With alternative investment on the rise, more and more individual and conglomerate investors are pouring their cash into the unconventional, untested and downright weird. Here are 5 of the most obscure alternative investments available today.
When is a penny not worth a penny? When it’s a rare 1933 version bearing the head of King George V, apparently. In 2010, a version of this coin was listed on the online auction site, eBay, for a whopping £80,000. According to the Royal Mint, less than ten of these pennies were ever struck, making it one of the most valuable coins of this century.
Bearing this in mind, it is easy to see how there is a lot of money to be made from investing in rare and collectable coins. Coins can always be expected to hold their value, if not increase, and when the price does go up, it is easy to know when to shift your stock.
According to experts, the secret to successful rare coin investing is to be aware of the fluctuations in market value and to only buy off reputable sellers who aren’t simply out to make a quick buck, or indeed, a rare penny.
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Whilst the purchase of deadly weapons would usually lead to prolonged incarceration, when it comes to investing in antique firearms, the risk is of an altogether much less serious nature.
Guns are particularly good investments when it comes to holding their value, whilst it’s not recommended to regularly take unique, antique or collectible weapons to a firing range, when well maintained, prices are highly unlikely to fall.
British shotguns by makers such as Holland & Holland consistently increase in value by 3 to 5 percent a year. Considering the extremely high initial purchase price of some of these weapons, the potential returns over a ten year period can be extremely attractive.
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The rarity and quality of various types of musical instruments, especially antique violins made by Antonio Stradivari, are often worth in excess of a million pounds. Stradivari only made 1,100 violins in the 16th century, around 650 of which are still in existence. In 2005, a 1669 Stradivarius sold for $2.03 million, and experts believe this was at the lower end of the price spectrum for such a piece.
If violins aren’t really your thing, more modern examples of investable instruments would include a Steinway Piano used by none other than John Lennon, which was bought in 2000 by George Michael for an amazing £1.25 million, or Keith Moon’s ‘The Who’ drum set, auctioned for charity at over £150,000.
When buying an instrument, you should always remember to keep these things in mind: the maker; the quality; the condition; the previous owner; and the history. If all these categories have something in them, the return on your investment will certainly be a melodious one.
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Whilst some people would argue that you would have to be drunk to think investing in a vodka distillery would be a good idea, New Yorker, Don Poffenroth has shown that it can actually prove to be quite a lucrative investment.
In 2007 Poffenroth emptied out his 401k into a self directed IRA and funneled all $300,000 of his money into a vodka distillery.
At the time, Don’s friends and family thought he was crazy for making such an investment, but 3 years later, he was the one laughing as his $300,000 60 per cent share of the company was now worth in excess of $1.2 million, with the distillery bringing in a massive annual revenue of over $1.5 million.
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Mark from Emerald Knight Investments says “alternative investments are continuing to evolve and since 1995 alternative investments have helped more than 3000 small-medium sized businesses support there growth. Also it has raised over £24 Billion.”