Romania has the highest home ownership rate in the European Union, with 94 percent of the population living in owner-occupied housing. At the same time, investment gold is now viewed almost on par with real estate as a way to protect wealth against inflation. Investors today can choose from a wider range of assets than ever before, including real estate, stocks, ETFs, investment funds, bonds, Bitcoin and investment gold. However, these assets serve different purposes and should not be assessed solely by their potential returns.
Stocks, ETFs and investment funds generally provide long-term exposure to the growth of companies and financial markets, although their value can fluctuate significantly. Bonds can offer a more predictable income stream, but remain exposed to interest rate, credit and inflation risks. Bitcoin offers the potential for substantial gains, but also comes with very high volatility.
Real estate combines ownership of a tangible asset with the potential to generate rental income and build long-term family wealth. However, it requires significant initial capital, ongoing maintenance and time to sell. Investment gold does not generate interest, dividends or rental income. Its main role is to preserve value over the long term, diversify wealth and reduce dependence on a single market or financial institution.
Security remains more important than maximising returns
Despite the growing range of investment options, financial security remains a key priority for Romanians. According to a Tavex study among people who save or invest, security is one of the main reasons for setting money aside for 86 percent of respondents.
The findings suggest that personal financial decisions continue to be driven more by the need for protection and preparedness for unexpected events than by the pursuit of maximum returns.
“Higher potential returns always come with higher risk. Sound personal financial management should therefore not begin with the question of which asset may rise the most, but with the role each part of one’s savings is expected to fulfil. Some funds should provide liquidity, others should support long-term growth, while another part may be intended to preserve value over time,” said Victor Dima, Treasury Manager at Tavex Romania.
Real estate and gold are almost equally associated with inflation protection
When Romanian savers were asked in the Tavex study “Saving and Investment Attitudes in Romania” which asset provides the best protection against the loss of purchasing power over time, 21 percent selected real estate. Investment gold and other precious metals followed closely, chosen by 20 percent of respondents.
The one-percentage-point difference indicates that gold is already perceived alongside real estate as a tangible asset associated with preserving purchasing power.
The two assets are not interchangeable. Real estate can be used and may generate rental income, but it also comes with a higher entry threshold, taxes, renovation costs and a slower sales process. Gold is compact, can be purchased gradually and is generally easier to transfer or sell, but it does not generate regular income.
“There is no universally best investment. Real estate and gold address different needs, but they share one important characteristic: people perceive them as real, tangible assets. This sense of ownership and control becomes particularly important when the objective is not short-term profit, but the protection of family wealth,” Victor Dima added.
Confidence in property is closely linked to Romania’s ownership structure. According to Eurostat data, 94 percent of the country’s population lived in owner-occupied housing in 2024. This was the highest rate in the European Union, where the average stood at 68 percent.
For generations, owning a home has been regarded as the foundation of financial stability in Romania. Property provides security, may appreciate over time and can be passed on to children. Confidence in real estate is therefore driven not only by price movements, but also by the central role it plays in family wealth.
Investment gold can serve a similar patrimonial role. It can be held over the long term, divided among heirs and transferred across generations without depending on the condition of a particular property or company.
Unlike investments designed primarily to generate income, physical gold is generally added to a portfolio to preserve part of its value over a longer period. It is globally recognised, does not physically depreciate in the same way as buildings and can be accumulated gradually through purchases of different sizes.
At the same time, gold should not be seen as a substitute for all other investments. Its price can move in both directions and may decline over shorter periods. Its value lies primarily in its role within a diversified portfolio and its ability to form part of a family’s long-term wealth alongside property, financial assets and cash reserves.
“True financial security does not come from concentrating all available funds in a single asset. It comes from allocating wealth properly between a liquid reserve, investments designed for growth and assets intended to preserve value over the long term. For many families, gold can be part of that third category,” Victor Dima concluded.
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