A hard asset is a tangible or physical item or resource that an individual or company owns and holds value through most economic cycles. They are typically held for the long term and provide relatively stable value compared to securities like stocks and bonds. Hard assets are considered particularly valuable because they can be used to produce or purchase other goods or services, and they can also be sold to generate cash in the event the company has financial difficulties. Examples of hard assets include real estate, machinery, equipment, vehicles, commodities, precious metals, and collectibles such as stamps and paintings. Hard assets are often used as a hedge against inflation, as their value changes inversely to changes in the value of soft assets and non-physical assets. Hard assets can be long-term assets, such as machinery, or short-term assets, such as raw materials or inventory. In contrast, intangible assets, such as goodwill, trademarks, and patents, are non-physical in nature but hold value.