Stocks and bonds are an excellent way to build your wealth. These investments can help you save for retirement and achieve other long-term goals. Stocks offer tremendous potential for growth because you are investing in progressive companies. Meanwhile, bonds offer a predictable income stream. Bonds pay twice a year, and if held to maturity, return your entire principal.
Still, it’s a good idea to invest in things outside of stocks and bonds and other familiar asset classes. Many investors seek to diversify their portfolios by investing in exotic asset classes. Some interesting ideas include rare coins, jewelry, and fine wine. But return on investment is uncertain. So, when looking for exotic asset classes look for those that offer a high ROI. Consider investing in cryptocurrencies, commercial real estate, and original art.
The Promise of Investing in Cryptocurrencies
The cryptocurrency markets are growing at an exponential rate. There are many interesting stories in circulation about shrewd investors earning a fortune. But cryptocurrencies aren’t all about making money. They are also about claiming a stake in the future. Based on Blockchain technology, cryptocurrencies may disrupt dysfunctional centralized banking systems. For that reason, they may change the future for the better.
Most people equate cryptocurrencies with Bitcoin. This was the first cryptocurrency started in 2009. But there are now an estimated 1,500 cryptocurrencies in circulation. They represent a $500 billion total market cap.
While many altcoins (alternatives to Bitcoin) are fledgling currencies, three cryptocurrencies to watch are Ethereum, Litecoin, and Ripple. Ethereum is second to Bitcoin when it comes to popularity. This is a huge accomplishment when you consider that it started in 2015. Litecoin, originating in 2011, is third in popularity. The total supply is 84 million, with 56 million in circulation, which is four times as many as Bitcoin. Finally, there’s Ripple, founded a year after Litecoin. It has a total supply of 100 million, with 39 million outstanding. It has gained prominence as a digital payment method because it allows money transfers in a variety of forms, including traditional currencies like the dollar and the euro.
The Benefits of Investing in Commercial Real Estate
Investing in real estate is a wealth-building formula going back hundreds of years. One area you may want to consider getting involved in is commercial projects. Since the goal of any investment is assurance that your money will turn a profit, consider commercial projects in promising areas of high population growth. Regions under rapid economic growth promise some amazing investment opportunities. You will make the most of your investment options if you choose new developments.
The Aesthetic Delight of Investing in Art
Art has shown a consistent increase of investment value, and the price of art has gone up by this century. The authoritative TFAF Art Market Report for 2014 reckons that the international art market as a multi-billion industry with a consistent rise in value over time.
When investing in art, focus on buying originals. While there is some money to be made in prints, giclee prints, or reproductions, it’s not as much. Because original art is rare, it fetches a high price. When buying works of art, research the artist, the artwork, and the dealer. The artist provides the human backstory. The piece of art itself gives you an idea about its value. And the reputation of the dealer establishes its authenticity. As a first-time buyer, you will be susceptible to marketing hype and skewed professional appraisals, so be cautious and judge each piece by its various merits
You can buy art at auctions, galleries, art fairs, as well as on the Internet. Auctions are exciting, usually, because the art has been carefully selected for its appraised value. Consequently, bidding can often be intense. Galleries have a more relaxed approach to viewing, evaluating, and deciding on what to buy. Art fairs are a low-key approach to buying art, and you must develop an eye for art to predict future value. Besides these traditional sources, online art sales have become popular. A high volume of art is sold online because of how easy it is to view an image and make an immediate buy.
Although stocks and bonds have always been good investments, ROI is uncertain. For this reason, it’s a good idea to diversify with cryptocurrencies, commercial real estate, and art.