Investing in tangible assetsThe guide to your investment in tangible assets 2026

Gold, real estate and so on. Tangible assets have been popular with investors for ages and have a firm place in many well-structured portfolios. Tangible assets are primarily used for diversification and value retention, but some collectibles can also be part of high-risk speculation.

Volatile equity markets and geopolitical uncertainty are bringing tangible assets back into focus as stability anchors in the portfolio. “An important argument for investments in tangible assets is their low correlation with other asset classes,” says Dr Nicole Arnold, Member of the Management Board of Commerz Real AG¹. Investments such as real estate, infrastructure and renewable energies are less closely linked to daily stock market movements. They often generate current cash flows from rentals or the sale of electricity and are therefore considered relatively crisis-resistant. 

But how crisis-resistant are they really? What opportunities do investors have when investing in tangible assets? What risks and disadvantages should be taken into account? This much is clear: you should not do without careful planning, broad risk diversification and the careful selection of a suitable investment.  

In this guide, you will find the most important information that will help you find your way around the world of tangible assets.

What are tangible assets? 

Tangible assets refer to assets of real, physical substance. They have a concrete, material value, such as land or works of art. This means that tangible assets are independent of monetary values and offer protection against asset loss in the event of inflation.  

The number and variety of tangible assets is almost endless. In addition to traditional categories such as real estate or land, precious metals such as gold or silver are also particularly popular. Infrastructure investments are also a growing tangible asset category. Watches, special raw materials, automobiles or rare wines are also traded as tangible assets.  

What you should be aware of: the more exotic the tangible asset, the smaller and less accessible the corresponding market can be. While the real estate or precious metal market, for example, is international and offers opportunities to buy and sell almost at any time, trade in special works of art or classic cars is more restricted.

Therefore, make sure that you are able to sell your respective tangible asset again, if necessary, without incurring significant losses.  

Like any financial investment, tangible assets cannot offer their investors complete protection against the loss of their assets. However, due to the real and measurable equivalent value, a complete loss in value is extremely unlikely when investing in tangible assets. 

When is it worth investing in tangible assets?

The popularity of tangible assets is rising sharply, especially in times of inflation and crisis or in periods of low interest rates. However, their role in the portfolio extends beyond these market phases. “Tangible assets are now a proven building block for many long-term investors,” says Dr Nicole Arnold, Member of the Management Board of Commerz Real AG¹. They act as a counterbalance to the fluctuating liquid capital markets and often provide calculable cash flows from rental income or electricity revenues. At a low key interest rate, you can often expect significantly better returns from tangible assets than from classic investment forms such as savings books or fixed-term deposits. As tangible assets are also independent of monetary value, they protect your assets in times of high inflation. 

In principle, tangible assets are considered crisis-proof: anyone who has their own roof above their head or has invested in gold is well protected against a total loss of their assets.

However, to benefit from the characteristics of tangible assets, you should not wait for the next crisis to get your investment started. On the contrary, for a successful tangible asset investment, it is worth thinking ahead and adding the durability and value stability of tangible assets to your portfolio as early as possible.

So when is the right timeto invest in tangible assets? The short answer is Always. Tangible assets in one form or another are almost indispensable for a successful and broadly diversified portfolio.

Real estate investmentsin particular, for example in the form of real estate funds, offer a stable and low-risk basis for your portfolio.

However, renewable energies are also gaining ground and offer you the stability of real tangible assets, while at the same time expanding your portfolio meaningfully. Investments in renewable energies have so far been underrepresented in most custody accounts and are therefore suitable as a future-oriented addition.

If you invest in tangible assets at an early stage, you will normally benefit from solid returns, but at the same time have the opportunity – whether politically or economically – to cushion adverse effects with your investment in times of crisis.

The importance of tangible assets as investments

What role do tangible assets play in the portfolio?

