“Just follow your passion!”
If you’ve been a victim of a monotonous routine, it’s time to ignite the flames of passion and pursue your true interests. Combine the nature of finance and your desire of being an avid collector of priceless items to create a diversified investment portfolio. While baffling at first, investing in your passions is a creative and lucrative way to increase your long-term monetary gains. Best of all, it’s far from boring or complex!
Also Read: What is Fractional or Bite-Sized Investing
Learn about Passion Investments
Passion investing allows you to seek and collect objects of your interest or purchase and sell them to make them a viable source of income. Cut out the dullness of investing by introducing the thrill of collecting desirable objects. You can invest in non-traditional assets and make money as their value appreciates over time.
While these priceless collectables are notable for their rarity, you can begin your career as a collector of the following categories.
When investing in coins, note the precious metal they contain, like gold, or consider purchasing bullions
Keeping their rarity in mind, inspect the stamp’s general condition like fading, hinge marks or the adhesive gum on the back
3. Fine Art
Buy entry-level art pieces from talented artists, or invest in purchasing historic film posters in mint condition
4. Antique Jewellery
After buying antique jewellery, store it carefully, away from sunlight and ensure to maintain it regularly
Choose wines based on the ingredients, acidity, or reputation of the winemakers for the best results in the long term
6. Classic Cars
Post 25 years since manufacturing, a car becomes classic – only purchase investible classics from well-known brands or sources
The Advantages of Passion Investing
It’s a great way to store your wealth as a tangible object – and it could be loads of fun! After all, these items are unlikely to depreciate overnight and could act as an additional source of income.
1. Diversification of Investments
Passion investing provides you with an additional layer of diversification in your investment portfolio with a potential return on the investment. You can satisfy your desire to indulge in these luxurious activities and, at the same time, enjoy the benefits of appreciation.
2. Safe from Market Volatility
The fluctuating nature of the stock market does not necessarily coincide with the value of passion asset classes. Passion investments enable you to hedge against a volatile market. As the demand for these assets increases their value over time, you can reap great returns.
3. Earn High Returns
If you don’t enjoy working for someone else, how about starting a business through passion investing? Unlike a regular 9 to 5 job, there is a high chance that you could potentially earn good money from your passion assets.
4. Start Your Own Business
If you find the potential within your passion assets, consider profiting off them by turning them into a business! It could free you from the restraint of your old profession and give you complete job satisfaction. Several passion investment avenues like wines or antiques could make a great business platform.
The Risk Involved in Such Investments
Despite the above-mentioned benefits, there are a few cons that might require some caution. With no guaranteed returns, these assets are illiquid and difficult to convert to cash.
1. The Problems of Fraud or Forgery
Owing to the rarity of these antiques, they’re often subject to fraud with many replicas floating around in the market. Without sufficient prior knowledge before purchasing these objects, you might accidentally fall into the traps of fakes.
2. Expensive to Maintain
If you decide to invest in items like paintings or rare antiques, you might want to store them in safe custody. However, that could be an expensive endeavour! These items require high maintenance with the help of professionals. The storage conditions they need must come with temperature control.
Turn your passions into profits by investing in valuable antiques, artefacts and more! And remember, always verify the authenticity of these items before purchasing them. As exciting as it may be, it requires a lot of precautionary measures.