Advantages of Gold Investing Over Real Estate Investing

Gold is a safer investment than real estate, especially in times of economic crisis. Historical records show that gold has been the consistent winner by outperforming all other forms of investments during periods of financial turmoil. During such unpredictable times, gold is a considered a very safe and wise investment. Many people, during such times, would not dare to invest in real estate due to high risk factors involved. Some of the major benefits of investing in gold over real estate investing are listed below, though each one has its own pros and cons.


Real estate investment can be very unpredictable; thus, the risk factor is very high here. No one can predict what can happen with the real estate market within a few years. There have been many instances when the market in a certain area looked very promising but then it collapsed, when people were least expecting it. This happened recently in US, Dubai, Europe.

Gold is far easier to sell and buy. You can easily get buyers to sell off your gold. You can virtually sell off all your gold possessions within a few days. On the other hand, buying real estate land and selling it off can be a big pain in the neck, taking you anywhere from a few days to weeks or even months.

A recent statistic shows that gold has provided the best ROI on investment when compared to real estate and equities during the last 3 years from 2009 to 2012. People who invested in gold during this period received double the returns. This goes on to show the performance of gold investing in these troubled financial times.

This does not mean that real estate investing is not profitable. It can be very profitable. However, you need large amount of capital to enter this field. You also need vast experience to profit wildly from real estate ventures. However, for people who don’t have that much capital or can’t afford to do it full time, investing in gold is an excellent way to grow their wealth. It is convenient, does not require much upfront capital, is relatively sound and safe form of investing and it does not require too much experience as in the case of real estate investing.

As the government continues printing money like it is growing on trees, the inflation is bound to increase. As inflation increases, the price of gold will continue to rise. Most experts agree that the price of gold will keep increasing consistently for the next several years as the dollar value falls. So, it's a good idea to start investing in gold soon if you haven’t already begun.

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