Investing In Gold vs Property

Investing In Gold vs Property

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When you want to invest your hard-earned money, the first thing to do is research the different kinds of investments and assets and determine the ideal option for you. Many people consider investing in gold or buying property to gain profit.

Investing in gold and property allows you to hold the value of your money for a long time and increase it gradually. With gold, you can protect your money from bad economic situations and enjoy long-term returns, as it has seen a significant increase in value over the years. On the other hand, investing in property is a profitable and reliable way to make money and get a steady income. 

So, which is a better investment choice? The answer depends on your investment goals and other factors. Let’s take a closer look at both assets and help you choose one. 

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Investing In Gold vs Property

Investing in Gold 

Gold is the most popular and oldest precious metal that you can invest in, as it has been used as a type of currency for thousands of years. Gold has always been a widely accepted medium of exchange around the world, and in some countries, it is their official currency. Many countries also use gold as a backup for their currency.

Gold is a safe-haven asset that protects your money and retains its value during economic downturns. It is considered a store of value, and since it’s a tangible asset, it offers peace of mind to the investor. 

Reasons Why You Should Invest in Gold 

There are different reasons why you should invest in gold over property investments. Gold is definitely a good option to consider as an investor today.

Tangible Item 

Gold is a tangible asset that you can hold and even store in your home. You can easily go to a jewelry store and purchase gold to store for a rainy day. Even if you purchase gold bullion and coins, you can keep them at home or in a safe, which you will have access to. 

Highly Liquid 

Gold is a highly liquid asset, so whenever you’re in need of quick cash, you can sell the precious metal. As long as you have a trusted dealer or even a good jewelry store close to you, you can sell your gold for the spot price and more. 

Diversify Your Portfolio 

Gold is an alternative investment, unlike stocks, bonds and real estate, and so it’s a great choice to diversify your investment. Since it can protect the value of your investment, many investors keep around 5 to 10 percent of their portfolio in gold. It would reduce your losses in the case of an economic downturn and provide opportunities for quick liquidation. 

Beats Inflation 

When you hold gold, you can protect your assets from inflation. The price of gold only increases or remains the same, but there is hardly any downturn. Even if the value of gold goes down, it does not last long. So during economic inflation, the value of your gold will remain the same or go up. 

Investing In Gold vs Property

How to Invest in Gold 

There are different methods to invest in gold if you are interested. You can hold physical gold, invest in their ETFs and track the price of gold, and hold gold in your retirement account. 

Physical Gold 

You can purchase gold bullion or coins or gold jewelry and hold it. If you decide to invest in gold bullion and coins, you should work with a trusted dealer and expect to pay for delivery, insurance, and, most likely, storage. It’s also important to check the current spot prices of gold before purchasing. You can also buy gold jewelry from a dealer or jeweler, but check the authenticity of the gold.

Gold ETFs and Mutual Funds 

Investing in ETFs and mutual funds allows you to benefit from the stable prices and liquidity of gold without holding the physical gold. You can invest in gold index funds that track the price without having to manage it. A popular example is SPDR Gold Shares ETF, which is a fund that holds physical gold, and the price of the ETF tracks that of the physical bullion. You can also consider an option like VanEck Vectors Gold Miners ETF, as this is a fund that tracks the stocks of gold mining and refining companies. 

Stock from Gold Miners 

Another option is to invest in the stock of companies that mine gold instead of gold itself. You can also consider the stocks of companies that trade and refine gold. This is simply like buying stocks and is easier to do than physical gold, but your returns will depend on the performance of the company. 

Gold Futures and Options 

You can also invest in gold futures or options contracts, but this is the riskiest option. The value of the futures and options will depend on the price of the gold. You will need to create an account with an online broker that offers these contracts. 

Gold IRA 

If you want to protect your retirement funds, you can consider opening a gold individual retirement account (IRA). This is a self-directed or specialized IRA that allows you to hold gold for your retirement investment. You can hold physical gold or gold-related assets in your retirement account. A gold IRA is separate from a normal IRA and must follow rules like purity, contribution limits, and distributions. You can open a gold IRA with a gold investment company and custodian. 

Best Gold Companies 

You should consider working with the best gold investment companies if you want to buy physical gold and store it in your house or at a vault or open a gold IRA with a trusted partner. Here are the trusted companies that you can work with.


Augusts Precious Metals allows you to purchase gold and other kinds of precious metals and also open a gold IRA. The company’s services include the direct purchase of precious metals and IRA-compliant gold. It also provides gold storage. All clients will receive one-on-one account lifetime support from experienced specialists. On the downside, the minimum investment amount is $50,000. 

