Hard assets are essentially the raw materials that we use for food, energy, construction, manufacturing and so on. Basic metals like steel, copper and aluminum; foodstuffs like wheat, sugar, coffee beans and pork and things like crude oil, natural gas and uranium for energy all come under the hard assets (or commodities) class. All are traded on exchanges around the world.
After enjoying a stellar run after the financial crisis, hard assets have faced considerable challenges in the last few years. Nevertheless, the long term fundamentals for these assets fully justify the presence of commodity holdings in any sensibly-diversified investment portfolio.
Wainwright Marks Management provides a number of ways for clients to gain exposure to hard assets. These include exchange-traded funds and physical holdings for certain commodities.
Very few clients will want to take delivery of barrels of crude oil, 10-ton sheet rolls of steel or a lump of uranium (even if delivery were actually possible). Some commodities like gold, silver and platinum can be delivered but most clients are happy to see their holdings represented in ETFs. If you wish to take delivery of your holding, we can arrange this for you.
An ETF is a pooled-investment fund that buys and holds the underlying asset (silver bullion, oil futures contracts etc). The fund splits ownership of those underlying assets into stock in itself. These stocks can be traded like any other stock but the value of the stock rises and falls in line with the movement in the price of the underlying asset.
Our practice prides itself on its dedication to providing a second-to-none service that helps individuals and families ensure that their future financial well-being is secured by conserving the wealth they have and adding to it using shrewd, time-honored techniques.