In recent years, investors have witnessed multiple economic situations that have thrown uncertainty into the global economy. Events like COVID-19, decades-high inflation, and the war in Ukraine have sparked a renewed interest in tangible assets.
Looking ahead, tangible asset investment could present a key way to protect your portfolio against events that rattle the global economy. In this article, you’ll learn about the best tangible investments to buy heading into 2025.
What are tangible assets?
Tangible assets are physical assets you can touch and hold that have real-world value. One example of a tangible asset is a gold bar. The bar has monetary value, plus you can hold it or store it in a safe. This isn’t true for intangible assets, which are also called non-tangible assets — like stocks or bonds.
Intangible assets have monetary value, but they only exist in the digital world. An investor might own millions of dollars in stocks or bonds. But, they cannot just show up at the stock and bond markets expecting to withdraw their holdings. To actually get cash for their holdings, investors have to rely on the help of third-party financial services companies.
What are the best tangible investments for 2025
So, what are the tangible asset classes to consider for your investment portfolio?
Precious metals
If you’re looking for one of the best tangible assets to buy in 2025, then you’ll want to look at precious metals. Popular tangible investment metals are gold, silver, platinum, and palladium. Gold bullion is the most popular and has already experienced a record-breaking rally in 2024, a trend that many economists expect to continue.
Citi Bank is especially bullish on precious metals and recently raised its pricing forecast from $2,700/oz to $3,000/oz over the next six to twelve months, per an October 2024 report from Reuters. The bank’s analysts cited these reasons for its positive sentiment.
“Gold surged to a record high on Monday while silver struck a near 12-year peak, as growing uncertainties surrounding the U.S. presidential election and the Middle East war added to gold’s rally already fueled by expectations of interest rates easing.”
Investors usually view precious metals as a hedge against risk, market volatility, inflation, or economic collapse. Historically, gold’s stability has helped insulate investors from risk. For example, during the COVID Crash of 2020, the stock market lost roughly 30% of its value from February to March 2020, but the price of gold remained fairly stable.
During the Great Financial Crisis, the price of gold increased by more than 100% between 2008 and 2012.
Since the past few years have been ripe with risk, investors have only become more interested in how to invest in tangible assets like metals to hedge against economic uncertainty.
Pros of owning physical metals
Pricing stability and appreciation: Precious metal prices typically do not fluctuate very much throughout the year – even during recessions or depressions. Plus, they tend to appreciate year over year. This stability can bring peace to investors’ minds, knowing that they can protect their wealth.
Liquidity: You can easily buy and sell precious metals by working with a private dealer. This makes it easy to liquidate and raise capital quickly.
Hedge against inflation: Owning gold can help protect investors’ wealth from the declining purchasing power of the US dollar.
Diversification: You can add gold, silver, or platinum to your portfolio to help reduce the associated risks with owning just stocks or bonds.
Cons of owning precious metals
No income: Physical metals do not create any income, and to make a profit, you’ll need to sell after your metals increase in value.
Potential storage fees: Storing valuable metals like gold or silver in your home can be risky. So, you might decide to use a bank deposit box or a gold vault service. If you do this, you’ll have storage fees, which can reduce your overall return.
Real estate
Real estate is an asset class that includes property, buildings, and raw land and is also a tangible asset. There might be more interest in real estate in 2025 now that the Federal Reserve has started lowering interest rates. Lower rates could reduce the costs of loans, which could make it less expensive to buy property.
Real estate is a popular tangible asset as it gives investors control. For example, investors who own property can renovate an existing building, build something entirely new, or improve the property to attract more tenants and charge higher rents.
Compare this to a stockholder, who has zero control over whether the stock moves up or down, or a bondholder, who is usually locked into a predetermined return.
Pros of owning real estate
Control: As mentioned, investors have control over their properties, which allows them to potentially generate larger returns.
Tax advantages: Owning real estate provides some tax benefits, such as depreciation.
Appreciation: Real estate can rise in value each year, which also creates a potential inflation hedge.
Income potential: In addition to rising in value each year, investors can also rent out their properties to generate income.
Cons of owning real estate
High barriers to entry: It takes knowledge and a large amount of capital to buy a property. Investors need to get financing from a bank or credit union, which isn’t always possible if they don’t meet certain income, employment, or credit status requirements.
Illiquid: Buying and selling real estate can take several months. This is not ideal if you need to access your money quickly.
Constant upkeep: You are responsible for maintaining the property and making sure that it is livable for tenants. Failing to do so can carry consequences.
Taxes and other fees: Owning property has multiple costs like maintenance, insurance, taxes, and even HOA fees. If your property isn’t generating income then it could be costing you money each month.
