Investing in gold, real estate, or savings certificates?

Dr. Medhat Nafie, an economic expert, said that the choice between investing in gold, real estate, or savings certificates varies in terms of liquidity, the size of risks, and the nature of the investment, explaining that everything that is a direct physical investment in gold or real estate bears great risks, including the lack of liquidity for real estate. If you want to obtain the money, you will have to wait to sell the property, which represents an obstacle to investing in the property, especially for small investors or citizens who are looking to save their money in general, and the same applies to gold in its physical form, in addition to the risks of storage. And memorization.

Certificates of real estate

Nafie adds, “From my point of view, the preference will not be in favor of the physical form of gold or real estate for those who cannot bear additional risks, but the documents and certificates of real estate funds, gold funds, and dollar funds address many of those risks and give a large return.”

He continued: “As for investing in high-yield savings certificates, it is considered a safer investment and does not require a lot of savings, but the interest granted by banks does not compensate for the losses incurred in the original amounts saved due to inflation... If the annual inflation rate revolves around 35%, for example, this percentage has been lost from the total amount saved in a savings certificate that grants an annual return of only 25%, and therefore the real net loss from the original amount saved is 10%.

He continued: “I expect the same thing to be repeated with the certificates that were offered soon with an interest rate of up to 27%, especially if annual inflation continues above this percentage at the maturity date of those certificates next year, even though setting the certificate for a year reduces the risks, because it achieves the purposes of high liquidity.”

  Here it must be noted that there are quite good treasury bills, especially 3-month ones, but they are subject to tax and are not renewed automatically, as you must apply to purchase them from banks. Also, some gold funds achieved exceptional revenues in the last period, one of which reached 32% in 6 months. Months".

Investment funds

Beltone Investment Fund Management Company has applied to the Financial Regulatory Authority to obtain approval to establish and issue a gold investment fund.

This came in a disclosure by Beltone Financial Holding Company, which owns Beltone to manage all investment funds on the stock exchange.

Beltone Financial Holding Company works in providing financial services and non-banking financing services, and it is listed on the Egyptian Stock Exchange.

Gold prices witnessed a significant increase locally and globally during the past year 2023, with the occurrence of many economic crises in Egypt and the world.