Concrete gold

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Concrete gold is a term used in popular economics to describe the supposed security of real estate ("concrete") from falling in value, especially in times of crisis.

meaning

In times of crisis, when the stability of currencies and thus the value of cash or bank balances is threatened, investments in gold are often increased , which is why a rising gold price is also a sign of economic crises . Based on this, one speaks of concrete gold when investors increasingly invest in real estate and private individuals at the same time increasingly invest in renovating and modernizing their own residential property , as this promises more stability and profitability than a bank balance, for example in times of low interest rates . The term is intended to indicate that real estate (symbolized by the word "concrete") outside of war zones is said to have a similar value stability as gold. However, this is an inadmissible generalization, as there can also be a sharp drop in value in real estate, for example due to a decline in population , due to a disadvantageous change in the income and population structure of a district , due to environmental impacts , due to an increase in the key interest rate , due to an economic crisis Increase in property taxes or the introduction of a property tax on real estate.

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