5 Lucrative Alternative Investment Options
When it comes to investing, most people restrict themselves to talks about the stock or forex market, without even stopping to think about all the amazing things they could do with their money. Sure, the volatility of the stock and forex markets makes the act of investing a dynamic business-like experience, which is what attracts most people to this industry in the first place. On the other hand, those who dread this volatility or simply find it not to their liking might have more to choose from. With that in mind, here are five lucrative alternative investment options for you to consider.
In the past, investing in real estate was, more or less, the safest choice you could hope to make. The prices only went one way – up. However, this was just one of the reasons why real estate investments were so popular. With a relatively low-cost remodeling project, you could hope to boost the value of your property. This means that the total value of your investment depended both on the market and on your own actions, which a lot of people found to be quite reassuring.
Nonetheless, real estate investment is far from perfect. Previous bad experiences (especially the 2008 crisis) left people reluctant to invest in this industry ever again. Moreover, it’s fairly difficult to diversify your portfolio, like you would normally do with stocks. Instead of buying stocks of several companies, across different industries, you put most of your assets into a single property. Needless to say, this exposes you to a lot of risks. On the other hand, unlike most other investments that lie dormant until their value changes, with real estate, you can always look for a tenant and allow your investment to create a passive stream of income.
The main reason why investing in precious metals is a good idea is due to the fact that it gives you some sort of security, especially if you want to diversify your assets. Precious metals behave differently from stocks and currencies. The former rise in value during the moments of crisis (when most people lose faith in companies, governments and currencies) while the latter behave in the opposite way and benefit in the periods of prolonged stability. For this reason alone, it’s advisable to keep at least 10 percent of your total assets in precious metals like gold and silver.
Another reason why investing in gold is such a great idea is due to the fact that it’s impossible to track your assets. In this era of frauds and instability, this can be a great way to protect your resources. Think about it, unlike the money you hold in your account or have invested in stocks and real estate, there’s no way of knowing how much gold you have stashed in a safe, deposited in a bank vault or even buried in the backyard. Apart from this, gold coins are easy to transport. In fact, it’s much simpler to carry $200,000 in gold in your suitcase than to do so with bills.
Starting a collection
Starting a wine, post stamps or art collection is a trend that’s bound to pay off somewhere down the line. The greatest problem with investing in curios lies in the fact that this is not a predictable growth. A sculpture you purchase now for $20 can be worth millions in the future if the artist suddenly booms overnight, yet, there is no reliable way of knowing if this will happen. Wine and stamps, on the other hand, are bound to grow in value; however, this is a process that can take decades. In other words, it’s not meant for those looking to collect on their wise investment anytime soon.
While some may claim that the time to invest in cryptocurrencies is already behind us, there are those who expect a massive boost in this industry’s overall value later this year. Now, with the rising trend of investing in ICOs, you stand to earn more even with much more modest means. In other words, you might find cryptocurrencies to be a smart investment choice but the downside is that you’ll have to make a greater effort in the research of the topic, due to its technical nature.
Finally, if a friend or family member of yours has a particularly lucrative idea, you can always consider becoming an investor in their startup or SMB. Unless you allow your emotions to govern your decision-making process, there’s no reason why this shouldn’t work. After all, you know whether your friend is reliable, which is not the case with a random investor. On the other hand, collaborating with people you are close to is usually not a good idea. Still, from a technical point of view, it’s more than a valid investment option.
Each of these options has its own alterations. For instance, those with enough money on their hands can invest in a commercial instead of a residential property. In other words, there are ways to make money that you’ve never even considered, which can be as lucrative as stock trading while offering a lower risk and a more satisfying experience.
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Writer: David Webb
Disclaimer: All investing can potentially be risky. Investing or borrowing can lead into financial losses. All content on Bay Street Blog are solely for educational purposes. All other information are obtained from credible and authoritative references. Bay Street Blog is not responsible for any financial losses from the information provided. When investing or borrowing, always consult with an industry professional.