Many people think of stocks, bonds, exchange-traded funds, and mutual funds when investment is discussed. According to Gallup, 58% of Americans report owning stock, making it one of the most popular investments in the country. However, it is vital to note that the investment market is broader than ever before. You aren’t limited to the traditional stocks, bonds, and mutual fund options that many everyday investors are reluctant to see beyond. In fact, you can invest in several profitable alternative investments that may be just as worthwhile as investing in traditional options. Here are four lucrative alternative investments worth considering.
Cryptocurrency
Cryptocurrency is perhaps the highest-profile alternative investment option of the last decades. 2021 seemed to be the year of crypto. Early cryptocurrency investors enjoyed some excellent returns, and the popular digital currency exchange Coinbase became public, a genuine sign of cryptocurrency’s growing legitimacy. Additionally, Dogecoin and Bitcoin achieved their highest market caps in 2021. The good news is it is never too late to join the cryptocurrency bandwagon. It remains a highly volatile commodity, but traditional marketplaces are slowly embracing it, so it may not be so far from the mainstream as you think. Moreover, it will play a central role in the world described in this Web3, Eric Pulier, Smart NFT article, so this could be the best time to invest in cryptocurrency.
Precious metals
Precious metals like palladium, gold, and silver are widely considered safe places to store your cash since they retain their value excellently. As per the Gold IRA Guide’s survey of 1,500 Americans, 10.8% own gold while 11.6% own silver. Gold, in particular, is an excellent alternative investment because it is a great portfolio diversifier and an excellent inflation hedge. Also, gold is the perfect “rescue asset” to hold in tough times. Therefore, you can sell your gold for good cash even in tough times of geopolitical uncertainty. You can invest in gold by purchasing it in coins or bars or invest indirectly via gold mining stocks or futures and options.
Fine art
Fine art has always been viewed as an alternative investment option exclusive to the very wealthy, but this belief is fast-changing. The digital marketplace is now open, so retail investors can now purchase fine art as long-term alternative investments in higher numbers than ever before. Also, several traditional galleries shifted their marketplaces online due to the pandemic, leading to an unexpected growth of the art market. Therefore, many wealth managers are increasingly recommending fine art investments to their clients.
Owning a business
We often don’t think of companies as investment opportunities, but setting up your own company can be quite profitable in the long term if done right. You can pump your cash into your business, which has perhaps the highest potential to generate the largest returns of all your alternative investment choices. Admittedly, businesses can also fail and lead to severe financial loss and sorrow. However, there’s always the chance your business can generate a steady income and grow over time, turning out to be a great alternative investment.
