Friday, September 14, 2012

Investment Tips: Investing in Gold vs. Real Estate - Real Estate ...

Non-market investments have attracted thousands in terms of finding better ways to make money grow, especially given the last decade and the roller-coaster ride the stock market has had. As a result, two types of investment, gold and real estate, have attracted many for different reasons. That said, both have their pros and cons.

GOLD
Gold generally catches people?s eye because it tends to be in demand as a hedge against a weak U.S. dollar, as well as the fact that people historically want the precious metal for jewelry or as a non-currency asset. That said, gold itself has no intrinsic value. It doesn?t grow and become more than its original size, it doesn?t pay a dividend, and it doesn?t produce anything. As a result, gold?s value is entirely subject to the market and people?s perception of it. When that perception falls, which it has in the past, gold drops heavily, causing significant losses for those who bought it at a high price.

REAL ESTATE
Real estate has for decades represented an opportunity of significant growth if bought in the right location. The demand for the property as well as its surrounding location tends to be the primary factors in real estate valuation increases. However, in the last decade and due to market speculation, real estate pricing has skyrocketed and then crashed heavily. So it too is not a guaranteed safe harbor for investment money. That said, if a neighborhood is good and remains in demand, and nearby comparable prices regularly rise, consequently the given real estate asset is likely to increase in value as well.

Both gold and real estate assets can generally be traded for cash when they need to be sold. Gold is far easier to liquidate, but both are viable investments. At the end of the day, though, the timing of purchase and sale matters significantly.

Source: http://www.realestateglobalnetwork.com/xn/detail/2211201%3ABlogPost%3A244169

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