The appeal of tangible assets that can rise in value and enhance a home or office is immense. When global demand and tax advantages in key sectors are added in, it is surprising that such a successful formula attracts so little publicity.

From antiquities, carpets and jewellery to Old Master paintings, silver and wine, there are speciality areas that appeal to the senses as much as the pocket. But it is vital to understand a field – or find a specialist in that era.

Good dealers and auctioneers want repeat custom and will not only advise but look out for fine stock once they realise it is a serious proposition. Unlike stocks and shares, unless the certificate becomes collectable, if the market moves the wrong way, at least you have the pleasure of owning the items.

As with any potential investment, look for a sector where there is a defined market, a known pattern of trading and sufficient stock. Unlike more mainstream paperless savings, ensure such tangible assets are properly insured – not at their purchase price but at full replacement rates.

Fine wine

The idea of creating a 'cellar' of vintage bottles appeals to many, particularly when they hear the returns: £10,000 carefully invested in 1974 would now be worth £1.94m, according to Premier Cru Fine Wine – a gross annual return of 18.53% (net 18.06% pa).

However, there is no need to physically have a cellar. In fact, it is better if the wine is stored in Revenue & Customs' approved bonded warehouses as a boost to cashflow and later sale:

There are several advantages to this, including the avoidance of VAT (until it is moved perhaps years later for UK consumption). This also avoids excise duty (£15.50 per dozen bottles on still wine, £19.85 on Champagne and £20.66 on Port). This means that the wine is more appealing to overseas and diplomatic buyers as they are not paying these taxes

There are three areas that appear regularly at auction: Bordeaux, Burgundy and Port. In addition, de-luxe Champagnes (such as Dom Perignon, Krug vintage and Roederer Cristal) and certain icon wines have a distinct but small following. These include: stunning Australian (Penfolds Grange), top Californian (Opus One, Screaming Eagle), leading Italian (Sassicaia, Solaia, Gaja's Barolo Sperss), fine Rhone (Chave, Guigal and Paul Jaboulet Aine) and mega-Spanish (Vega Sicilia Unico).

Buy only leading estates and top vintages. Some like to purchase "en primeur". This means the wine is still in barrel and probably will not be bottled for another couple of years. While it may mean the lowest unit price, the risks are that such an early assessment may be premature and physically the wine cannot be marked as belonging to a specific person.

There is an imbalance between fine investment-grade wine (around 500,000 dozen bottles annually) and global demand, notably from China, Russia and USA. As a vintage matures and is consumed, the available stock diminishes, further accelerating prices. Along with antique clocks, wine profits are not subject to Capital Gains Tax in the UK.

In Bordeaux, the key recent years are 1996, 1998, 2000 and 2005. In the Medoc district, opt for the leading properties classified in 1855 and only changed once in 1973 to raise Chateau Mouton-Rothschild from second to first class status. Do not buy the second wines, even from such estates, which are produced from younger vines.

To gauge appreciation, over 10 years, Lafite 1990 has jumped from £900 to £1,870, Latour 1989 from £770 to £1540 and Haut-Brion 1989 from £1870 to £4400, all per dozen bottles.

In white Bordeaux, one estate stands out – d'Yquem – where only one glass is made per vine! The 1983 has risen from £1650 to £2415 in the last decade.

In Burgundy, only Domaine de la Romanee-Conti appears regularly at auction. This is one of the finest exponents of the Pinot Noir grape. Two examples from this producer show the global demand: La Tache 1986 has risen from £1150 to £2640 and Romanee-Conti 1982 from £4070 to £15,950 in the last 10 years.

Stylish Burgundy years to seek are 1999, 2002 and 2003.

In Port, only buy vintage. Other styles – such as late bottled vintage and colheita – while enjoyable, do not command auction appeal. Top names include Fonseca (1963 up from £900 to £1980 over the last decade), Taylor (1977 up from £400 to £600) and Warre (1970 up from £275 to £440). Currently 1994 is magnificent and looks undervalued. The best most recent vintages are 1997, 2000 and 2003.

Don't expect to buy directly from producers. The usual route is from reputable wine merchants, brokers or at auction. Remember to cost in storage charges of about £7-8 per dozen bottles which includes insurance.

Williams de Broe recently introduced fine wine investment portfolios as an alternative asset class for private clients with a minimum £10,000 and then in £5000 increments.

