Gain in Value/Appreciation: Great assets realise value appreciation and most successful people invest in assets that gain value over time. A good example is real estate. Land almost always gains value but there are a few instances in which some loss of land value may be experienced. These include:
1. A dumping/sewage treatment site or mortuary being established near the land in question.
2. Emergence of volcanic eruptions, frequent Earthquakes or increased incidence of lethal lightning strikes.
3. Sea level rise that invades or threatens to invade the land.
4. Rise in social ills in the area in which the land is located e.g. robbery and drug consumption.
5. Establishment of factories, schools or infrastructure/amenities that come with increased noice or negative health impacts e.g. nuclear plants.
Other resources that tend to appreciate over time include skilled human resources that gain experience over time and market oriented companies (possibly with patents, trademarks, copyrights, business methodologies, goodwill and brand recognition) that become popular over time thereby gaining value.
Loss of Value: As an example, depreciation is the loss of value of an asset (especially equipment and machinery) over time due to wear and tear arising from usage. Other factors that may precipitate loss of asset value include: interest rate fluctuations (in contracts with variable interest rate calculations), foreign exchange fluctuations, inflation, depletion of natural resources, obsolescence of technology, expiry of rights/patents