Tangible assets act as a stabiliser in the portfolio. “They form an effective counterbalance to the typically more volatile liquid capital markets,” says Dr Nicole Arnold, Member of the Management Board of Commerz Real AG. As an addition to equities and bonds, investments such as real estate or renewable energy provide current cash flows from rents or the sale of electricity. Revenue that can often be planned through long-term purchase agreements.

The amount of tangible assets should depend on the investment horizon, liquidity requirements, existing portfolio and personal risk appetite. In practice, tangible assets are rarely held as the main position, but rather as a deliberate addition to the classic asset classes.

What creates the stability of tangible asset investments?

Unlike equities, tangible assets are not continuously revalued on the stock exchange. Rather, their value depends on the income they actually generate. A property generates rental income, a wind farm sells electricity, a transmission grid receives grid charges. These revenues are often based on long-term contracts or legally regulated remuneration and thus remain predictable over years.

This structure results in regular cash flows that do not fluctuate at the same pace as the equity markets. It is precisely this low correlation to liquid securities that gives tangible assets their role as a stabiliser, especially in market phases when stock market sentiment is rapidly tipping. 

What are the trends in tangible asset investments in 2026?

“The world of tangible assets has become more heterogeneous,” writes Dr Nicole Arnold, Member of the Management Board of Commerz Real AG, in the trade magazine AnlegerPlus. Whereas tangible investments used to be almost synonymous with real estate, private equity and private debt are now also part of the spectrum. In addition, there are infrastructure properties from the energy sector. Renewable energy plants are also included, as are the electricity grids through which the generated electricity is transported. Storage solutions are also increasingly entering the investment universe.

This creates new diversification potential for investors, not only via the tangible asset ratio in the overall portfolio, but also within the tangible asset class itself. The mix of different generation technologies and marketing channels can make the overall risk-return profile more stable.

More investments in pure monetary assets are more suitable if the key interest rate is particularly high. Pure money investments are generating high yields during these times, which means greater profit for investors.

Tangible asset investments, in turn, are particularly worthwhile for a long investment period, during which the benefits and strengths of tangible assets can be best utilised.

However, in order to hedge your investment well and spread the associated risks as widely as possible, it is worthwhile combining cash and tangible assets. 

How crisis-proof are tangible assets really?

Tangible assets give the value of your portfolio stability and help to preserve your assets – even in a crisis.

Fluctuations in value are also significantly lower than for equities that depend on stock market sentiment – this certainty is worth a lot to many investors. Even far-reaching currency or state crises do not directly mean the end – many tangible asset investments can easily withstand such collapses. In the case of gold, it has been the central banks themselves that have appeared as reliable buyers for years: In 2022, they took 1,136 tonnes from the market worldwide and also remained clearly on the buyer side in the following years with over 850 tonnes annually².

The situation is different for monetary assets and government bonds: in a worst-case scenario, an entire asset can lose its value overnight – as has been frequently observed in times of hyperinflation. Assets such as cash, balances in your account or bonds belong to the nominal values whose monetary value is fixed.

For example, when a bond is issued, the amount of the annual interest rate and also the redemption price are determined. 

Tangible assets, on the other hand, offer good protection for your investment in economically turbulent times. For this reason, tangible asset investments such as those in production plants for renewable energies or well-positioned real estate are also popular with institutional investors. Until recently, private investors were not even open to asset classes such as renewable energies or infrastructure. With the ELTIF 2.0 reform of January 2024, the previous minimum investment of EUR 10,000 for the European Long-Term Investment Fund (ELTIF) has also been removed, as has the upper asset limit for private investors. You can now invest in these tangible assets in the same way as institutional investors. The amount of interest is now evident from the volume: In 2025, the European ELTIF market grew by 55 percent to 34 billion euros according to the scope³.

But tangible assets also carry certain risks. For example, the prime location of a new residential building in which you have invested can depreciate greatly if a new motorway is built there a few years later. Or the purchase of a work of art that turns out to be significantly less valuable after the purchase.

