4 years ago investing114Jake

Alternative Investments: Where Else can You Put Your Money?

Although most investment is in property, alternative investment choices enjoy considerable popularity. These appeal to investors for a variety of reasons, ranging from a personal interest in the area in question to the chance of very high returns. For example, someone with a passion for gold might wish to invest in jewellery, while those with artistic leanings might choose to put their money into a piece of fine art. 

Jewellery 

A popular alternative investment is in antique jewellery, partly because of the variety and individuality to be found here. A few thousand pounds should be sufficient to purchase a gold necklace from the early 19th century, incorporating a gemstone such as a ruby or topaz. Those with smaller budgets might consider buying something a little off-beat, such as small items of art deco jewellery. There is plenty of information out there to guide investors in their choice but specialist, personal advice can be, quite literally, worth its weight in gold.

Wine 

Despite the worldwide economic slowdown, the value of wine has steadily risen over the last few years, making it an attractive alternative investment. However, it is not a good option for those looking for a fast return; wine is an investment that will only really pay dividends over a period of some years. The most suitable place to keep investment wines is in a bonded warehouse, as this will exempt them from excise duty and VAT. The best bet is to select wines from a reliably good source, with Bordeaux reds tending to perform well. 

Art 

While the super-rich can spend tens of millions on a single piece of art, there are plenty of attractive options at somewhat less rarefied levels of the market. A solid option is to invest in a piece by an artist who has enjoyed a steady reputation over a period of years, such as David Hockney. However, this is not likely to produce eye-opening returns, so those who are willing to take a bit more of a risk might want to play the game of identifying new artists who might become much more famous in a few years’ time. 

Classic cars 

Classic cars, especially vintage or sports models, can be one of the most enjoyable alternative investments. It is very important to budget for secure storage and any necessary repairs or restoration; this becomes even more vital if the car is to be driven or displayed at public events on a regular basis, in which case insurance costs can be very high. Getting started is often a case of knowing what to look for on the private market, so it is well worth taking the time to read one of the many magazines devoted to the subject.

Jake