It is an investment in a tangible, hard or real asset or personal property.
Others exhibit a combination of properties, appreciating in market value while depreciating in book value, such as rental real estate.
Timberland exhibits depletion of timber combined with appreciation of land.
Other assets’ values fluctuate with supply and demand, such as commodities, which are liquid investments unlike most other tangible investments.
These various properties, together with the lack of correlation to traditional asset class values, make tangible investments a means of reducing overall investment risk through diversification.