- What is the right choice for investments?
- What do financial experts say?
Amidst global developments, both gold and real estate prices are skyrocketing. Currently, the price of 10 grams of gold in our country is approaching Rs 1 lakh. On the other hand, real estate prices have also increased significantly. In this context, many people are confused about whether to invest in gold or real estate. However, financial experts say that the right choice between these two depends on your goals, risk tolerance, and time horizon.
The impact of U.S. President Donald Trump’s tariff policies created instability in global markets, leading investors to search for safer investment options. Traditionally, gold has been seen as a reliable asset during times of economic uncertainty, while real estate is viewed as a preferred choice for long-term wealth creation. In 2024, gold provided returns of over 20%. Moreover, it is easily accessible through digital platforms, making it particularly attractive to investors seeking short-term security and liquidity.
When it comes to real estate, it offers benefits such as capital appreciation and rental income. However, it generally requires a higher upfront investment. Although the cash flow in real estate is lower than in gold, it is considered a stable, long-term asset. Therefore, the choice between the two depends on your goals, risk tolerance, and time horizon. Gold could be a good option for short-term stability, while real estate is the right choice for building long-term wealth and generating income.
Financial experts also suggest that a diversified portfolio, consisting of both gold and real estate, can help balance risk and reward. On the other hand, luxury homes have been selling briskly in recent months, accounting for more than 50% of total sales. Due to high inflation and slower urban consumption, the demand for affordable housing has slowed down. In fact, real estate has always remained attractive, with its clear nature making it appear as a safe investment. The key difference between gold and real estate is liquidity. Gold can be converted into cash at any time, instantly, at its current price. However, real estate cannot be sold immediately; it takes time, and there could be fluctuations in its price.
Shining gold..
Recently, gold has clearly outperformed real estate in terms of performance. However, this performance should be viewed in context. Gold is not a growing asset; it should be seen as a hedge. Due to the significant rise in gold prices, people consider it a high-return asset, but experts disagree with this view. Currently, gold appears attractive to investors because it has provided higher returns compared to many real estate properties. However, experts note that this may not always be the case. Both gold and real estate have their own benefits, and the choice between them depends on your goals, time horizon, liquidity needs, and risk tolerance. Financial experts suggest making investment decisions based on these factors.
Many investors are contemplating whether to continue with their equity investments or diversify their portfolio by including assets like gold or real estate. For those with a long-term horizon and high-risk tolerance, equities have provided high returns. While equities can be volatile in the short term, they have the potential for significant growth in the long term. Ultimately, investment decisions are based on personal goals and individual circumstances.
