When it comes to investments, the typical mentions are stocks, bonds, real estate, etc. However, there are alternative investments that offer high returns for those who dare to commit resources to them. You just need to know which is right for you. According to available data, the alternative investment market is expected to grow between 18% and 24% by 2025. Below are some of such investments.
1. Fine art
A 2019 CNBC report indicated that fine arts investments have high returns that can outperform traditional bonds. Since 2016, fine art as an investment has produced an average of 7.5% returns. And the artbasel.com website reported that fine arts accounted for 25% of the entire alternative investment market. Investors who took the risk and committed resources to this alternative investment have raked in more than the initial capital. Renaissance paintings, contemporary arts, and the classics are all categorized under fine art investment.
There is a perception that fine arts investment is only for the ultra-rich. That’s because the asking prices for most pieces are usually high. However, this applies mainly to vintage paintings and artwork. Some contemporary fine art may cost a few hundred dollars. But if you are very interested in classics, you may need to carefully search to invest in pieces within your financial capabilities. There is also something known as fractional shares of paintings. This involves investing in different art pieces as a group. This way, the profits can be shared among the members when the specific art is finally sold.
2. Cryptocurrency
Cryptocurrency was first reported in 1990 when David Chaum introduced DigiCash. Although it failed to make an impact, it laid the foundation for the digital currency market. Fast forward to 2009, Bitcoin entered the market. Later, Ethereum, Binance USD, Tether, and other digital currencies were introduced to the market.
With the development of electronic payments and the security assured, people started to invest in Bitcoin. Today, cryptocurrency is a budding alternative investment market. You can check out crypto fx trading and other similar options to decide whether to get on board.
3. Gold coins
You might be lucky to inherit gold coins from your grandparents or parents. They have an impressive market that continues to attract investors. Indeed, anything gold is considered worth the money. Over the years, people have reaped great returns by investing in gold coins. The only downside in trading gold coins is that you might have to wait a while until the value appreciates. The question is, how can you tell if there is or has been an appreciation?
First, you will need to check the investment market to determine an increase in gold value. If the figures are good, it would be the right moment to invest. If they are not, waiting would be the best option. If you have the patience to wait for years, gold coin investments can rake in a good amount of money in the future. The gold market has recorded a 600% profit margin in the past twenty years. That is a great percentage to spur you to invest in it.
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