What is a real asset?

The actual asset is an item that has a real tangible value. In other words, it is a physical asset. It is different from financial assets.

Real assets refer to things like gold, silver, expensive metal or soil. Financial assets on the other hand refers to money or shares of shares or bonds. Items in the first category - considered real assets - are physical and identifiable. They can be held in their hand and have a specific value and their own value.

Financial asset, such as money or stock certificate, is value only because the company states that yes. When the company decides that $ 100 USD of a dollar banknote can buy a specified amount of goods, this is the only thing that gives this account $ 100 any real value. The article itself is basically worthless and if the company decides that a piece of paper can no longer buy goods, then the owner of the bill will remain nothing but a nonsensical piece of paper.

currency fluctuations that are inThey draw on changes in the value of the currency, show that the financial asset differs significantly from the actual asset. For example, the dollar value may fall in relation to other types of currency, and therefore a piece of paper immediately becomes worthless, even if it is the same physical thing. In Germany, for example, after the First World War, individuals actually burned the German currency to keep them warm, because the financial asset had so little value in the eyes of the world.

Because the actual asset actually has its own value, it is not worth based on the perception or allocation of the company value, it can never lose 100 percent of its value as the financial asset can. While the price of gold or soil price may change or fluctuate in response to demand, it will always have a certain value because it is a physical asset. Real assets are therefore considered a safer investment in the time of high inflation; From the Purchlavic force of the physical currency decreases, the actual benefit that has a more stable and firm inherent value will be in VyššThe demand.

gold and other precious metals are often purchased during recessions because of these qualities of real assets. Moreover, some experts believe that property ownership is to ensure inflation. As the currency value decreases, it is unlikely that the soil value is not reduced, or at least it is not likely to be reduced so much.