How to Invest in Tangible Assets
A tangible asset is anything that is physical in nature such as machinery, supplies and land. According to Investopedia.com, whether an asset is tangible or intangible isn't inherently good or bad. Some intangible assets can be worth a lot, such as Nike's trademark Swoosh logo. Tangible assets are typically more stable and considered safer investments. Investmentnews.com reported in May 2010 that many wealthy individuals buy tangible assets to protect themselves from inflation. Tangible assets such as gold tend to maintain their values even when economies crash.
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Buy minerals. You can buy shares of companies invested in gold, silver and other precious metals. Gold is a popular benchmark indicator. Blanchardonline.com recommends buying bullion and investment grade gold, and holding it for one to three years. It also recommends investing in rare coins, as they have produced the highest long-term returns. Hold these coins for at least five years.
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Purchase equipment. You can buy machinery and construction equipment and sell it a few years down the line. Ideally, you will be putting the equipment to use and making a profit from it before you sell it. Tangible assets such as these can hold their value well, but they also suffer the risk of losing value because of depreciation and becoming obsolete through new technologies.
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Purchase land. Investing in property might require some management skills, and it is usually more complicated than buying stocks or bonds. The returns can be very high, though, and through techniques like "flipping"--buying houses and selling them within a couple of months for a gain--you can multiply your profit.
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Hire a broker. You can hire broker to find tangible assets. Search for local investment companies and meet with representatives to discuss your options.
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Buy established businesses.Tom Dyson of the Daily Reckoning recommends investing in simple businesses that don't have much room for growth but will keep producing moderate profits in the future. He calls these "assets that sweat." Look through the newspaper in the businesses for sale section and identify low-maintenance businesses that are capable of holding their value. Examples are laundry facilities and soda machines.
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