Gold Investing vs. Real Estate Investing

If you have some money to invest, you might be wondering about which investments are the most sound and the easiest to manage. With all the news in the past few years about gold and other precious metals, you might be considering that route. On the other hand, with houses and properties at an all-time low, real estate is a buyer’s market now. Below are several aspects you might want to consider before buying either gold or real estate.

Funding for your purchase

Some investors don’t like to use their own money to invest, so they often borrow it. This is much easier to do when buying real estate than it is for purchasing gold. If the home or property you wish to purchase is valued at or above the asking price, and if you have sound credit, you’ll be able to find a lending institution to work with you. It’s difficult if not impossible, however, to find a bank or lending institution that will loan you money to invest in gold.

Ease of purchase

Buying gold is quick and easy. Gold bullion coins produced by a national mint are authentic and high quality gold. Several mints have websites on the internet with a vast amount of information on their coins, including gold coins. On the website of the U.S. Mint, for example, you can learn about different coins and about where to purchase them. The website provides a list of reputable gold dealers in your state. The entire process can be done quickly via the internet.

Buying a house or other real estate is usually a relatively long, involved process. The property has to be inspected and appraised first. Liens and tax records have to be poured over to make sure there’s a clear title to the property. After all that, you have to go through closing, usually with a lawyer. Buying real estate can take weeks or even months to complete a single transaction.

Amount of investment

Another thing you have to consider when deciding between buying gold and purchasing real estate is the amount of money required. Buying a home or property is a large investment that could run into the hundreds of thousands of dollars. Gold Investing, on the other hand, can be purchased in small increments. For example, gold coins are available in 1/10, ¼. ½, and one-ounce weights, so you’re looking at hundreds of dollars to get started instead of hundreds of thousands.

Ease of Sale

Suppose you have to raise some quick cash because of an emergency. Homes and property are often difficult to sell, especially in the current housing crunch. A house might sit on the market for months or even longer before it sells.

Gold is easy to sell, and it sells quickly. The sale is usually hassle-free, too. It can all be done online with a gold broker or with a precious metals exchange.

Also, you’ll know exactly how much your gold is worth at any given time with the spot price. Real estate’s value is more subjective, so placing an exact value on it is often difficult.