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Is Gold better for your Portfolio than Real Estate?

In reality, gold has a mixed record. Nor should you be surprised about that. A few industrial uses, and jewelry, aside, gold is valuable only insofar as other investors think it is valuable. By itself it isn’t necessarily worth anything. Nor does it generate interest or dividends. If the price doesn’t rise, you don’t get anything. In truth, while gold may have a role in protecting against inflation, there are plenty of alternatives. You should be thinking about Real estate particularly when you bear in mind that gold is already close to an all-time high. The price of real estate won’t always move exactly in line with inflation. And you might want to steer clear of the markets where there has yet to be much of a retreat from the exuberant prices of 2006 and 2007. Even so, if there is more money chasing a static amount of land and buildings, prices are going to rise and right now most areas are close to decade lows.

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