Gold And Real Estate

Gold or Property - Property Management

People invest in real estate for a variety of reasons. There are those who believe that real property is more stable than gold as an investment, in terms of price and security. They contend that as real property such as land is immovable, it cannot be stolen. Even if infrastructure and improvements on it such as a house depreciate over time, the land itself does not, but consistently appreciates, under normal conditions.

Gold-oriented investors, on the other hand, defend their precious metal to be more stable as its value consistently appreciates and accepted worldwide. Further, they are used as paper currency benchmarks and security for borrowing, secured as gold reserves in coins and/or bullions. That makes gold more acceptable as legal tender than land.

The debate could go on and on without resolution as either or both are good as investment, tipping the balance only slightly in favour of one or the other depending on the particular economic situation of an area or country. Banks, finance, the jewellery and the real estate industries are the institutions that are involved in trading and in similar transactions involving gold and land. But whether dealing in gold or land, a lot of speculation is involved in their investment and trading.

Centres of trading are where gold and land part ways.

Land, along with improvements and structures thereon, has a more local colour and is influenced by local business and industry dynamics, particularly under the real estate domain. It also greatly influences local economics in the same manner that international economics influence local business and economics. Investment patterns and preferences are dynamics that make land meet gold again in the local setting.

Gold as reserves, on the other hand, is secured in national central banks as a country's security for borrowing and foundation for its paper currency. As a precious metal, it is traded in commodity markets influencing local prices, used as a standard for trading and as benchmark by jewellers in pricing their products marked up for profits that varies from one to another depending on established name and prominence as a jewellery brand based on artistic aesthetics and craftsmanship.

The pieces of jewellery may be pawned at any time, often to jewellery shops themselves, at a certain percentage of its market value for cash, charging interest rates that accrue monthly. Failure to redeem pawned items within a period prescribed by law, forfeits claim on the items after due process of information and reminders between pawner and pawnshop.

Real estate property can be used as security for mortgage loan which is, for all intents and purposes, similar to pawning jewellery except that the former is through a bank under laws, policies and regulations applicable to real estate transactions.