However, it’s important to stay realistic. Stable assets are a good investment to balance your portfolio, but they can fluctuate in value.

However, we have a few tips for you on how you can make even better use of the advantages of tangible assets: 

• You benefit twice as much by investing in tangible asset funds. If the fund invests in many investment items at the same time, you can diversify the risks of your investment with just one investment.
• You should only consider investing in individual assets if you have real expertise in a specific area. Then you are also able to assess the purchase price well. Otherwise, it is better to invest in funds that leave the selection to experts.
• The broad diversification in tangible assets themselves also makes sense: if your portfolio already has assets such as equities, bonds and precious metals, investments in real estate and renewable energies are a good addition.
• In the event of short-term setbacks, it is worth considering anticyclical repurchases. This frequently means that you can re-enter the market at particularly favourable conditions.

Tangible investments at a glance: Your investment options

Tangible assets can be found where supply meets demand – the investment opportunities for tangible assets are thus virtually unlimited.

However, many investors specialise in certain groups that have so far proven to be good investment options. These mainly include real estate, renewable energies and precious metals.

By definition, equities are also tangible assets, because, as an investor, you contribute to the economic assets such as production halls or machinery of the respective companies. At this point, however, we exclude equities because they do not perform the same function in your portfolio as other, more conventional tangible assets, and you don't think of equities first when we talk about tangible asset investments.

Investing in physical assets: Real estate

Investing in real estate often means many benefits for investors. 

• Real estate is generally regarded as a stable and low-risk investment with solid returns, which benefit from mostly consistent performance. The return on real estate is usually uniform and stable.
• By investing in real estate, a decline in value can be circumvented or compensated for by rising inflation rates. Rising real estate values can balance out the inflation rate as well as the generally rising price level. Finally, with rental income tied to the consumer price index and the average price level, inflation compensation can come into play. 

Many criteria play a role in selecting suitable and promising real estate. Firstly, the financial cushion of the responsible developers and the purchasing power of the target group, and secondly, the location of the real estate and the development of the corresponding region.

If these criteria cannot be met or can only be met to a limited extent at the time of investment, this may result in certain disadvantages for investors. 

• As real estate is often traded as a long-term investment, performance is not always predictable. If the real estate does not perform as expected, investors may incur losses at the time of sale.
• Fluctuating income can also be a disadvantage here. Payment defaults in the form of vacant real estate or rental debts thus represent a risk.
• In large cities and metropolitan areas in particular, high and rising real estate prices are to be expected. Anyone wishing to acquire their own property under these conditions must therefore have a lot of capital and/or take out large loans.
• In general, owning your property can be a sensible investment, but it is not for everyone. It takes knowledge, a lot of time and work, and in the end you have a tangible asset, but often, a significant part of your wealth is concentrated in a single property, creating a cluster risk.

Many investors who are aware of these risks therefore rely on diversified investments such as open-ended real estate funds. Management and investment are entrusted to fund managers who invest the fund assets in various and as broadly diversified investment objects as possible.

This also spreads the risks of the individual properties, avoiding cluster risks with investors expecting consistent returns. At the same time, you have access to premium properties such as office buildings, hotels or shopping centres.

Investing in physical assets: precious metals

Precious metals such as gold, silver and platinum are regarded as beneficial investments by both connoisseurs and amateurs alike.

• They have a good reputation as a crisis-proof investment that can even serve as a transitional currency in the worst case scenario.
• Precious metals are a limited resource, which further increases their value. At the same time, however, many investors are convinced of the "eternal" value of these commodities, which was already appreciated by emperors and pharaohs.
• This is reflected in the demand: an increase in the demand for gold can be seen especially when inflation rises.
• Gold and other precious metals are also quite straightforward to buy. Sales are usually fairly easy as precious metals can generally be sold quickly. The market for ingots and common coins such as the South African Krugerrand is large, international and there are no stumbling blocks such as the right location, equipment or tenants. 

