The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Investments Potted Much Like Stocks and Shares
Ever since we stepped into the 21st century and modern age of finance and trade, we’ve dealt with a lot of changes. Whether it’s the stock trade or every-day financial management, technological advancements are numerous and it’s easier than ever before to invest and make a good profit. One of these examples is investing in alternative values rather than real estate or stock. As shocking as it may be, alternative investments provide a dynamic, refreshing take on the investment game. So what are some of the values we can invest in to make a profit?
When it comes to wine, it’s important to note several factors; first of all, are you producing your own crop, investing in a business wanting to plant and produce or investing into a buy/sell game in order to trade without the physical work. Wine has numerous characteristics that define its value such as age, strength, ingredients, which wine yard made it, what ingredients were used, how it was produced, etc. Be aware that in order to trade wine, you have to rent a warehouse unit in order to preserve it in its preferred form, at a steady temperature, because it may be years until your wine in particular rises in price and you’re ready to sell it to the highest bidder. The money turn-around can be very lucrative, the business itself is very elegant, but the investment may fall flat if the wine is damaged (cracked bottles, depressurization of the bottle, etc.) during the time between acquisition and sellout.
Philately, the art and hobby of collecting stamps has always been around, offering would-be collectors a perfect opportunity to collect stamps for their own satisfaction. Owning such a collection comes with the benefit of being able to sell or trade certain stamps that other collectors would be interested in owning which can provide very generous incomes if the right buyer comes across your stamps. Fact to note is that valuable stamps are not attached, and they are kept in mint condition, meaning that sticking them in a photo album form will deem their value pretty low. Also, top-tier stamps are actually the ones that contain printing errors; since they are especially impossible to come by differently. Philately is a patient man’s game; it takes years of careful study and research so it’s something to consider as a hobby, not an actual full-time investment, at least at first.
Vintage cars of the ‘50s and ‘60s are in huge demand, and coming across one that is below market value is a rare opportunity to invest into refurbishing and reselling. Brands like Ferrari, Mercedes, Jaguar, Chevrolet and others that dominated the early second half of 20th century are much sought after, with prices ranging in six-digits and up. Of course, keeping such a vehicle in mint condition requires an airy and dry garage space. It’s smarter to invest into a car in good condition rather than spending less on a car that requires a lot of repair; it’s more cost effective in the long run. You should also consider the maintenance expenses before investing, since parts are hard to come by and usually expensive; but such is the life of classic car owners. Reselling such cars comes easier than you might think. The thrill of driving one of them is one-of-a-kind, and the right buyer will pay above the asking price just to get their hands on a specific model they’ve been after. Just try making sure you don’t fall in love with it yourself.
Making money with alternative investments can be a long and tiring process. However, many investors do it for pleasure. They just don’t want the cash, but if they can make some along the way then that’s perfect too. Fine wine, art, and gold are alternative solutions with high chances of a return on an initial investment; stamps on the other hand, have a lower profitability margin. Nonetheless, this industry is barely shaping up and increasingly more investors are ditching away stocks and bonds for the great potential of an alternative type of investment; regardless of the associated risks. Any sort of investment comes with a degree of risk, so it’s all about making the right decisions.
About the Author
By William Taylor and WineInvestment.com!