#2. Goldco


Goldco is a leading precious metals company that also offers purchases and IRAs, with a minimum investment amount of $25,000. The company offers flat annual account service fees, segregated and non-segregated storage, and a strong buyback program. On the downside, you can only invest in gold and silver, with no platinum and palladium available. 

American Hartford Gold is a relatively new gold company but offers quality investment services, especially for those on a budget. With as little as $5,000, you can purchase physical gold or open your gold IRA. It also waives fees for up to three years and offers a buyback program for those that want to see their gold back. The main disadvantage is the lack of transparency on the official website.

Investing In Gold vs Property

Investing in Property 

Investing in property involves buying and selling physical assets and real estate like land, buildings, and more. Real estate offers consistent income through leasing or renting, or you can hold your property as an investment and sell it when it increases in value. Property is a good choice if you have enough capital or can receive financing from the bank. 

Reasons Why You Should Invest in Property 

There are different advantages that real estate has over investing in gold. If you’re unsure about putting your money in gold, real estate is a great alternative to consider. 

Low Volatility 

Real estate values offer low volatility and consistent income as your tenants pay their rent. When you own a home, you have a definite property that you can live in, too, so it’s a great backup plan. 

Offers Opportunities for Personal Use and Earning 

If you own a home or property, you can live there and also rent out rooms or flats to your tenants. With this property, you can live rent-free and collect rent as a form of income. You will also be able to maintain your property directly. With consistent returns in the form of rent, you will get decent cash flow on a regular basis and can pay back your loan if you took one. 

Will Expand Value 

While you cannot increase the value of your gold, you can do so for your property. By making changes to your property in the form of repairs, renovations, and upgrades, you can increase its value and sell or rent at a higher price. 

Investing In Gold vs Property

How to Invest in Property 

If you want to invest in property, there are different ways you can do so. You can buy your property and rent it out or sell it when it increases in value, flip houses, buy land, or invest in real estate investment trusts.

Own Rental Properties 

You can own rental properties like apartments and houses and rent them out to tenants for consistent income. The property can also appreciate, and you can sell it later. With this choice, there are many tax-deductible expenses you can take advantage of. But this means you need to manage the tenants directly, which is a lot of work. If your property is vacant, you will lose money too. 

Invest in REITs 

A Real Estate Investment Trust is the ideal choice for anyone that wants to invest in property without owning it. The REIT is bought and sold on major exchanges as the trust or manager will use investors’ money to buy and sell properties. You will receive regular dividends. 

Join a Real Estate Investment Group 

A Real Estate Investment Group is a great choice for investors that want to own physical real estate but don’t want to manage it. It is like a mutual fund in which a company buys different apartments or condos; then investors can buy them through the company. The company will manage the property and collect a part of the rent. 

Flip Houses 

If you have a lot of time on your hands, you can engage in house flipping. This involves buying a property for cheap, renovating and repairing it, and then selling it for a higher price. It must be done quickly, in less than six months. 

Investing In Gold vs Property

Comparison Between Gold and Property for Investors 

If you’re trying to decide between gold and property, you can compare them based on different factors. 

Consistent Income 

Investing in property will offer you a more consistent income than with gold. While gold is a stable asset, it’s more suitable for holding its value and protecting against inflation and economic downturns. But property offers a high monthly or yearly income depending on how often you collect rent, although there is no guarantee of profit. Also, gold is a lower-risk investment, which means lower returns, while property is a higher risk due to its unsteady economy. 

Market Volatility 

Gold is less volatile than investing in property because the value is stable. The value of gold changes slowly over time, usually increasing, and even during unexpected events, it does not go down. On the other hand, property investments have a lot of fluctuations because the real estate market can be easily affected. 


In terms of liquidity, gold is more liquid than property investments. With gold, it is pretty easy to start investing as you can just work with a reputable company like those recommended in this guide. Then, you can store it and trade it for cash in a few weeks. For property, it takes a longer time to buy and sell or convert it to cash. 

Tax Benefits 

The tax benefits for investing in gold and property depend on your jurisdiction. If you invest your money in gold, you can avoid paying capital gains tax, except it is higher than a particular amount of money. You can get more tax benefits with a gold IRA. As for property or real estate, you might pay property and income taxes on the purchase and sale. 

Extra Costs 

When you’re investing in gold, you might have to pay storage fees, transaction fees and pay taxes. But you can save money if you keep the gold in your home. There are fewer upfront costs involved in investing in gold than in property. If you’re opening a gold IRA, you have to pay custodian, maintenance and insurance fees. On the other hand, you will have to pay for renovation and maintenance, and the capital needed is pretty high. 

Final Thoughts 

There is no fixed answer when considering your option between gold and property. Gold will protect you against inflation and is more liquid, and you can hold it in your individual retirement account while property investments are stable and provide consistent returns. You should carry out research to make the best decision for you.