When we can’t see or touch things it’s hard to believe that they are there.
Yet, hundreds of thousands of business professionals put their money in an untouchable place that’s based on fluctuations.
For those that like things that they can get their hands on, there’s tangible investments.
These purchases are not part of the stock market and can be stored safely in homes, safe boxes, and more.
Likely, you have a collection of tangible assets, with things like your home, your car, and even family heirlooms that have been passed on.
In this post, I'll explore some of the best tangible investments, how you can diversify your portfolio with things that you’ve been investing in all your life, and more. Let's get started!
What is A Tangible Investment?
According to Wikipedia, tangible investments are physical items that can be touched or felt.
They are the opposite of financials that include stocks, bonds, and hedge funds.
These hard assets come in a wide range of forms and add to your assets in one of many ways.
For instance, some business tangible items are held due to their ability to appreciate.
You can think of these as personal property like antiques, silver, heirlooms, or even collectibles.
The idea behind these kinds of funds is that, the longer they are in one’s possession, the more they are worth.
On the other hand, some tangible investment options make holders money by depreciation, which banks on the fact that they can collect income over time.
An example of this would be equipment, as it can be rented out and used until it no longer functions.
Then there are assets like homes, cars, and land, all of which fluctuate.
Over time, these items can either decrease or increase depending on what’s happening at the time.
What are Assets?
Assets are items that are owned by individuals or a business. This includes any and everything that is owned and possesses a value.
A few examples include real estate, vehicles, land, furniture, the perfect ring, estate jewelry, and more.
Assets, in general, also include things that are not touchable, including financial instruments like shares, stocks, bonds, or hedge funds.
Tangible assets are a bit different by definition, only including items that exist in physical form that you can actually touch.
Just like other assets, the value of assets changes over time, fluctuating along with the market.
This means that the value can change dramatically, though some items tend to hold onto their value strong.
These kinds of assets fall into two main categories:
Current assets are considered things that can be easily sold.
For example, a current asset could be a home that’s on the market or a car that the owner is looking to score a return.
It could also be property owned by a business or items that are in inventory.
Current tangible assets are typically thought to be assets that will be liquidated soon and not held onto for the future.
Fixed assets are those that are possessed for the long run.
Purchasing real estate or collectible items are key ways to buy into fixed assets.
The idea with fixed assets is that they will be in the owner’s possession for a long time, growing in value as time passes by.
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Best Tangible Investments to Grow Wealth
All purchases come with risk.
They say that riskier purchases tend to come with larger returns, though that’s not always true with investments you can hold in your hand.
Because they are in physical form, having items of good and solid quality typically give the best returns.
The possibilities to add items to your portfolio are endless, and part of the challenge is choosing those that have the lowest risk and the highest return no matter if you decide to hold onto them or put them on the market them soon after.
Below, we’ll take a look at some safe bets that you can make to owning tangible items, helping you find the best option for you.
Real estate is one of those niches that keep on giving. While location is the key decider, there are not too many factors that can go wrong when you buy a property.
The housing sector is solid and is something that will persist no matter what happens.
Before taking off and deciding on a home, community, or area, homebuyers should take a few things into consideration.
First of all, they should purchase homes in good condition that come with a manageable price tag.
Then, they should take a look at homes in areas that have a huge demand, using it as a way to add funds into something that will offer a solid return.
Real estate is not just about the home but also about the area that it’s in, which is perhaps more important than the way that the home looks.
Because it takes more than just purchasing a home, buyers should consider whether or not it's a good item for them before partaking.
Not sure how to get started investing in real estate?
My favorite way to get started is by using Fundrise. With this platform you can easily invest in real estate without the stress and headache that comes with managing properties and more.
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A popular tangible assets item is a rare coin, of which there are many in the hands of collectors.
Coins are a piece of history, providing a piece of the puzzle of ancient civilizations, which is why all investors should add them to their portfolio.
You can find coins from several eras, the further back they go and the better condition they’re in, the more valuable they are.
According to Generosity Mike Bonham CEO, among the most valuable rare coins are the 1794 Flowing Hair Dollar (with a price around $10 million), and the 1913 Liberty Head Nickel (with a price around $3.1 million).
While you might not have your hands on a coin this rare, maybe you have a collection of some coins overtime that have been out of circulation for a while.
Related: How to Turn 10k into 100k
Another popular investment is gold.
There are several possibilities when it comes to possessing this metal as a real investment, including jewelry and more. We mentioned this metal above and hit on the possibilities.
What we didn’t mention is how much of a safe bet it can be when it comes to buying items.
