Gold Vs Real Estate

By Doug Young

Gold v Real Estate

Investing In Gold

Types of Gold Investment

Gold has for thousands of years held up as an investment that transcends time and barriers of race, country, and power. Only one standard has stood the test of time and that is rich yellow gold.

Investing in gold has been a safe dependable way to invest capital and have it hold its value in the worst of times. Gold has never lost its value completely as has done stacks of different Countries’ currency and land values.

People from all around the world have been stunned by recent economic conditions, and many have lost retirement savings and even entire life savings. At the same time many of those who had previously taken the precaution of investing in gold have found that the crisis has actually helped to build the value of their investments.

In times of great economic insecurity and as world currencies go up and down gold has made steady consistent gains. Gold is physical and can be held, seen, and fondled. Gold has always had a special place in the halls of strong economics and is to the world the basis of all wealth.

Investing In Real Estate

Before the collapse in the housing market, many Americans had put their life savings into a home hoping the value would at sometime deliver them retirement equity and financial gain. The message was to own your own home and build wealth through living the “American Dream”. Many Americans put blood sweat and tears into paying a large down payment then meeting monthly obligations to achieve this goal. It was supposedly the safe place to build wealth and keep economic security within the individual’s grasp. This was not to be though. The housing collapse saw markets that were driven to over inflated prices suddenly have the bottom fall out.

This collapse left many house buyers in negative equity and with it the dream had collapsed too. An example of such was homes in Phoenix, Arizona which sold for 580,000 dollars at the height of the housing boom. Shortly after the housing market collapsed the same houses were valued at 340,000 dollars, representing a loss for those unfortunate homeowners of over two hundred thousand dollars.

Investing in gold had just the opposite effect. As the economy started to have its problems gold prices began a steady climb from around the 400 dollar mark to today’s price. The economic forecast is far from rosy and many economists predict that the current housing market readjustment is here to stay for many, many years. Investing in gold however is predicted to offer solid value and the price of gold is expected to continue its long term upward spiral.

Market Ebbs and Flows

In the video below precious metals expert Mike Maloney explains the cyclical nature of both the gold and the real estate markets:

Conclusion

Traditionally financial experts have recommended including real estate in your investment portfolio. Increasingly experts are now recommending that all investment portfolios should contain some degree of exposure to gold as well to balance out risk.

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About the Author: Doug Young
Doug YoungDoug is a highly experienced professional and widely trusted authority in financial investing, commodity trading, and precious metals. With over 20 years of expertise, he helps others make informed decisions by sharing a combination of personal experience, extensive knowledge and meticulously researched information on gold IRAs, precious metals investing and retirement planning. He regularly writes news items on these topics. He has considerable experience of evaluating Gold IRA and Precious Metals Companies, gained over a period spanning more than a decade.

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