Compare Different Types of Alternative Investments

With so many types of alternative investments shown to savvy investors today, it is good to take a moment and look at some of the different types of investment alternatives and make side-by-side comparisons.

Alternative Investment Menu

Precious Metals: Gold, Silver, and Platinum are always hot precious metal investments. Gold has receded a lot in the last few months, but instead of discouraging investors, this has made the commodity an even better bargain than usual.

Real Estate: Despite the drop in real estate prices over the past few years, the real estate market is experiencing a resurgence. Land will always be in demand on a planet with 7 billion people, making real estate investments a great long-term investment.

Wine: Are you a wine enthusiast? If so, you may consider investing in wine for your next investment. Be aware of all the storage and insurance costs of setting up your wine investment. However, if you have cash and a long time frame you should be fine.

Theater: Although investing in theater can be risky, the rewards are huge if you invest in the right play.

Art: Do not just appreciate art; invest in it. Great art pieces sometimes constitute the greatest asset that some families have. While, you should not exclusively invest in art, having an art collection to add to your investment holdings can definitely brighten up your portfolio.

Peer to Peer Loans: Sites like Lending Club and Prosper have done very well over the past few years for their investors. That is because these small micro loans have macro returns. In some instances, the returns on peer-to-peer lending investments can rise above 10%. That said, although the return on investment is favorable, investors should also be aware that the default rate on peer-to-peer loans is higher than most other offerings.

Hard Money Lending: Another step above peer to peer lending is hard money lending. These are loans from private sources for various ventures like real estate investing or starting a business.

Choose Wisely

alternative investment adviceWith so many different alternative investments out there, choose wisely. Investing is about understanding the market, and choosing investments that you believe will do well based on facts and statistics. Choose an area or areas that you feel comfortable investing in, and stick with that area until you see success and build your confidence.