Passion Investing – Viable Alternative Investments
The finance world – always porous to any new investment model that brings above-average returns. Over the last several years they have paid particular attention to non-traditional alternative investments to park one’s money in.
Although a heavily consumed commodity across several cultures, wines have also always taken on the tone of a luxury good. Prices tend to vary considerably based on vintage years, place of origin as well as overall supply and demand.
What has made more and more investors pay attention to this medium has been the introduction of such vehicles as The Wine Investment Fund, which has maintained respectable returns on investments from 2013 to 2017, outperforming many other markets in terms of returns per unit of risk. Like any other investment, you have to tread with caution and consider all elements that can affect it. If one decides to embark on parking one’s money into such a fund, it makes practical sense to seek guidance from (neutral) enthusiasts and experts who have the expertise, know-how and acumen to know what to invest in.
Timepieces have recently garnered much attention. Watches have a propensity to appreciate in value if chosen with a bit of know-how. Specific models tend to accrue value at a more rapid pace, offering little more than an opportunity to break even. Such brands as Rolex, Audemars Piguet as well as Patek Philippe tend to have higher resale values. The value increases exponentially after they reach vintage status. It’s all about a bit of research, acumen and impeccable timing (pun intended) that will create opportunities in this area.
Aside from always having been an adornment for women from various cultures, fine jewellery has also taken on its own form as a viable investment. This is aside from the fact that materials such as Gold hedge against inflation due to several reasons. Many investors leverage on brands like Cartier – that adopt high-quality materials and craftsmanship – selling at auction for prices that surpass what they were originally paid for.
Be it famous brands or ones made of valuable materials, always be aware of the products’ variables. Consider condition, craftsmanship and overall popularity (some items traditionally sell better than others) before making a purchase for investment purposes.
Luxury investments, unlike traditional ones such as bonds and equities, offer no income. Thus, they are not easy to define in terms of potential returns. It is evident, however, that with the right research and guidance, they can pose as extremely viable alternatives – often out-performing their more conservative counterparts. What one should always keep in mind is that there is a fine line between being enthusiastic about an item and having the right knowledge to turn that into a viable investment.
“Contrary to popular belief, succession planning goes beyond just the transfer of financial wealth, and should more holistically include the family’s social and intellectual capital.”
His observation dovetailed with comments from Gary Tiernan, who heads the multi-family office Golden Equator
Wealth as well as Golden Equator’s capital business arm.
Among Tiernan’s network of clients, opinions diverge drastically: “Investors are either believers or they’re not. And
we certainly can find people within our network that are on both sides of the spectrum.” But he cautioned, “the
level of volatility in cryptocurrencies makes it difficult to be a major part of anybody’s portfolio”.