Despite the cloud clamoring to join the gold rush today at Akshay Tritiya, most of the investors are not fans of the yellow metal anymore.
In economically uncertain times, esp. in India, many people chose gold as a safe investment bet. But is gold as brilliant a choice as it seems in today’s scenario? Even market experts (1) predict that gold is losing its lustier, and is being substituted by platinum and non-metal commodities.
Those who advocate gold, debate that it can serve as a hedge against inflation, economic or political crises, while Realty Investors maintain that property continues to offer the security they seek. They argue gold and silver are essentially money. Thus, precious metals are equivalent to savings or wealth, but not investments, as they are vulnerable to the weaknesses inherent in currency.
We believe that in the Gold vs. Real Estate predicament, real estate has the potential of consistently yielding higher returns in the long run, and here’s why:
-Your investments in commodities are subject to confiscation; Yes even the collectible cold coins!
-Superior Gold Liquidity….. Is a myth!
Consider the hidden costs on your ‘guaranteed money back’ offers like handling expenses, premium deducted for melt down value before you start to make any comparisons.
The higher transaction costs of property investments in this case are actually beneficial, as lack of liquidity makes it lesser volatile.
– If gold in the future see an appreciation in value, the gain is nominal rather than an actual increase in buying power as opposed to common belief. Typically because the rise in the value, often coincides with the devaluation of paper money.
-Precious metals are manipulation prone by those who could benefit by suppressing its value in order to boost paper currency.
– In contrast to real estate rental, there is no income potential.
It just reinforces that property is still a safe and secure, ideal place to invest you hard earned money, for it has always been demonstrating great resilience in the face of very difficult economic conditions.
Author: Sumit Sighania
Sumit Sighania is currently serving the position of a Sr Executive – Content Developer at a3solutions.in. His responsibilities include writing and editing real estate content for the website. His main interests are photography, travelling and food.