When money isn’t really a limited commodity, it can end up being invested in practically anything. Since stocks, equities and cash are always fluctuating, investment diversification is an opportunity for the rich. This year, the wealthy are investing their greens in unconventional ways.
1- Art Finance. Auction houses are putting up artwork for sale, part insurance policy and part betting slip. This works when guarantors offer a minimum price as a guarantee to those selling fine art pieces and when these sell for more, a profit goes to the guarantor. In fact, a guarantor made more $150 million through the selling of Leonardo Da Vinci’s “Salvator Mundi” last year. If you’re willing to get into the game, a Chinese company is offering 7.5 million shares for $10 each for a Michelangelo painting.
2- Ferraris. That’s right! Vintage Ferraris’ value has rocketed this past decade. One red 1962 250 GTO being sold for a record of $48.4 million last August. More owners are buying old Ferraris and barely driving them because low mileage means higher selling value.
3- Crypto-currency. Even though the crypto-currency market faced some tough challenges this past year, crypto-tax software startups are still looking to invest in tax-loss harvesting tools.
4- Collectibles. No, it’s not just a hobby! What may seem worthless can actually end up being very valuable. Investors are seeking after vintage stamps and photographs. Rare stamps are taken on weight alone and are estimated for millions of pounds. So are old photos of celebrities such as Marilyn Monroe and Elvis Presley! One investor, Sonnenfeldt, got thousands of photos, including many prints of Monroe from age 19 to 24, the intellectual property rights, book rights and negatives that are estimated to be worth fortunes.
5- Electric Vehicles. By 2030, most cars will be battery-powered so the market is expecting a rise to $100 billion from $22 billion by 2025! Efficient manufacturers will generate higher profit margins over time. Experts envision a specific security system. If his projections are right, the portfolio would have a 36% average return over the first 12 months. Buyers will get their initial investment back at maturity while receiving 70% of any performance gains.