TANGIBLE ASSETS AND COMMODITIES
TANGIBLE ASSETS AND COMMODITIES
Tap below to watch a short video about different types of tangible assets and commodities, and read on for more details.
TANGIBLE ASSETS
These are assets that have a physical form. In actuality, many of these types of assets, such as cars, depreciate in value so it is difficult to truly classify them as “investments”.
However, some tangible assets are indeed an investment. For example, real estate can be a huge money-maker over the long run if the research is done correctly. Additionally, buying art pieces can prove to be extremely lucrative as well if the artist in question becomes famous (especially posthumous).
COMMODITIES
Simply put, a commodity is a raw material or primary agricultural product that can be bought and sold such as gold, oil or coffee.
For the most part, commodities are often used as inputs in the production of other goods or services. Despite some exceptions, the quality of a commodity is usually uniform across producers.