Tangible Investments: How to Invest Outside the Stock Market
Published 15th of October 2012·Updated 15 April 2026
Reviewed by: Reviewed for accuracy April 2026
Tangible investments are physical assets you can own directly, such as gold, property, wine, art and antiques. They appeal to investors who want diversification beyond stocks and shares, or who want assets that hold value independently of financial markets. Each carries its own risk profile, liquidity constraints and potential return, so understanding these differences before committing money is essential.
Short Summary
Gold is widely used as a store of value during periods of economic uncertainty. It does not generate income like shares or rental property, but it tends to hold its value over long periods and can rise sharply when financial markets fall.
Property remains the tangible investment most UK adults are familiar with. Residential property has historically increased in value over the long term, though the market moves in cycles and is sensitive to interest rates and economic conditions.
Art, wine and antiques can generate significant returns, but they require specialist knowledge and carry high transaction costs. Without expertise, it is easy to overpay for something that proves difficult to sell.
All tangible investments involve holding costs (storage, insurance, maintenance) that reduce net returns. These costs should be factored into any investment calculation.
Is gold a good investment?
Gold is a genuine store of value with a long track record. The price of gold in pounds sterling has risen from around £200 per troy ounce in 2000 to over £2,000 per ounce in 2024, according to the World Gold Council. That represents a tenfold increase, though the path was far from smooth.
Gold produces no income. You make money only if the price rises between when you buy and when you sell. It is most useful as a portfolio hedge rather than a primary investment. Financial advisers generally suggest allocating 5 to 10 per cent of a portfolio to gold rather than treating it as the main asset.
You can invest in physical gold (coins or bars), gold ETFs (exchange-traded funds) listed on the London Stock Exchange, or gold mining shares. Physical gold requires secure storage and insurance, which adds to the cost.
What tangible assets can I invest in?
| Asset | Potential return | Expertise required | Liquidity |
|---|---|---|---|
| Gold (physical or ETF) | Medium-high | Low-medium | High (ETF), medium (physical) |
| Residential property | Medium-high | Medium | Low |
| Fine wine | Medium-high | High | Medium |
| Art | Low-very high | Very high | Low |
| Antiques and collectables | Low-high | High | Low |
| Classic cars | Medium-high | High | Low |
| Jewellery | Medium | Medium | Medium |
| Forestry and farmland | Medium | High | Very low |
Is property still a good investment in the UK?
Property remains one of the most accessible tangible investments for UK adults. According to the Office for National Statistics, average UK house prices have risen from around £100,000 in 2000 to over £280,000 in 2024, though regional variation is substantial.
Buy-to-let property generates rental income as well as potential capital growth, but landlords face mortgage interest restrictions, stamp duty surcharges (an additional 3 per cent on second properties), and regulatory obligations including energy efficiency standards and tenancy law compliance.
Property is illiquid; selling can take months and involves significant transaction costs including estate agent fees (typically 1 to 3 per cent), conveyancing fees and stamp duty. It suits investors with a long time horizon who can manage the responsibilities of being a landlord.
Can I make money investing in wine?
Fine wine investment has produced strong returns over recent decades. The Liv-ex Fine Wine 1000 index, which tracks the secondary market for fine wine, has broadly outperformed many traditional asset classes over 10 and 20-year periods.
Returns are driven by scarcity and demand. Bordeaux first growths (Chateau Lafite, Chateau Mouton Rothschild and others), Burgundy grand crus, and top Italian wines including Barolo and Brunello di Montalcino have historically appreciated most reliably.
Storage is non-negotiable; wine must be kept in a temperature-controlled, bonded warehouse to maintain value and tax efficiency. Storage costs typically run to £10 to £20 per case per year. Specialists including Liv-ex, Berry Bros and Rudd, and Cult Wines offer investment services, though their fees and minimum investment levels vary.
Is investing in art worthwhile without specialist knowledge?
Art investment without expertise carries significant risk. The auction market for contemporary art is highly speculative, and prices for lesser-known works can collapse. Transaction costs at major auction houses including Christie's and Sotheby's typically run to 20 to 25 per cent of the hammer price, which means a work must appreciate substantially before you break even.
That said, some collectors have achieved extraordinary returns. Works by artists who gain critical recognition after purchase, or pieces acquired directly from emerging artists, can appreciate dramatically over time.
If you are interested in art investment and lack the expertise to evaluate works yourself, using an art adviser or buying through an established gallery reduces the risk of overpaying. Platforms such as Masterworks allow fractional investment in blue-chip art at lower minimum amounts.
What are the main risks of tangible investments?
Tangible assets are generally illiquid; turning them back into cash can take months or longer. Unlike an ISA or shares, you cannot sell in an afternoon.
Storage and insurance add ongoing costs that reduce net returns. A gold coin kept at a Royal Mint secure storage facility, a fine wine in a bonded warehouse, or a valuable antique insured separately all carry annual fees.
The market for many tangible assets (especially antiques and art) is opaque. Prices are not publicly listed in the way that share prices are, which makes it harder to assess fair value. Expert knowledge, or paying for professional advice, is essential in these markets.
If you are considering tangible investments as part of a wider portfolio, speaking to a regulated independent financial adviser (IFA) registered with the Financial Conduct Authority (FCA) is advisable before committing significant sums.
Frequently Asked Questions
How do I buy physical gold in the UK?
You can buy gold coins and bars from the Royal Mint, which sells Sovereigns and Britannia coins directly. Coins produced by the Royal Mint are exempt from capital gains tax for UK residents. Bullion dealers including BullionByPost and Gold Investments also sell physical gold online. Gold ETFs, such as those offered by iShares or WisdomTree, can be bought through a stocks and shares ISA or a share dealing account, removing the need for physical storage.
Is buy-to-let property still worth it in 2026? Buy-to-let remains viable in areas with strong rental demand and where gross rental yields exceed 5 to 6 per cent. However, the removal of mortgage interest tax relief for higher-rate taxpayers (replaced by a 20 per cent tax credit), the stamp duty surcharge on second properties, and rising mortgage rates have reduced returns for many landlords. Running the numbers carefully, or taking advice from an accountant familiar with property taxation, is essential before purchasing.
Do I pay capital gains tax on tangible investments in the UK?
Capital gains tax (CGT) applies to profits from selling most tangible assets including property (other than your main residence), gold, art, wine and antiques. In 2026, the CGT rates for most assets are 18 per cent for basic-rate taxpayers and 24 per cent for higher-rate taxpayers. Gold Sovereign and Britannia coins are exempt. The annual CGT exemption has been reduced significantly in recent years; check the current allowance at gov.uk before selling.
What is the minimum amount needed to invest in wine?
Specialist wine investment platforms generally have minimum investments of £5,000 to £10,000 for a managed portfolio. Buying individual cases through merchants such as Berry Bros and Rudd is possible at lower amounts, but requires more personal involvement in selection and storage decisions. Fractional investment platforms have lowered the entry point for some assets, though wine remains less accessible than gold ETFs or property investment trusts.
Are antiques and collectables a reliable investment?
Antiques and collectables are among the least predictable investment categories. Demand is fashion-driven; items that were highly sought after in one decade can become difficult to sell in the next. Rare, high-quality pieces by recognised makers retain value more reliably than mass-produced items. If you enjoy collecting and would be happy owning the item regardless of its resale value, the financial risk is more tolerable. Buying purely for investment purposes without genuine knowledge of the market is high-risk.