What are the Top 5 Alternative Investments

So what are the Top 5 Alternative Investments, I have taken a broad view on this subject matter and it is by no means a definitive list nor is it set in stone, as the investing landscape can change rapidly, it is my opinion but also my experience from researching and writing about investments for the past 25 years, I welcome any feedback that you may have.

Property

It must be Britain’s favourite investment. But unless you have several hundred thousand pounds to invest, don’t bother. If you are considering investing in buy-to-let then the tax man will love you, as there are more buy-to-let taxes on the way. Now that the market is at an all time high especially in London is it worth risking large sums of money if it can get wiped out with a downturn in property prices. But despite the current uncertainty, the property market in the UK is worth £8 trillion pounds!! Yes, there are lots of property investment options available, there is plenty of property still for sale and despite Brexit the market continues to grow at a healthy 2% over the past 12 months. One should take professional advice and tread carefully and consider all options before making a commitment.

Gold

Gold is considered a safe haven, especially in times of volatility. Its where people put their money when they are considering their options, or they are just looking for a safe haven when there is uncertainty in the marketplace. Since the Brexit vote, the price of gold has sky rocketed. Major bullion dealers are reporting record demand from nervous investors seeking a safe haven. You can even take physical delivery of gold if you wish, there are lots of really good on-line operators who will help you trade Gold. But, in truth, gold has been a lousy long-term investment. Loads of small investors rushed in during the global financial crash, pushing the price up to $1,837 an ounce in 2011, and now they are sitting on losses of around 25%. Gold is a good option when deciding where to put your money next, but it is not the best place to park your funds forever!

Collectables like Wine, Stamps, Classic cars

If you believe some of the hype, these have been sensational places to put your money. Your £1,000 would stretch to a just one-third of a single bottle of Chateau Lafite Rothschild 1982 vintage. If you had bought it in 2000 and sold it in 2010 you would have made a profit of 1,137%, largely as the new filthy rich of China became obsessed with wine. But since the credit crunch, wine has fallen out of favour; buyers who snapped up 2010 Lafite Rothschilds have lost around half of their money since then. Classic cars have had a better run, although since 2015 even the price of Ferraris has stalled and unless you don’t mind spending £8,000 on a standard service or you know how to change the brake pads on a Ferrari F50 then Classic cars may not be for you. I think investing in Classic cars should be about fun and passion, buy a classic car which you love and when you go to sell it in 10 year’s time and you make a profit then that classes as a good investment.

Art

Investing in art usually comes down to personal taste. Unless that is of course you are doing it purely as an investment. If that is the case, then Check out the “top picks” section of online galleries. Or if you have tonnes of money to put into art then go along to some high end auctions and bid on an expensive piece of art by a relatively well known artist with the hope that it will hold its value over the long term. Unlike Stocks, bonds and property art does not create an income and when it comes to selling it is a very illiquid asset.

Renewable Energy

Sounds nice and green but too woolly and not likely to make much of a profit? Not at all – many renewable energy schemes are products designed by financiers to give steady long-term returns that, with a good wind, can give you 6 - 10% a year. Try platforms such as Abundance and Ethex to find schemes, with all the usual warnings that these are relatively high-risk.

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