But, their disadvantages should not be forgotten:

• Precious metals are speculative investments that offer you neither interest nor dividends.  
• In addition, precious metals are not safe from fluctuations either: For example, the automotive industry has a real influence on whether the price of platinum is fixed or whether it falls – depending on demand, technological development, etc.  
• In times of crisis, they enjoy the hype, but after that, precious metals often become quieter again – five years after the 2008 financial crisis, for example, gold prices fell by 30%.  
• Even new record levels offer no protection against rapid corrections. After its all-time high of just under USD 5,600 per ounce at the end of January 2026, the gold price fell by around 16 percent until the end of April⁷.
• Another aspect is storage: Unlike real estate, for example, you are at risk of losing your investment due to theft. The material itself must also be maintained and preserved so as not to lose value. 

In addition to the classic bars and coins that were the focus here, investors also have the opportunity to invest in certificates and exchange traded commodities (ETCs): Such certificates are linked in value to the price index of the respective precious metal. ETCs are debt securities that securitise the value of a certain amount.

However, it is up to you to decide whether these “paper gold” options still represent real tangible asset investments.

Investing in physical assets: Renewable energy

Renewable energies such as wind or solar power represent a newer type of tangible asset investment. Investors do not buy their own wind farms here - these plants run via investments, for example in the form of renewable energy funds. Again, there are a number of benefits for investors. 

• The renewable energy market is one of the fastest growing markets. In 2024, renewable energy accounted for 92.5 percent of all newly installed electricity capacity worldwide⁸. More and more investors, but also providers, are recognising the potential, so that both demand and supply are currently rising sharply.
• Investments in renewable energies prove themselves not only economically but also environmentally. This will expand an energy market that operates in a future-oriented manner and thus paves the way for the energy transition.
• Many countries in Europe and around the world have committed to expanding renewable energy supply systems. This makes it easier to ensure that the relevant markets continue to grow, which in turn contributes to investment stability.
• With renewable energies, you make a significant contribution to the diversification of your portfolio. To date, these investments have been under-represented in most portfolios, but can actively contribute to spreading the risk of your investments. 

At the same time, such a novelty can also have disadvantages:

• A new market often lacks the necessary experience and expertise. Therefore, investors run the risk of not delivering the desired results for a project that is deemed good and thus causing losses.
• Compared to real estate as an investment, for example, the costs in this segment are slightly higher. For example, the administration and operation of the plants involves higher expenditures. 
   

But a lot is happening here as well: improved technologies have made it possible to significantly reduce previous costs. That is why it is no longer just environmental reasons that play a role in investing in renewable energies.

It is clear that renewable energies are on the rise and will replace fossil fuels in the long term. As a result, the competitiveness of renewable energies is also steadily increasing.  

This also has consequences for investors. The segment is no longer characterised by steady growth, but also increasingly by consistency. This is because long-term off-take agreements are usually concluded that guarantee reliable cash flows - such as in the first Finnish wind farm, which has been part of the klimaVest portfolio since June 2021:

Thanks to a ten-year purchase agreement with Google, regular revenues from the wind farm can be reliably guaranteed over this period. With its stake in the German transmission system operator Amprion, klimaVest has supplemented its revenue model 2024/2025 with regulated grid revenues. These can be calculated independently of the electricity price and provide the fund with plannable cash flows in the long term. 

Tangible asset funds: the perfect middle ground?

Investors need a certain level of expertise to ensure that tangible assets can unleash their full potential. This is why you should clarify a few questions for yourself in advance: 

• Do you have enough time to invest both knowledge and capital in a tangible asset class?
• Can you diversify your capital sufficiently so that you are not just investing your money in a single property – and thus take on a cluster risk? 

If you cannot answer these questions with a clear “yes”, you should look at tangible assets in order to secure your assets. Among alternative investment funds (AIFs), there are suitable funds that promote a broad portfolio, experts and comparatively small investment amounts.

