Presently it takes about 360 ounces of gold to buy an average house in Toronto, which is the same as in 1975. During the Hunt brothers silver sting, late 1979-early 1980, in only took 100 ounce for an average house.

However, during peak housing in 1989 and in 2005 it took about 600 ounces for the same average house. The trend since 2005 is down meaning we get more housing for our gold, the question is, are we going to see a repeat of 1980 when it took only 100 ounces for an average Toronto house.

We all have been told that housing is the best investment, but the numbers show that gold has basically equalled with variations of course.

What's the difference? Housing is required but there has been lots of speculation and people have excess housing as compared to basic needs, we see young people moving back home because of tough times etc. It is expensive to maintain a big house with taxes etc, so if not needed and if not percieved as a good investment, why keep it?

Gold of course has no significant real use, and is only used to store or increase value. The market is pretty small so it does not take lots to drive it either direction. The way I see it is that gold is the only 'value' that will not go down, rich people need a safe way to keep their wealth, and if housing goes with the dogs, there is no other place to hide wealth as far as I see.

I think a problem for KXL is that we are so far away from any production that in the short term we have less of chance to gain for the gold interest, but it will come.