What is a hard asset?

The term 'hard asset' is sometimes used narrowly to refer specifically to physical, tangible assets- real property, commodities, precious metals, and infrastructure, and sometimes more broadly to include financial assets like cash and marketable securities.

In the context of real estate investing, 'hard assets' typically refers to the narrower definition: physical property with inherent, use-based value. One of the historical arguments for including real assets in a portfolio is their tendency to maintain or increase in value during inflationary periods, since the cost of physical goods and the income generated by real property often rise alongside the general price level.