When the dollar starts looking a little shaky and inflation won’t take the hint, investors do what they always do, move.

But this time, the flight to “safe” assets isn’t just about gold bars and blue-chip stocks. It’s crypto wallets, prime real estate, and anything that feels real enough, even crypto, to outlast the next round of policy drama.

Call it “The Debasement Trade”, or just another reminder that in uncertain times, cash is no longer king.

• On Wall Street, “The Debasement Trade” is a bet that government borrowing and money printing will erode the value of the U.S. dollar, prompting investors to shift into assets like gold, crypto, stocks, and real estate that can hold value. (CNBC)

• Gold continued its upward move—now at $4,150, another record and up 57% since January. (CNBC)

• Ken Griffin (Citadel) has expressed serious concerns about the U.S. dollar’s declining dominance, viewing the surge in gold prices as a symptom of investors seeking safer assets. Political actions are eroding confidence in Treasurys and the dollar—America’s “most powerful financial brand.” (Yahoo Finance)

• CRYPTONAIRES? There are now an estimated 241,700 individuals with crypto holdings worth $1 million+, up 40% from last year. There are 450 centimillionaires and 36 crypto billionaires. Crypto wealth added $145 billion in spending in 2024, much of which flowed into real estate. (CNBC)

From crypto millionaires parking profits in single-family housing to hedge-fund giants quietly stacking gold, the message is clear: confidence is migrating. Nobody’s waiting for the dollar to bounce back, they’re already hedging with whatever holds its value when trust starts to wobble. In California, that might mean owning a piece of the coast, a slice of the skyline, or a few digital coins that could one day buy both.

Fortunately for readers of this newsletter, you probably own some of the most expensive and stable real estate in the world. Please reach out if you would like to buy or sell more!

IN OTHER 90402 REAL ESTATE NEWS

There are currently just 19 Active listings in the 90402 “flats”. The most recent:

The most recent active listings:

511 9th Street - Listed for $5,200,000. This single-story, 1920s Spanish, should sell quickly with more than 1 offer. It has been tastefully redone though it has a somewhat quirky floorplan. Last sold in 2018 for $3,450,000.

528 Marguerita Avenue - Listed by Pence Hathorn Silver for $17,818,000. This is a sleek new construction, modern home. Over 7,700 sqft including a detached guest house, invisible edge pool, wet & dry saunas, theatre and elevator - all on a large 11,000+ square foot lot.

723 14th Street - Listed for $3,999,000. This is a cute little Traditional right near my Montana Avenue office. It came on the market a couple weeks ago and quickly went under contract. Unfortunately that escrow did not go through and it is back on the market.

There are 5 properties in Escrow:

360 23rd Street - Listed for $5,195,000.

624 22nd Street - Listed for $6,949,000.

728 11th Street - Listed for $2,595,000.

212 16th Street - Listed for $3,995,000.

428 10th Street - Listed for $8,995,000.

There have been 17 sold in the last 30-days:

1308 San Vicente Blvd - Closed last Friday for $5,650,000. Listed by Pence Hathorn Silver at a strategic pricing of $4,995,000 in order to entice multiple offers and sell for 13% over list price.

1730 Georgina Avenue - Sold by Pence Hathorn Silver for $6,450,000. Originally listed for $5,195,000.

315 26th Street - Sold for $3,350,000. Originally listed for $3,500,000.

415 Palisades Avenue - Sold for $6,513,000. Listed by Pence Hathorn Silver for $6,475,000.

752 25th Street - Sold for $3,500,000. Originally listed for $3,495,000.

210 15th Street - Sold for $5,800,000. Listed for $5,195,000.

416 4th Street - Sold for $7,355,000. Listed for $7,475,000.

218 16th Street - Sold for $3,790,000. Originally listed for $3,750,000.

602 26th Street - Sold for $2,650,000. Originally listed for $2,800,000.

634 15th Street - Sold for $4,700,000. Originally listed for $7,995,000- this is a pre-completion new construction with the Buyer taking over the construction costs directly- hence the lower sales price.

625 15th Street - Sold for $3,726,000. Originally listed for $3,700,000.

560 16th Street - Sold for $10,050,000. Originally listed for $8,485,000.

704 Georgina Avenue - Sold for $5,029,000. Originally listed for $4,995,000.

416 Marguerita Avenue - Sold for $11,625,000. Originally listed for $11,495,000.

316 22nd Street - Sold for the listing price of $7,750,000. 

428 11th Street - Sold “off-market” for $6,500,000.

404 21st Street - Sold “off-market” for $3,825,000.