Other than the traditional bonds, cash and stocks, individuals can save and get returns from alternative investments. These kinds of investments require unique knowledge, experience, and patience. Individuals need proper understandings of the investment as they are complex. Most investors prefer to engage professionals that are well versed in such investments. What are the available alternative investments?
Over the last few years, the digital currency has gained popularity. Bitcoin and Ethereum are some popular examples that have risen in value in the last months. They are extremely liquid and are a potential payments method.
It entails purchasing equity in promising private companies. It may include investing in startups and venture capitalist. It is a great way of investing as companies are constantly seeking capital. However, an investor needs to do proper research on the potential growth of the company.
Majority of people dream of owning they own home for their own use or for rental purposes. Many investors are cashing in on students’ accommodation. The real estate property investments are directly-owned property, real estate limited partnerships, REITs (real estate investment trusts) and real estate development corporations. REIT is a company that finances, operates or owns income-producing real estate. An investor in such a company has a liquid stake in the real estate.
They are materials that are consumed directly or used to create other products. They include precious metals like silver and gold, energy sources such as gas and oil, agricultural products and resources such as timber. An individual can invest in commodities through mutual funds related to the commodities or ETFs (exchange-traded funds).
Wine. It is an excellent way of investing as its value increases with age. However, one needs proper storage and quality wine in order to reap from it.
Classic cars. Over the years, some vintage cars have been highly sought after, increasing their value. Things that may affect the value of such a car are scarcity, appearance, current trends and mechanical aspects.
Collectibles. Though the market is volatile, things like coins with numismatic value and rare stamps are great alternative investments.
Arts and pieces of jewelry. Paintings, colored gems, pearls, and photographs have a rising value.
Even though every kind of investment has its advantages and disadvantages, an investor needs to be careful by conducting due diligence as most alternative investments are not adequately regulated.