An increasing number of investors have discovered that there are many hard assets available in the market, that can provide them with a level of investment security during recessionary times and even depression, that is unmatched by any other investment offerings. Likewise, there are many alternative investments (in hard assets) that have proven to the investment community that they can excel during periods of high inflation, as well.
Regardless of whether investors are confronted by inflation, recession or depression, each of these conditions is a reminder to the investment community about the importance of accumulating a diversified portfolio (which should include hard assets) that will serve an investor well, regardless of good or bad economic times. With that being said, it is most likely because of their ability to perform well in a variety of uncertain markets, that the popularity of hard asset investments has grown tremendously in recent years.
Generally speaking, analysts agree that this sharp rise in demand can be attributed to two highly-influential factors:
1) The Ever-Growing Demand: Rapidly expanding populations around the world are contributing to the ever-growing demand for energy, food, housing, etc. This places a heavy reliance upon existing resources to meet the ever-increasing need to transport those valuable assets to the global consumer population.
2) Excellent Return Performance: From the perspective of building a strong portfolio and a buffer against financial crisis, the appeal of hard assets stems from their excellent return performance; which has been carefully recorded through out the decades.
A growing number of investors are learning the truth about their traditional investment offerings and are recognizing that introducing hard assets to a portfolio has the likelihood to deliver above average returns, especially when compared to broad equity markets. Embracing this alternative investment strategy has helped investment-seekers improve the performance of their investment holdings, by introducing investment offerings that can avoid many of the common risks associated with traditional investment markets (like stocks) and deliver steady returns, no matter what the economic climate brings.