Assets That Appreciate – The Ultimate List Of Appreciating Assets That Increase Net Worth

a comprehensive guide to assets that appreciate in value

The purpose of this article is to provide a comprehensive list of assets that appreciate.

So, why am I doing this?

Well, I thought this would be a good follow up to my recent article:  The 4 Pillars Of Wealth Creation. In that article, one of the 4 pillars for creating wealth was accumulating productive assets.

When I say productive assets, I really mean assets that appreciate in value.  And, I touched on a few of the most common assets that appreciate in that article.

However, I wanted to come back with a more comprehensive list of assets that appreciate.  We will cover some of the most mundane appreciating assets to the highly exotic.

Do you still need more investment ideas? Or, are you looking for something a little different? Then check out our full library of investing content by following the preceding link.

But for the rest of us. On to assets that appreciate.

Assets That Appreciate Increase Your Net Worth

improve your net worth by investing in quality assets that increase in value

Make more money than you spend.  Then put your excess money into assets that appreciate. They will grow your net worth over time.

Net worth is one way to measure wealth.  It is not the only measure, but it is an important one.

Net worth is defined as:

The monetary value of your assets minus your liabilities and debts equals your net worth.  Put more simply, it is the value of what you own less what you owe to others.

Related: The ultimate list of personal finance tips to build your wealth

Buy assets not liabilities is what I like to say.  Put your excess cash in assets that grow over time.  Not assets that deplete your net worth, like consumer goods.

So, we will go through an epic list of things that appreciate in value.

A Word Of Caution About Assets That Appreciate

Not every asset will appreciate in value all the time.  Most of the appreciating assets in this list have periods of time where their value decreases.

Some will increase in value during good economic times.  Some will increase in value during a recession. 

A few will benefit from an inflationary environment.   Others will appreciate during times of deflation.  Only a few of the most conservative assets will always increase in value.

In the end, most asset values are influenced by the fundamentals of supply and demand.  They are worth whatever someone is willing to pay for them.

Whatever the case, these assets can be good growth opportunities for savers and investors to consider.  Some that I have included are only for the advanced investor with all of their basic investment needs covered.

Related:  Timeless investing principles

Most importantly, do your own research before putting your money into an asset.  Always understand what you are investing in and how that asset relates to your overall investment objectives.

And finally, don’t forget to diversify.  It is rarely a good idea to become overweight in one particular asset class.

Assets That Appreciate And Produce Income Or Generate Income

Some of the assets discussed here are also income-producing assets that provide passive income.  They are suitable for income and growth investing. They may also provide a means to earn an active income.

Income Producing Assets are a great way to make money

Related: 5 reasons generating portfolio income is important

These types of assets are very powerful for building wealth.  They provide capital appreciation and income.

Related:  Income-producing assets for passive income

Assets That Appreciate By Major Category

As I developed this list of assets that appreciate, I came up with a lot.  So, I found it helpful to break them down into major asset categories.

As an overview, here are my major categories of assets that appreciate in value:

  • Ownership in businesses
  • Ownership in real estate
  • Lending products
  • Savings products
  • Financial products
  • Currencies
  • Commodities
  • Precious metals
  • Gemstones
  • Modes of transportation
  • Collectibles
  • Government-sponsored accounts
  • Personal assets

Related: How to increase your income from assets that appreciate

Okay, I think that is enough of an introduction.

Here is your comprehensive list of assets that appreciate in value.

Business Ownership Assets That Appreciate – Growth Stocks

By definition, growth stocks are assets that appreciate.  That is the main reason investors want to own them.

Growth stocks are characterized by companies that achieve rapid earnings growth.  As earnings grow, investors place a higher value on the company’s stock.  So the stock appreciates in value.

Related:   Learn how to invest in stocks like a pro

Related: Free stock & free investing from Webull

Value Stocks

On the other hand, value stocks are those companies whose share prices appear to be unfairly discounted.

For many reasons, the collective minds of traders in the stock market have mispriced and undervalued the company’s shares.  But eventually, the share price will rise to reflect its true fair value.

As an investor, if you can identify these companies, it is a great way to make money in stocks.  But sometimes it takes an accomplished investor to differentiate a value stock from what is called a value trap.

