For hundreds of years, gold has served as the safe harbor for investors’ money when the economy got tremendously unpredictable. In recent years, though, the value of gold has been pushed around by sales of huge gold supplies by central banks, new hedging practices of major gold mining companies and other forces. It’s difficult today to count on gold to respond to the threat of higher inflation or recessions. With this in mind, the Milken Institute recently published a study titled, “A New King of Gold? Investment in Housing in Times of Economic Uncertainty.”
“Real estate has replaced gold as the ‘feel good’ investment”, the study asserts, “because it is literally as solid as the ground upon which we stand. Because residential real estate is fully insurable there is also a perception of protection against loss that is not found in the stock market, adding to the mystique of real estate as a new kind of gold.”
The fact is, however, that real estate isn’t a NEW kind of gold. It is a hard asset that has, over the past century, performed extremely well. When Wall Street fails to light any fires under investors’ enthusiasm, and when the economy looks dicey, real estate tends to recapture investor focus because it generally treats the investor’s dollars very well, indeed. This is not to say that real estate investment is as easy as a game of ‘Go Fish.’ It’s not. And you should get the best professional advice you can find to make sure your dollars are well invested. So call Alex at 312-320-3207.
Alex Tzallas is a Broker Associate with RE/MAX Exclusive Properties.