Investing for Beginners , investing

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Investment Dictionary


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Tangible Assets

 

Basically all assets can be divided in tangible assets or non-tangible assets (intangible and financial). Tangible assets are those assets that exist physically and the value of them depends on their physical condition. Main tangible asset classes:

  • Real estate properties are very important in many fields.
  • Plant, equipment, cars or other machines are assets used by companies or by individuals. 
  • Commodities include various recourses and precious metals as gold, silver and other. 
  • Other short-term assets. 

 

It is hard to say whether tangible or intangible assets are better investments. Both of these types may have their advantages or disadvantages. For example, tangible assets sometime create value by their existence: you may live in the house, you wear a gold bracelet or you can drive your exotic car. But such assets create problems too: some assets depreciate physically and morally over time, they need a place for storage and if they are valuable, they also require for high quality protection. 

 






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