-thoughts and ideas

Thursday, January 17, 2008

Cost vs. Value

What is the real cost of something? Then what is its value...its real value as it is to you? I've been watching the decline of the dollar and the ascent of gold. I think it was in 2001 gold was less than $300 per ounce. Now as of Monday it was $900 per ounce. I only think that the dollar weighs less mostly because that is what I'm told by newspapers and financial columns. Now that I'm looking to buy a house I'm really starting to grasp what the value of things really is. Will the house be worth more in a few years? Next year? How long do I want to live in the thing? Do I want to live there at all? Is it really worth parting with $100,000 or should I look for something much nicer, but one that'll put me close to broke on a monthly basis? I don't know, I've heard that renting may still be the right thing to do for a little while longer.

But still, how does the value of $1.05 for a coke compare to $105,000 for the house? Could I buy it using cokes? I might like to try that, but I think ringtones are a better currency for now.

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