How to Make Money With Alternative Investments

May 22, 2018 at 11:53 AM Leave a comment

Anyone who has managed to set a little money aside over the past few years of economic turbulence, and perhaps invest in in some regular saving or mutual funds on the stock market, should give themselves a pat on the back. After all, times have been tough financially, and just managing to break even without having to rely on credit is, in itself, an achievement.

Deciding how and where to invest, then, is an important consideration. After all, having worked so hard to have something to put by, you need it to work equally hard to grow into something even better for your and your family’s future. It is with this objective in mind that the notion of alternative investments has become such a popular one over recent years.

What are alternative investments

We all know a little about stocks, shares, pension funds, futures and the like, even if it is only by name. These are termed conventional or traditional investments, and they typically behave in step with the broader economy. In other words, when the economy is in good shape, they perform well and generate good returns, while in times of difficulty, their yields drop off. This latter scenario is what has been seen over recent years. Low interest rates and a sluggish economy have meant minimal returns from those traditional sources.

Alternative investments are ones that are not directly correlated to the broader economy, and they can therefore be an important hedging tool to protect your money from exposure to market factors. Let’s take a look at two of the most popular ones.

Precious metal

You might think “alternative” sounds modern and innovative, but that doesn’t have to be the case. Individuals, companies and even governments have been investing in gold, silver and other precious metals since money was first invented. Today, anyone can do the same thing. Companies like Golden Eagle Coins can provide anything from a few dollar’s worth of commemorative silver dollars to bars of gold bullion that would be enough to satisfy any Bond villain.

Precious metal is one of the safest investments going, and as long as you are prepared to sit on it for a while, it will always generate a solid return in the long term. However, it is not just safe in that respect – you can’t help feeling secure when you own gold, as whatever happens in the world, even if the stock markets crumble and the banks fold, it will still be there in your possession.

Real Estate

Our parents always told us that there’s nothing safer than bricks and mortar. Recent years have proved them right, and the property market is the one sector that has remained healthy through the darkest of times.

Of course, buying property demands significant investment, beside which, not all of us have the time or inclination to become private landlords. If this applies to you, you can still take advantage of the property market by sinking some of your money into a Real Estate Investment Trust (REIT)– this provides all the gain of a booming market with complete flexibility. And you can buy and sell whenever you want to, so funds are not tied up for years on end.

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