Gold Price Plunges After All-Time High: How Does It Now Stack Up Against Real Estate Investments and Other Popular Assets
By Ralph DiBugnara
Originally published by Realtor.com · By Julie Gerstein · October 22, 2025
After soaring to new highs just as the U.S. government entered its first shutdown in almost seven years, gold prices slid back down by just over 5% on Tuesday to around $4,130. Some experts still look at the precious metal as a solid investment, while others warn this is why investing in assets like real estate is a smarter move.
Though high mortgage rates are making it more expensive to buy a home right now, many experts still believe that real estate beats out other investment opportunities. And with President Donald Trump signing an executive order allowing alternative assets such as private equity, cryptocurrencies, and real estate into workplace retirement plans, the market is still a better investment.
In fact, according to Gallup, 37% of Americans still agree that real estate is the best long-term investment, with only 23% saying gold and 16% relying on stocks.
With real estate in particular, many homeowners are sitting on record-high equity, which can be used through a home equity loan or a home equity line of credit (HELOC) to purchase an investment property, according to Hannah Jones, senior economic research analyst at Realtor.com®. "However, investing in real estate is not a slam-dunk in all markets as high home prices and elevated mortgage rates squeeze potential earnings," she points out.
Here's how real estate stacks up against other investments.
Buying Real Estate
Pros
Real estate values have grown at a slower pace than the S&P 500 on a year-over-year basis, but according to a Realtor.com analysis, real estate saw an average five-year return of +26% since 1975 as of the end of 2024. Typical homeowners have also accumulated at least $147,000 in housing wealth in the past five years, according to the National Association of Realtors®. "Traditional investments like 401(k)s, IRAs, and ETFs are great for passive growth, but real estate brings in a whole different level of wealth-building," says Dan Reedy, a real estate investor and broker. "With real estate, you can actively influence your returns by making strategic upgrades or managing rental rates. Plus, real estate offers deductions—mortgage interest, depreciation—that can make a huge difference come tax season."
Cons
If you value liquidity and being able to access your funds at a moment's notice, it's probably not the right move for you. "The biggest problem I see is that people have record equity in their home right now—more than they've ever had before. But that's just a number on paper," says Ralph DiBugnara, founder of HomeQualified. "You can't really do anything with it unless you're willing to take [money] out of the house, unless you're willing to leverage it."
Real Estate Investment Trusts
Pros
REITs allow investors to buy shares in a real estate company without owning property directly. Their portfolios typically include a mix of residential and commercial properties. "They're also traded like stocks, making them more liquid. Just buy or sell whenever you want, without the management headaches," says Sara Levy-Lambert of RedAwning. The IRS requires REITs to pay out at least 90% of their income as dividends to shareholders.
Cons
REIT dividends are generally taxed as ordinary income—not at the lower capital gains rate. The average annual dividend yield for publicly traded REITs currently hovers around 4%, though this can vary by sector and market conditions.
Cryptocurrency
Pros
Bitcoin initially traded at $0.00099 in 2009, but today it's over $88,000, and early investors who have held on have made many millions of dollars. The current presidential administration is also very invested in making crypto more accessible.
Cons
"Cryptocurrencies are notoriously volatile, subject to speculation, and witness frequent bubbles and crashes," says Harry Turner, founder of Sovereign Investor. "That's why cryptocurrencies are really only suitable for individuals with a high risk tolerance and an understanding of the underlying technology, which can be complex. Real estate doesn't have this problem."
Gold
Pros
Gold is a relatively stable asset. It's less reactive and can be a good hedge against the volatility of the market. In the four years following the 2008 financial crash, the price of gold increased dramatically—in 2011 alone, by 32.8%. After hitting an all-time high price of $4,225.10 per ounce in early October, the prices started to plunge by the following week, falling as much as 6.3% soon after, marking the largest intraday drop for the metal since June 2013, according to Forbes.
Cons
It's fairly difficult to sell gold commercially. Physical gold weighs a ton, and it's not the easiest thing to move around. Plus, you'll want to insure it, and there are higher taxes on physical gold. If you sell, you'll have to pay a capital gains tax of up to 28% on any profit. (The typical capital gains on stocks and bonds is 20%.)
Investing in Other Types of Tangible Assets
Pros
Relatively niche markets allow investors to dig into the things they love, be it art, cars, or wine.
Cons
There's a high barrier to entry in some of these particular markets—not just financially, but in terms of knowledge. Alternative assets can be exciting and sometimes profitable, but they come with extreme volatility. "Look at crypto. Bitcoin, for instance, went from $60,000 to $20,000 in under a year," says Reedy. "The occasional blue-chip wine or NFT might pay off big, but real estate lets you sleep at night while building long-term wealth."
No matter what you choose to invest in, you should talk to your financial adviser about what types of investments are right for you. Dina Sartore-Bodo contributed to this report.