Gold or Real Estate ~ What's Better?
by Brian Madigan LL.B.
(Ontario Real Estate Source)
It is interesting that the best performing asset class over the last five years has been gold. To some extent this is simply a reflection of economic instability, uncertainty and pessimism. The bounce in performance is largely on a relative basis compared to other asset classes.
Hard assets are worth more. Commodities are worth more, as long as there is a market for them.
Inherently, real estate is worth more. This arises out of fundamental analysis, and is not a reflection of recent prices.
Using fundamental analysis, an investor might be well advised to look to opportunities in a market which has suffered recently. In that regard, the stock market should be an ideal place to start. The difficulty with the stock market is that some companies will simply disappear forever. Nortel, once the biggest and best hi-tech company in Canada and the largest capital company in Canada is now worth nothing. It filed for bankruptcy today.
However, real estate, even low quality real estate is always worth something. It offers lower rewards but also less risk. But over the longer term (the last five years) it offered the second best performance.
And, remember, gold the best performing asset class once was "real estate".
Brian Madigan LL.B., Broker, is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto, or the GTA, you may contact him through
Royal LePage Innovators Realty, Brokerage, 905-796-8888
www.OntarioRealEstateSource.com
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