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Tangible vs Intangible Investment

15 Dec, 2023 Investment

House of Assets will finally conclude the age-old debate that all investors face when deciding to invest in tangible vs intangible asset investments. So, in this blog, House of Assets will explore the key differences between tangible and intangible and which is the superior investment choice. 

What are tangible asset investments?

Tangible assets refer to physical assets with an inherent value that can be touched, seen, and measured. Types of tangible assets include fine art, classic cars, vintage whiskey and wine and other physical properties. Tangible asset investments often provide a sense of security as investors can hold a tangible asset that retains value over time. 

What are intangible asset investments?

Intangible investments represent assets without a physical presence. Types of intangible assets include stocks, bonds, shares, trademarks and more. While intangible asset investments can offer substantial returns, they are subject to market fluctuations and hold a volatile nature. 

Benefits of investing in intangible assets:

Intangible assets, such as innovative companies and technology stocks, can provide significant returns. These assets often experience rapid growth, leading to increased shareholder value. Stock investments are generally more liquid than many tangible assets, so investors can buy and sell these assets relatively quickly, providing flexibility. Unlike tangible assets, trading intangible assets involves lower transaction costs than buying and selling tangible assets. While you won’t have to possess any storage or maintenance costs for these intangible assets, the payment will come from the time spent monitoring your stocks and shares. 

Benefits of investing in tangible assets:

Compared to intangible assets, tangible asset investments offer a sense of security because they exist physically and have inherent value. But also because in recent times of economic uncertainty, tangible assets tend to be more resilient than intangibles, so that they will provide you more confidence and security in your investment. So, including tangible investments in a portfolio helps diversify risk; your tangible assets can act as a stabilising force, providing a buffer against economic downturns. Tangible assets can also act as a hedge against inflation. As currency’s value decreases over time, tangible asset investments often appreciate, preserving wealth. 

So how do you decide between the two?

While tangible and intangible investments have their merits, House of Assets believes tangible investments offer unique advantages that make them a superior choice for many investors. Physical assets’ tangibility, stability, and income-generating potential make them more attractive, especially in these uncertain economic times. Whilst intangible investments may be better for the quick cash flow, you should be careful not to be blinded by the untrustworthy promise of big financial returns. Instead, as with any investment decision, it’s crucial to consider individual financial goals, risk tolerance, and the overall market landscape before making investment choices to find tangibles that best suit your needs. 

If tangible assets win the debate for you, look no further. House of Assets will be here to provide you with an entire bank of tangible asset investment options from anything related to art, classic cars, whiskey, or wine. But it’s not all about buying; if you have one of these investment pieces and are also looking to cash in, you can list your rare items with us and buy a new investment all on the same day! For any queries, please don’t hesitate to get in touch. 

Beth Macdonald

Bethany is a seasoned expert in tangible asset investment, renowned for her astute insights in the realms of art, fine wines, whiskey and classic cars. With over two decades of experience in the financial and luxury asset management sectors, and working for other auction houses/marketplaces, she has a deep understanding of the market sector and investment trading. Her passion for tangible asset investments started early in her career and she has keen eye for value and art.

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