If your debts are paid and your retirement accounts are in order, you might start looking into other investment opportunities. But despite what you may have heard, that doesn’t mean you have to start putting your money into stocks, funds, and real estate. You can choose to invest your funds in countless ways, and the more typical methods won’t always necessarily be the best option for you.
Whatever you choose to invest in, it rarely pays to gamble with your money. The best investors in any field are often the most knowledgeable. So, if something on this list catches your eyes, be sure to do your homework first. With that said, here are ten unusual investment ideas you may have not previously considered.
1. Music Royalties
Do you think you’ve got an ear for the next big hit or just love music? Well, you can put your money on it. Sites such as Royalty Exchange and SongVest now allow you to buy fractional shares of royalties from songs and artists, with the potential to earn on your investment each year.
2. Art
High-end art tends to do well during economic downturns and holds its value. As a result, it’s often used by investors as a hedge against inflation. But, of course, outright buying the odd masterpiece might be out of your budget. Thankfully, there are other options, such as purchasing fractional shares of art on sites such as Masterworks or buying the works of emerging talents.
Another option is to buy the works of emerging artists. As with any investment, though, you need to know what you’re doing. Otherwise, you might just end up with an attic full of forgotten works of failed art students. You’ll also need to protect such artworks from being damaged.
3. Comics and Rare Books
Once upon a time, children and teens used to read comics and throw them in the trash when they were. Today, such behaviour would rightfully be considered blasphemy. Why? Because the right comics are worth a lot of money. In fact, one pristine copy of Superman no.1 is enough to make you a millionaire.
The same can be said of other books as well. First or signed editions of popular titles can go for quite a bit, and they don’t necessarily need to be particularly old either. For example, a rare first-run copy of Harry Potter and the Philosopher’s Stone went on auction for £30,000 not so long ago.
4. Gold Coins
Gold is not necessarily a great option for those looking to see significant returns on their investments. It is, however, an option for those who are looking for a haven of sorts for their wealth. Gold has historically held its value as a scarce asset throughout upturns and downturns alike. So while gold might not make you richer, it’s generally considered a safe bet. You don’t have to stick to coins either, you can also buy silver bars which will also give you a great return on investment.
5. Stamps
Fools are those who mock a man or woman with an extensive stamp collection. Why? Because stamps can actually be an excellent investment. Valuable stamps can often yield returns of 5% to 20% if you hang on to them for long enough, and the rarest are worth millions. Of course, not all stamps are created equal – most won’t be worth much of anything. But if you know your stamps, they can be a decent secondary investment for those looking for something more tangible.
6. Wine
Perhaps the only true investment that can be ingested, wine often holds up surprisingly well compared to more traditional investments.
When investing in wine, the two main things to consider are quality and preservation. Unfortunately, heading down to your local grocery store, grabbing a few bottles on offer, and keeping them in your cupboards for decades isn’t going to do much for your fortunes. Instead, you need to target the top wines with the best vintages and store them in a climate-controlled environment.
7. Peer-to-Peer Lending
Peer-to-peer lending, also known as P2P lending, is a relatively new phenomenon. Online P2P services offer loans for businesses, personal use, or anything else you can imagine. If you join the pool of investors who are willing to loan money to others, then the loan can be funded by you once the borrower qualifies.
8. Private Debt
Private debt refers to investments that are not financed by banks (i.e., a bank loan) or traded on an open market. The “private” part of the term is important—it refers to the investment instrument itself, rather than the borrower of the debt, as both public and private companies can borrow via private debt. Private debt is leveraged when companies need additional capital to grow their businesses. The companies that issue the capital are called private debt funds, and they typically make money in two ways: through interest payments and the repayment of the initial loan.
9. Commodities
You don’t have to become a farmer to invest in crops and livestock, you could always play the commodities market. Prices go up and down almost by the hour making it a volatile and unpredictable investment, but it can also mean big rewards in a short space of time. You will need to do a lot of homework to understand the markets flow, but with enough knowledge, people do make some serious bucks.
10. Cryptocurrency
Yes, it is not exactly a new investment idea, but it is something most people still see as fringe and alternative when most of these digital currencies are in fact quite stable. These days it is not as risky as you might think and can result in some crazy returns.
There’s no getting around the need to do your research here. But, if a lack of storage is the main issue, there are workarounds. For example, online platforms such as Vinovest will buy and store wines at your request, allowing you to track your portfolio from afar without worrying too much.
Remember, all investments carry some level of risk, and you can always end up worse off than you started. As such, it is often worth speaking with a financial advisor if you are unsure about your options.