When you hang around enough investors and entrepreneurs you get to know people who invest in a little bit of everything – real estate, gold, oil, currency and raw land, to name a few.
As an investor, which is better for my money, real estate or gold?
Well… with the government (state bank of pakistan) printing money like it grows on trees, we’re bound to have inflation, which will cause the price of gold to continue to increase like all other commodities. Plus, gold never goes out of “style” (women readers know what i am talking about ). For the past 5,000 years it’s been used as money.
But here’s the thing: gold right now (as i am posting this article) is priced at almost $1384.7 an ounce and 53,500 pkr/tola. And to buy an ounce of gold you have to pay $1384.7, plus a percentage over that. (usually 5% or 6%, this is the dealer’s markup).
There are no discounts for gold. And once you buy it, the only way you make money off it, is when it increases in value and you sell it.
And you know recently there is a huge dip in gold prices. (will write separately, why it happened)
Now let’s get to real estate, specifically commercial property.
If you get a rental property, then you’ve got cash flow coming in. Unlike gold, which is “dead weight”, the property you own will generate a monthly income. It may only be a 7 to 12 percent per year of your invested capital at first, but over the time percentage will keep on increasing every year and appreciation in your property value will be your profit.
Also, i mentioned inflation earlier. Real estate is just like gold in that it is a “hard asset.” once inflation takes off, the price of real estate should enjoy a healthy gain.
The bottom-line is: if i were you, i’d stick to buying real estate and worry about buying gold later on. If you’re a multi-millionaire now, then sure, buy gold and diversify a little bit. But if you’re a new investor starting out, save your money for a rainy day, invest in real estate which will earn you monthly income too!
Hi, Sorry although this is not the forum to discuss metals yet any comments on the sudden dip in prices of gold. Is it market manipulation? Or other factors. When is gold expected to regain lost ground. Is it not time to invest in gold when the prices are down.
IMF decided to sell the gold in the market. Gold market tumbled on this news.
The ability of real estate to provide a cash flow may make it a better investment than gold but more importantly, cash flow provides investors with a quantifiable method of placing a value on on that property.
Los angeles real estate broker: http://www.Jclarkhomes.Com
To answer your question, im going to post a video. tis will help tosolve your querry. the linkis as follws:
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humayyun iftikhar raja
The old rule of thumb used to be that you should subtract your age from 100 - and that’s the percentage of your portfolio that you should generally keep in property,shares,gold etc. and balance in cash type accounts/assets that you can access at very short notice. For example, if you’re 30, you should keep 70% of your portfolio in property, shares, gold etc. If you’re 70, you should keep 30% of your portfolio in cash etc. Note:- This rule was for western european investors where people tend to have longer average life spans compared to Pakistan so you should adjust this accordingly.
In Pakistan, ARY sells gold bars and takes Rs 1,000 per tola as service charges which seems a fraud as in gulf there are no service charges on buying bars.
If you go & sell to them, they will again charge you even higher & charge up to Rs 2,000 per tola which is a bigger fraud.
Raja sb, if we buy gold & keep like we keep cash in bank, how it is dealt with FBR?
Pls reply?
Gold is a poor investment overall I believe in Pakistan. I’m not saying you shouldn’t invest at all for example keep 10% of saving in gold for long run. Issue with gold is it is very volatile in short run so if you want to sell in near future, it is a risk. Plus, you have to fully understand how gold prices go up and down before investing heavily in it. Right now, most gold in Pakistan is imported from abroad as we are producing very little of it. You must take into account that we are still exploring and extracting gold from Balochistan which will increase local supply of gold and drag prices down in coming years.
Most of your savings should be in real estate or stock market. Gold or keeping it in the bank is not very productive.
That is a very good reply.
investing in cryptocurrency is the future and most solid investment.
crypto may be the future(i doubt though) but not as an investment. It has no real value of its own, it gains only from speculation and demand.
It is a very long term investment. I think you would have to wait out 20-30 years for proper, legit profits otherwise trading in short-term is like betting/gambling with close eyes. You might strike gold or trash depending on your luck. Issue with crypto right now is it is heavily unregulated so big fish investors come in, pump up the price and dump the stocks for a hefty profit and small investors like us are left with our faces in the sand. And I do believe crypto will take a massive, massive correction/crash in coming years. After that I believe it will become worth investing.
Within pakistan, stock market and real estate is the way to go.
if you know what you’re doing and with proper risk management you can become a profitable trader. It’s already in bear market and facing correction and i think it would consolidate for a while and will rise from here now. It went from 33k to 40k in just a day which is only a 10%. i agree it’s not everyone’s cup of tea but people should learn the skill of technical analysis before investing in it.
Even if you know the ins/outs of the market, there is still massive risk because you never know who is holding how much crypto… if a big investor suddenly dumps a huge amount of stock (who was silent and you were unaware of), then it will crash the price.
Issue is mostly unregulation. That is what creates the risk because tons of laundered money is going into and leaving crypto.
truely said abdul qayyum bhai. ARY gold was actually the smuggler of low standard gold bricks.
anyways, you will mention your gold holdings in wealth statement in precious maetals/holdings column and decrease in cash / bank.
for any profit or loss on disposal of asset you will have to mention capital gain /loss plus Cash or bank credit.
its happy to see my comment on this post wake up two members who were absent from tis forum since 5 months.
i would like to say gold is not an investment at all. it is only a tool to hedge. but putting money on right time and making an exit will help people to hedge against any devaluation. such my these posts on facebook were very well timed that after short time all the gold and realestate rates were almost doubled
Investment is actually an art. but we do it in a very rough way.
So if one has to buy gold coins, which seller is most reliable? I heard ARY is not even giving receipts now.
open an account with any PMEX broker. for trading in physical gold.
In Pakistan, real estate is far better than gold but you have to be very careful with the dealers and thekadars and check if things are OK.