Top 10 Alternative Investments with High Returns

by Heidi on April 10, 2014

10 Alternative Investments with High Returns

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.

10 Alternative Investments with High Returns 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***

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{ 4 comments… read them below or add one }

Nik @ Midlife Finance April 11, 2014 at 1:33 pm

I’m so happy that you came up with the 10 alternative investments that people can try. You need to have passion and interest in pursuing any of the 10 if you want to succeed.

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Mike May 8, 2014 at 7:34 pm

Thanks for leaving a comment Nik appreciate it! I also believe in that old tired line about having fun in what you do will always make you more successful at it!

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Evan @ The Smaller Dollar May 9, 2014 at 3:30 am

I think some of these are more hobbies than investments. I remember when I used to think my baseball cards and comic books were an investment! I would want something a little more stable to actually invest in that many of your examples. They sound like fun though!

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Mike May 16, 2014 at 1:51 pm

Hi Evan you have a point. To me this article was all about side ventures and opening peoples minds. Most of us (I used to anyway) feel to earn more we need to work more. So this was really a “Hey take a look around at other opportunities” kind of post. Thanks for commenting!

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