A value trap is a company whose share price is depressed because it is correctly valued.  And no reason will emerge to drive the share price higher.

Dividend Growth Stocks

Dividend stocks are assets that appreciate

Growth stocks and value stocks may or may not pay dividends.  But, by definition, a solid dividend stock always pays a recurring dividend to its owners.

And some of the best dividends paying companies increase their dividend payments on an annual basis.  These stocks are often referred to as dividend growth stocks.

Dividend growth stocks are assets that appreciate.  Why?  Typically as the company increases its dividend the share price will increase with it over time.

Dividends are my favorite form of passive income.  And, dividend growth stocks are my favorite appreciating asset!

Related:  How To Build A Portfolio Of Blue Chip Stocks Paying Dividends

Related: Supplementing retirement income with dividends

Penny Stocks

A penny stock is a publicly-traded company that sells for a very low price.  The price is typically less than $1 or $2. Sometimes just pennies as the name suggests.

Penny stocks trade on a small exchange or on an over-the-counter (OTC) market.  They normally do not trade on major marketplaces like the New York Stock Exchange (NYSE) or the NASDAQ.

Penny stocks are usually very small, early-stage businesses that hope to grow rapidly in the future. They are viewed as a way to invest at the early stages in companies that have the potential to expand quickly.

Source:  Is investing in penny stocks a good idea?

Because of the nature of these companies, penny stocks can be risky.  But get it right and they can provide tremendous asset appreciation when the company behind the penny stock has success.

The utilmate list of assets that appreciate.  Be sure to put your money in appreciating assets.

Private Equity

Unlike the companies and their stocks I have discussed so far, private equity is not available to the average investor like me.  Private equity is ownership of shares in a company or companies whose stock does not trade on the public exchanges.

A private equity firm collects and creates a pool of money from wealthy investors.  That pool of money, also known as a fund, is used to invest in companies that are not traded publicly on the stock exchanges.

A private equity fund typically has a limited life.  The money in the fund is invested in private companies for 3-7 years with the goal of rapidly increasing the value of each company owned by the fund.

At the end of the fund’s life, each company-owned is either sold to another investor or taken public.  This creates a larger pool of cash that is then distributed back to the original investors.

By investing money in start-up companies, distressed companies, and other unique situations, private equity can produce large capital appreciation.

Equity Crowdfunding

equity crowd funding is a relatively new type of asset that appreciates

As the name suggests, equity crowdfunding is raising capital from “the crowd”.

This is done by selling securities in a private company that is not listed on stock exchanges.  The crowd investors are often sourced using the internet and social media.

With equity crowdfunding, the securities can be in the form of stock, debt or loans, revenue share, convertible securities, and more.

Investors in equity crowdfunding expect their investment to appreciate in value.  This requires the company they invested in to be successful.

Source:  What is equity crowdfunding?

Owning Your Own Business Is An Appreciating Asset

So far we have talked about a variety of ways to have an ownership interest in a business.  Those ownership interests can appreciate in value as I have discussed.

But you do not have to invest in other people’s businesses.  You can start your own business by yourself or with one or more partners.

Make your business more successful.  And then, its value will appreciate.  When well run, businesses are assets that appreciate.

A business’s value can come from different sources.  Increasing sustainable profits may be the most obvious source of value.

But there are other sources.  A few sources that come to mind are:

  • Propriety products
  • Skilled management
  • Patents
  • Copyrights
  • Trademarks
  • Customer relationships
  • Specialized computer and software applications

These sources of value are sometimes referred to as a company’s intellectual property.

Let’s move on now from ownership interests in businesses to real estate.  Land and buildings are physical assets that appreciate.

Most people are familiar with real estate and know that real estate consists of many different types of appreciating assets.

Real Estate Assets That Appreciate – Primary Residence

Your primary residence is usually an asset that appreciates.

A primary residence may be a single-family home, condominium or townhome.  If you are like me, you may not make a killing on property appreciation.

But we all have to live somewhere.  And to many people, their primary residence is one of the first and biggest appreciating assets that they own.

Your property’s price appreciation will typically keep up with inflation at a minimum.  And in some areas, much greater property price appreciation can be realized by the owner.

