Bored with stocks and bonds? Try investing in a baseball card collection instead. More and more people are seeking to diversify their investment portfolios, sometimes resulting in quite unconventional choices. Unusual investments range from the quirky (vintage cars) to the bizarre (renting a cow!). Those who prefer the more conventional route can simply add an unconventional twist to their approach. How about hiring an astrologer to predict your stocks’ performance? According to Forbes Magazine, no investment is without risk – which holds even more truth for the unusual kind. However, if you plan properly and you don’t put your whole portfolio into a Star Wars figurine collection, you could make some serious returns. Here are three examples of unusual investments and how they might even outperform your stocks.
1. Comic books
According to CNN.com, the first-ever printed edition of Superman was recently sold for $1.5 million! It had barely been touched by human hands, as it had been hidden inside an old movie magazine for the past 50 years. The key to making money with comic books is their condition. They have to be mint, nothing less. Also, first editions and rarities are usually worth a bomb, especially if they involve famous characters (The Huffington Post).
2. Sports collectables
The Huffington Post suggests that you diversify, so don’t just collect rugby jerseys. Ideally, these items should be autographed by the big stars, or you should get your hands on rare, vintage items (a Babe Ruth collectable card in pristine condition would be worth a fortune now). Follow different sports with an eagle eye and be aware of who is up-and-coming. New break-out athletes could be tomorrow’s stars. However, sport is considered fairly risky, as it changes almost as often as the modeling industry. Today’s star could be battling a major injury – or a lawsuit.
If you can tell the high notes of your Chardonnay from the rose petal undertones of your Shiraz, then maybe investing in wine is for you. According to CNN.com, over the past 21 years, vintage wines have out done major stocks. It’s advisable to only buy the top wines with impeccable vintages. If you’re going to buy hundreds of bottles of wine, you’ll need somewhere to store them and it will have to be at the correct ambient temperature. Which means you’ll probably have to lay out extra money to install a special storage room in your home. But, if you can sell that 1962 Pinotage for a ridiculous amount of money in a few years time, it will be worth it.
If you decide to go the obscure investment route, you should have a clear plan with regards to returns and timeframes. Forbes advises that you know exactly how much you’ll want to sell your items for, and when you will do this. Who knows, maybe one day you will make a fortune off that Spiderman limited edition comic, or that cricket ball you got Shane Warne to sign?
Ang Lloyd writes on behalf on Now Learning, which promotes distance learning in Australia, including online TAFE certificates and financial planning courses.