Some things never change. Especially when those things have been buried beneath the surface of our planet for millions of years.
I thought about that while filling my car with gasoline the other day. The petroleum from which it is made never changes, even though the vehicles into which it goes have evolved enormously since the automobile was invented 140 years ago.
That’s why I believe hard assets should be part of a diversified portfolio. They will always be in demand and there is a limited supply.
As Mark Twain purportedly once said about real estate investing, “Buy land, because they’re not making it anymore.” The same sentiment can also be applied to most other hard assets, some of which appear poised to appreciate rapidly once the economy is back on track.
This post originally appeared at Investing Daily.