Real assets Physical or tangible assets that have value and can often be invested. Real assets include precious metals, commodities, real estate, agricultural land, and oil; it is considered appropriate to include them in most diversified portfolios. Gold is a unique asset class (read the article on gold as an investment on Wikipedia). Historically, investments in gold have shown a low correlation with investments in other asset classes, such as stocks or stocks, mutual funds, government and corporate bonds, and even commodities and other precious metals.
In the following articles, we will examine how and why gold obtains its fundamental value, how it is used as a currency, and what factors subsequently influence its price in the market, from miners to speculators to central banks. We'll look at the basics of gold trading and what types of securities or instruments are commonly used to increase exposure to gold investments. We'll look at the use of gold as a long-term component of a diversified portfolio and as a short-term intraday trading asset. We'll look at the benefits of gold, but we'll also examine the risks and difficulties, and see if it lives up to the gold standard.
Some assets are difficult to classify. For example, let's say you're investing in stock market futures. Should they be classified as stocks, since they are essentially an investment in the stock market? Or should they be classified with futures, since they are futures? Gold and silver are tangible assets, but are often traded in the form of futures or options, which are financial derivatives. If you invest in a real estate investment trust (REIT), should it be considered an investment in tangible assets or as an equity investment, since REITs are publicly traded securities?.