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Three characteristics of liquid assets

Updated: 9/16/2023
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11y ago

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For assets to be liquid:

Established value - that endures various markets

  • It must have a stated value that exists in any market local or otherwise

Easily portable- meaning it is highly transferable

  • It can't be restricted from transferring to other parties
  • It can't be limited by third party obligations or attachments

Diverse- meaning presence of worth in any market place at any time.

  • It's value has presence in any local or foreign market
  • It's value must be constant regardless of time doesn't depreciate or become worthless.

One prime example is gold, silver or currency backed by gold in established secured system - coin is a prime example (precious metal weight value and minted age collection value). Gold or silver coin has either a metal value or if this is low then rarity via mint age collectors value.

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