Single-Family Homes

A single-family home is usually a persons biggest appreciating asset

Single-family homes are assets that appreciate.

Some people own more than one home over and above their primary residence for any number of reasons.  Rent it out and an additional single-family home can produce measurable investment income for your asset portfolio.

During the financial and real estate crisis, investors swooped in and bought foreclosed homes at depressed prices.  They expected the market to recover over time.

And to realize the gains from the higher market prices the recovery would bring. In the meantime, the homes could be rented out for profit.

Vacation Homes

some people have a vacation home that is a big asset

Many people own a vacation home in a popular vacation spot or resort town.

By the ocean, near the lake, next to a golf course, or in the foothills of the mountains. A vacation home can be a relaxing place to go for a family gathering.

Just like vacant single-family homes, vacation homes can also be rented out as an addition to an income-generating portfolio.  The more popular the vacation spot becomes, the more likely a vacation home will be an asset that appreciates.

Rental Properties

Rental properties are assets that appreciate in value.

They are purchased by their owners for the sole purpose of renting their use to one or more tenants.  Rental properties are also part of an income generation strategy from rents. Plus, asset appreciation over the long-term.

Apartment Buildings Can Be Appreciating Assets

Apartment building are assets that appreciate

Apartment buildings are a good investment in several different situations.

One such situation is a location with a transient population.  College towns come to mind immediately.

Another situation is where the price of homeownership is very high.  So, people will have more incentive to rent an apartment, rather than buy their primary residence.

Apartment buildings are another combo asset.  They can appreciate in value and be part of an income investing strategy.

Renting has become much more popular in recent years. I think the bursting of the real estate market bubble back in 2007 has had something to do with that trend.

Raw Land

The unique aspect of the land is that there is only so much of it.  And last I checked no one is able to create more of it.

So as the world’s population grows, the land becomes a finite and more valuable asset that can appreciate.

Farmland

We all have to eat.  That may consist of direct consumption of products off the farm.  Or, indirectly through grains fed to livestock that we consume in form of beef, pork, poultry, or seafood.

Farmland is an asset that can appreciate.  And, if you are a farmer, a farm is also an income-producing asset.

Commercial Real Estate

Commercial real estate is an asset that appreciates.

One of my neighbors owns several commercial real estate buildings around the area in which I live.  He likes to brag about it a little bit.  Normally that would bother me, but for some reason, he’s kind of funny and humble.

Commercial real estate can be occupied by many different kinds of tenants.  Retail shops, restaurants, doctors, lawyers, and accountants.

Industrial Real Estate

industrial real estate is an asset that can appreciate

Industrial real estate is occupied by factories, warehouses, distribution centers, mining operations, power generation facilities, and others.

My Dad spent his working years as the owner of a grain elevator.  He bought grain from local farmers, stored it, and sold it to larger grain companies.

He owned the business and the industrial real estate it was operated on.  These assets appreciated in value.  And he made an active income from this combination of assets.

So far, we have been discussing physical assets that appreciate when it comes to real estate.  In other words, owning the land and the buildings upon it.

Owning physical real estate is a big responsibility.  There are other ways to participate in real estate without owning physical assets.

Let’s discuss a couple of those ways next.

Other Real Estate Assets That Appreciate – Crowdfunded Real Estate

Real estate crowdfunding is similar to equity crowdfunding that we have previously discussed.

Many investors are brought together to create a large source of funds.  Those funds are used to finance property investments.

In exchange, the participants receive a return on their investment through cash dividends during the life of the project. Or, property appreciation when the parcel(s) are sold.

Real Estate Investment Trusts (REITS)

REITs are companies that own or finance income-producing real estate in a range of property sectors.

Most REITs operate a straightforward business model.   They own property, lease out space and collect rent.  These companies generate income which is then paid out to shareholders in the form of dividends.

Furthermore, REITs allow anyone to invest in portfolios of real estate assets without the responsibilities of being a landlord.

Investors buy shares of REIT stock on the major stock exchanges.  The stock price in a well-managed REIT will appreciate over time in addition to being an income-generating asset.

Related:  Tips for creating passive income by investing in REITs

That covers real estate assets.  Now we are going to move on to the lending and savings product categories.

Lending And Saving Assets That Appreciate – Corporate Bonds

Corporate bonds are assets that can appreciate.

