Whenever the subject of alternative investment is brought up, we’re met with skepticism and cautious eyes. An understandable response, given the fact that investing in real estate or stock has been the norm for quite some time now; and as we all know that’s changing every day, even quicker than we realize.
Alternative investments come in many forms, whether we’re talking about luxury cars, investing in gold or collecting stamps or similar vintage items. What sets them apart is that it’s a new and unexplored territory which promises huge cash turn-around, albeit with some sort of risk involved. For some, that’s enough; trading in such goods is a thrilling undertaking, but it’s important to note that it’s also dangerous since it requires patience, soft skills while trading and bartering, but also maintaining and refurbishing of said goods before the potential buyer gets a closer look. Let’s take a look at some specific takes on alternative investment and how it changes the investment landscape into a modern and fresh game.
Trading vintage cars requires a clear head and focus; it’s easy to fall in love with your new ride, but if you’re planning on making a profit, you have to keep it together and play cool. Vehicles older than 30 years and made by brands such as Mercedes, Jaguar or Ferrari are very expensive and hard to come by, even more so because they are sold privately, which means two things; there’s no capital tax, but it’s hard to get into the business of buying and selling when there’s no clear market. It requires research and talking to a lot of people about where potential sellers could be, then engaging into negotiations, etc. It’s important to note that coming by one of these vehicles in mint, below average price is the entry point in trading vintage cars, but also that these “low” prices will rarely drop to five-figure numbers.
Much like cars, old and rare stamps are extremely valuable if procured in mint condition, the difference being that stamp collecting requires a much smaller investment to get started. The benefit of stamp collecting is being able to trade with other collectors all over the world for that one special stamp you (or they) might need in return for cash or other stamps. The more preserved the stamp is, the more value it has. If it’s a series that was misprinted, even better; these stamps provide the biggest revenue. The trouble is that it takes time to build up a respectable collection and there’s no sure way it will go up in price. It’s also easy to overlook the value of some stamps since a layman or up-and-coming collectors have a hard time defining them.
While it may seem silly at first, handbags offer a lucrative way to make profit for people with an eye for these sorts of things. It’s not for everyone, for the simple fact that it requires knowledge of design history, current trends and the actual material and design of the bag itself. Many models have long been out of production and off the store shelves, and it’s easy to understand that there are ladies (and men) out there looking for that special Channel model that’s hiding in some collectors hands. While exciting and fulfilling, handbag trading requires a lot of disposable funds because of the fact that research and acquisition of your first pieces is an expensive and tiring process; much like any alternative investment.
Fine wine has proven to be quite a valuable type of alternative investment. However not all wines are worthy of your money; a very small percentage is truly valuable, and we’re mainly talking about first-growths – Burgundies, Bordeaux, Tuscany wines. Before putting any money into this form of alternative investment, you should assess the market and get a genuine feel of it. This will help you make the best decision without taking high risks.
These are just a couple of examples of modern alternative investment methods. Some would say these are young men’s games, but others will find a new meaning of life once they find their special kind of trade. Make no mistake, all of them are doable, but the question is, which one is right for you?
By Charles Goodwin and WineInvestment.com!