Entering the investment arena, we all wonder about the investment options that appreciate in value. The investment options that can be tagged as great opportunities for growth, particularly for investors who seek robust investment options and strong capital gains. Some of the best investments perform very well during times of economic upheaval and growth – proving that the asset class is indeed the best way to invest money. Other investment options are usually used to hedge against economic declines or worrying headwinds. It’s crucial that investors consider the various assumptions about models that forecast the assets’ value before making an appropriate bet with their money.
Here are five assets that see its value climb over time:
Often, investors are on the lookout for works of art and wines as collectables that have the potential for growth in value. The ageing of wine improves the quality of the wine, and this makes it an attractive buy. Ever seen people vying for wines from cellars that over hundreds of years old? Now you know why. And the ones who have ample money, are willing to pay the price required for it and are convinced that wine is one of the best investments, can make under the alternative asset class.
However, there’s a catch. While wine connoisseurs may perceive this to be the best way to invest money, there’s a lot more that needs to be evaluated. Of all the wines made in the world, only a small percentage have the potential to improve with age. This set of blue-chip wines can be considered “worthy of collecting” from an investment point of view. Experts maintain as a general rule that such collectables come from established producers with long track records in the best regions and thus tend to be relatively expensive even as new releases. A less-established, less-expensive wine can increase in value if it is highly-rated, especially if it comes from an exceptional vintage.
2. Precious metals
Gold is oftentimes viewed as a safe haven under circumstances of inflation and poor economic performance. The precious metal has traditionally been seen as an alternative asset class that rises in value and is tagged as the best way to invest money when other economic indicators are shaky. The metal had been used as a method of payment for over thousands of years. With this in mind, over time when people find that paper currencies are losing value, investors hedge this risk and buy gold instead. The biggest advantage with the metal? There’s limited supply and so, it cannot be inflated artificially.
While we are at it, investing in precious metals has evolved as a process: investing in digital gold is in vogue. Digital gold allows you to buy and sell gold anytime they want. What’s more, with digital gold price being the same across India, you can buy and sell gold at the market-linked rate, with each quantity of gold purchased backed by actual physical gold. As for storage, safety lockers are provided to digital gold investors without any additional charges when you invest in digital gold via Finserv MARKETS! At Finserv MARKETS, it is possible to buy gold online in two simple steps: log-in and make the payment.
3. Undeveloped land
Undeveloped land is an asset that will see its value appreciate over time. This is a long-term investment strategy and will need economic development to spur its growth and value. Most investors buy plots in regions and neighborhoods that they believe will eventually witness economic growth. As more people and businesses move towards the area and market activity increases, the price of the land will also rise. It can then be sold or developed, and sometimes even sub-divided into several parcels. This is literally how real estate market works and profits.
4. Crowdfunding your way into startups
Equity crowdfunding creates enormous opportunities and should be able to permit investors to gain exposure to assets like startup and REITs that appreciate in value over time – sometimes astronomically, if you think in terms of Apple.
5. Luxury goods
Items like a Rolex watch, precious stones and other collectables are often tagged as alternative classes of investments, largely because over time, these items may no longer carry the same design or edition, making it an investment that grows in value over time.
Given time and a disciplined approach to investing right, there are several assets that can grow in value over time, including commodities like crude and precious metals like gold. At Finserv MARKETS, investors can invest in gold online and gain exposure to various gold-linked investment products.
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