The last couple of years have been rough financially and in other ways for many people due to the global pandemic. If you’re one of them, you’ve probably spent many months trying to make ends meet and perhaps haven’t been able to get the return on investment you had been hoping for on the things you had sunk money into. An alternative investment is the only way by which you can build up your future.
5 Ideas For Alternative Investments
It’s always worth considering some other investment options. You don’t have to stay within the bounds of what most other people put their money into. There are numerous alternative investment ideas worth learning more about.
Here are five ideas for alternative investments which you can quickly adapt to in 2022.
1. Precious Metals Investment:
Many people like to diversify their portfolios by putting some money into precious metals. In particular, gold and silver are popular. Gold is used as a helpful inflation hedge, and both gold and silver are liquid assets and long-term stores of value.
During recessions and other periods where assets like property and stocks fluctuate more wildly, precious metals can help to act as a fail-safe. However, this is more for physical, tangible precious metals than investments in mining companies, derivatives, or exchange-traded funds.
If interested in the alternative investment in precious metals, do your research and consider the best product types for your budget and needs. You might, for instance, buy a variety of gold coins or search for a pure 5 oz silver bar product that will retain its value nicely.
Also, it’s generally best to keep investment in gold and silver, and other metals to a maximum of ten percent of your portfolio, so you don’t get too heavily invested in this area.
2. Buy Crowdfunding Equity
Many people plan to try and build their wealth by starting or buying a business and investing all their time, effort, and money into it.
However, if you’re not keen on this idea because you don’t lack the skills, vision, interest, time, etc., you might be more interested in equity crowdfunding. This alternative investment option is about putting your money and belief into other entrepreneurs’ companies.
Startup firms that need money sell shares and the part-ownership that comes with these shares on equity crowdfunding websites like SeedInvest, Wefunder, AngelList, and CircleUp. Equity crowdfunding can be great for those with a limited investment fund because you can get involved with just a few hundred dollars in many cases.
Keep in mind, though, that your investment is reliant on the business you back doing well and succeeding. If the venture fails, you will lose part or all of your money, and since you have no control over the business's operations, you can’t be proactive about the results you get. Just be sure to thoroughly research the organizations you’re considering investing in and the people running them before you commit.
3. Trendy Cryptocurrency Investments
One of the fastest-growing alternative investment types in recent years has been cryptocurrency. It’s a relatively new and quite volatile market but can provide an exciting investment option to help you achieve more diversification with your portfolio.
You can access the crypto markets via specific exchanges that specialize in this area, such as Gemini, Binance, and Coinbase.
You need a certain level of risk tolerance to invest in cryptocurrency since it’s still a fairly new area and doesn’t show much correlation to traditional assets.
If you’re looking for something in this area that’s a bit more established and more known, Bitcoin might suit you better. It is a cryptocurrency with the longest track record, and the best-regarded brand has proven its worth over time.
4. Buy The Government Stocks And Bonds
Government bond funds can be a good option for those who want more security with their investments. Even the most novice investors can go down this path, as can those who are relatively risk-averse.
Government securities such as treasury bills and bonds tend to have a minimal cost to the investor. While growth potential isn’t as high as with many other alternative investment opportunities, you’re less likely to lose your money.
Related Resource: 5 Major Reasons Why Stocks Continue To Be The Best Investment Ever
5. Buy The Antique Art And Craft
If you enjoy learning about creative endeavors or even hanging pieces on your walls, it’s worth considering investing in artistic designs. Fine art can be a beneficial investment option because the market fluctuations are significantly different from the results achieved on stock and bonds, with the latter having ups and downs at different periods to fine art sales.
Note, though, that these kinds of products are still prone to significant value shifts that can make investing in them riskier than you’d otherwise go for. Plus, you generally need to begin investing in art from values of $10,000 or more to buy well-regarded paintings or sculptures and the like at some of the best auction houses and art galleries around.
If your alternative investment budget is smaller, you can still invest in art, but you’ll likely need to outlay funds on works by smaller, undiscovered, and more speculative artists.
A couple of alternative investments is worth doing outside of the norm include putting your money into good bottles of wine or buying other collectibles that you can appreciate well over time, such as cars, comic books, action figures, and the like.
There are many different ways for your alternative investment, so be sure to weigh up all the potential risks and rewards on products and carefully choose where to park your money.