When it comes to investments, most people think of investing in the stock market. According to Gallup’s latest pool, 58% of people in America invest in the stock market. But did you know that there are alternative investments that can be just as if not more valuable than investing in the market? Those investments include, a Rolex, Artwork, Hermes Birkin / Kelly, Real Estate and a small business / investing in yourself. Today, we will take a deep dive into 5 alternative investments to the stock market.
A Rolex Watch
Rolex is a well-known luxury watch brand that is considered a good alternative investment. The model with the highest resale value include Cosmograph Daytona, Submariner, Date and Datejust. Paul Altieri, founder of Bob’s watches said, “the Daytona is worth two or three times its retail price on you leaving the store.”
The reason Rolex is so valuable is that they produce a limited number of watches each year, which makes the watches more exclusive and sought after. In Short, Rolex is a good alternative investment because of its durability, timeless design, and strong reputation.
Art
It has been a dream of mine for years to own a piece of Art from Banksy. Every year I see the price go higher and higher, and every year it feels so out of reach. However, if you are able to get your hands on fine art such as a Banksy, it’s a great investment! According to Banksy Index those people saw an increase of 104% from 2019 to 2020 in price of their print.
Owning a piece of fine art can be expensive. The reality, for most of us, is that we cannot shell out a few millions of dollars for a piece of investible art. With that being said, there are alternatives where you can buy a fraction or a piece of art, and there are platforms that handle all the logistics for you. The two most popular platforms are Masterworks and Rally.
Hermes Birkin / Hermes Kelly
According to Time the Hermes Birkin outperformed the S&P500 and the price of gold in the last 35 years. On average, the Hermes Birkin increased in value by 14.2% every year. What makes these bags so valuable? Hermes has done an incredible job marketing, and controlling the supply. Hermes’s bags are lusted after by every handbag fanatic. It’s the crème de la cream for handbag collectors.
These bags are only sold to customers after jumping through hoops to get one. I’ve read an entire article about how to buy a Birkin Bag in store and believe me when I tell you there is a strategy to buying one. However, if you do get your hands on a Hermes Birkin bag, they make for a great alternative investment.
Real Estate
Another popular long term alternative investment to the stock market is real estate. The main reason people invest in real estate because home values increase over time. The amount of increase varies from location to location, but on average it increases 4.3% a year. With any investment there will always be outlier years, and for real estate that happened in 2020 – 2021 where we saw a huge jump in the housing prices.
If you are interested in Real Estate, definitely take a look at our recent article about Self Directed IRA Real Estate.
Start-up Company / Investing in yourself
One of the best investments you can make is an investment in yourself. I always tell people to bet on themselves, if you have an idea for a start-up company, a product idea, or even you want to start a blog that you’ve always wanted to pursue, go after it. The best time to start is now, even if you only do a little bit each day, you’ll look back and be thankful that you started. Results on investing in yourself are priceless. You’d be surprised what you can do when you put your mind to something.
Recap on 5 Alternative Investments to the Stock Market
In conclusion, If you are looking for an investment outside the stock market, there are several alternatives. These alternatives include a Rolex, Artwork, A Hermes Birkin or Kelly, Real Estate, a Small Business and Investing in yourself. When considering investments, it’s important to be diversified. Do you have any alternative investments that didn’t make the list?