Buying Gold versus Real Estate - Which Is Better?

From times immemorial, Indians are known for their love for the yellow metal, especially as India is the second largest consumer of gold in the world. However, the recent times have witnessed a huge surge in the realty sector in India, and many Indians are not hesitating to pledge or sell their gold (ornaments as well) to invest in the booming real estate sector. In such a scenario, would it be safe to say that investment in real estate is better than buying gold? Is real estate a conclusive investment alternative to gold? Let us discuss the reasons behind such changing trend.

Fluctuations in gold rate and drop in ornament rates

More often than not, investors consider gold as an insurance in their portfolio; however, the recent fluctuations in gold rates have led many investors to think otherwise and to look for investment avenues that can generate guaranteed profits. Needless to mention that most of the investors consider real estate investment as a safer bet than investment in gold.

Possibility of income from real estate investment

Believe it or not, older generation invested in gold partially because they were very fond of wearing gold ornaments. But the same cannot be said about the newer generation that is vary of flaunting their gold jewelry. Moreover, people now understand that gold is unproductive in nature unless you are mentally prepared to dispose it off for profits at a later date. Investment in real estate opens up the possibility of a regular monthly rental income and that is the reason why many smart investors are preferring real estate over gold.