From gold bars to all kinds of jewelry items, gold is considered a safe zone and tends to hold its value even if the market is inflating.
Apart from the price that holds no matter what, gold is sturdy and virtually indestructible.
It’s these characteristics that make it great for the long haul.
Because of its value and its obvious strengths when it comes to items, one of the riskiest parts of investing in gold is keeping it safe, as you’ll have to choose a secure system where no one can get to it.
Related: How to Invest and Make Money Fast
With collectibles, you should take caution.
First of all, you don’t want to invest in things that you can’t sell later on.
Secondly, you have to be cautious of fakes and replicas.
Some of them that come with a solid reputation are fine art, unique wines, and even stamps.
All of these items can have a high value, though you have to know what you’re buying.
Investing in collectibles takes some research and learning.
You’ll have to know the history of your items and be familiar with all the aspects including the creators, makers, and artists behind them.
Just like gold, they require safeguarding.
They also take some analysis of the niche value, as consumer tastes and requests change.
Related: Investments That Pay You Every Month
Investing in art is certainly a tangible asset you can use to grow your wealth and make money. By using platforms like Masterworks you can easily invest in art.
The platform has an average annual return of 15% making it a great choice to grow your money. You can check out my full Masterworks review to learn more or register below to get started!
Land is one of the most solid items to buy, as it’s not something that can be stolen.
Purchasing land is always a good bet, though you have to keep location in mind.
Purchasing land in a high demand area will cost you quite a bit.
Though looking into areas that are up and coming is a good idea too.
Still, investing in land in an area that will not soon see some sort of development could mean that you won’t get much return if you decide to sell.
Just like all other spending, it’s recommended that you do your homework before you buy, making sure that you can get more out of it than you put into it.
Related: Ways to Make Money While You Sleep
Did you know that vehicles can actually increase in value?
Of course, it depends on the car, as most of the new cars put out today will depreciated as soon as you drive them off the lot.
Cars that have the highest appreciation are classics and collectibles, which makes them a perfect investment if you’re a car fanatic.
Old classic furniture from classy eras long before are worth a lot of dough.
If you get lucky enough to come by antique furniture, be sure to hold on to it and only sell if you have a good buyer that knows its worth.
Heavy-duty equipment is a great tangible investment, one that can pay for itself through rentals.
If you don’t want to rent it and just sell it, hold onto it for a bit and see if the value increases.
Things like desks, chairs, safety lockers, and more are valuable items that companies will continue to need.
These are great investments that you can keep and sell for a decent return as long as they are in good condition.
Businesses both small and large have inventory, which is also considered to have physical value. If you have a business, the more inventory you have, the more assets you have.
Though it isn’t always considered an asset, cash is one of the most basic physical assets there are.
If you have cash in hand or in the bank, it’s considered a tangible asset.
In this digital age we live in today, everyone needs a computer.
Computers are great investments and the better quality you buy, the better your return.
Plus, if you like to collect, you’re sure to have discontinued models on your hand that will count as antiques much later, increasing in value.
Things to Consider Before you Buy Tangible Assets
While assets that you can hold in your hand might sound like a solid option, there are some things that you should consider before you buy.
Not all items are created equal, and some are less effective than others. Before you buy, consider the following.
Don’t Go Over Budget
Some items that you or your business can buy now with high prices won’t stay that way forever.
For example, let’s say that you find a rare wine that is worth a ton that dates back to the 1800s.
While it may have a ton of value now, what if everything completely crashes and you’re stuck with it.
Make the best out of a bad day and make sure that, whatever happens, you can enjoy your purchase.
This will help you not only buy things you like and will use in case they plummet but will also ensure that you’re not wasting your funds and spending more than you have on an item that’s just not worth it.
Be in the Know
The more you know about the products that you’re going to buy, the better.
Not only will you understand more of how purchases work but also understand risks and the business behind it.
Both are useful when it comes to selling your product and when it comes to knowing its worth.
Keep current with the price of items you’re buying and make sure that you’re getting the best deal.
Whether you buy art, jewelry, or other collectibles, it helps to know what you buy to buy better and and get the most out of your items.
Invest in Tangible Assets Protection
Tangible items are touchable and, unfortunately, can be stolen.
Before you purchase anything with high value, consider where you are going to keep it safe.
While some items can be stored in the home, others might need a special place like a safe, a safety deposit box, or another form of storage.
When deciding, consider the size and the market risk, making sure that you have a way to secure your item that won’t leave you empty handed.
The thing about valuable items is that most people know that they are valuable.
Before you buy, give your item careful consideration and choose businesses with great customer service.
