A Guide To Alternative Investments
When people think of investments, they generally tend to think of bonds, stocks, and shares. However, there is an increasing number of alternative investments that you may not necessarily have thought of, and they can provide some interesting additional bonuses.
In recent times, a chocolate company created a “chocolate bond.” In 2010, this money allowed them to open more stores and create more jobs. Recently, the investors have been repaid with six boxes of chocolate a year, which in financial terms translates as 6.72 percent interest on the initial investment.
Another example is a wine company that offered customers a choice- you could either receive 7% income in cash in exchange for your bond or 10% a year in vouchers that could be used to spend on wine instead.
An early example of this kind of investment in 2014 was the “Burrito bond” where a Mexican chain restaurant offered an 8 percent yield, raising £2 million in the process.
This type of investing is ideal if you have specific product knowledge. For example, a lot of dentists want to use the latest dental technology but may not necessarily have the means to buy it new. Therefore, being able to lease this equipment can provide them with the tools they need, as well as giving the investor means of regular income.
When people think of investing in art, they tend to think of private collections of famous paintings. But this doesn’t have to be the case – coins, stamps, memorabilia, and sculptures can all be potential forms of investment.
However, it is important to be cautious. For example, the original Action Comics #1 that features Superman on the cover is very valuable. Conversely, there are a lot of Superman #1 comics out there that would be considerably less valuable, depending on their age and how widely available that particular comic would be. Therefore, it is important to research carefully before buying any art in order to get the best price for it and the most value.
The term “ethical investment” can be very wide-ranging, as it depends on your personal ideals what is or is not ethical. On a basic level (sometimes referred to as “light green”) it is about investing in companies that do not make money from arms dealing, pornography, tobacco or anything that a person might personally consider exploitative.
“Darker green” investments tend to be stricter in terms of what they will invest in, often with a specific emphasis on community benefits or on a wider global scale. In terms of a return, as with any type, there will be some that provide more than others.
We can help
It can be overwhelming when it comes to deciding what alternative investments to choose. With our experienced team of professionals on hand, we can guide you through the process to help you decide what will be most appropriate for you and your personal circumstances. Contact us today, and we will be happy to go over your options in more detail to find the best investments for you.