Alternative Investments - What Are They?
Alternative investments are generally regarded investments in fine wine, art, jewelry, diamonds and other precious stones, antiques, valuable old books, stamps, coins, and sometimes even gold and other precious metals. Basically any investment that’s not in stocks, bonds, and the like.
There are many alternative investments UK residents can choose from. Some are riskier than others, but in general they all have potential to bring a nice return on investment. To be successful though, it’s crucial that you compare investments beforehand.
Here’s a summary of the most important alternative investments UK residents have access to.
· Art– Investing in art, whether it be classic or contemporary, is one of the most refined investment options available. The rule is to buy things you like, because views on the same piece of art can vary widely – what one expert finds astounding, another can find lacking. You have to love art to invest in art.
· Antiques – Investing in antiques requires extensive knowledge of old things, as well as determination, and above all, passion for the items you collect. Provenance of antiques is crucial and drives the price.
· Coins– Investing in coins, especially older, rarer ones can be lucrative. Rare coins, however, do not always make for the best investment, since their value can fluctuate depending on the price of gold bullion.
· Rare Books – Investing in rare books is not a mainstream alternative investment, but it can be delightful for book lovers. There are many specialized books that have been printed in a limited number of copies in the past centuries, and these make for great investments. As do certain books with illustrations or illuminations.
· Gold – Investing in gold is not considered by all an alternative investment – some see it as a primary investment. The value of gold is bound to remain high because of the dwindling gold deposits.
· Silver – Investing in silver can be highly lucrative in the short term, because the price of silver is prone to sudden increases. Although gold investments are more popular, silver investments are also worth considering. If you cannot decide between gold and silver, make sure you compare investments.
· Jewelry– Investing in antique jewelry can be profitable. New jewelry, on the other hand, is usually a bad investment, especially when it’s bought at a wholesale.
· Fine Wine – Investing successfully in fine wine depends on buying the best bottles just as they are available, and this is not easy. The great thing about fine wine investments is that you can always drink the wine yourself. If you won’t regret drinking your investment, then fine wine investment may be for you.The options for alternative investments UK residents have abound, which means many opportunities. It’s crucial though that you choose an alternative investment in goods that make you happy to use or simply to own, and that you compare investments before committing yourself to this or that scheme.
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