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Choosing the right investments isn’t always easy. You want something to help you grow your finances with minimal risks. Many investors pursue intangible assets like stocks and bonds, which are often subject to market fluctuations. You need a strategy to protect yourself — and investing in physical assets may be the perfect option.
Purchasing physical assets doesn’t just give personal satisfaction; it can also diversify your investment portfolio and ensure stability in a changing economy. Oxford Gold Group is here to explain your options and help you start on this exciting path to financial security.
Understanding Physical Assets
Physical assets, as their name implies, are commodities in physical form. They include precious metals, real estate, collectibles, and more. Because these assets have tangible worth, they often don’t experience the same fluctuations in value as intangible assets, which are more subject to market forces.
Physical assets come with several additional advantages:
- They appreciate over time.
- You can often use physical assets for passive income.
- Physical assets may come with tax benefits.
- You can store and protect physical assets more easily than intangible ones.
Types of Tangible Assets
You have many different asset classes to choose from, each with its own advantages. Explore popular investment options to find one that suits your needs.
Gold as an Investment
Market instability can be a serious concern. While stocks and bonds may be popular investment options, their overall worth can fluctuate. Money and other intangible assets may appeal to investors, but inflation can affect their value.
Investors constantly seek ways to hedge against inflation and economic instability — and gold has long been one of the most popular options.
Gold can be a truly fantastic investment. As a physical asset, it retains its value over time, providing relative stability in an unstable market. In addition, as a finite resource, its value will likely increase over time.
Some of the best ways to invest in gold include:
- Gold bullion: Gold bullion is gold that is either entirely pure or nearly so. Generally, you can purchase gold bullion as coins, bars, or ingots. Explore Oxford Gold Group’s selection of products to find an investment that suits your needs.
- Gold IRA: Gold individual retirement accounts (IRAs) offer unique investment opportunities that allow you to prepare for retirement. Reach out to Oxford Gold Group to get started.
Real Estate Opportunities
Real estate is a perennially popular option for investors, and for good reason. Real estate is constantly in demand, driving its value and ensuring its stability.
You have several options when considering real estate investment opportunities.
An untouched patch of land provides endless opportunities. Depending on your goals, you could build a new property, utilize the land for resources, or even hold on to it to sell later.
When purchasing land, you’ll want to keep a few things in mind:
- What do you want to use the land for? Do you want to build a new store or rental property? Would you like to take advantage of its resources, like lumber or rock? Think carefully about why you want to purchase land, then find a plot that suits your needs. Ensure it’s zoned properly, and ask local authorities about any necessary permits.
- How big is the land? Bigger plots of land are more valuable, but they’ll also be more expensive to buy. Consider how much space you’ll need and how big your budget is, then find a piece of land that fits your parameters.
- How much will it cost to develop the land? Purchasing the land isn’t your only expense; you’ll also need to spend money to develop it. Get estimates from contractors to determine whether developing the land is within your budget.
Land is a long-term investment. It can take significant time to develop, so it’s important to be patient. Several years down the line, you may find yourself reaping the benefits of your new property.
If you’re interested in investing in physical assets, purchasing a residential property can be an excellent choice. Residential buildings are constantly in demand, ensuring a stable investment.
You have several purchasing options for residential properties, including:
- Rental properties: Renting out a property can be an excellent way to generate income. Tenants will pay you on a regular basis, allowing you to build wealth with minimal effort. That said, you’ll need to perform regular maintenance. In addition, you’ll want to vet any tenants to ensure you don’t rent to someone who might harm your investment.
- Airbnb properties: Perhaps you don’t want the hassle of dealing with long-term tenants. Consider purchasing a property to use as an Airbnb. This can be an excellent way to generate income without having to worry about finding the right tenants, managing rent payments, or worrying about other stressors.
- Renovation properties: Some homes just need a little extra love and care. If you purchase the right property, you can renovate and resell it for profit. If you plan to do this, get some realistic estimates for how much the renovations will cost.
When purchasing a residential property, consider the location, the size and layout of the building, and your purpose for it. This will help you make an investment that will suit your needs.
Residential properties and land aren’t the only real estate investments you can make. Purchasing a commercial property can be an excellent investment since it has a long lifespan and allows you to build wealth over time. That said, commercial properties tend to be more expensive to own and operate, so it’s important to consider your budget and plan ahead.
Oil Investment Prospects
Are you looking for a solid long-term investment option? If so, then invest in the oil industry. Cars, HVAC companies, and more all use oil; this means that this commodity is constantly in demand, driving up its price and ensuring long-term stability.
One of the best ways to invest in this asset is to purchase an oil field. This will allow you to continually extract resources from the land, giving you a bigger return on investment.
That said, investing in oil isn’t for everyone. It can be relatively expensive, so you’ll need enough disposable income to purchase an oil field without straining your finances. In addition, you’ll need to consider the potential environmental impact, governmental policies, and how much land you’ll need, among other things. While oil might not be the right choice for some individuals, for others, it can result in fantastic returns.
Classic Car Investments
Traditionally, most cars make poor investments. Cars depreciate in value, meaning you likely can’t sell one for more than you bought it for.
Classic cars are different. These cars have incredible appeal to collectors — and because manufacturers no longer make them, their value increases with their rarity. In addition, many individuals enjoy owning classic cars, even without financial incentives.
