Sure, there are plenty of conventional ways to invest. Stocks, property, and government bonds are among the most popular. But there’s also room in most people’s portfolios to have a little speculation in less well-known options. Of course, it’s important to just regard these as a small part of your overall approach and to treat them accordingly. But they also give you a chance to invest in particular interests of yours. Yes, you could argue that stocks do this as well. For example, sports fans can always invest in sports stocks. But the five that we’re suggesting here get away from the stock market completely which, in a bear market, could be a pretty good idea.
You might imagine that investing in a Picasso, a Manet, or a Rembrandt would be something that’s reserved for the super-rich, and you’d be right. But that doesn’t mean that the art world is closed off to you. That’s because there are a number of companies today who buy works of art by leading artists and then offer the equivalent of shares in them to clients. If the work of art then goes on to be sold at a profit at a later date, generally at least seven years after purchase, a proportion of the money earned, along with the original investment being repaid.
You might imagine that, when an artist composes a piece of music, whether it’s a song, a symphony or even a musical play, that the royalties payable for playing or performing it will always return to them. However, you’d be wrong. All artists have the right to sell on those royalties, and so do their estates after they have died. So, fairly frequently, proportions of the royalties for a piece of music come up for auction via a number of platforms. You simply have to win the auction to be entitled to the relevant percentage of those royalties. Make the right call, and these have the potential to return thousands of dollars a year.
Up until a few years ago, cryptocurrencies were the domain of the tech-savvy and early adopters. But since the great Bitcoin boom of 2017, the headlines have been full of news of fortunes made and lost. Initially, owning cryptocurrencies and hoping that they would increase in value was the investment opportunity. But, since then, cryptocurrency trading has become increasingly popular. In this you speculate over whether a particular currency will rise or fall and, if you get it right, you make money. But, it must be said, it’s vital to learn all you possibly can about the subject before you start to dabble.
There’s long been a received piece of wisdom that gold is the commodity that will hold its value the best, no matter what the wider economy is doing. That’s why there once was the gold standard in which all money in circulation had to be backed by the same value in gold. While this is no longer true, gold continues to be a very popular investment. While buying bullion is expensive, one of the best ways to invest is through a so-called exchange-traded fund. In this, a company buys gold and allows investors to buy shares in it. Yes, there will be a commission and a management fee to pay, but it will also be a relatively stable investment.
For the bon viveurs out there, our final suggestion is to enter the world of fine wines. Over time, by making the right choices of varieties and vintage, you can see them gradually increase in value. If you choose to store them in a bonded warehouse it will also limit the amount of duty that would normally be payable. A word of warning, though; always follow the advice of a reputable and established wine dealer, as this is a field that is notorious for less-than-scrupulous operators.
In fact, all of our suggestions should be approached carefully and viewed as both long-term investments and only a small part of a portfolio. But, having given these caveats, by all means, dabble in a few of them – and you may never look back.
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