When investing in assets that have value but are not money, you need to understand how those assets are labeled as valuable. The Youtube channel, ehowfinance, explains how to get your head around tangible asset valuations.
The first step is to know what “tangible” assets are. Some good examples are gold and diamonds.
They would typically be valued based on their auction prices.
Anyone who wants to have a reliable supply of valuable gold will have to purchase it in the form of gold bullion (1oz or 0.5oz bars), or gold coins. How would you know for sure that you have the genuine thing? There’s always the risk that gold products could have other less valuable metals inserted inside, devaluing the overall asset.
Once the gold is bought, it will have to be re-assessed. This means the value will have to be established again since the gold has been taken out of the system. It would then be given the current market price.
One form that is safer than most is gold coins. Coins that have been encased in plastic and certified by accepted agencies will most likely have pure gold, and therefore, more value.