Copper’s Economic Value
Are you looking for a precious metal to invest in? Copper may be an excellent choice. Many electronics utilize copper, which gives it a stable value over time. In addition, it’s easy to liquidate, making it simple to turn your assets into cash if you need to do so.
You can buy copper as coins or bullion bars. One option isn’t inherently better than the other; you’ll simply need to determine which will fit your budget.
Livestock as Assets
When people think of investments, they typically don’t think of livestock. Investing in animals might seem like an incredibly time-consuming endeavor — and it is. However, it offers an incredible payoff for the right individuals since selling livestock — or any products obtained from them, like eggs or meat — can be incredibly lucrative.
If you plan to invest in livestock, you’ll need to have the land and resources to raise them properly. In addition, you’ll need the knowledge to take care of them — or, alternatively, you’ll need to hire someone with that knowledge. Investing in livestock is generally best for people who have a love of animals and can turn raising them into a hobby, not just an investment.
Silver’s Investment Potential
Precious metals of any sort can be excellent investment opportunities, and silver is no exception. Like gold, silver protects against inflation. Unlike gold, however, it has practical uses; many industries use silver in their products, which means it’s consistently in high demand. Between this increased demand and the limited supply, silver’s value should remain relatively stable, even in times of economic instability.
You can invest in silver by purchasing:
- Silver bullion: One of the best ways to invest in silver, silver bullion can include coins, bars, and ingots. Explore a range of high-quality options with Oxford Gold Group.
- Silver IRAs: Like with gold, you can purchase silver IRAs to prepare for the future. At Oxford Gold Group, we’re proud to help clients with their silver IRAs; reach out to learn more.
Gemstones and Other Jewelry
Many people love gemstones and jewelry. Their popularity helps them maintain value over time, making them appealing investment options. In addition, they’re easier to store than many other physical assets, which means you can worry less about their safety.
Other Ways for Wealth Creation
Many physical assets can help you generate passive income — for example, if you want to rent out a property. In addition, physical assets often make it easier to preserve wealth and pass it along to future generations.
However, investing in physical assets isn’t the only way to generate wealth. Choosing to split your investments between intangible and tangible assets is one strategy many investors use to grow their finances.
Why It’s Important To Diversify
As an investor, it’s important to think strategically. Choosing one investment option may seem lucrative at the time, but if the market turns, you could find yourself in a potentially hazardous situation.
Say, for example, that you decided to purchase stock in a company. The company does well for a time, and the stock’s value rises. You hold on to the stock, hoping to see that value continue to increase — and then, the stock market crashes. Suddenly, your investment has lost a significant amount of value. If you haven’t made other investments, you may find yourself facing sudden financial hardship with few ways to get out of it.
Diversifying your investment portfolio is an excellent way to protect yourself from such outcomes. Investing in physical assets, in addition to intangible ones, gives you protection against inflation and other unstable economic conditions, allowing you to fall back on a stable investment should anything happen.
In addition, it can be beneficial to diversify your portfolio of physical assets. Much like investing in physical and intangible assets, investing in several different physical assets can protect you should anything unexpected occur.
For example, say you purchase a classic car, but a natural disaster damages it. If you also invest in something like gold or land, you’ll have other investments to protect you financially.
Importance of Research
Proper planning and research can make the difference between a smart investment and a poor one. If you want to invest in physical assets, you should:
- Research the current market value of the asset. Keeping an eye on market trends will help you determine if the asset’s value is stable.
- Budget accordingly. While physical assets can be excellent investments, they can also be expensive. Aside from the initial purchase price, you may need to spend money to maintain and protect them. Ensure you get estimates beforehand so you don’t strain your finances.
- Think about your goals. Do you want assets that can provide you with passive income? Would you like something that’s easy to store and keep track of? Are you willing to put a significant amount of effort into taking care of something, or would you prefer an investment you don’t have to think much about? Determining your goals ahead of time can help you make the right investment.
Take the time to consider your needs carefully. With proper planning, you can ensure a solid investment.
Maintaining Physical Assets
Investing in physical assets can be beneficial, but they’ll also likely require more care and protection than intangible assets. If you plan to purchase physical assets, it’s important to take care of them properly.
To maintain your physical assets:
- Consider each asset’s unique features. If you want to invest in livestock, do you have the land and resources to ensure they remain healthy? If you want to invest in precious metals, do you know how to maintain and store them properly? You’ll need to think carefully about what each asset needs to maintain its value.
- Think about security. Physical assets are prone to theft and damage. Say, for example, that you decide to purchase gold bullion. You wouldn’t want to leave it out in the open; you’d want to put it in a safe or give it to a trusted third party to protect it for you. You can’t store livestock or real estate investments in the same way, but you can still use surveillance and alarm systems to protect them. Consider what security systems you’ll need to keep your investments safe.
- Plan accordingly. How much money will you need to maintain your physical assets? Do you have enough space for them? What will you do if something happens to your assets? Proper planning is key to ensuring your investments retain their value.
With proper maintenance, your physical assets can maintain their value for years and provide stability to your investment portfolio.
Investing in physical assets can help protect you from economic fluctuations. At Oxford Gold Group, we specialize in precious metals, offering gold, silver, platinum, and more. Learn more about the best gold bars to invest in, purchase a precious metals IRA, and explore investment plans by calling 833-600-GOLD today.