Nov 9, 2022 2 mins read

Precious Metal vs. Real Estate: Better Investment Option for Retirement?

Expected to grow at a CAGR of over five percent, the global precious metals market is set to generate over $400 billion in the next five years. Likewise, showcasing a phenomenal boom post-pandemic, the real estate sector is also gearing up to clock in over $300 billion in the U.S.

Both sectors are lucrative and ideal to invest in right now. You can either invest in real estate or avail the benefits of investing in precious metals to yield good returns. So how to decide which of the two investment options is better for retirement planning?

Here’s a blog to help you. Read below for a quick comparison between precious metals and real estate investors to find the right retirement option.

Precious Metals vs. Real Estate: An Overview

Here’s an overview of the two highly-lucrative investment routes in the U.S.

Starting it Small

If you’re a small-scale investor looking to work on a retirement plan with limited savings, then precious metals allow you to start small. Unlike real estate, which requires debt financing, a down payment, and a solid credit score, you can set up a gold IRA with as little as $1,000.

Liquidity and Quick Resale

If you’re purely saving for retirement, then investing in real estate is great for you. But if you’re looking to secure your fiat currency and plan to sell your assets quickly, then precious metals have more liquidity. It’s far easier (and quicker) to sell gold or silver coins than to sell property anywhere in the world.

Long-Term Gains

Real estate is surely more lucrative for people looking for long-term investment opportunities. This is because real estate allows you to avail long-term gains on the back of property appreciation over the years. On the other hand, gold is also stable and good for long-term investments.

Person looking at upward trajectory on a projector

Or Short-Term Goals

But real estate cannot give you the liberty to fulfill short-term goals. In fact, if you’re looking to save up and move abroad earlier than your retirement age, buying gold bullion bars will allow you to materialize your plan without hassle.

Variety of Choices

Now Americans have the choice to invest in commercial real estate through REITs. But that’s just it. You don’t have many diverse options to invest in real estate. On the other hand, precious metal investments can be done through a wide range of portfolios, and you can buy ETFs, open an IRA, invest in gold mining stocks, or buy gold and silver bullions as retirement savings.

Volatility and Uncertainties

Both gold and real estate are less volatile in contrast to stocks. However, real estate can take a hit amid inflation as the prices may soar, but demand certainly drops. On the other hand, gold not only enjoys a hedge against inflation, but its demand also sees an increase.