The Silver Tsunami home price crash thesis was introduced in 2008 when the first baby boomers started turning 62 years old.
Now, more than a decade later, those first baby boomers are turning 74, and this thesis is reemerging as news again.
So what is the Silver Tsunami home price crash thesis?
In short, it says that older Americans are poised to sell their homes en masse, leading to a massive influx of inventory. At the same time, since Millennials are burdened with a large amount of student loan debt and have no savings, there won’t be any demand to absorb the excess inventory. As a result, housing prices will crash, leading to a devaluation of the dollar and hyperinflation. The only safe bet in these circumstances, as the theory goes, is to invest in gold.