Tangible Investments: Preserving Wealth in a Volatile Market
There is just something about a find or precious item you can touch. Sure, you could gaze upon it, Scrooge McDuck style. But even the savviest investors among us know that a tangible asset always feels more special than something esoteric.
It’s also a great hedge against the future, as the value of precious metals always seems to ascend. We talked about this in a recent blog post, which you can read here.
Maybe that’s why gold recently hit an all-time high, with silver hot on its heels. Folks just want to get their hands on something they know is increasingly coveted by all.
It’s with this in mind that we delve into the topic of tangible investments. More specifically: why you should consider them as part of your diversified portfolio. Read on to learn more about physical assets to invest in.
Examples of Tangible Assets
Tangible assets are high-worth pieces you can touch with your bare hands. These are physical assets to invest in as part of your portfolio. They can represent a wide range of physical objects. Types of tangible assets include:
- Fine and decorative art,
- High end couture,
- Land holdings or real estate,
- Collectibles,
- Precious metals in the form of coins, bars, or bullion,
- And more.
These are just a few examples of tangible assets, but the list is hardly exhaustive. Beyond your passport, anything you might keep in your family safe is part of the tangible investment asset class.
But what are the safest investments, you might ask? Honestly, it’s any type of investment that carries a consistently high ease of sale and value.
Benefits of Tangible Assets
There are countless reasons why physical assets to invest in make for smart portfolio additions. Here are just a few:
A Bet Against Volatility
The markets seem like a rollercoaster. Staggering highs and stunning drops just seem par for the course, it would seem.
But while some investors have the stomach for enormous gains and losses, that’s undoubtedly not everyone. Suffice it to say, the majority of us simply aren’t cut out for it. If you’ve ever felt a pit in your stomach when seeing red across your dashboard, you know what we mean.
But luckily, precious metals are tangible investments that don’t experience the same wild market swings. Perhaps it’s because gold and silver are tangible assets that nearly everyone covets. Their style simply refuses to fade.
When thinking about diversifying your portfolio, any money manager would tell you breadth is key. This is why we’re not telling you to dump your stocks. Instead, consider both tangible and intangible assets together. This way, your tangible assets can provide a safety net.
Relatively Simple to Sell
The market open and close times, halts, and more create inherent pressure on buyers and sellers. In truth, there is nothing inherently relaxing about stocks.
Tangible investments are far more straightforward to sell. This is largely because they don’t succumb to the live marketplace rules that govern the stock market.
Tangible investments aren’t governed by market timing. If you wish to sell your house, all you need is an attorney and a willing buyer. If you wish to sell a piece of art, an auction house has you covered. And if you wish to sell your precious metals, there are countless collectors who would gladly buy them from you.
Nearly Guaranteed Returns on Investment
Listen, we are not in the business of making promises about what the market conditions will yield in the future. But if you look at the market history of any indicator, tangible investments only seem to go up. This is as true for real estate as it is for precious metals.
Stocks and mutual funds may take you on a more immediately thrilling ride. Tangible investments, however, are long term investments for the patient investor. Of all the investment strategies, those with assets that all but guarantee value are in a winning position.
Discover Authentic Precious Metals
If you are hunting for an easy-to-use resource for investment in your tangible assets, good news. Kzoo Bullion is your go-to resource for precious metals.
We offer gold, silver, and more precious metals in everything from bullion to unique coins. And with our low premiums and secure transactions, you get access to your tangible investments cheaply and simply.
Invest smarter. View our gold bar and coin collection here.
