A comparative analysis of gold vs real estate as an investment option

Gold and real estate are two investments that often confuse investors. Even though we as investors spend our days tracking real estate prices in different cities or gold price today Kanpur or Jaipur, there is always the doubt that which is the more profitable investment. Both are considered excellent investments but there are important factors to consider before you decide on what investment option best suits your needs.


Why invest in real estate

  1. Low volatility


Real estate is an asset that has historically always gone up in value, even during recessions. It’s not like stocks or gold, which have seen their prices fluctuate wildly over time. Real estate tends to be more stable than other investments, such as stocks and bonds.


  1. The Value of Real Estate Will Always Increase Over Time


Even if we were to see another housing bubble as we saw in 2005-2006, which would likely collapse again, real estate as an investment will always rise in value over time because of inflation and population growth. There are many factors that contribute to this increase including:


Population growth: Population growth is one of the most important factors when it comes to property values increase over time. As more people move into an area or as a new industry develops in an area, property values tend to climb. This is especially true when there has been rapid population growth in the past few years within an already populated region or city (like San Francisco).


Inflation: Inflation can also affect property values by making them more valuable over time due to rising prices for goods and services such as food, shelter and transportation costs.


  1. You can lease out your property for income


In order to get rich from real estate investing, you need to rent out your property and collect rental income from it for a number of years in a row. This isn’t easy because tenants are hard to find and keep happy! However, if done properly, this can be extremely profitable and lucrative over the long term!


Why invest in gold


  1. No maintenance


The lack of maintenance and carrying costs is another reason people love gold as an investment vehicle. When investing in gold bars, you’re not dealing with an apartment or a building or a vehicle that needs constant maintenance. Things are even simpler if you invest in digital gold since it requires even less maintenance than physical gold and you don’t need to worry about storage either.


  1. highly liquid and portable


Gold is a liquid investment because you can buy or sell it at any time without having to wait for settlement or delivery of the physical metal itself.  To sell or buy gold all you need to do is look up today gold rate in Tamilnadu or wherever you live and if you find the price to be right just sell it online. You can also easily move your investment between accounts without paying any fees at all. This makes it very easy to transfer your assets into another currency or fund if you want to diversify your portfolio.


  1. No countepartry risk


Gold is a popular investment option because it has no counterparty risk. The gold you buy is yours to keep, but you need to do something with it. With other investments, if the value of your investment declines, it may be difficult or impossible to sell the position and get out without taking a loss. However, with gold, there are no such restrictions on who can sell your investment at any time.

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