A non-fungible asset is that movable or immovable asset that cannot be replaced by another, that is, there is no equivalent of the same kind and quality.
In other words, a non-expendable good is one that cannot be replaced by another, being unique in its kind. It is the opposite of a fungible good.
A classic example of a non-expendable good is a work of art. This can be replicated or copied. However, the original work is unrepeatable.
Characteristics of non-expendable property
Among the characteristics of non-expendable assets we can highlight:
- It can be a movable or immovable property.
- It can be consumed without losing its unrepeatable characteristic. Suppose a historical monument is visited (consumed) by many people. This does not mean that it will stop being valued as unique.
- Article 337 of the Spanish Civil Code defines it as follows: “Moveable property is fungible or non-fungible. To the first species belong those of which the proper use cannot be made according to their nature without being consumed; to the second species correspond the others”.
- It does not deplete with its use, unlike a fungible good, such as money. A 20 euro note is used, for example, to make a purchase at the supermarket, and it is already spent. That is, once used, whoever originally owned it can no longer use it again. This is not the case with non-expendable property. Imagine the case of a goldsmith’s piece of historical value exhibited in a museum. Although many people visit the place to see or consume the item, it does not run out.
- Companies that manufacture non-expendable goods often compete by offering higher quality. Consider the case of a luxury car, to which, at the customer’s request, unique accessories were added, with state-of-the-art technology.
- Compensation or repair of damage for the loss of non-expendable property is possible only with money.
Examples of non-expendable property
Some examples of non-expendable property may be:
- Objects sought after by collectors, such as postcards or old coins.
- Unique works of art.
- A garment made to measure for the buyer.
- A building or property with a unique design, such as the constructions of the famous architect Antoni Gaudí located in Barcelona.
- Archaeological remains, such as the Parthenon in Athens, which are considered a World Heritage Site.