Gold vs Property

Property and gold are often both considered “safe” investments, without the fluctuations of high-risk alternatives such as the stock market. So which one is best for safeguarding wealth in an uncertain world?

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The Numbers

This graph tracks the amount of profit an investor would make by investing £100,000 in gold or in an average property investment over the last 10 years.

 

Inflation is also on the graph. Do to currency being devalued, £100k needs to have the same purchasing power as £130k a decade later. This means an investment would have to surpass £130k in this time in order to represent an increase in absolute value.

 

As you can see, an investment of £100k in 2006:

 

  • GOLD: would be worth £286k in 2016, a 186% increase.

 

  • PROPERTY: would be worth £117k in 2016, which represents a decrease in absolute value.

 

Property has had a high profile among investors in recent years. However, gold has outshone it in the last decade, and the housing market is showing signs of serious deterioration. Gold is becoming the investment to consider when it comes to safeguarding wealth against financial uncertainty.

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Comparing Property and Gold

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Why Gold?

  • A proven asset in times of uncertainty

 

  • RBS is warning of an equity crash, leading to rise in gold prices

 

 

  • Physical, tangible asset

 

Why Property

  • UK property values have gone up by more than 333% since the 1980s

 

  • Low interest rates make property attractive

 

  • Demand for rental properties is high

 

  • Property provides income and capital appreciation over time.

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Conclusion: Gold

 

In conclusion, while the property market does provide the potential for both profit and security, once again there’s no substitute for the stability, convenience and comparative affordability provided by physical gold.

 

With the high barriers to entry and maintenance requirements, property investment can rapidly become a full time job, exposing the investor to significant risk. Many private investors have chosen to invest in physical gold rather than property thanks to gold’s tax advantages and high liquidity.

 

In addition, gold investment benefits from several tax advantages – no stamp duty, reduced VAT and even exemption from the Capital Gains Tax for some forms of gold investment like legal tender Britannias.

 

Both forms of investment are viable, but for those looking for a secure, hands-off investment there’s no beating tax-free physical gold as a form of gold investment.

 


How to Buy Gold & Silver

  • Consultation

    From one of our dedicated specialists to understand what products are available and relevant to you. The extent of consultation is driven by you and is a good opportunity to ask us as many questions as possible. We listen to your circumstances and are happy to provide tax efficient solutions.
  • Purchase order

    When you feel comfortable and confident and you’ve had all your questions adequately answered you are able to complete a purchase order which is your instruction to purchase metals.
  • Payment

    In order to lock in the price and complete your order you can transfer funds via bank transfer or personal cheque. For smaller orders we may accept debit or credit cards.
  • Storage and delivery

    You can either receive your gold via our complimentary Insured delivery service or have your gold safely stored within a London Bullion Market Association (LBMA) vault whereby your metals are fully allocated, segregated and insured by Lloyds of London.

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  • CHARLES CAMPLING - POLICE OFFICER - SURREY POLICE SERVICE

    I decided to make my first tentative steps into investment in gold with the help of The Pure Gold Company due to the good reputation they have dealing with the less experienced investor such as myself. I feel their reputation is well deserved. I was kept informed, anything I didn’t understand was explained well. I have no reservations in recommending The Pure Gold Company to those looking to invest in gold or silver.
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