The benefits that open-end real estate funds have been able to offer retail investors for decades have also recently been applied to other categories. A 2015 EU legislative amendment has made it possible for private individuals to invest in renewable energy:

the introduction of the European Long-Term Investment Fund (ELTIF) has been actively promoting more sustainable economic growth for several years. It drives forward the expansion of sustainable infrastructure or green electricity grids, for example. To protect investors and maintain transparency, ELTIFs are subject to strict regulations.

They close a gap in the market that previously existed between institutional and retail investors in order to promote forward-looking investments together with private individuals.

When you invest in funds, you invest in different assets - even in the case of tangible asset funds. By distributing the fund assets across various projects, the associated risks can be reduced and the resilience of the investments increased.

As an investor, you also benefit from their high degree of flexibility, as fund units can be bought and sold at any time. Some tangible assets start with fairly low minimum investment amounts, making this type of investment suitable for many investors.

However, it is not uncommon for tangible asset funds to require higher investment amounts, so in some cases you will have to invest 20,000 euros or 50,000 euros to be able to participate in the corresponding project. 

Investing in tangible assets: the most important advantages and disadvantages at a glance

Like any other investment, before investing in tangible assets, it is important to consider not only the advantages, but also the specific disadvantages: What compromises do you have to make when investing your capital in tangible assets? Does the minimum term match your investment horizon? Do you have enough tolerance for the most common investment risks?  

In order to take into account all the advantages and disadvantages of your tangible asset investment, we would like to offer you an overview of the most important positive and negative characteristics of tangible asset investments.

Perhaps the biggest benefit for inexperienced investors is that for many, an investment in tangible assets is easily accessible and measurable. For example, most people at least know some of the basics of real estate, whether in the form of rental or ownership.

For many, the risk of owning their own home or a house can therefore be better understood than the investment risks of equities or bonds.  

You also benefit from the real value of tangible assets. If you invest in real estate or wind power, typical risks such as fluctuations in value or total losses can be better mitigated. Especially in times of crisis, tangible assets can stand the test of time and often even increase in value.

Tangible assets therefore prove to be a sensible and profitable investmentin many ways. However, as an investor, you should also keep the most common risks and disadvantages in mind.

The aspect of value retention must be mentioned here in particular, because it cannot be guaranteed – even with tangible asset investments. Tangible assets are also subject to losses in value – at least temporarily. These can also arise from exchange rate risks if you enter an international tangible asset market.

In addition, certain types of tangible assets, such as a condominium, incur certain ancillary costs that you need to consider before investing. Such costs can only be recovered over time.

In order to be able to trade on tangible asset markets, a certain level of prior knowledge should therefore also be available. Otherwise, investors run the risk of misjudging investments, their price or their quality and making unprofitable investment decisions.

If you choose to invest in tangible assets, there is also a risk that you may be a victim of theft, damage or natural disasters such as flooding or storms. While insurance can protect you from this, it also means another expense that you need to take into account. 

Investing in physical assets: what else do you need to bear in mind?

If you want to invest in tangible assets, there are a few aspects that you should consider for a successful investment, depending on the offer. Not all offers are as attractive as they seem at first glance. 

Ask yourself some critical questions: 

• Do you understand the business model and how it works?
• Are you convinced of the economic performance of the model?
• If you cannot make this assessment yourself – do you trust the responsible expert?  
• Has the investment, such as a tangible asset, been set up transparently? Are the costs and income evident from the documents? Is it still a fund with a good return?
• What ancillary costs, maintenance costs, taxes, expenses, etc. will you be charged with this investment? Do you have the means to manage these costs – and still have a cushion?
• Does your investment contribute to the diversification of your portfolio? Or would you be exposed to a big cluster risk?
• To what extent does your planned investment contribute to enriching your financial situation?

With these questions and the information we have provided you with in this article, you can now get your own differentiated picture of tangible assets as investments - and decide not whether, but which tangible asset investments will also fit into your portfolio.