Collectibles (Art, wine, cars, etc)
Collectibles are another tangible asset you can invest in. A collectible is anything that has value and a marketplace where people buy and sell it. A few common examples of collectibles include:
Fine wine
High-end artwork
Comic books
Memorabilia
Baseball or trading cards
Classic cars
Watches
Similar to owning real estate, collectibles can appreciate in value over time. For example, if you own a classic car that is no longer in production, then your car grows more valuable over time as it becomes rarer.
However, the markets for collectibles are smaller and slightly less defined than the markets for real estate, stocks, or bonds. The value of these items is also harder to define, which makes it difficult to estimate the appreciation of rare collectibles.
Pros of owning collectibles
Price appreciation: Rare collectibles can increase in value quickly, depending on certain factors. For example, a famous painter’s artwork could become instantly more valuable when that painter passes away.
Most collectibles can also be used: In addition to being assets, you can also enjoy collectibles. You can drive around in a classic car, wear a luxury watch on your wrist, or hang a piece of artwork in your home or office.
Cons of owning collectibles
High barriers to entry: Most collectible items are incredibly expensive, which can put them out of reach for the average investor.
Illiquid: It can be difficult to buy and sell rare collectibles quickly, as doing so often requires an appraiser and a motivated buyer. For many investors, the marketplaces for these types of items are less accessible than those for stocks, bonds, or real estate.
Damage risk: When you own a collectible, there is always a risk that you might accidentally damage it. In some cases, even a small wrinkle or crack in the item can greatly reduce its value.
Do not create income: Most collectible assets – with some exceptions – do not create income. This means that you will only earn a return if that asset increases in value, which is not a certainty.
Buying precious metals as tangible asset investments
You can buy gold bullion and other metals by working with a gold dealer like Swiss America. Our team can help you evaluate options like:
Which bullion?
You may already know you want to buy gold bullion, or you may be curious about other metals like silver and platinum. We can explain the pros and cons of each and give you insight as to which options fit your funding based on the current purchase price.
Which form?
You can buy bullion in the form of bars or coins. There are also benefits of each, like:
Bars: These assets have a lower purchasing price per ounce and come in larger sizes that make it easier to store.
Coins: These tangible assets are very portable and people recognize them all over the world, so it’s one of the easiest physical forms of metals to buy and sell.
Which account type?
The IRS lets you hold alternative investments like gold and other metals inside a retirement account. Or, you can just invest with non-retirement funds.
If you do decide to use a retirement account, this involves:
Custodian: Choosing an IRS-approved custodian to manage your funds. If you don’t already have one in mind, we can recommend one.
Funding: You can roll over portions of your 401(k), convert an existing IRA, or start a new IRA to buy metals with your retirement funds.
Buying metals: Not all metals are eligible for your IRA. The Swiss America team can guide you on the IRS’s rules about purity, weight, and authenticity. Once you decide what to buy, you’ll direct your custodian to purchase the metals on your behalf.
Tax benefits: These IRA accounts give you all the same benefits as other retirement accounts like tax-deferred growth in a traditional Gold IRA and tax-free growth with a Roth Gold IRA.
Why gold investors choose Swiss America
When you are ready to add gold to your investment portfolio, here are the reasons why thousands of investors choose Swiss America:
40+ years in business: Since the early 1980s, we’ve successfully guided investors through numerous economic cycles and market shifts. Our decades of experience make us a seasoned, trustworthy partner for your investments.
Happy customers: Our large base of satisfied clients enjoy timely delivery of high-quality metals, responsive and knowledgeable customer service, and consistent performance that meets or exceeds expectations.
Expert advice: We offer expert guidance on secure storage, precious metals IRAs, gold-to-silver ratios, portfolio integration, and market trends. Our team provides the knowledge you need to make smart investment decisions in precious metals.
Fair and transparent pricing: We offer competitive rates and clear pricing, so you always know exactly what you’re paying for your precious metals investment.
Gold trade program: Our gold trade program lets you sell your gold back to us when needed, providing liquidity for emergencies or portfolio rebalancing.
Investing in tangible assets final thoughts
Owning gold is perhaps the easiest way to help protect your wealth heading into 2025. It’s a simple investment that doesn’t require maintenance, and it’s easy to sell if you need to in the future.
To learn more about gold investment options, connect with the Swiss America team today!
Best tangible assets: FAQs
What is the most profitable tangible asset?
The price of gold has increased by over 110% in the past five years, making it one of the most profitable tangible assets. However, the prices of many tangible assets are difficult to measure, and prices can fluctuate drastically depending on the market and economic conditions.
Are tangible assets a good investment?
If you are looking for security from market risk then, yes, tangible assets are likely a good investment for you.
What are the best tangible assets to invest in?
Precious metals are considered some of the best tangible assets to invest in because they provide protection and price appreciation and are fairly straightforward to buy.
Note: The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
