The world of investment conjures up images of balance sheets and share prices. Investors are essentially betting that the share price will go up, therefore increasing the value of their holdings. While some may also invest in commodities like gold or energy, these are usually raw materials and of little real interest to the investor. Others would also invest in foreign exchange market even though they are not that familiar with how it works. The desire to acquire profits can sometimes lead individuals to jump into investments they don’t have any passion in pursuing in the future.
With alternative investments, however, the investor has the opportunity to invest in something that actually interests them. This can be more enjoyable but such an investment is not only about fun; it may be that the investor has specialist knowledge that will allow him to buy well and make a handsome return. Here are 10 alternative investment markets that can produce high returns.
1) Celebrity autographs
Landing the autograph of your favourite sports star, musician, actor or even politician is not just exciting, it can be profitable too. An increasing demand and limited supply is seeing returns of 20%. Remember the George Washington’s Signed Acts of Congress which was sold at $9.8 Million last 2012? Now who wouldn’t want a profit that big.
2) Sports memorabilia
It could be anything from football programs to baseball cards but the popularity of sport means that such rare items are often in demand and collectors are driving a market the has values rising. You can invest in players’ jerseys to equipment and even those old items from sports stadiums.
3) Luxury foodstuffs
Trading in tea and spices has a long and distinguished history. It might be a volatile market and some foodstuffs are perishable but others, such as tea, can improve with age and multiply in value.
4) Postage stamps
This is another market with a long pedigree. Over the decades philatelists have seen investments return 10% per annum and the market has remained steady through both war and recession.
5) Litigation funding
Major lawsuits can involve major legal fees but if you win then payouts can be huge. Not all law firms will work on a no win no fee basis, so litigation funding spreads that risk to a group of investors who will take a cut of the winnings.
6) Precious stones
Investing in diamonds and other gemstones is one of the oldest markets in existence. It’s a specialised and expensive market but investors can spread the risk by investing in a specialist fund that invests in diamonds.
7) Fine art
Being able to spot an up and coming artist can mean serious profits. Average returns can be 10 – 20%. Those wanting to get into funds that specialise in fine art will probably need to have deep pockets, however.
8) Vintage tech
Don’t throw that old PC or game consoles away! Most people did and now early examples of iconic computer are increasing in value and in 2010 an Apple I sold at auction for an incredible $200,000.
9) Fine wines
Buy a case of classic French first-growth varietals and you are looking at average yields of between 12 to 15%. You have a limited supply that dwindles over time and the market has been steady for a long time.
10) Venture Capital Trusts
The Venture Capital Trust, or VCT, was introduced by HMRC in 1995. It allows individuals to invest in a range of smaller companies by spreading their risk over a number of such firms through the trust.
***Photos thanks to Wikipedia and istara of Pixabay***