How to Invest in Real Assets?

Real assets are investments that are tangible, such as, real estate, land, precious metals and commodities. Unlike stocks and bonds, real assets get their value from the usefulness they provide. Buying real assets is an alternative way of investing that can sometimes offer the same upsides like that of stocks and bonds but without as much risk.              Have a question? Get an answer from a Personal Finance Professional now!

  1. Invest in real estate. Residential and commercial properties are quality real assets. Real estate is a worthy investment in that it offers monthly cash flow and tends to appreciate in value. An alternative way to invest in real estate is through a REIT (see “Resources”).
  2. Purchase land. In terms of usage, land can offer a variety of real assets. Land offers the potential for timber, mining, oil drilling, farming and property development. Depending on how you plan to use it, land can be held as either a long- or short-term investment.
  3. Purchase precious metals. Metals such as gold, silver, titanium and platinum are considered real assets. Precious metals can be bought in a variety of ways ranging from gold bars to owning stock in mining companies to mutual funds. Used correctly, precious metals can be a good investment.
  4. Invest in commodities. Commodities are substances that come out of the earth. Common types of commodities include corn, wheat, soybeans, crude oil, coffee, milk, sugar and copper to name a few. The three most popular ways to purchase them are buying futures contracts, ETFs (exchange-traded funds) or mutual funds.

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