Earlier in this series, I discussed investing in Farmland, Rooftop Solar System, and Private Equity as alternative investments. Alternative investments can provide lucrative returns that are unavailable by investing via stocks and bonds. In this version we look at another Alternative Investment – Collectibles.
A Collectible is any physical asset that appreciates over time. The rarer the collectible item, the more valuable it is and can vary widely depending on the field. For someone to invest in a collectible, an in-depth knowledge of the subject and a good eye is necessary. Luck also plays a huge part in the investment as some characteristics of collectibles can be out of one individual’s control. It is also common for some people to simply collect items that interests them and captures their attention, and not necessarily consider the collectible as an investment. But this interest and collection over time can turn into an investment portfolio, of sorts.