The most common words that come to one’s mind when someone says the word investment are stock, property and gold. But how does one define which is a better and wiser investment to make and for how long? Read on to find out these details as we help you de-clutter your thought process regarding the most common forms of investment.
The biggest advantage of investing in gold is by far its liquidity. It offers the fastest conversion to cash among all the forms of investment. Gold was, and is, most commonly used for the purpose of saving for marriages. While it was once the most sought after form of investment, it has now lost that privilege. The last five years have not been particularly kind to this form of investment as it has seen a decline of 19.96% according to a report. Moreover, gold prices have seen wild fluctuations during the same time period, making investors uneasy with this option.
The next most common option for investment are stocks. Volatile in nature, the stock market did perform well up till early 2017. Since then, however, the market has seen a downward trend, according to a report. With new and more ambitious projects becoming a part of the economy, a slight increase is expected. However, at the same time, the repayment variables such as taxes, inflation rate, and loan repayments also factor in on the volatility of the stock market.
Currently, the stock market is not a preferred option for a relatively smaller investor. However, investors with bigger budgets and larger timelines may find this option fitting.
Pakistan’s property sector has shown promising signs since the slump in prices due to taxation. In fact, just in the last year alone, the realty sector saw an increase of 2.08%. These trends reflect the increase in the price per square foot, and the interest genuine buyers and investors have shown, not to mention overseas investment in property. This, along with the recent developments in the realty sector due to China-Pakistan Economic Corridor (CPEC), significantly impact the investment and buying atmosphere in a positive manner.
This not only impacts the main industry, but also affects its ancillary industries. This results in an economic activity that brings about a positive change and raises the standard of living of the general populous.
Over the years, the most promising investment option has been property. It has seen an impressive and sustained growth for quite some time now, despite facing dips and a deceleration of price trends. Both stocks and gold have experienced unpredictable fluctuations.
Given the data and the trends, and the fact that it is your hard earned money, it is suggested that you do your homework before jumping into any form of medium- to long-term investment. Having said that, based on the information given above, the most stable form of investment seems to be in the property sector.
How has your investment in either of these options fared? Share your experiences in the comments below