When it is about creating a portfolio, a big question arises in the mind of the most investors-where should they invest- whether it should be asset classes or on the nature of asset such as financial or physical. When the matter of investing in any physical assets (like gold and real estate) come, certain specific concerns occur in the mind since they have their own positive and negative aspects. On the other hand, investing in financial assets such as stocks, mutual funds and bonds have their own pluses and minuses. In most of the cases, investors find themselves in the fix which is better for investment- gold or stocks. Let’s have some glimpses on both of these assets to know who the winner is.
Investing in Gold
Investing in gold is often considered as safe investment though the scenario of gold price doesn’t always remains on high. When physical gold is considered as one of the most popular ways for investing in gold, many people are considering 401k Gold IRA rollover as their retirement investment plan. Although there are certain connection with political and emotional swings on the volatile market to the price of gold, but if you compared to the days of swings with the long-term growth of gold price, the former seems trifle. Therefore, people prefer to invest gold IRA as their retirement plans.
Investing in Stocks
In today’s digital market, investing in stocks is considered safer in comparison to investing in physical assets, as there is lack of safety issues since these are in the electronic forms. The ease of selling stocks results more liquidity and the process is quite simple once you know all the pros and cons of stock markets.
Stocks Market is Rallying Since 2009
Presently stocks are rallying since 2009 because the rising of the Dow Jones up 176% since 2009. But this rally is soon going to be over as the trading range of the Dow Jones ranging between 17,500 and 18,300 average for every month now and stocks are already overpriced indicated by the stock valuation tools. The growth of corporate earnings has already stopped unless the Federal Reserve further announces that they are again going to print money.
Gold Up To Now
Alternatively, gold presents an opposite holds. Gold bullion touched its all-time highest price of 1,900 U.S. an ounce in 2011 and since then the prices are down by 37%. In 2014, gold bullion was within the trading range of $1,300 to $1,150 an ounce. That means that when stocks are rising on the top, the gold price is getting down at the bottom.
After beating of the gold prices, the gold producers have sliced down their exploration from the mines which indicates the contracting of gold supply. On the other hand, the demand of gold is always on the high.
Who Is The Winner?
Now the final question is-which option is more beneficial for investment- overpriced stocks or oversold gold? Following the Dow Jones U.S. Gold Mining Index of 2015, it shows 34% growth where the stock market may be down the road from leading position in nest 6 to 12 months. Therefore, it indicates higher gold price is waiting in future. Next up to you- the investors.