Real Estate vs Gold
When we talk about real, physical property and tangible assets there are always two (2) very familiar investment options that come in mind …
Real Estate & Gold
It may sound as though we were comparing apples to oranges. And up to a certain point, we are. However, they share at least three common features; rarity, durability and scarcity. Given these similar characteristics, it may be hard to decide, however there is a way to know the differences between the two before you trade cash for gold.1
REAL ESTATE investment can be a profitable and reliable investment opportunity to generate substantial returns. It can create a regular income flow while supplementing your portfolio with exceptional benefits such as tax advantage, diversification, and a less risky investment choice.2 It should be with the right knowledge of the market situation and the kind of property you are investing in.
GOLD is the most popular choice for ages passing it from one generation to another. The top benefit of investing in gold is that your investment is very flexible. You can purchase in grams depending on the amount of money you have to invest. So basically, the gold investment can start from a few thousand depending on your investment appetite. 2
INVESTING IN GOLD, is INVESTING IN THE LONG-HAUL
Gold as a commodity is best for long-term investment. The numbers show that gold is a good asset to hold and has less volatility than stocks. If you are planning to retire or to pay for your kids’ college fees, gold is more attractive of an asset. Even in the event of a downturn, it is unlikely that gold would lose all of its intrinsic value.
In tough economic times, such as when there is high inflation, the price of gold typically increases. This is because in such circumstances, investors trade cash for gold to store value and protect their wealth. Gold is viewed as being a stable commodity for which price is not really affected in recessions. Experienced investment managers will tell you that gold serves as a good foundation in an investment portfolio, and that is due to its lack of volatility in the markets.1
Gold or Real Estate – is a better investment option which depends on your situation and purpose of investment and whether you are willing to get locked in a longer time with real estate property with more returns or you would like to enjoy the greatest liquidity by investing in gold.2
The safest approach is, essentially, to have a diversified investment portfolio. You would buy gold and complement it with equity investments. Ideally, this would be for the long term. In order for you to earn some extra income, especially in periods when the housing markets are strong, real estate will then top up these investments.
By now, it should be clear to you that each of these options for investment has its pros and cons. You may want to invest in something that ensures a fast return for you, or you may have specific preferences. A significant first step in deciding how to trade cash for gold, equity or real estate would be to address your requirements with a good gold broker or investment manager.4
1 Gold or Real Estate: Which One is the Better, posted by Wall Street | April 16, 2019 | Business, Economy, personal finances, Real Estate | www.wall-street.com
2 Comparison between Gold vs Real Estate: Which is Better for Investment? By BI India Bureau, Business Insider India | December 4, 2019 – www.businessinsider.in
3 Real Estate vs Gold – What is the right Investment Option for you? – www.coverfox.com
4 Gold or Real Estate: Which One is the Better, posted by Wall Street | April 16, 2019 | Business, Economy, personal finances, Real Estate | www.wall-street.com