Invest in Gold or Invest in Property in Zimbabwe?

With today's volatile economies in the world one wonders where the safest place to invest one's money is? I'm not talking about short term, get rich quick schemes here. Where would you get the biggest return on your money over the long term? Certainly not leaving it in the bank to earn a pittance on interest or worse still, to have the bank go belly up.

Some people I have spoken to think it is a great idea to buy gold. Actual gold, that you can hold in your hands or bury in the garden if the mood takes you. Speculating on the spot gold market, in these volatile times, is the quickest way to lose money. But let's say you had bucket loads of cash and you bought gold and sat on it..(well, not quite. Unless you were hoping for a golden chicken to hatch!),  how long would it take to double your money? Ten years? Twenty years? Who knows? In this economic environment you may lose money for several years before the gold price returns to its bullish trend seen in recent months.

I would invest my hard earned cash in property in Zimbabwe. Despite our harsher than harsh economic climate, (Greece and Italy have nothing on us,) property prices have consistently gone up. If you were fortunate enough to have bought property in 2006 or 2007 in Zimbabwe, your investment has tripled, quadrupled or more, depending on the property type and area. Since dollarization in 2009, the upward trend has slowed, but you are still getting a growth of around 25% per annum on your original investment. It doesn't take a rocket scientist to see that in 5 years your property has doubled in value.

Now if you had bought the property for an investment, you will have been earning rental revenue on it. The rentals have also tripled or quadrupled in the last 4  to 5 years.

Buying property and leasing it out is the best way to secure your money in these volatile times, and at the end of the day, if everything really does go pear shaped, at least you will have a roof over your head to keep you warm at night. Gold on the other hand is a cold, hard bed partner and not likely to keep you warm!

For property advice you can trust, email me at nicky@pageproperties.co.zw