GOLD OR REAL ESTATE: WHICH ONE IS THE

BETTER INVESTMENT?
Published on WallStreet.com (April 2019)

This article analyses the question as to buy either Real Estate or Gold. However, before
considering which is the better option, the article discusses the features they hold in common.
Both forms of investment share at least three features. The first one is rarity, next is durability
and lastly scarcity. But it is better to know the differences between the two before we trade
our money for Gold or Real Estate.

In the real estate corner, most of the people who study these things will tell you that real
estate does well, as it affords an investor income in rent. However, the crash of 2008 and the
Asian crisis of the mid 90’s are enough to remind us all that housing prices too can fall and
that no investment option is really fool proof. Then again, gold is a lot more portable than
real estate. Gold’s suitability becomes more pronounced during times of calamity, natural and
man-made. Gold as a commodity is best for the long-haul and has less volatility than stocks.
Even in the event of recession, it is unlikely that gold would lose all its intrinsic value. Thus,
Gold is viewed as a stable commodity.

Ultimately, the best approach in the area of investment is to have a diversified one, that is to
buy gold and complement it with investment in equities, for instance. Ideally, it is preferable
for the long-haul. Real estate would then top up these investments to enable you earn some
extra income, especially in times when the housing markets are strong.