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Real Estate vs. Gold – Where should I invest?

Published by Martin Karus in category Precious Metals on 16.02.2021
Gold price (XAU-EUR)
2171,76 EUR/oz
- 31,95 EUR
Silver price (XAG-EUR)
27,63 EUR/oz
- 1,07 EUR

Real Estate pros:

+When bought at the right time, you can also win from the price movement.
+Passive income opportunity – long-term and short-term rent.
+When buying the right real estate at the right time, you can earn a quick and relatively high profit.
+You have direct control over your investment.

Real Estate cons:

-Minimum investment amount is quite high.
-Not liquid – May be hard to sell, takes a long time.
-Also can lose money from market movements. No guarantees
-Most people need to be a landlord as well as an investor.

Physical gold pros:

+Liquid – It is relatively easy to buy and sell coins, such as Krugerrand.
+Owning and possessing gold can be very satisfying.
+You can protect yourself from inflation and global market uncertainties.
+Gold is fairly stable (comparing with stocks)
+Buying and selling at the right time can be very profitable.
+If you have hard time-saving money, investing in gold every month little by little can help you build up a good portfolio.

Physical gold cons:

-It can be challenging to verify old gold coins with numismatic value
-It is not sure how the gold price will move, you can predict theoretically but you cannot predict how much price appreciation gold might have.
-Dealers charge premium prices.

Both sectors are good choices to invest in and both have their pros and cons. With real estate, you need much more money, in the beginning, to start investing and most probably you need to work a few hours every month to earn passive income. If you have a lot of money and love talking to people, cleaning the apartment or house (if choosing Airbnb), renovating it every couple of years, and fixing small issues all the time with tenants, then this might be for you.
On the other hand, if you do not have so much money and still want to invest somewhere – then physical precious metals can be a way to go. Imagine buying precious metals every month for X-amount and at the end of two years, you would have a very large portfolio, worth a lot. Another plus is that you can physically own and touch your investments, maybe even look at them and visualize your beautiful prosperous future (quite many people do that actually)
Also if you need to liquidate your precious metals investment, you can sell only a small portion of the investment. With real-estate there is no such option – you need to sell the whole thing.
With gold you can buy little by little and build up your portfolio – this is a perfect way to start your investment journey.

In conclusion, both options are good ones. If you have a lot of money to invest at once and want to be active with your investment, buy real estate. When you want to invest smaller amounts and have this investment physically with you, then gold is the way to go.

Secure your investment and your family´s future!

Gold price (XAU-EUR)
2171,76 EUR/oz
- 31,95 EUR
Silver price (XAG-EUR)
27,63 EUR/oz
- 1,07 EUR

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