Gold bars and real estate might be trending on TikTok, but financial advisors say the hype is misleading.
According to a recent Gallup poll, 37 percent of Americans believe real estate is the best long-term investment, while 23 percent say it’s gold—up five percentage points from last year. Only 16 percent picked stocks or mutual funds, down sharply from 22 percent in 2023.
Financial planners are waving the caution flag.
“People are always chasing what’s hot, and that’s the stupidest thing you could do,” Carolyn McClanahan, a CFP and founder of Jacksonville, Florida-based Life Planning Partners, said.
Though both gold and real estate can gain value over time, historical data shows the stock market has consistently delivered higher returns in the long run. Over the past century, the S&P 500 has yielded an average annual return of about 10 percent—far outpacing most housing markets and gold.
Part of the appeal, experts say, is emotional. Physical assets are, quite literally, tangible.
“You buy a house, you can see it, feel it, touch it,” said Lee Baker, president of Claris Financial Advisors in Atlanta. “Your investment in stocks perhaps doesn’t feel real.”
The recent surge in gold’s popularity may also be driven by fear. Ongoing geopolitical tensions and inconsistent tariff policies have shaken investor confidence. As The Guardian reports, U.S. gold inventories have doubled in recent months.
Even with these global pressures, most advisors stress that long-term wealth is better built through diversified stock market investments rather than chasing shiny objects or property trends.