Companies issue bonds to the public to raise cash to fund their operations.  Once issued, corporate bonds can be sold to other investors.   This causes their value to fluctuate.

Corporate bonds can appreciate in value when interest rates fall.  In addition, a company’s bonds will rise in value when their credit rating improves.

Corporate bonds are an income-producing asset.  Most bonds pay interest to the owner of the bond on a regular basis.

Government Bonds Are Appreciating Assets

Government bonds have similar characteristics to corporate bonds. They are considered defensive assets.

The main difference is the lender is loaning their money to a governmental entity rather than a for-profit corporation.

Private Loans

You and I can make a loan to anyone.  Just be careful who you loan money to.  The ultimate goal is to get your money back plus interest.

Set the loan up in such a way that the borrower will pay back more to you than the original sum at a specified date in the future.  By doing so, you create an asset that appreciates in value.

Peer To Peer Lending

when you lend money you create an asset that appreciates

Peer to peer lending is a system of lending and borrowing without a big bank or other institutional lender involved.

Individual investors fund loans for borrowers and get a return on their investment.  But, they also shoulder the risk for the loan.

Source:  What is peer to peer lending?

Peer to peer lending is just another means to source a private loan.  The loan asset appreciates in value as the lender gets paid back more than the original sum loaned.

In addition, falling interest rates and improved creditworthiness of the borrower will cause the value of the loan to appreciate.  This assumes the investor can find someone to buy the loan at that higher value.

Private loans and peer to peer lending do not trade on public exchanges like corporate and government bonds.  This can make it difficult to sell to another investor even if their value appreciates.

Related: Iban Wallet review – P2P lending made easy

US Savings Bonds

US I bonds

US savings bonds are loans to the United States Government.  They appreciate in value as interest is credited to the bond during its life.

When you go to cash in the savings bond, it is worth more than the amount of purchase.  Thus, US savings bonds are assets that appreciate in value.

Related:  Why I invest in the US I savings bonds

Savings Accounts

Savings accounts are essentially guaranteed loans to banks or other financial institutions.  They are very liquid.  This means you can get your money back whenever you desire.

While your money sits in the account, the financial institution will credit the account with interest, creating an appreciating asset.

Certificates Of Deposit

A certificate of deposit (CD) is a savings certificate.  It is just another type of loan to a bank or financial institution.

Certificates of deposit have a fixed maturity date and specified fixed or variable interest rate.  They can be issued in any denomination.  But, they usually have minimum investment requirements.

When buying directly from the financial institution, the saver typically cannot get their money back whenever they want it without paying a penalty.

Let the interest payments accumulate in the CD account.  And, at the end of the term, collect more cash than you put in.   So, in my mind, CDs are another type of asset that appreciates.

Brokered CDs Can Be An Appreciating Asset

Another form of a certificate of deposit is known as brokered CDs.   They are issued by banks. Then sold through brokerage firms such as Vanguard.

You can buy brokered CDs when newly issued. A new issue is typically sold at par value. That is the stated value of the CD.

Or, buy a brokered CD in the secondary market. Here they may trade at a premium or discount to par.

Holding a high yield brokered CD?  When interest rates fall as they have recently, your CD will trade at a premium to par in the secondary market.  It is another way for a CD asset to appreciate in value.

Source:  Boost your returns with brokered CDs

Let’s talk about some other types of financial products next.

Financial Product Assets That Appreciate – Stock Markets

Large stock markets like the New York Stock Exchange (NYSE) and the NASDAQ are assets that appreciate.  They reflect the collective value of the individual stocks traded on the exchange.

In this case, the investor chooses not to buy a single stock.  In contrast, he or she chooses to own the entire market.

Index mutual funds and exchange-traded funds (ETFs) are the primary ways to invest in total stock markets. They are funds that are designed to track the performance of indexes like the S&P 500 or the total US stock market.

Over the long run, world economies grow and individual companies become more profitable.   As this occurs stock markets increase in value.

However, stock market asset values do not go up in a straight line.   This is in contrast to some of the more conservative appreciating assets we have talked about, like savings accounts.

Stock markets can be subject to volatile price changes in the short term.  But over the long term, liquid stock markets in developed countries have an excellent track record of asset growth.

