Real Asset
Real asset is a term used to describe tangible assets that have a physical form and can be used to generate income or appreciate in value. Examples of real assets include real estate, commodities, precious metals, and art. Real assets are distinct from financial assets, which are investments that are not tangible and are not used to generate income or appreciate in value. Examples of financial assets include stocks, bonds, and mutual funds.
History of Real Assets
Real assets have been used as investments for centuries. In ancient times, people invested in land, livestock, and precious metals such as gold and silver. In the modern era, real estate has become a popular investment, as have commodities such as oil and gas. In recent years, art and collectibles have become increasingly popular investments.
Comparison of Real Assets
| Asset | Income Potential | Appreciation Potential |
|---|---|---|
| Real Estate | High | High |
| Commodities | High | Medium |
| Precious Metals | Low | High |
| Art & Collectibles | Low | Medium |
Summary
Real assets are tangible investments that can generate income or appreciate in value. Examples of real assets include real estate, commodities, precious metals, and art. Real assets have been used as investments for centuries, and in recent years, art and collectibles have become increasingly popular investments. For more information about real assets, visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Financial Assets
- Real Estate
- Commodities
- Precious Metals
- Art & Collectibles
- Stocks
- Bonds
- Mutual Funds
- Investopedia
- The Balance
