Concrete Currency: 4 Physical Investment Ideas to Consider
Traditional investments such as stocks or money markets always carry a strong element of risk. Governments are always manipulating their currencies, and corporate stocks can rise one day and tumble the next.
Finding a secure investment often boils down to simply finding something that is secure. Many investors hedge their bets by putting money into hard physical assets that nearly always appreciate over time.
Here are some physical investments that have paid off well over the years.
Real estate
If you study your markets and do the math finding opportunities isn’t very hard to do. Each area of investment has potential that is fairly easy to find, the real trick is to determine which areas of the market you’re looking at have the least chance of letting you down.
Real estate is a prime example of this. Some people make a very good living flipping houses, while others prefer becoming landlords and leasing out residential or office space. The easiest way to make money for many people, however, is to buy shares in a real estate investment trust.
It’s very different from direct ownership and provides limited returns, but it also requires less money and very little effort. For many people, real estate is a frightening investment strategy because of the “housing bubble” effect.
The possibility of dumping hundreds of thousands into a home or property only to have the market drop in that area is enough to scare lots of potential investors away. A real estate investment trust can help you avoid that potential risk and allow you to take advantage of this opportunity without as much risk.
Art and Antiques
For anyone with an eye for quality, this is often a very enjoyable way to make money. The value of art and antiques may fluctuate according to market demand, but a good buy nearly always goes up in value.
You can also start at a very low cost. The trick to either kind of investment is knowing where to look for antiques or artwork on the cheap. Some people bid on abandoned storage units in the hopes of finding something inside worth selling.
It also helps to know what to look for and follow the market so you recognize a good time to sell and collect a profit. In the meantime, you can enjoy that rare collectible or piece of art.
Gold and precious metals
Gold, platinum, and other precious metals have always had high value regardless of exchange rates. Business and governments can’t simply print up more gold.
While precious metal prices certainly fluctuate over time, with the exception of silver in the 1800s, the long-term trend has been rising values for hundreds of years now. Buying when prices are down will nearly always pay off later.
Rare coins
Coin dealers all over the world make a steady income from buying and selling coins. Coin values depend on quality and rarity. Every coin can be assigned a “grade” that reflects quality.
Truly rare coins will be prized no matter the grade, but given two coins of the same type and year, higher quality always means greater value. When you understand how coins are graded, you can estimate value from a published coin guide, and find some real treasures in public auctions and estate sales.
The best part of collecting rare coins is that they only appreciate in value as time goes on. That means that the earlier you get started, the more your coins will end up being worth in the long run.
In all of these cases, it’s a matter of understanding value and following the market ups and downs. Jumping on the right opportunity and selling at a profit may take patience, but these four assets are generally sound investments.
Author Bio
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max. Kara works with Rocky Mountain Coin to promote awareness of varied investment opportunities.
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Category: Investing