Exchange-Traded Funds

Now we know we can invest in total stock markets through ETFs. Many people like the passive nature of these assets.

So, let’s talk a little more about ETFs.  They have become a popular investment of choice in recent years as an asset that appreciates.

An exchange-traded fund (ETF) is a collection of securities, such as stocks. The ETF tracks an underlying stock market index.

Related:  How to build a Vanguard 3 ETF portfolio paying dividends

An ETF is called an exchange-traded fund since it is traded on an exchange just like an individual stock. The price of an ETF’s shares will change throughout the trading day as the shares are bought and sold on the market.

Source:  Investopedia – Exchange-traded fund

Mutual Funds

Open-end and closed-end mutual funds are also assets that appreciate.  And, mutual funds are similar to ETFs. 

They are also a collection of securities.  However, open-end mutual funds trade only once per day after the markets close.

Options

An option contract is an agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a specific period of time.

A put option gives the owner the right, but not the obligation to sell an asset.  On the other hand, a call option gives the owner the right, but not the obligation, to buy an asset.

The most familiar options are stock options.  They have the potential for large gains and therefore are assets that can appreciate in value.

So, we have covered various types of financial products that have the potential to increase in value.  Let move on to currencies next.

Currency Assets That Appreciate – Hard Currencies

The US dollar is an example of a currency asset that appreciates

Hard currencies like the US dollar, Canadian loonie or the euro are assets that can appreciate.  This is also known as foreign exchange, or forex for short.

Hard currencies are subject to the laws of supply and demand.  Factors that affect the supply and demand for a currency include a nation’s:

  • Interest rates
  • Inflation rate
  • Income levels
  • Ease of capital flows
  • Government intervention

Cryptocurrencies Are Relatively New Things That Appreciate In Value

Bitcoin is an asset that appreciates

A cryptocurrency is a digital asset.   The asset is designed to work as a medium of value like hard currency.

Cryptocurrencies use strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.  In addition, they use decentralized control as opposed to centralized digital currency and central banking systems.

Source:  Wikipedia – cryptocurrency

The first known cryptocurrency, Bitcoin, was developed in 2009. It is a digital currency that is produced when computers solve complex algorithms, known as mining, and are rewarded with Bitcoins.

Similar to hard currencies, the law of supply and demand determine the price.  High demand with limited supply will create a digital asset that appreciates in value.

That covers our discussion of currencies as assets that can appreciate in value.  We already covered real estate.  But now, let’s move back into other areas of physical assets that appreciate.

Commodity Assets That Appreciate – Oil

rigs produce the appreciating asset known as oil

Oil, also known as black gold, is an asset that can appreciate.

Like it or not the global economy still runs on oil.  It is a volatile commodity, but over the long run, oil has been an asset that appreciates.

Oil is similar to other assets. Supply and demand determine the price.

Over the past decade, the US has turned into a large producer of oil from the process known as fracking.  The increase in supply has kept the price of oil constrained as compared to 5-10 years ago.

Other factors than supply and demand also come into play when determining the price of oil.  War, peace, geopolitical tensions, and global economic performance come to mind.

You can invest in oil indirectly by purchasing shares in oil-based energy companies. Exxon Mobile is one example.  Or, funds that invest in the energy sector.

Other means to invest and gain more direct exposure to oil include oil futures, oil options, and exchange-traded funds.  These are all assets that appreciate in value in conjunction with the price of oil.

Copper

Copper is an asset that appreciates in value mainly during periods of economic growth.  That is because copper has many productive economic uses.  It is used in heating and cooling systems and buildings.

In the downtown area that I live near, there have been a number of old buildings torn down this year.  The land is being cleared for new luxury apartment buildings.  In total, I have seen 6 buildings demolished in our village. 

Before the demolition, I observed the work crews going through the buildings removing items of value.  One of the things I noticed being removed was copper.  It was being salvaged for resale.

You can invest in copper indirectly through stocks of mining companies. Or, funds that invest in those stocks.  More direct ways to invest in copper include copper bullion bars, copper coins, futures contracts, and options.

Source:  How to invest in copper

Livestock

chickens are a productive asset

Maybe you have some farmland or live in a rural area?  If so, you may have the option to raise livestock. 

