You're not with the program Peter
Read up on "Fiat money".
"Fiat" means "by law" and the notes in your pocket only have value by an act of parliament. US$s, although worth about the same as ours HAS NO LEGAL STANDING here. No one is obliged to accept them as payment. Gold is the only currency which is not someone else's liability, ie It has no counter-party risk.
We live in an unstable world and people who feel insecure look to gold, not governments.
I agree. To continue my WW2 reference the German Riechmark was worthless as Germany collapsed and lost. Ironically, now valuable as collector item.
My point is: land, can be farmed to grow food which we all need. You cannot eat Gold. But really, this is off topic point.
What I do think is IMO you cannot use the reference of Gold Movement or whatever macro factor to apply to the future of AUS property market.
The Australia Property Market is a myriad of many markets all influenced my so many factors, local, regional, employment, supply, demand, social economic, etc that any attempt to predict is vague at best.
Mining town get enormous rents for dumps. Yet 100km away in a non mining town the homes are vacant?
Toorak or Double Bay rents for $$$$ when Melton or Penrith rents for $. Yet both provide a home?
What we have seen develop is the culture of "economic information overload". Anyone can post, release, commission a study that says X to go UP, DOWN and then the media runs with it. Bugger the parameters of the study, etc.. all news is media worthy.
Case in point: Median Prices in Victoria. State wide drop 3-5%. The region I live down 1-3%. The town I live up 25%.
The difference is because we have some low rent towns and some wealthy towns in our region. Those with cashed up ex yuppie white collar professional like me are not hurting so all is good. But the media does not care about that. It is either all gloom or all boom.
So without knowing that, would you invest here?
I am not preaching I am simply stating my investment strategy of find the best you can, secure you risk and take a punt. I am no guru. The moment you think you are a guru is when to get out.
regards Peter 14.7