Which is the Best Choice? Investing in Real Estate, Gold, or Savings Certificates?

October, 2023


So many people are searching for the best ways to save and invest their money, especially with the apparent increase in prices in light of the economic crisis happening in the country and with the increasing inflation rate. There is an important question that many want answered, which is which is better for investment? Real estate, gold, or savings certificates? There is no single correct answer to the question of which is better in investing. The better choice depends on various factors, including the time period of investment, risks, financial goals behind the investment, each person’s financial situation, and personal vision according to his or her needs.

Regarding the investment time period, if you are looking for a short-term investment, savings certificates are the best option, as they offer a relatively high return for just one year. If you are looking for a long-term investment, real estate and gold may be better options, as they can achieve higher returns in the long term.

On the other hand, investment certificates are considered low-risk, as they are guaranteed by the Central Bank, while real estate and gold are of higher risk investments, as their prices can go alter at any time.

It's important to keep in mind that if you are looking for an investment for quick gains, savings certificates are the best option. If you are looking for an investment to preserve the value of your money or make long-term gains, real estate and gold may be better options for you.

Before making a decision, you must first see the advantages and disadvantages of each:

Advantages of investing in gold:

gold in Egypt

Investing in gold has many advantages, including preserving value. It has long been considered a safe haven for financial value. Gold maintains its ability to maintain its value in the long term, and may enhance your ability to resist inflation and market fluctuations.

Gold is an easily tradable material. You can buy and sell gold easily as there are many options available to buy gold, such as jewelry and gold bullion.

Preserving value in global as well as local crises, gold is considered a safe haven during difficult economic times or financial crises and it may be used as a means of securing value in situations of economic instability.

Disadvantages of investing in gold

Even though the prices of gold have risen recently making it an expensive investment, especially if you want to invest in a large amount, it is still a preferred way of saving for Egyptians.

Otherwise, it may be difficult to store gold safely, especially if you own a large amount of it. Not to mention that gold prices can change significantly, which may lead to financial losses.

Advantages of investing in real estate:

Investing in real estate can be a way to obtain a fixed source of income through rent, however, the value of real estate can increase over time, providing a return on investment. Real estate is also considered a physical investment, which means that it is not subject to price fluctuations like financial investments, and finally real estate can be used as collateral for a mortgage, which may help you purchase a property for less than its full price.

Disadvantages of investing in real estate:

Investing in real estate is expensive, especially if you want to buy a large property or a property in a desirable area. Real estate can be damaged or destroyed, which may lead to financial loss. In the case of renting, managing real estate may be difficult, especially if you rent more than one property. Lastly, fluctuations in the real estate market could add a bit of risk. But then again, all investments have their risk factors.

Advantages of savings certificates:

bank certificates

Savings certificates are considered safe investments as they are guaranteed by the Central Bank of Egypt. However, the value of savings certificates can be redeemed at any time, taking into account the applicable fines. The duration of the savings certificate varies from 3 months to 5 years, which allows investors to choose the period that suits their needs. Finally, the rates of return on savings certificates may vary depending on the duration and type of certificate.

Disadvantages of savings certificates:

The rate of return on savings certificates is usually lower than the rates of return on other investments such as stocks or real estate. There is usually a minimum for purchasing savings certificates which may limit access to this investment. For people with small amounts of money, savings certificates are a great way to preserve the value of your money and earn a regular return, however, it is important to understand the drawbacks before investing in them.

Read more on the Devaluation of Egyptian Pound Against the Dollar. How will it affect the real estate market in Egypt?

Which is the best choice? Investing in real estate, gold, or savings certificates?

The National Bank and Bank Misr issued new certificates two months after the end of the offering of 25% savings certificates for one year, coinciding with the expiration of the 18% certificates that were offered last year. The duration of the new certificates is 3 years offering 19.5%, while the duration of the previous certificates was one year. Therefore, the investment decision for the new certificates depends on the needs of each individual. If you do not prefer to bind your certificates for more than a year then the new certificates will not meet your needs, and perhaps you should look for another type of investment.

Despite the high rates of return on savings certificates in Egypt, the continued high rates of inflation make them useless in preserving the value of savings, as the core inflation rate in Egypt rose to 40.3% in February 2023, which is one of the highest inflation rates in the world. This means that savings deposited in savings certificates will lose value due to inflation.


Therefore, many clients are looking for other savings methods and means of investment, such as gold and real estate. These assets are considered safe havens against inflation, as their value tends to rise with rising prices. If you would like to speak with distinguished real estate consultants to help you make an investment in real estate you can call RE/MAX Egypt on +202-22692004 or contact us here.