Sunday, March 10, 2013

Should I invest in Gold, Silver or Real Estate?

With 40k would you invest in real estate or gold and silver?

What is the best way to spend 40k?

Best Answer - Chosen by Asker

Gold and Silver are too speculative. Over last 10 years they have appreciated nicely so many people have come to believe that they are safe. However we need to keep in mind that Gold touched a high of $900/Oz in 1980 and and then over next 23 years constantly kept going down in value and reached a low of $270!!! Can one imagine to wait that long and take 75% loss in value? See the chart here. Click or copy and paste:
http://www.futuresbuzz.com/gc.bmp

Same goes for silver. It touched a high price of $40 in 1980 and for people who invested at that price saw price hover around $5 or so over next 25 years!!
http://www.futuresbuzz.com/si.bmp

There is no guarantee that the same thing can't happen again in those two commodities. Actually chances are it will repeat in my opinion.

So, out of the 3- Gold, silver and Real Estate-, Real Estate is the best choice. It also offers very nice income these days particularly when interest rates are low.

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