“But as to myself, my guiding-star always is, ‘Get hold of portable property.” Wemmick, Great Expectations.
During times of economic uncertainty, when the stock market is extremely volatile, there is usually a flight to investing in gold. This is an age-old investment strategy, to protect one’s wealth. As we know, cash becomes eroded over time in real value because of inflation and even if you could find a savings account that gives you a great interest rate, this would still mean that that money is devalued. Goods worth £100 in Spring 2020 would now cost you £126 (June 2025).
So, if you have cash saved up and you do not need it for the near future, where should you put it in times of high volatility? I would say buy tangible assets.
Disclaimer:
Just because I’m financially independent doesn’t mean you can sue me if you blow your savings on crypto llamas. This blog is for education and entertainment—not financial advice. Before making any money moves, speak to a qualified (and hopefully not-broke) Independent Financial Advisor (IFA). You know, the kind with certificates and a filing cabinet.
Real Estate is one such tangible asset and it can also provide you with a regular income stream. What, however, would you do if you needed to liquidate that asset quickly? You would be looking at a minimum of 12 weeks to get your cash, and more likely much longer.
What is something, therefore, you can buy for cash, which is imperishable, small, portable, and, more importantly, holds its value over time? This means in other words a hedge for inflation or a ‘store of value’ asset with practical physical characteristics.
Here are some top portable asset contenders:
1. Gold (or Silver) Coins/Bars
Gold (or silver) is a time-tested hedge against inflation and currency devaluation. It is very portable in coin/bar form (e.g., 1oz coins).
Gold retains its value long-term. In 1925 the average price of a property in the UK was £619. The price of 1 oz gold coin in 1925 was £4.27 (expressed in decimal currency). This means 145 gold 1 oz coins would buy you an average property back then.
At the time of writing the price of a 1 oz gold coin, today is £2,480. Today, therefore the same number of gold coins (145) would buy you a property worth £360,000. (The average house price in the UK is £297,781, so its not a million miles away).
To drive this point home, now just imagine what £619 could buy you today. Instead of a new home you could barely buy a new washing machine!
Sources:
https://www.gold.co.uk/gold-price/live-gold-price
https://www.halifax.co.uk/media-centre/house-price-index.html
Gold is easy to liquidate globally. Britannia gold oz coins are legal tender in the UK so you can in theory spend them. You may get some funny looks in the shop though. Aside from the fact that you can sell them, because they are Money, they are also not liable to any capital gains tax.
There is also something called No Counterparty Risk to consider, which means that when you buy some gold, it becomes your property no one has a claim on it. That is not the case for real estate where a mortgage lender or the Leaseholder may have a claim of title on the property.
Tip: Stick to well-known coins like Britannia or American Eagles.
This would be my favoured place to store cash in times of uncertainty. However here are some more stores of wealth for the stout of heart.
2. High-Quality Gemstones
Things like diamonds, rubies, and sapphires can retain or increase value over time. They are extremely portable.
However, proceed with Caution: investing in gems requires expertise to avoid being scammed or overpaying.
Tip: Buy only Certified stones only (e.g., GIA-certified diamonds).
3. Rare Collectibles (in the right niche)
Some examples of rare collectibles are:
- Vintage watches (e.g., Rolex, Omega). Vintage Rolex in particular the Datejust will not only hold but also increase in value.
- Rare coins
- First-edition books
- Rare whisky or art
Some items will appreciate significantly over time; however, it requires niche knowledge to avoid buying fakes or overpaying. Buying rare collectibles is a great strategy if there is a subject area in which you are interested.
Tip: Stick to what you understand or can get expert advice on.
4. Platinum or Palladium
Other precious metals, but with industrial demand as well, can function as stores of wealth when times are uncertain. Two such metals are Platinum and Palladium.
Once again, their advantage come from their portability, as they are also available in coin/bar form.
One thing to bear in mind is their volatility. There are more price swings than gold. Because of their industrial use, long-term scarcity means that their relative cost will rise over time, especially as we find more uses for them.
5. Bitcoin and Other Crypto Currencies
A USB Flash Drive or Encrypted Wallet with Bitcoin or any other digital currency, is an extremely portable and liquid store for wealth. The benefit is that even though it is digital, it can be stored physically. It is a decentralised store of value, out of the control of the banks and governments.
Caution: Investing in crypto currencies requires knowledge of crypto security.
- Tip: Use hardware wallets like Ledger and store recovery keys securely.
If all this sounds too risky and you are still thinking of investing in property, but do not have the deposit saved up, then my Deposit Blueprint will be helpful for you. In it I show you how you can slash your expenses, boost your income and find hidden money,
Conclusion
For most practical purposes, gold still stands out as the most dependable, portable, and value-holding asset that you can buy with cash and physically store.
Do you have an interest, that you could translate into a tangible asset investment strategy? Let me know in the comments.