Usually the first thing that spring to mind when considering investments is securities. However, the range of investment opportunities is much broader than that. There are certain forms of investment that yield more than the securities market.
It is worth keeping in mind that money should be invested in industries the trends and developments of which the investor understands well and follows regularly, say experts of Investment Forum 2015.
Here are five unusual forms of investments that can be chosen as an alternative for securities:
It only becomes better as years go by. If you invest money in a wine cellar, the price of good wine will only grow as years go by. It is a long-term investment – perfect for retirement. «One particular advantage of investing in wine is that it is not affected by factors like economic recession,» – comments Nordea Bank’s investments department manager in Latvia Anzelika Dobrovolska.
Works of art are one of the assets worth investing in. Because the number of people who can afford a painting by Picasso is very small, investors often pick works or art created by emerging artists. It is a risky venture, no doubt. Buy a piece of art and take good care of it, as damage takes away a chunk of its value.
One of the most successful forms of investment is retro cars. The rarer the car, the higher the price. «Prices of retro cars have increased more than prices of securities in the past several years. It is worth keeping in mind that cars that had previously had high prices will become even more expensive in the future. The more rare and complex parts a car has, the more valuable it is. Restoration and repairs also increase their worth,» – said Dobrovolska.
What is interesting is that some investors often choose to invest in games, dolls and other toys because of nostalgia. Old toys do not seem to lose their appeal. According to data from money.howstuffworks.com, a toy bear produced by German Margarete Steiff in 1905 costs USD 10,000. It’s worth remembering that what is in demand today, may not be tomorrow. Use your intuition and choose the toys you wish to buy carefully. Follow the trends as well. Study prices in antique stores. Once you find the toy you want, keep it in a box to avoid damaging it. Participate in auctions and get to know the market.
«If you want to invest and have money to afford it, rare books can prove very lucrative. For example, the Irish National Library bought books by James Joyce worth USD 11.7 million in 2002. Prices of books by modern authors can also be quite high. When buying books you find interesting, make sure their condition is as good as it can be,» – recommends Dobrovolska.