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HM Marketing
( 10 posts )

[3 Replies]
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!

    2279 days ago In Investors Advice
    Post Answer
    Mohammed
    (136 posts)
    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.
      2277 days ago 

      AJ
      (564 posts)
      IMF decided to sell the gold in the market.
      Gold market tumbled on this news.
        2277 days ago 

        Ron Milton
        (4 posts)
        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
          2218 days ago 

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