By Dominic Frisby
What's the most controversial topic we've ever tackled? You'd think it might be something about exploiting rising food prices. Or bankers' bonuses. Or even vice stocks.
I doubt any of you would have guessed: "the ratio of gold and silver to house prices". Yet that is the subject that holds the record for reader comments – by a long chalk.
And today I'd like to update you on that topic.
The best way to measure house prices
Let's kick off with a stat that I find amazing. Did you know that if you had sold your average British house in late 2004 and bought silver – just regular bars of silver – you could now sell that silver and buy 5.5 average British houses?
As we all know, money seems to buy you less and less each year – the above statistic really brings this home. This is because we operate under a system of 'fiat' (from the Latin, 'let it be done') money and credit. Churchill described it as money 'by government edict'. In other words, it is the law that what we use as money be money. Without that legal backing, modern money would be just a meaningless computer digit or piece of paper..........read on