That makes some of these items a huge target for counterfeiting, which could result in you spending on items that come with no return.
Apart from knowing about your items, you’ll also need to know about the business that they are coming from, making sure they are extremely fair.
Make sure that your the business and/or seller is legit and offers impeccable service for delivering real items within the niche you’re looking at.
Check out Tangible Investments Inc for a good place to start without all the hassle.
Do Some Tangible Investment Research
The cost of items is always changing.
You need to know about what trends and fads are happening.
Some items lose or gain value with the times, which is why it’s best to do your homework.
While it’s hard to predict the future, it’s best to try and follow trends to get the most out of your purchases and avoid making such a commitment.
Why Should You Buy Tangible Assets?
Tangible asstes exist outside of your bank account.
The fact that they do not bank on fluctuations makes them a great investment that’s worth looking into.
If you’re looking for reasons why you should invest in tangible items, take a look at these.
A lot of investors and business owners diversify their investment by buying different types of intangible items like stocks, bonds, and ETFs.
Though that is one way to diversify, tangible investments provide a unique way to invest that highly increases the diversity of your portfolio.
While intangible assets bank on fluctuations, tangible items decrease risks and, in turn, almost guarantee your return.
Investment made that depend on the market are at risk for inflation.
Inflation happens and, when it does, investors and business professionals are left with much less than their initial funds.
Tangible items like gold and and other metals are not at risk for inflation and do not bank on current market value.
That means that they can maintain their price, even if everything else is crashing.
Also, in the case of gold, it tends to increase during high times of inflation, making it the perfect item to balance out any portfolio.
If you’ve kept up with the stocks over the years you might have noticed one thing, it’s unpredictable.
Over the years, financial institutions has done some crazy things, making people and business pros money and causing others to lose it.
While it is risky and a bit intimidating, investors still do for the chance to make their money work for them.
However, what they might not realize is that there are alternative purchases, some of which don’t depend on fluctuations.
If there is one key reason why tangible items shine, it’s because they maintain their cost, even when the things are fluctuating up, down, and all around.
Some investors choose tangible items just because they like them.
This is perhaps the most fun investment that you can make, collecting cash on the things that you enjoy the most.
Investors should take advantage of markets that they enjoy, purchasing collectibles of things they love to keep them for the long run.
Plus, if the time comes to sell, they will know more about the items and be able to handle them with the upmost care.
Getting Started with Alternatives
While we don’t recommend that you take off and buy up the jewelry store, we do suggest that you avoid economic uncertainty and consider touchable items.
If you’re ready to give it a shot and add some security to your items, we’re here to tell you how.
Step 1. Find your Niche
There are lots of individual and business options out there when it comes to purchasing items.
Don’t just choose those that have the highest price right now but choose something you’re also interested in.
Whether it’s property, silver, wine, art, antiques, collectibles, or land, decide what you want to get into.
Step 2. Research
Once you know which area you want to buy into, start doing some research.
Dig in deep and find out what the prices are, how they fluctuate, and what has the largest affect on them.
Also, keep your eyes open for the average prices for items that you’re looking for, making sure that you understand the business in depth.
Step 3. Buy
When it comes time to buy, you have to choose wisely.
There are lots of vendors out there, all of them claiming to be the best.
Instead of going with the first business you see or the one with the lowest prices, find the ones that comes with the best reputation, a fair price, and the most trustworthy platform.
Look for accreditation, reviews and testimonials, and products that you can trust, one like Tangible Investments Inc.
Step 4. Monitor
Because the items that you buy might be close to your heart, you might not want to sell them right away.
Instead, keep a close watch out on the niche and see how they do.
Some items increase over time, which is why you might want to hold onto them.
Other items will be worth something for the time being, decreasing in price as others lose interest.
Either way, it’s good to monitor activity and make sure that you know what’s happening with your investments and business before you sell.
Final Thoughts on Tangible Investments
Investing in items that you can touch offers an amazing edge over the competition.
Between precious metals, rare coins, and sports memorabilia – there are many tangible investments you can use to grow your net worth.
Following our suggested process for investing in alternative items, you’ll have a way to collect a return on items outside of the niche.
After choosing your category, it’s a good idea to keep an eye out of the latest news so that you have a good hold on what's in store and how businesses are going to play out and how you can score the best items that give you the best long term or short-term return.
Before processing a transaction, be sure that you check appreciation, understanding what you could pocket if you buy successfully.
While you might be opposed to some of the strategies as an investor, it’s recommended to change up your items and diversify to get the most out of your portfolio.
Relying on other markets is too risky these days, so why not go with an investment that can withstand it all and give you a great experience?
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