Real assets promise protection from inflation and paper money. But every class has its price: property needs work, gold pays nothing, watches and classic cars are enthusiast markets. What belongs in a portfolio and what on the shelf.
In short
- Stocks are the forgotten real assets: shares in factories, brands and patents with the best long-term return.
- Property: leverage, tax advantage and work; gold: stability without income; both sensible at 5 to 30 percent.
- Watches and classic cars: a few models rise, most fall; costs for service, insurance, storage.
- Art, wine, whisky: enthusiast pursuits with wide spreads, only with knowledge and patience.
What a real asset is
A real asset is a claim on something real: a building, a metal, a company, an object. Its value does not depend on a debtor’s promise but on use and scarcity. That is why real assets protect against inflation and currency crises, but not against price swings, taxes or enthusiast moods.
Stocks: the overlooked real asset
A share is a stake in factories, brands, patents and people. Companies pass inflation on, which is why broadly diversified stocks have been the most profitable real asset over decades, around five percent real a year. Whoever wants real assets has done most of it with a world ETF.
Property
Advantages: leverage through credit, depreciation, tax-free sale after ten years, inflation protection via rents. Disadvantages: concentration risk, work, closing costs of ten percent, illiquidity, tenancy law. In real terms German residential property has delivered around two to three percent of appreciation over 50 years plus rental yield. Sensible as a share between 20 and 50 percent of wealth if you enjoy the work.
Gold
No income, no work, no counterparty. In real terms gold has held its purchasing power over 100 years and stabilised in crises. Five to ten percent is the dose. More becomes a bet on fear.
Watches
Between 2019 and 2022 the prices of sought-after steel models doubled; since 2022 they have fallen 30 to 40 percent. Value is held by a few references of a few brands with waiting lists; the rest lose 20 to 50 percent after purchase. Add a service every five to ten years for €500 to €1,500, insurance, a safe. Watches are consumption with residual value, not an investment, unless you know the market as well as a dealer. Whoever owns a watch and wants to know its value uses the watch buying page on milinia.
Classic cars
The German classic car index rose more than the DAX over 20 years, carried by a few models. Upkeep costs: garage, insurance, historic plates, maintenance, rust. Whoever drives and loves the car has a hobby with residual value. Whoever buys it for return competes with collectors who judge provenance and condition better.
Art, wine, whisky, trading cards
Enthusiast markets with spreads of 20 to 40 percent between buying and selling, without regulation, with counterfeit risk. Only for people who know the field, enjoy the object and can bear the loss. As a wealth building block under five percent.
The mix
World ETF as the core, gold as the stabiliser, property if time and nerves allow, watches and cars for passion, not returns. A portfolio of real assets does not have to be tangible to be real.
Try it yourself
Gold CalculatorWeight, fineness, gold price: the material value of jewellery, bars and coins, also as a buying range.Watch EstimatorBrand, model class, age, condition, set: a first value range for your watch in one minute.Frequently asked questions
Are Rolex watches a good investment?
Sought-after steel models have held or increased their value, gold models and less popular references have not. Since the price fall from 2022 the market has become more sober.
What about bitcoin as a real asset?
Bitcoin is scarce but has no use beyond payment and speculation. It behaves like a technology stock with three times the swings, not like gold.
Is a holiday property worthwhile?
As a holiday place yes, as an investment rarely: vacancy, management, running costs and the temptation to go yourself push the yield below that of a flat in your home town.
Share
