avoid risk diversify portfolio

Should I Add Hard Asset Investments to my Portfolio?

Posted on Posted in Alternative Investments

For the average investor looking to make an investment, the thought of investing in a traditional investment offering is far from an appealing notion. Nowadays, the investment community is carefully considering other alternatives, like investing in hard assets, to avoid risk, diversify their investment portfolio and earn great returns.

What are hard assets? Hard assets are the materials and equipment required for things like manufacturing, and make significant contributions to the functioning and growth of the global economy. To be more specific, hard assets are commodities such as oil and gas, gold and silver, commercial real estate, precious gemstones and metals, as well as investing in shipping containers.

For many decades, these commodities have consistently delivered excellent returns for investors, many of which have been wealthy individuals or well-established firms, that were the only one’s who knew about these (somewhat) secret investments. Since the introduction of the global financial crisis in 2008 however, things have changed dramatically and more avenues and opportunities for private investors to profit from these alternatives, have quickly emerged.

One of the biggest advantages of investing in hard assets, and part of what makes these investment options so appealing to affluent investors, is that they are not correlated with the stock and/or bond markets; and therefore are not negatively affected by things like political unrest or inflation. This has prompted many financial firms and advisers to recommend that their client’s portfolios contain a small portion of hard assets, to act as a hedge against traditional investments that may not be performing the way that investors expected.