The internet has opened up a whole new range of instruments to invest in. Many of these have no physical form and are purely digital. As a result, such investments can be difficult to mentally grasp for a lot of people – if stocks weren’t already abstract enough, we now have cryptocurrencies and domain names and NFTs to contend with.
Investing in something that’s physical can be more reassuring for some people. Being able to touch something you’ve invested in can provide a greater sense of security. Such assets can also provide a personal use beyond their monetary value. To give you an idea of what a tangible asset is, here are a few examples.
Real estate
Real estate includes land and properties. This is typically a very expensive form of investment, but one of the most profitable and dependable options. There are many different ways to invest in real estate including renting out properties to tenants, flipping properties, converting land into farmland, hiring out real estate for events or renting out a holiday home to guests. Even becoming a homeowner can be considered a form of investment. By maintaining your home and making improvements, you can increase its value and sell it. And even if you don’t fancy selling it, you can stay put and pay off the mortgage, enjoying your latter years with one less bill to pay. When investing in real estate, always hire a surveyor to check what you’re getting into first.
Precious metals
Precious metals include gold, silver and platinum. Due to their scarcity, such metals have continuously increased in value over time (although there have been some dips along the way). Gold is the most valuable and stable of the precious metals. The size of UK gold reserves is fairly substantial, and there are plenty of bars and coins available that you can buy. This can be kept in a third-party vault or kept in a safe at home. You can even invest in gold or silver jewellery – which could increase in value, while giving you the added personal benefit of being able to wear it. To be sure that your precious metals are genuine and likely to increase in value, always buy from a trusted dealer.
Collectibles
Collectibles are items that are collected for their rarity. They include toys, sports memorabilia, old coins, comic books, vinyl, books, shoes and postage stamps. A well maintained collection can increase in value over time. And many of these collectibles can have a personal use – you can read comic books, listen to vinyl or wear shoes. Just make sure to keep these collectibles in good condition to retain their value. Make sure to buy collectibles from trusted sources so that you know they’re not fakes.
Antiques
Antiques are items that have history behind them – and this history often contributes to their value. Their price is also determined by how well they are kept in good condition. Popular antiques to invest in include furniture, clocks, ceramics and cars. These antiques can not only be an investment, but may have practical uses. To make sure antiques are genuine, consider getting them authenticated by a professional before buying them.
Art
Art includes paintings, drawings and sculptures. A piece of art’s value is determined by how famous the artist is, the significance of the artwork and its age. This is a great investment for those fascinated in art. Not only can art appreciate in value over the years, but you get to hang it on your wall and enjoy it as part of your home’s decor. Just be prepared to spend more upfront for good art and do your research into the artist.