20th Century British Art

From Epstein and Frink to Hepworth and Lowry, works by 20th century British artists are very much in demand. At Sotheby's sale in March, 64% sold above expected levels with "many making up to ten times their pre-sale estimates," according to specialist James Rawlin.

For some time post-war art has enjoyed a strong market but this has now been joined by figurative works from the early 20th century.

The matchstick men created by Laurence Stephen Lowry (1887-1976) continue their appeal. 'A Footbridge' was purchased from Lowry's dealer in 1945 and had never been seen in public again until sold to a private US buyer at Christie's in November for £422,400. It was painted towards the end of the Second World War and portrayed the artist's home city of Manchester, an imposing industrial skyline dominating the picture.

A Derbyshire school which acquired a Lowry mill scene in 1960 for only 17s 6d (87.5p) hopes to raise £150,000 plus when it comes under Christie's hammer this summer.

Alan Davie (born 1920) is tipped by many dealers. One of the first British artists to achieve international acclaim after 1945, Davie travelled and exhibited widely in Europe and the US, attracting the attention of Peggy Guggenheim. In the late 1950s, he settled in St Ives. Those who like his fascination with ancient, ethnic and religious cultures ensure prices often exceeding £20,000.

While sculpture can enhance a home and office, one tip is to seek drawings by great artists. Bonhams sold a pencil drawing entitled 'Horse & Rider' by Dame Elisabeth Frink (1930-1993) for £20,400 in March. In the same sale her sculpture commanded £108,640 for 'Horse in the Rain III" and £36,000 for 'Standing Buffalo'.

Sculpture by Henry Moore (1898-1986) continues to excite. Noted London dealer, Pyms Gallery bought his "Two Piece Reclining Figure No 4" in November at Christie's, paying £624,000.

Another tip is to buy leading artists where little stock remains in private hands. Frank Dobson's 'Standing Female Figure' – a sculpture in hoptonwood stone – made £388,800 at Sotheby's last October. This was some seven times the previous record, reflecting the fact that it was one of a very small number not in a public collection.

Recognition for the art of Sir Winston Churchill (1874-1965) continues to grow. His oil 'Canal Scene near Bruges' realised £112,800 at Sotheby's in October (estimate only £20,000-30,000) while 'Lullenden Manor' from 1917 made £344,000 at Christie's in November, which was a world record.

Antique furniture

Well-made 18th and 19th century British and Irish furniture has a special quality. Many dealers regard current prices as being the lowest point in 40 years of trading. However, it is worth paying a premium for quality, originality and provenance.

Leading dealers who are members of the British Antique Dealers' Association will point out any replacement work, such as handles or feet.

Well-documented stock can greatly increase its value. A pair of George II carved giltwood torcheres, circa 1740, was such an example at Sotheby's in November, selling for £114,000 against an estimate of £40,000-60,000.

Similarly, a Victorian burr-walnut kidney-shaped pedestal desk, which might usually make £20,000, realised £54,000 at Bonhams in March as it had belonged to the cricket commentator, the late Brian Johnson.

Exotic woods can add to the price. "Satinwood was always expensive and therefore used by the best craftsmen," says Stewart Whittington of Knightsbridge dealers Norman Adams.

A George III satinwood, purplewood crossbanded and sycamore marquetry serpentine commode sold for £48,000 at Bonhams in March. It could be worth double within five years.

Antique chairs are fashionable. A George I carved open armchair in walnut was typically selling for £8,000-10,000 two years ago and might now make £17,000 plus. A pair of Anglo-Indian ivory-inlaid padouk open armchairs, mid 18th century, which sold for £85,000 in mid 1998 have since realised £185,000 (Christie's).

Irish period furniture is in demand, notably by US buyers. A world record for an Irish mirror was achieved at Christie's recently. £192,800 was paid for a George II mahogany pier glass, attributed to John Houghton, circa 1740-50.

An Irish George IV mahogany five pedestal dining table sold for £81,600 in the autumn (Bonhams) which is probably double its English equivalent. Peat buckets from the late 18th century doubled in value from £14,000 for a pair to £28,000 in good condition in the last five years.

Finally, lights can not only enhance a room but be a good investment. A pair of William III carved giltwood six branch chandeliers, circa 1700, sold in November for £254,000 (Sotheby's) while a 1790s George III cut-glass 12 light chandelier made £66,000 (Christie's). wealth

By Conal Gregory