It may sound crazy, but it’s not.  I was on vacation recently and met a man and woman that raise honey bees.  Yes.  Honey bees are a form of livestock.

Raising chickens has also become very popular in recent years.  My sister-in-law has a chicken coup.  She buys the baby chicks from a third party and raises them for their egg production.

Productive livestock like these examples are assets that appreciate in value.  Furthermore, you may be able to earn income by selling their eggs, honey, milk, etc.  And finally, an investor can also get exposure to livestock through futures contracts.

Let’s move on now to another category of appreciating assets:  precious metals, gemstones, and other luxury items.

Precious Metal & Gem Assets That Appreciate – Gold

gold is one type of physical asset that appreciates

Gold is also known as the “yellow metal”.  Investors who are gold enthusiasts are sometimes called “gold bugs”.

Gold typically appreciates in value during inflationary times.  And, during times of severe economic and financial stress.  But, outside of jewelry and dentistry, gold does not have many practical applications.

Gold can be purchased directly in various forms like bars and coins.  For investors who do not want to hold the metal, exchange-traded funds are good options.  The SPDR gold trust, ticker symbol GLD, is a popular choice.

Investing in companies that mine the yellow metal is also an option for indirect exposure to the price of gold.  A gold mining company’s share price will normally appreciate in value as the price of gold rises.

Silver

Silver is another popular precious metal.  It has a few more practical applications than gold. This leaves the price of silver to be more heavily influenced by economic conditions.

But as an investment, silver has many similar characteristics to the yellow metal.

Gemstones

some gemstones are appreciating assets

Gemstone investing is not something I have ever done. But for those who have an interest in such things, rare gems have a history of appreciating in value.

When the financial world seems to be collapsing around us, gem prices can hold up. Unlike an asset like oil, for example, small quantities of gems are easy to store and transport.

Here are the top 10 gemstone assets that appreciate:

  • Ruby
  • Blue Sapphire
  • Emerald
  • Spinel
  • Tsavorite Garnet
  • Spessartite Garnet
  • Alexandrite
  • Jadeite Jade
  • Imperial Topaz
  • Paraiba Tourmaline

Source:  The top 10 investment gems

I don’t know about you, but I don’t have very many of those little jewels lying around my house!

Next category up, modes of transportation.

If you want an appreciating asset, don’t bother with a boat or a private jet.  Go for a classic car, here’s why…

Automobile Assets That Appreciate

some cars are assets that can appreciate in value

The average automobile is a depreciating asset.  I’m pretty sure my 2009 Toyota Camry is worth less every year I own it.

I don’t even bother to value it and add it to my personal net worth calculation.  The same goes for my wife’s 2007 Toyota Corolla.

On the other hand, classic cars and vintage automobiles may be different.  They can be assets that appreciate.

But, only a select few classic cars will have the potential to appreciate. Factors such as the supply, demand, brand, age, image, condition, and desirability of a car will impact value.

Some brands tend to appreciate and are reliable investments.  And, other brands that were ignored in the past can see surprising value increases.

Here are a few classic cars with the best investment potential:

  • Lamborghini Diablo
  • 1957 Ferrari 410 Superamerica SIII
  • 1967 Volkswagen Beetle
  • Mercedes-Benz 190
  • 1984 Pininfarina Azzurra
  • 1998 Porsche 911 Turbo S
  • 1994 Mazda RX-7
  • 1972 BMW 2002
  • 1998 Porsche Boxster
  • 1973 Datsun 510
  • 2002 Porsche 911 Carrera

Source: Classic cars with the best investment potential

Let’s move on now to some other types of collectible assets that appreciate.

Collectible Assets That Appreciate – Works of Art

As with most investments, increased demand equals increased asset appreciation.  And, art is no different.

However, there are certain factors that can make for the best purchases and increase the value of artwork over the long term:

  • Buy something you love so you desire to keep it as a long-term investment holding
  • Buy an original that is signed by the artist
  • Iconic figures or images generally retain value
  • Controversial or political pieces with historical significance also fare well in resale
  • High notoriety of the artist is a safer investment choice
  • But art from emerging talent can have more upside potential
  • Obtain certificates of authenticity and retain the proof of purchase
  • Quality framing will make your art look better and protect your investment

Source:  How to buy art that will increase in value

Coins

invest in coins to grow your assets and increase net worth

Coin collecting can be a very profitable venture when done the right way.  So, coins are also assets that appreciate.

