Has your house price REALLY gone up?
By Faisal Amjad

Here's how to check for sure

Published in: Wealth
Date: 29 / 11 / 21

There’s a cool website which has just come out called http://worthingold.com/

With inflation going crazy right about now — with worse in store — it is a calculator which has historic gold prices programmed in — so you can compare transactions such as house sales et al against the gold standard.

This is actually hugely insightful to understand the TRUE value of things as with house prices going up, energy prices going up, football transfer fees going up, it’s easy to get lost in the eye-watering numbers to the point of meaninglessness. But having a consistent baseline to track against shows us the reality of the loss of purchasing power (and stealing of wealth, under our noses) that has taken place.

Here’s an example. Let’s say there’s a house bought for £300k 5 years ago. Right now, with the property ‘boom’ they’re getting offers of £400k+ for it today. Not bad, eh? £100k in just 5 years, nice little earner etc. Would you cash in? Many may be tempted.

But now let’s apply the gold calculation. 300k in 2016 was worth 332 gold oz, but 400k today? 316 gold oz. Boom — you’ve actually LOST 16 gold oz of value — which at todays prices is around £20k. You’d actually be making a loss on the property.

You might think — oh that’s because gold prices have gone up. No — it’s because your money is worth less — so it can buy less gold at that price.

It’s really important to have an all-powerful source and baseline of truth, which I’d say is the only thing that can guide us in such a deceptive confusing age. It can cut through all the haze. Without this compass, we can get lost at sea. The gold baseline, unchanged and consistent throughout history we can trust — meaning all else must be judged against that as the overall criterion. This is how the Quran works for us, as Muslims.

With all that in mind, we really need to start investing more and more in gold and silver. Not only is it sunnah money — it is a store of value and therefore protected against such volatile inflation.

When the silver dirham was invented 1,400 years ago, it was pegged to the price of a chicken. Meaning to buy one chicken back then, the price was 1 silver dirham coin. Today? The price to buy a chicken is STILL 1 silver dirham.

Now that’s what real money should look like.

Faisal Amjad

About the author

A lifelong learner, avid reader and passionate writer, I am the founder of KNOW and a serial entrepreneur.
I am a huge believer in personal development and am also the co-founder of Muslim CEO.

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