Or is it the other way around? A good asset is hard to find? This may be a cheeky question, but it couldn’t apply more given today’s volatile US dollar and persistent inflation that investors and consumers are experiencing.

Hard assets are tangible products that hold value for investors. The value of hard assets generally aligns with inflation such as commercial real estate, precious metals, energy commodities, and in some cases offer a mix of business and pleasure, such as artwork, classic cars, wine, and books.

In today’s world of the devalued US dollar, if you are not exposed to hard assets, you may be missing out, and here is why:

Diversification

Hard assets can help diversify an investment portfolio. They are tangible and have intrinsic value through good times and bad.They are typically long-term investments and can ride out economic cycles while maintaining their value.

Hedge Against Inflation

The value of hard assets often aligns with inflation, so they provide a hedge against rising prices and consistent value in “real dollars”. They usually deliver returns in alignment with inflation.

Stability

Hard assets provide stability in times of uncertainty, market instability, economic fluctuations, and volatility. Any value erosion is usually slower than in the stock market.

Utility and Rarity

The value of hard assets tends to be based on their utility, rarity, and emotional attractiveness. Their utility in the world can contribute to their sustained value.

Investing in hard assets requires a longer and more patient outlook, but personally I embrace the illiquidity of these investments so as not to impulse sell when the market shifts. And back when we were in the fine wine auction business, we always had a saying that if the market for fine wine were to drop to zero, at least we could drink it! Cheers to you and your long-term investment strategy!