Coins derive their value from two principal sources. The first is the physical metal contained in the coin, which is also known as its bullion value.

Gold and silver are popular metals used in coins.  We have already discussed their value as assets that appreciate.

But coins have a second source of value called their numismatic value. This factor applies mostly to antique and rare coins.

Numismatic value is more difficult to determine than bullion value. It is very subjective. Why? Numismatic value is not determined on a formal financial exchange.

Ultimately, a coin’s collector value depends on buyer perception.  As the saying goes, it is worth what someone will pay for it. But there are some general guidelines.

For example, the fewer units of a coin that were minted, the higher its collector value is likely to be.   This is due to a shortage of supply.

So we are back to one of the original concepts I mentioned at the beginning of the article.  The concept was supply and demand.

Source:  Is coin collecting profitable, or just a fun hobby?

Stamps

investment-grade stamps are assets that appreciate

There are two kinds of stamps.  The first is collectible stamps.  And the second is investment-grade stamps.

Collectible stamps are for people into stamp collecting just for the joy of it.  Collectible stamps are not usually for investment purposes.

On the other hand, investment-grade stamps are identified as having the potential to grow in value. 

Only a very small fraction of stamps are likely to increase in value.  They are very rare.  And they have to be in a pristine condition.

Source:  Investing in stamps:  The facts and the fiction

Investment-grade stamps are assets that appreciate.  But they should only be for the investor who has all their financial bases well covered.

An Interesting Story About Stamps As An Appreciating Asset

For example, Bill Gross, founder of the asset management company PIMCO, has reportedly spent between $50 and $100 million of his $2 billion fortune buying stamps.

Stamps have proved to be among his most profitable investments.  Mr. Gross sold a small portion of his collection for four times the initial investment at a charity auction.

And, this is what he said at the time.  Mr. Gross called the gains “better than the stock market.”

Source:  Investopedia – Where does Bill Gross keep his money

One Last Physical Asset That Appreciates – Wine

wine can be an investment

Most wine isn’t suitable for long-term investing, and it’s unlikely that you’ll find a vintage that produces significant returns.

However, investment-grade wine has a reasonable chance of appreciating in value over the long term, typically at least five years.

Investing in wine has a host of challenges from sourcing to storing to selling.  Get it right and make some money.  Get it wrong and just enjoy your bottle of wine.

Source:  Collecting & Investing in Wine – Costs, Risks, How to Buy

Wow! Cars, art, coins, stamps, and wine as investments?  Who would have thought?  I do not personally invest in any of those asset classes. They all fall in the category of physical assets that appreciate in value.

When would it make sense for the average investor to invest in one of these areas?  Perhaps if one is your hobby.

For example, maybe you love stamps and collect them as a hobby.  Do your homework and consider investment-grade stamps for a small but fun investment alternative. It’s always a good idea to invest in things you know and understand.

But now, let’s move on to other types of assets that appreciate.  I call this category government-sponsored accounts.

I’m going to focus on US-based accounts.  If you live in another country, perhaps you have similar government-sponsored assets that appreciate.

Government-Sponsored Account Assets That Appreciate – College Savings Accounts

529 savings plans are flexible, tax-advantaged accounts designed specifically for education savings.

The whole point is to invest in appreciating assets within a 529 account.  And then use the money years in the future to pay for education expenses.

Retirement accounts

A company 401(k) plan is a valuable asset

Of all the things that appreciate in value, tax-advantaged retirement accounts are my second favorite appreciating asset.

Your IRA, 401(k), or 403(b) account(s) are assets that appreciate.  Their whole purpose is to allow for tax-advantaged savings and investment to fund living expenses during retirement.

Get started funding a retirement account as a young adult and watch your assets grow over a lifetime.  Some people even become 401(k) millionaires.

Related: What assets should you invest in when in your 20s

Social Security Accounts

I do not put my future social security benefit on my personal balance sheet or net worth statement. However, that account is an asset that appreciates in value over time.

