With rising inflation rates and unprecedented costs of living, choosing the right investment strategy is paramount. Thanks to its wide availability and flashy draw, many new investors look to gold as a viable investment option. Unfortunately, due to its impracticality, poor long-term returns, and declining demand from new generations, most seasoned investors advise to steer clear of gold. Here is what you need to know:
Gold Depreciation Over Time
Turbulent economic conditions allow investors to reflect on their current investment portfolio. Out with the (g)old, and in with the new!
Rare earth metals and crop production have shown their hand in the history of investment. While generations ago it was a coveted resource, over time, gold has lost its draw to newer investment options. Emerging generations simply do not value it as readily as do older generations.
In contrast, real estate is a tried and true method with diverse options for property investment. From residential rentals, to industrial real estate, and even vacant land, real estate is a trusted resource for current and emerging market trends.
Investors also have to consider the instability and decrease in value of other precious metals and goods. A 2019 study of metal sector deals revealed that coal was actually the primary revenue contender of global mining, with gold coming in second to last.
This decline in demand may partially be attributed to an eco-friendly global mentality. Mining has taken its toll on the environment as a whole, leaving a hole in the pockets of the future stability of an investment in rare earth metals.
Erosion, deforestation, and excessive water use all make gold an unsustainable investment choice for the environment. This makes sense when you consider that many have rallied for the preservation of earth’s most precious resources: Earth itself.
Looking to the Future
With the onset of work-from-home measures and rampant pandemic precautions, space is a necessary resource for buyers. Moira Taylor, co-owner and CEO of Taylor Made Realty in Atlanta suggests, “Investors should consider the suburbs of major metropolitan areas, as they’re an ideal investment and have seen an increase in buyer demand in places like Atlanta, New Jersey, San Francisco and other major city suburbs.” Investors are taking advantage of these changing trends, and focusing instead on the buying potential of modern real estate.
As buyer choices change, so too do investment decisions. Whether you’re looking to invest in vacation rentals or you’d like to construct from the ground up, there’s a real estate opportunity for you.
About Terry Chved
InvestWithTerry.com have been actively involved in the GTA area real estate investing for a number of years. Our mission is to provide quality housing for quality tenants, while at the same time providing an above average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Terry offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Terry.