When people talk about investing, the first things that come to mind are stocks, bonds, exchange-traded funds (ETFs), mutual funds, and other similar types of investments. What if investing were not just limited to that and that there are different, more interesting—and sometimes fun—ways of investing?
A few financial gurus consider possessions investments. Items such as jewelry, hobbies, vehicles, and even your home are assets turned investments. You can buy a diamond wedding band and call it an investment. Geeks and speculators can build a toy collection and call it an investment. Car enthusiasts can buy abandoned classics, restore them, and call them an investment. The kicker? These things do appreciate over time. So yes, they are fun and exciting ways of investing.
7 Interesting Alternative Investment Options with High-Yield Returns
One of the rules of investing is never to put your eggs in only one basket. Diversification protects your money in case specific investment markets take a quick downward turn. Putting your money in alternative investment options is an excellent way of diversifying your portfolio.
Here are excellent alternative investment opportunities you can add to your portfolio:
1. Fine Art
Fine art appreciates as time goes by. Of course, you will need some serious cash to invest in a Picasso. Unfortunately, not everyone has that amount in their savings account, much less invest in art pieces. What you can do, however, is to look for companies that acquire blue-chip art to sell at more affordable prices—say $20 a share—to regular Joes. You can’t go wrong with fine art.
As an investment, wine also appreciates as the years pass. Unlike art, the thing about wine is that people need to consume it to enjoy the wine’s distinct flavors fully. And as time passes, the number of vintage wines dwindles as more people drink them, bottles are broken, or get lost, making their rarity score go up.
However, suppose you wish to get into wine investments. You don’t need to build a wine cellar or buy expensive thousand-dollar bottles. Some companies exist to help you acquire your wine of choice (at roughly $100 for 10 bottles) and ship and store these for you in their storage facilities. This way, you get a piece of the action without spending too much on your investment.
While real estate is a typical alternative investment usually considered by many folks, farmlands are a far more exciting investment subcategory. Although they are a sound investment historically, not all who venture into it are successful. Plus, it’s not an easy investment to get into, considering the amount of money needed to acquire a property. But if you do it right, they do generate great returns of investment.
4. Burial Plots
Another real estate investment subcategory worth looking into is burial plots. If you can get past the morbidity, they make for decent investments over time. It’s simply real estate; only this time, you’re buying and selling small patches of land. If you decide to do this, it might be best not to classify it as pre-owned or used in your listing. That’s just creepy.
5. Precious Metals
Back to some of the more common investment alternatives, one can never go wrong with precious metals. These can be purchased through mutual funds, ETFs, or buying bullions. You can also get into it as a hedge investment by investing in mining companies or through ETFs. One advantage of investing in precious metals is that many experts see them as a store of value. It’s like having an extra insurance policy. And insurance is always good.
With almost everything going digital nowadays, all forms of digital currency will inevitably be in greater demand soon. Regardless of what you thought about Bitcoin when it was starting, the reality is it remains one of the top moneymakers for crypto investors today, even in its volatile state. Even still, traders want a piece of that volatility.
Lastly, one of the most fun investments to take part in is collectibles, such as comic books, toys, trading cards, stamps, memorabilia, and other similar trivial yet valuable stuff. Just like fine art and wine, collectibles appreciate over time.
The most expensive comic book sold in recent history is a copy of Action Comics #1, where Superman debuted. It sold for a whopping $3.25 million. While not all collectibles will ever come near those figures, you can make a decent amount of money, especially with vintage collectibles that remain in mint condition. Start digging through your parents’ basement and attic for your childhood stash. You may be sitting on a gold mine and not know it.
As you can see, investing can be pretty exciting and fun with the abovementioned alternative options. There are other great investment ideas out there that could yield significant returns. The important thing is you only invest what you can afford and don’t go overboard with excitement. The worst thing you can do as an investor is to invest when you’re emotional and excited. Happy hunting!