Year after year, surveys show Americans overwhelmingly view real estate and gold as the best long-term investments. But is that just comfort talking, or do these assets actually deliver better returns?
Financial advisors say the answer is more nuanced than many investors think. “Real estate and gold feel tangible,” said Christopher Stroup, founder of Silicon Beach Financial. “They’re physical, familiar, and have long histories tied to wealth preservation.”
Still, while both can offer value, overreliance on real estate and gold can pose risks, particularly if they crowd out more liquid, growth-oriented options like stocks. Let’s take a closer look at how these popular picks really perform.
Why Americans Pick Real Estate and Gold
A 2025 Gallup poll found more than one-third of Americans (37%) named real estate as the best long-term investment, followed by gold (23%) and stocks (16%). That’s not new. Real estate has topped the list for over a decade, while gold has held its own against stocks.
Part of the appeal comes down to psychology. “Homes are often associated with stability, success, and security,” said Tracy Baron Garcia, founder of TBG Investing. Meanwhile, gold has traditionally been viewed as a safe haven, “especially during times of uncertainty and rising inflation,” she said.
Dwayne Reinike, founder of Valiant Financial Planning, agrees: “Holding a piece of gold or walking through a house you own can give you a real sense of ownership. It’s almost like they can feel the value in it.” In particular, both have long been viewed as hedges against inflation, which can be top of mind for investors during periods of rapidly rising prices.
How Real Estate and Gold Perform vs. Stocks and Bonds
While both assets have their place, the numbers don’t lie: Stocks tend to win over the long haul.
“Over long periods, stocks have historically outperformed both real estate and gold, especially when you include dividends,” Stroup said. “Gold tends to lag during growth periods.”
Reinike added that while people may point to strong years for gold or housing, that doesn’t tell the full story. “If you stretch that timeline out past a single year, you’ll see that on average, the S&P 500 has outperformed both,” Reinike said. That’s true for the more tech-heavy Nasdaq Composite index as well, he said.
In fact, over the past 15 years, the Vanguard Real Estate ETF (VNQ) has delivered annualized returns of about 8%, compared to 6.4% for the SPDR Gold Shares ETF (GLD) and 5% for the iShares Core US Aggregate Bond ETF (AGG). Meanwhile, the SPDR S&P 500 ETF (SPY), which tracks the index’s performance, has returned an average of 17.1% over the past 15 years, and the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 index, has done slightly better at 18.5%.
Those figures can mean vastly different returns over long periods of time. A value of $100 invested in the S&P in 1928 would be about $983,000 today—compared to $12,650 for gold and $5,550 for real estate.
Finally, real estate also often comes with added costs, Garcia said. For example, if you buy a home for $400,000, put 20% down, and have a 30-year mortgage at 6.5% interest, you will pay about $408,000 in interest over the life of the loan, she said.
Investing Beyond the Crowd Favorites
So, should you ditch gold and real estate entirely? Not necessarily—but leaning too hard on them could backfire.
“One of the biggest risks out there is having too much concentration in whatever is ‘popular’ at a point in time,” Garcia said.
Stroup notes that while gold and real estate can help hedge inflation or diversify risk, they aren’t always the best fit for everyone, especially younger investors. “Tying up capital in illiquid assets too early can limit flexibility and delay bigger financial goals,” he said.
And real estate’s lack of liquidity can become a real problem in retirement. “If someone is nearing retirement, cash flow is paramount,” Garcia said, noting the risk of having too much of your wealth tied up in illiquid assets. Stocks and bonds, on the other hand, are typically liquid assets that can be sold to create cash flow, and they can generate income through dividends or coupon payments as well.
The Bottom Line
Real estate and gold might be crowd favorites, but familiarity doesn’t equal performance. Experts agree they can serve a purpose, but not at the expense of balance. A diversified portfolio that includes a mix of liquid, income-producing assets like stocks and bonds is more likely to meet long-term goals.
“Ask yourself what problem you’re solving,” Stroup said. “Is it growth, safety, or fear of the market?” The answer to that question—rather than the popularity of an asset—should shape your investment plan.
