The following chart presents the median single-family home price divided by the price of one ounce of gold.
This results in the home/gold ratio or the cost of the median single-family home in ounces of gold.
For example, it currently takes 153 ounces of gold to buy the median single-family home.
Considerably less that the 601 ounces it took back in 2001.
When priced in gold, the median single-family home is down 75% from its 2001 peak.

WEDNESDAY, APRIL 28, 2010
Barrick’s (TSE:ABX) Soars Past Estimates
Barrick Gold (TSE:ABX) (NYSE:ABX) had a great quarter as they exceeded analysts’ estimates by a solid amount, with revenue and profits climbing on the increase in price and sales of precious metals.

Earnings rose to 75 cents a share, beating the 63 cents a share analysts had looked for, on revenue of $2.56 billion, a hefty increase of 44 percent from the year before in the same quarter. Earnings last year came in at 42 cents a share.

Net income was over twice what it was a year ago, coming in at $758 million 76 cents a share in contrast to $371 million, or 42 cents a share last year.

The average price of gold during that time was $1,114 an ounce, while gold sales for the company increased to 2.07 million ounce, a 21 percent rise.

Demand for gold is the driver of good results, as it’s becoming the preferred safety haven for investors and hedge against inflation.

Although gold it the predominate force at Barrick’s, copper helped the results for the quarter as prices there continue to surge. Copper accounts for approximately 14 percent of overall sales in 2009 for the company.

Guidance from Barricks is for 7.6 to 8 million ounces of gold production for 2010 at a cost of $425 to $455 an ounce.

GOLD: A Climb Back Above The 1,169.70 Level Expected

GOLD (Futures): With a wipe out of most of its previous week losses occurring the past week, bull pressure has started building up towards the 1,169.70 level, its 2010 high. The commodity maintains a clear upside theme in the medium-term buttressed by its long-term rising trendline originated from the 700.22 level. Eventually overcoming the 1,169.70 level will mean a resumption of its 2010 gains towards its psychological level at 1,200 with a clearance of there paving the way for a run at its 2009 high at 1,226. Pressure will build on the 1,250 level if the 1,226 level gives in. Its weekly RSI is bullish and pointing higher supporting this view. Conversely, the commodity has its first support at its April 19’10 low at 1,123.70, and its long-term rising trendline presently at the 1,094.70 level. A cap is likely there thus turning Gold in the direction of its primary trend. Overall, having halted its recent declines and sustained a hold above the 123.70 level, risk remains to the upside with eyes on the 1,169.70 level

http://www.cnbc.com/id/33614765

Excellent article on why China is leaps and bounds ahead in gathering commodities…Please click the link to read the entire story

Commodities Corner
China muscles deeper into global commodity markets

Last Update: 7:00 AM ET Oct 30, 2009
China’s building muscle in the commodities markets, active in countries from Canada and Australia to Venezuela, Brazil and Africa — all with the aim of securing supplies of natural resources for its growing population and rapidly expanding economy. It’s a strategy that, for better or rose, has effectively raised the competition bar for the rest of us. …Read the rest of the story http://www.marketwatch.com/news/story/china-muscles-deeper-global-commodity/story.aspx?guid=%7BA5BA274E%2D0E2A%2D4E6F%2D8BC2%2D1ECA716B3137%7D&siteid=nwhfriend

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