As I work and continue to pay into the social security system, my future account benefit grows.  And, as I get closer to retirement, the time value of money makes the present value of the future benefits greater.

So, don’t forget to consider your social security benefits as a type of retirement income asset that appreciates.

Our final category of appreciating asset is your very own personal assets.

Your Personal Assets That Appreciate – Intellectual Property

Another form of property is that of the intellectual variety.  This has become more important as the world migrates to knowledge-based economies and away from bricks and mortar.

Perhaps your unique way to create and deliver value is through intangible works.  This is also known as intellectual property.

Your intellectual property can be a tremendous asset that appreciates.  They are creations of your mind.  Some examples include:

  • Music
  • Books
  • Paintings
  • Articles
  • Papers
  • Ideas
  • Inventions

All of these examples can develop commercial value if you know how to go about it.

Your intellectual property has the potential to continue to work for you and become more valuable as long as you live.

Skills and Expertise

Don’t forget about these things that appreciate in value: skills and expertise in marketable areas.

Gaining valuable experience and good judgment are your personal assets that appreciate. The more you can do, then the more you, as an asset, will be worth.

Education

Never stop learning at school or during your life - knowledge is a powerful asset

Life-long learning and education are assets that appreciate.

I like to say the more you know, the more you can make your assets grow!

Assets That Appreciate – Summary

Here’s a recap of the ultimate list of assets that appreciate, build wealth and increase your net worth:

  • Growth Stocks
  • Value Stocks
  • Dividend Growth Stocks
  • Penny Stocks
  • Private Equity
  • Equity Crowdfunding
  • Owning Your Own Business
  • Primary Residence
  • Single-Family Homes
  • Vacation Homes
  • Rental Properties
  • Apartment Buildings
  • Raw Land
  • Farmland
  • Commercial Real Estate
  • Industrial Real Estate
  • Crowdfunded Real estate
  • Real Estate Investment Trusts (REITS)
  • Corporate Bonds
  • Government Bonds
  • Private Loans
  • Peer To Peer Lending
  • US Savings Bonds
  • Savings Accounts
  • Certificates Of Deposit
  • Stock Markets
  • Exchange-Traded Funds
  • Mutual Funds
  • Options
  • Hard Currencies
  • Cryptocurrencies
  • Oil
  • Copper
  • Livestock
  • Gold
  • Silver
  • Gemstones
  • Automobiles
  • Works of Art
  • Coins
  • Stamps
  • Wine
  • College Savings Accounts
  • Retirement Accounts
  • Social Security
  • Intellectual Property
  • Skills and Expertise
  • Education

Further Reading About Investing In Assets

Disclosure & Disclaimer: I am not a licensed investment adviser, financial adviser, or tax professional. And I am not providing you with individual investment advice, financial guidance, or tax counsel. Furthermore, this website’s only purpose is information & entertainment. And we are not liable for any losses suffered by any party because of information published on this blog.

Remember to buy assets not liabilities, so put your money in appreciating assets!

10 thoughts on “Assets That Appreciate – The Ultimate List Of Appreciating Assets That Increase Net Worth”

  1. Hi Tom,

    Extremely interesting! I’m a fan of some cryptocurrencies (ETH, BTC), and am always a bit less hesitant to spend money on things that have appreciation potential. I’ve always liked the idea of owning exotic assets like art and rare wine, but am not there yet.

    Cheers,
    Miguel

    • Hi Miguel. Glad you found the article interesting. It was interesting to research and write especially in some of the areas I am less familiar with (eg. classic cars). I know you are a crypto fan. I was reviewing some of your past articles on the subject recently. Tom

  2. Wow comprehensive list! You even included copper and farmland! 🙂 I’ve probably only tried 1/3 of this list or even less.

    Thanks so much for the mention btw!

  3. Holy Moly Tom..that is an extensive list! Nice read.

    I haven’t been as active online lately, and just wanted to pop by and say keep up the great work/say hi!

    Cheers

  4. Nice read! I hear a lot about peer to peer lending but I don’t actually know anyone who has made money doing it.
    I would be interested in hearing from people who have done it!

    • Hi Kayla. Like many investments, I think P2P can be a productive part of an otherwise diversified portfolio. Tom

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