7 Alternative Investment Options for 2019 provides an idea of differing Investment options for a broader Investment platform. The world's stock markets are so volatile - especially at the moment - a growing number of investors are looking for 'safer ways to invest their hard-earned money, and some are looking at what are known as alternative investments.
The term investment alternatives covers anything that is outside the realm of traditional investing as in stocks, bonds and cash. But are they worth considering, or is it really more sensible to 'ride out the storm' in the world of standard investments?
There's actually not an easy answer to that question. One thing is for sure; alternative investments should not take the place of those more traditional assets. Investors shouldn't sell their stocks, cash out their savings accounts and put all their money in these less traditional options.
Instead, they can be used to diversify a portfolio, and add new facets of income and wealth creation while still holding on to some of the tried and true assets. But just what are these alternative investments? Here's a look at seven that have been making waves in 2019.
7 Alternative Investment Options for 2019
Art
Fine art can make a good alternative investment as, historically, the price changes in the art market does not reflect the ups and downs of the traditional stock market. In the latter half of the 20th century the value of art (based on the Mei Moses Fine Art Index), steadily increased at an average of 10.5 per cent annually
To invest in truly high-end fine art, investors will probably need upwards of 150,000 ZAR. But investors can enter the market with much smaller amounts (closer to $5,000 ZAR if they are willing to take a gamble on upcoming artists or to invest in a less expensive media like photography.
7 alternative Investment Options for 2019
Wines
Fine wines aren't just for drinking on special occasions, they can also make good alternative investments.
Prices of certain vintages, and of fine wines in general, fluctuate from year to year. But prices of wines from the most sought-after vineyards and vintages tend to increase eventually as the supply becomes scarce.
Although wine connoisseurs are notoriously picky safer bets in this market include offerings from the Bordeaux region and other parts of France, Italy's Super Tuscans, Spanish reds and California's cult cabernets, a more recent entrant into the fine wines market that is making significant strides.
<7 Alternative Investment Options for 2019
Coins
There are two types of coins that can be purchased for investment purposes; those purchased for bullion and those purchased for their numismatic values.
Bullion coins
Coins like the American Gold Eagle, the South African Krugerrand and the Australian Nugget don't derive their value for rarity but instead from the value of the precious metals, they are crafted from. Although the market fluctuates a great deal sometimes the per-ounce price of gold and silver can make bullion a reasonably safe investment.
7 Alternative Investment Options for 2019
Numismatic value coins
These coins are very different from bullion. These are prized by collectors for their rarity. Lots of factors influence how valuable a coin might be, including its condition, what mint mark it carries and its year of issue. To succeed in this form of alternative investment you will have to become familiar with not only what collectors are looking for but what condition a coin should be in order to be considered valuable.
7 Alternative Investment Options for 2019
Private Equity Investing
Private equity investing means investing in a company that is not publicly traded. Investors provide capital to a company and receive returns on that investment once the company reaches a certain stage, often an IPO or a merger. A number of large tech firms have been funded in this way and alternative energy is another industry that is currently 'hot' in private equity circles. If you want to invest in a company without having a huge amount of capital, joining an investment group is a possibility.
7 Alternative Investment Options for 2019
Commodities
Commodities include resources like crops and livestock, fossil fuels such as oil and coal, and precious metals like copper and gold. The commodities market is one of the most volatile, since unpredictable natural disasters and world events have a direct impact on prices.
7 Alternative Investment Options for 2019
Real Estate
Traditionally real estate has always been a popular alternative investment. The recent increase in the number of options for landlords - especially the rise of Airbnb - has seen a number of people enter the real estate investment business for the first time.
Real estate investment isn't easy. You will need a good knowledge of the local markets and good negotiating skills. Or at least a real estate agent who has all of those skills. If you plan on becoming a landlord, or even an Airbnb hosts there are plenty of complications that come along with that too that you will need to be prepared for.
We hope this article has provided some food for thought. If you want to find out more about what other ways you could wisely invest your money for better returns speak to one of our professional Investment advisors to find out more.
