan debt, everything else on top of
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  that, it's it's becoming a very, I feel like precarious
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  situation. We'll see if if Wilee Coyote,
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  you know, jumps back onto the Cliff or if he does fall
• 18:08
  straight down. Mountain Bullion Entertainment.
• 18:13
  That's Brian's channel if you want to hear more from Brian.
• 18:16
  Go to the YouTube channel Mountain Bullion Entertainment.
• 18:19
  Subscribe please. OK, because he puts out great
• 18:22
  information, great content, and in the comments section on one
• 18:26
  of his videos, tell him you're a basement dweller from Ron's
• 18:28
  basement. He'll give you a special.
• 18:30
  Welcome. That's correct.
• 18:32
  I absolutely will and thank you very much, Ron, for having me.
• 18:35
  I really appreciate it and I do look forward to speaking with
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  you in the future. Yeah, likewise.
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  Have a great day. We'll see you soon, Brian.
• 18:42
  Thanks. You too.
• 18:42
  Have a good one. All right, buddy, That's a wrap.
• 18:48
  That's a wrap. Did I?
• 18:50
  I did it in both? No, I.
• 18:51
  Don't want to end Hold on here, I don't want to hang up on you.
• 18:54
  Stop.