A House For An Ounce of Gold?

I read recently where you might be able to buy a decent sized house for an ounce of gold in the not too distant future. Well, I chuckled to myself when I read that. Even I, gold bull that I am, thought that was a bit of a stretch.

But then I read this article from the NY Times talking about foreclosed homes alreadly being purchased for $1,500 in some of the hardest hit areas of the country.

Excerpt:
So much here defies reasonableness. It’s what [Councilman] Brancatelli keeps telling me. A few months ago, he met with Luis Jimenez, a train conductor from Long Beach, Calif. Jimenez had purchased a house in Brancatelli’s ward on eBay and had come to Cleveland to resolve some issues with the property. The two-story house has a long rap sheet of bad deals. Since 2001, it has been foreclosed twice and sold four times, for prices ranging from $87,000 to $1,500. Jimenez bought it for $4,000.

Gold is currently around $1000/ounce. If this crisis moves from a regional one to a national one, I am now wondering if this statement about buying a house for an ounce of gold might not be so far fetched.

What size house? Guess it depends of the price of gold. UBS recently speculated gold could go as high as $7,000 - $10,000 an ounce eventually.

Not saying that will happen, but it sure is food for thought.