Diversify Your Portfolio with Alternative Investments

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Alternative investments have become increasingly popular as people look for new ways to diversify their portfolios and generate extra income. While stocks and bonds are the traditional go-to investment choices, alternative investments offer unique and often surprisingly profitable opportunities that may be unexpected. From rare collectibles such as vintage cars or art pieces to investing in cryptocurrency, there’s an ever increasing range of alternative investments available today.

In this blog post we will explore some of the more unusual – yet still potentially rewarding – alternative investments available on the market today. We will explain the potential risks and rewards, as well as key tips to maximize returns.

19 Alternative Investments To Consider

Investing in rare collectibles can be a great way to diversify your investments outside of traditional stocks and bonds. This includes items such as vintage cars, art pieces, jewelry, stamps or wine.

19 Alternative Investments To Consider

While they are not liquid assets like stocks or bonds (meaning they cannot be easily sold for cash), these items can often appreciate in value over time and provide a hedge against inflationary risk. However, researching the market thoroughly before making any purchases is essential to ensure you purchase something with an authentic history that has been correctly valued.

1. Fine Art

Fine art is a popular alternative investment option that can provide high returns. Artworks by renowned artists like Picasso, Van Gogh, and Monet have historically appreciated in value over time. Investing in fine art requires a thorough understanding of the art market, as well as an eye for quality and rarity.

2. Designer Clothes

Designer clothes, especially limited edition or rare pieces, can be a valuable investment. Brands like Alexander McQueen, Gucci, and Prada and Louis Vuitton are popular choices for investors. The value of these items can increase due to their exclusivity and the craftsmanship involved in their creation.

3. Handbags

ALANYA / TURKEY - SEPTEMBER 30, 2018: Louis Vuitton handbags stand in a shop in Alanya

Handbags by luxury brands like Hermes, Chanel, and Louis Vuitton can provide significant returns on investment. Limited edition or rare pieces can fetch higher prices at auctions or through private sales. The condition and authenticity of the item are key factors in determining its value.

4. Jewelry

Jewelry, especially pieces made with precious stones and metals, can be a profitable investment. Diamonds, rubies, and emeralds are highly sought after, and the value of these items can appreciate over time. The quality and rarity of the stones and metals used in the jewelry are critical factors in determining its value. If you do own valuable jewelry, you may want to consider buying jewelry insurance to protect it in case of loss or theft. 

5. Rare Coins

Rare coins, especially those with historical significance, are popular among collectors and investors. The value of these coins can increase due to their rarity, age, and condition. Investing in rare coins requires knowledge of numismatics, or the study of coins and currency.

6. Watches

Luxury watches, especially those by brands like Rolex, Patek Philippe, and Audemars Piguet, can provide excellent returns on investment. Limited edition or vintage pieces can fetch high prices at auctions. The watch’s condition, rarity, and authenticity are crucial factors in determining its value.

7. Wine

Wine is another alternative investment option that can provide high returns. Rare and vintage wines from renowned vineyards can appreciate in value over time. Investing in wine requires knowledge of the wine market and the ability to store and maintain the bottles properly.

8. Classic Cars

Classic cars, especially those with historical significance or models made in limited numbers, can be valuable investments. The value of these cars can increase over time due to their rarity and the demand among collectors. Investing in classic cars requires knowledge of the automobile market and the ability to properly store and maintain the vehicle.

9. Rare Books

Rare books, especially those with historical significance or signed by famous authors, can provide significant returns on investment. The value of these books can appreciate over time due to their rarity and cultural significance. Investing in rare books requires knowledge of the publishing industry and the ability to authenticate the book’s authorship.

10. Antique Furniture

Antique furniture, especially pieces made by renowned designers like Charles and Ray Eames, can be valuable investments. The value of these items can increase over time due to their rarity and craftsmanship. Investing in antique furniture requires knowledge of the design industry and the ability to authenticate the furniture’s provenance.

11. Mint-Condition Toys

vintage toys

Rare and vintage toys, especially those in mint condition, can provide excellent returns on investment. Popular choices for investors include items from Star Wars and other classic franchises such as Barbie and Hot Wheels. The value of these items can appreciate over time due to their rarity and demand among collectors. Investing in toys requires knowledge of the toy market and the ability to properly store the item to preserve its condition.

12. Trading Cards

Trading cards, especially those with historical significance or from classic franchises, can be great investments. The value of these cards can increase due to their scarcity and the demand among collectors. Investing in trading cards requires knowledge of the card market and the ability to properly store them.

13. Comic Books

Comic books, especially those with historical significance or from classic franchises, can provide excellent returns on investment. The value of these books can appreciate over time due to their rarity and demand among collectors. Investing in comic books requires knowledge of the comic market and the ability to properly store the book.

14. Sneakers

michael jordan nike hightops

Luxury sneakers, especially those released in limited editions or by renowned brands, can be valuable investments. The value of these shoes can increase over time due to their rarity and the demand among collectors. Investing in luxury sneakers requires knowledge of the shoe market and the ability to properly store them.

15. Guns

Antique guns, especially those made by renowned gun makers like Remington or Colt, can provide significant returns on investment. The value of these guns can appreciate over time due to their rarity and the demand among collectors. Investing in antique guns requires knowledge of the gun market and the ability to properly store and maintain them. If you can’t afford to invest in guns, there are gun financing options available. 

16. NFTs

Non-fungible tokens (NFTs) are digital assets that are stored on the blockchain and can be traded, sold, or exchanged. These tokens offer innovative ways to invest in art, music, sports memorabilia, and other collectibles. Investing in NFTs requires knowledge of the digital asset market and an understanding of its risks and potential returns.

17. Liquidation Merchandise

Liquidation merchandise such as overstock items, closeouts, and customer returns can offer significant returns on investment. These items are typically available at discounted prices and can be sold for a profit online or through retail stores. Investing in liquidation merchandise, such as buying Target liquidation pallets, requires knowledge of the item’s demand and an understanding of its risks and potential returns.

18. Stamps

stamp collection

Rare and vintage stamps, especially those with historical significance or from classic countries, can be great investments. The value of these stamps can increase over time due to their scarcity and the demand among collectors. Investing in stamps requires knowledge of the stamp market and the ability to properly store them.

19. Cryptocurrency

Cryptocurrency, such as Bitcoin and Ethereum, is a digital asset that exists on the blockchain. These assets have become increasingly popular among investors due to their potential for high returns and low correlation with traditional investments. Investing in cryptocurrency requires knowledge of the digital asset market and an understanding of its risks and potential returns

Alterative Investments Conclusion

Alternative investments such as watches, wine, classic cars, rare books, antique furniture, mint-condition toys, trading cards, comic books, luxury sneakers, guns, non-fungible tokens (NFTs), liquidation merchandise, stamps and cryptocurrency offer the potential for high returns on investment. However, it is important to understand the risks and potential returns of these asset classes before investing. Knowledge of the markets and proper storage are also key factors for success in alternative investments.

Kim Rowley Lohrberg
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