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Simple English definitions for legal terms
hard asset
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A quick definition of hard asset:
A hard asset is something that you own and has value, like a house or a car. It's one of the things listed on a balance sheet that shows what you own. Sometimes, when someone owes money, all their assets are used to pay off their debts. A hard asset is different from a financial asset, which is something that can be easily turned into cash, like a savings account.A more thorough explanation:
Definition: A hard asset is a type of real asset that has intrinsic value and can be physically touched or held. It refers to tangible assets such as real estate, gold, silver, and other precious metals, machinery, and equipment.
Examples: Real estate, gold, silver, machinery, and equipment are all examples of hard assets. For instance, a piece of land is a hard asset because it has intrinsic value and can be physically touched or held. Similarly, gold and silver are hard assets because they have value and can be held in physical form.
Explanation: Hard assets are considered to be a good investment because they have intrinsic value and are not subject to the same market fluctuations as other types of assets. For example, the value of a piece of real estate may fluctuate, but it will always have some value because it is a tangible asset. Similarly, gold and silver have been used as a store of value for centuries because they are tangible assets that have intrinsic value.