(The Economic Collapse Blog)—When are we going to wake up and admit that our system is failing? If close to half of our young adults find themselves needing to live with their parents, we have a major crisis on our hands. Yes, there are some young people that are simply lazy and don’t want to work hard enough. I definitely understand that. But most young adults in America today don’t actually want to live with their parents.
Given the opportunity, they would love to have their own homes. Unfortunately, home prices have risen to absolutely absurd levels and housing in America is now more unaffordable than it has ever been before.
I feel so badly for the millions upon millions of young people that are struggling so much right now.
We encourage them to pile up giant mountains of student loan debt without ever considering the consequences, and then once they get out into the real world they quickly discover that the cost of living has become extremely suffocating.
As a result, vast numbers of young adults are finding that it is necessary to move back in with their parents…
Nearly half of all young adults are living with their parents — and they’re not ashamed to say it.
Moving out and living on your own is often seen as a marker of adulthood. But dealt an onerous set of cards — including pandemic lockdowns, decades-high inflation, soaring student debt levels and a shaky job market — young people today are increasingly staying put. What’s more, it’s no longer seen as a sign of individual failure.
Needless to say, this is not a good thing for our society.
The last time that such a high percentage of young adults were living with their parents was during the aftermath of the Great Depression…
These days, about 23 million, or 45%, of all Americans ages 18 to 29 are living with family, roughly the same level as the 1940s, a time when women were more likely to remain at home until marriage and men too were lingering on family farms in the aftermath of the Great Depression.
So why is this happening? One of the primary reasons why this is happening is because high interest rates have pushed housing costs to insane levels.
This week, the average rate on a 30 year fixed mortgage reached 7.19 percent…
US mortgage rates remained flat this week, hovering over 7%, where they’ve been for six consecutive weeks as inflation pressures persist.
The 30-year fixed-rate mortgage averaged 7.19% in the week ending September 21, a tick up from 7.18% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 6.29%.
“Mortgage rates continue to linger above 7% as the Federal Reserve paused their interest rate hikes,” Sam Khater, Freddie Mac’s chief economist, said. “Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect,” he said. “Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply,” Khater added.
And this isn’t even going to be the peak.
In fact, NAR chief economist Lawrence Yun is warning that “in the short run, it’s possible that mortgage rates may go up to 8%.”
8 percent? Are you kidding me?
Even now, mortgage payments have escalated to absolutely crazy heights. Earlier this week, the following example was posted on Twitter by Amy Nixon…
This home sold in 2021 for $685,000
Buyer’s monthly payment? $3526
Buyer’s monthly payment today? $8402
“But wages went up!”
“But people have cash now!”
NO—THIS IS COMPLETE INSANITY
STOP PRETENDING IT IS NOT
She is right. This is nuts.
Only a very small percentage of the population can afford such monthly payments, and so millions of potential buyers are being sidelined. And millions of potential sellers are being sidelined as well, because most of them would need to purchase another home if the current home they are living in was sold.
So the vast majority of us are trapped in our homes right now. Most of us simply cannot afford to move because the mortgage payments would be way too high. Obviously, this is one of the main things that is greatly depressing home sales right now.
Sales of previously owned homes declined again in August. If you can believe it, they were actually down a whopping 15.3 percent from the already depressed level that we witnessed in August 2022. If you want to thank someone, thank the officials at the Federal Reserve, because they created this mess. Overall, Fannie Mae is projecting that this will be the worst year for home sales since 2011…
US home sales are headed for the biggest slowdown since 2011, according to Fannie Mae.
The government-sponsored mortgage finance company forecasted total home sales to slump to just 4.8 million this year, marking the slowest sales environment since 2011. That figure will only improve slightly in 2024, with total home sales expected to hit 4.9 million, Fannie Mae economists said.
If our young adults cannot afford to purchase homes, at least they can afford to rent places to live, right?
Wrong.
In recent years, rents have skyrocketed all over the country.
At this point, the national median asking rent in the U.S. is over $2,000 a month…
Landlords are continuing to ask near record-high rents amid a tight housing market, but tenants in some parts of the country are still finding deals, according to a new study from Redfin.
The asking rent in August was $2,052, up slightly (0.7%) from just a month earlier when the asking rent was $2,038.
When I was a young adult, I remember renting an apartment for $300 a month. And I thought that was expensive.
Unfortunately, I don’t see much help for our young people on the horizon. The Federal Reserve does not plan to cut interest rates any time soon. And it will be quite some time before housing prices decline enough to be considered “affordable”.
So if you are a parent, please be patient with any young adults that you currently have living at home. Factors outside of their control have made housing more unaffordable than it has ever been before, and economic conditions are going to continue to get harsher all around us.
Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.