Forgotten Ways to Invest

Forgotten Ways to Invest: Uncovering Hidden Gems in Investment Options

Despite what it feels like, investing is one of the most effective ways to grow wealth over time. However, most people are only familiar with the traditional investment options like stocks, bonds and mutual funds. While these options are certainly effective, they are also well-known and therefore, heavily saturated. In order to find true hidden gems in the investment world, you need to look beyond the obvious choices. In this article, we’ll explore some forgotten ways to invest that you might not have considered before.

Investing in Art

Art might not be the first thing that comes to mind when you think about investing, but it can be a lucrative investment option for those who know what they’re doing. Investing in art requires a good eye for quality and an understanding of the art market. It’s not a passive investment option, but it can be a rewarding one.

When it comes to investing in art, you have a few different options. You could buy art directly from artists and hold onto it until its value increases. You could also invest in an art fund, which is a fund that invests in a portfolio of art assets. Art funds are a good option for people who want to invest in art but don’t have the knowledge or expertise to choose individual pieces. Incidentally, I’m pretty sure my paintings from the 3rd grade are not going to make me rich any time soon.

Investing in Collectibles

Collectibles are another forgotten investment option that can be quite lucrative. Collectibles are items that are valued for their rarity, historical significance, or cultural importance. Some examples of collectibles include rare coins, stamps, vintage toys, and sports memorabilia.

Investing in collectibles requires a lot of research and knowledge. You need to know what you’re buying and why it’s valuable. However, if you’re willing to put in the time and effort, investing in collectibles can be a good way to diversify your investment portfolio. Again, in the same way as my paintings, I’m doubtful my fountain pen collection will change my family fortunes any time soon either.

Investing in Commodities

Commodities are another overlooked investment option. Commodities are raw materials or primary agricultural products that can be bought and sold, such as oil, gold and wheat. Investing in commodities can be a good way to hedge against inflation and diversify your investment portfolio. I do hold a little gold – more as a store of wealth than a true investment.

One way to invest in commodities is to buy exchange-traded funds (ETFs) that track the price of commodities. ETFs are similar to mutual funds, but they trade on stock exchanges like individual stocks. They allow investors to buy and sell shares in a diversified portfolio of commodities. I’ve previously written about a portfolio that includes commodity ETFs here.

Another option is to invest in a commodity pool. A commodity pool is a group of investors who pool their money together to invest in commodities. The pool is managed by a professional manager who makes investment decisions on behalf of the investors.

Investing in Cryptocurrencies

Cryptocurrencies like Bitcoin and Ethereum have been in the news a lot lately, and for good reason. Investing in cryptocurrencies can be a high-risk, high-reward investment option. Investing in cryptocurrencies is not for the faint of heart. The value of cryptocurrencies can be extremely volatile, which means you could make a lot of money or lose a lot of money very quickly. However, for investors who are willing to take on the risk, cryptocurrencies can be a good way to diversify their portfolio and potentially earn high returns.

There are a few different ways to invest in cryptocurrencies. You could buy and hold cryptocurrency directly, which means you’ll need to open an account with a cryptocurrency exchange. You could also invest in a cryptocurrency fund, which is a fund that invests in a portfolio of cryptocurrencies. Cryptocurrency funds can be a good option for people who want to invest in cryptocurrencies but don’t have the knowledge or expertise to choose individual coins. Being very blunt now – I personally do not invest in crypto.

Investing in Peer-to-Peer Lending

Peer-to-peer (P2P) lending is a relatively new investment option that has gained popularity in recent years. P2P lending platforms allow individuals to lend money to other individuals or businesses in exchange for interest. P2P lending can be a good way to earn passive income and diversify your investment portfolio.

When you invest in P2P lending, you’re essentially acting as a bank. You choose the borrowers you want to lend money to and set the interest rate you want to charge. The P2P lending platform handles all of the paperwork and collects the payments from the borrowers on your behalf. I love the passive income that my P2P holdings bring me – they’re an important part of my two passive income portfolios.

Investing in Private Equity

Private equity is another investment option that is often overlooked. Private equity refers to investments in companies that are not publicly traded. Private equity investments can be a good way to earn high returns, but they are also high-risk investments.

Investing in private equity requires a lot of research and knowledge. You need to know what you’re investing in and what the risks are. However, for investors who are willing to do the work, private equity can be a good way to diversify their portfolio and potentially earn high returns.

Investing in Options

Options are a type of derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specific date. Options can be a good way to hedge against risk and potentially earn high returns.

When you invest in options, you’re essentially making a bet on whether the price of the underlying asset will go up or down. If you think the price will go up, you can buy a call option. If you think the price will go down, you can buy a put option.

Investing in options requires a lot of knowledge and expertise. It’s not a passive investment option, but it can be a rewarding one for investors who are willing to put in the time and effort to learn. I prefer ETFs that do all the option work for you – much more passive than active options trading.

Investing in Real Estate

Real estate has long been a popular investment option. However, most people think of buying rental properties or flipping houses when they consider investing in real estate. There are other, less common ways to invest in real estate that are worth considering.

For example, you could invest in a Real Estate Investment Trust (REIT). REITs are companies that own or finance real estate properties. When you invest in a REIT, you’re essentially buying shares in the company, which means you get a portion of the company’s income. REITs can be a good investment option because they often pay higher dividends than stocks.

Another option is to invest in a real estate crowdfunding platform. Crowdfunding platforms allow investors to pool their money together to invest in real estate projects. This can be a good option for people who want to invest in real estate but don’t have the capital to buy a property on their own.

In Summary – Forgotten Ways to Invest

Investing is a key part of building long-term wealth. While traditional investment options like stocks and bonds are effective, they are also well-known and heavily saturated. By exploring forgotten investment options like real estate, art, collectibles, commodities, cryptocurrencies, P2P lending, private equity, and options, you can uncover hidden gems in the investment world and potentially earn high returns.

To be honest, there is a whole raft of these investment types mentioned today that I DON’T invest in, because it is just too darned hard to create a passive income off them.

Remember, investing always carries a level of risk, so it’s important to do your research and make informed investment decisions. Have you got any forgotten ways to invest that might be worth revisiting?

Cheers

Hugh Walker