Are you looking to make a profit without too much risk involved? Investments which don’t include cash, stocks or shares could be the answer.
There are many alternative investments you can make to generate profit and by choosing these options you could supplement any previous deals in stocks and shares to create a more diverse financial portfolio.
Below you’ll discover some of the most popular alternative investments to consider.
Dealing in fine art
Fine art is one of the major alternative investments that people branch out into. There’s a lot of money to be made buying and selling fine art but there’s also a lot of money that needs to be spent. For that reason this tends to be an investment opportunity that would best suit somebody who already has a lot of money to invest as you’ll need to consider whether you need to pay for storage, insurance and maintenance.
If you do plan on going into this type of investment you’ll need a good understanding of fine art. If this isn’t one of your strong points you’ll need to do a lot of research. Auction houses tend to be the best places to sell off your newly acquired art collection but it’s worth noting they take a cut of the items you sell.
Finally, you need to be aware of fake art. There’s a lot of it around and proper dealers will be able to spot it. If you invest in a fake piece you’ll find it difficult to sell and could potentially lose a lot of money.
Making a profit from your hobby
The best way to make money is by selling something you’re passionate about and there are many hobbies that could prove profitable.
Student Nick D’Aloisio has become one of the most recent entrepreneurs to turn his hobby into a huge profit. The teen sold a UK version of the news app he created for a whopping £18 million. To him it started off as a hobby but it turned into a lucrative investment.
You don’t have to be a pro with technology though and could earn money drawing, writing, taking pictures and even creating scrapbooks. The great thing about using your hobby as an alternative investment is the fact it’s enjoyable.
If you enjoy something you’re more likely to stick with it. You’ll also know a lot about it which helps to create the best products and services that people will actually be interested in buying.
Stamp collecting was once a popular hobby for many people. It still is for some, but there’s an increasing amount of people using stamp collecting as an alternative investment opportunity.
It may surprise you that there’s actually a lot of money to be made selling stamp collections. In 2011, Sir Humphrey Cripps put one of the most famous stamp collections on sale. He started collecting the stamps in 1950 and the sale was expected to provide him with a whopping £20 million. While you probably won’t see an investment return quite as high as that, there is still a lot of money to be made if you collect the right stamps.
These are just some of the alternative investment opportunities available. Before deciding which one is right for you, you need to consider your initial budget and how much you’re hoping to get back.
Nigel Walters is a Scottish property investor. When he’s not managing a portfolio of rental properties, he is blogging about other investment opportunities. He has written for many different online magazines and blogs such as vita student property.