Many forward-thinking investors choose to diversify their portfolio to minimise risk. From commodities and stocks to jewellery and real estate, a diverse portfolio can help investors to minimise losses, particularly in times of economic uncertainty. With the impact of the global Coronavirus pandemic leaving its mark on the world’s economies, people around the world are increasingly looking for investments that could safeguard their money. 

In this blog post, we share eight different things that you can buy as an investment in 2021… 

Fine Art

Fine art has been a popular investment amongst the wealthy for thousands of years; from famous Da Vinci pieces to contemporary artwork such as Jeff Koons’ “Rabbit”. A more unusual example of this made headlines in early 2021 as a famous Banksy piece was sold as a digital NFT token for $380,000, after the original was burnt on a live stream.

Many investors like to add art to their portfolio as it’s an asset class that doesn’t tend to rise or fall with the stock market. For this reason, art is often seen as a resilient investment that can help to diversify risk. However, it’s worth noting that not all art increases in value and there’s no guarantee you’ll make a return on investment. Additionally, this type of investment requires a lot of research and you may have to own a piece of art for many years before you see a profit.

Wine

Ever wanted to own a wine cellar? This isn’t just a great home feature for wine lovers, but also for investors — acting somewhat like an art gallery for your investments. Although the most expensive bottle of wine, Romanee-Conti 1945, sold at auction for a whopping $558,000 in October 2018, you can start investing in wine from as little as £1,000 through companies such as Vinovest.

There’s some great success stories about investors who have made a small fortune by putting their money into wine. However, as with fine art, this is an investment that requires a lot of time and patience but with the right research, wine can be a great way to diversify your portfolio.

Real Estate

As one of the most secure investments on this list, real estate is also one of the most popular investments in the UK. In fact, 63% of English households were homeowners as of 2018. For those investing in multiple properties, you can also generate passive income to cover the mortgage by renting them out. What’s more, when it comes to the value of your investment(s), you have far more control than if you were investing in stocks; any construction work to your home can directly increase its value.

As with the other investments on this list, there are also a few things to consider before investing in real estate. First, property is often considered to be an ‘illiquid’ asset, meaning that if you decide to sell, it can take time to liquidate your investment. Secondly, if you’re planning on adding buy-to-let properties to your portfolio, it’s important to consider additional costs. These may include property management fees or periods where the property may be vacant. 

Gold

Often viewed as a store of value, the price of gold increases in times of economic uncertainty, which is why it’s such a popular investment right now. It’s also a great way to diversify your portfolio if you already own a lot of stocks or real estate. In August 2020, the price of gold reached an all-time high at just over £50 per gram; almost £15 per gram higher than January 2020. 

Aside from gold bars, solid gold chains and bracelets are usually the best type of gold to invest in as they require less craftsmanship. If you don’t like the idea of owning physical gold, many investors choose to put their money into an exchange-traded fund (ETF) that tracks the price of gold. While for those with a smaller investment budget, silver can also make for a more affordable alternative to gold. 

Stocks

Perhaps the most popular form of investment, the stock market drives the world’s economies. As of 2018, the London Stock Exchange had a market cap of £39 billion and the New York Stock Exchange had a market cap of just over $30 trillion. In 2021, the landscape of the stock market has transformed compared to even ten years ago, with a network of apps and tools making it easy for everyday investors to get involved at the touch of a button. 

While famous investors like Warren Buffet have made their fortunes by picking and trading individual stocks, this requires a lot of research and market knowledge. Alternatively, index funds are a popular way to invest in the stock market, allowing you to put your money into a variety of companies across different sectors or specific regions.

Memorabilia

From famous movie props, such as the original Aston Martin DB5 from “Goldfinger”, to items that hold historical importance, such as Marilyn Monroe’s “Happy Birthday, Mr President” dress, rare memorabilia has been known to fetch millions of pounds at auction. If this is an area you’re interested in, a more affordable alternative could include widely-available memorabilia such as Marvel comic books, Pokemon cards or even Action Man figures. 

As with all investments, when it comes to collecting memorabilia, research is key. You’ll find there are often certain editions or items that are worth more than others, so it’s important that you understand the market. Additionally, condition is crucial for many collectable items. Before buying, it’s essential to consider the condition of the item as well as how you can store it.

Cryptocurrency

Who would’ve thought, back in 2017 when Bitcoin saw it’s first peak at $19,000, that just over three years later it would surpass $60,000? In 2021, there are more than 1,600 different cryptocurrencies available. Of these, the most popular types include Ethereum, Litecoin and, of course, Bitcoin. In an industry that’s still very much in its infancy, cryptocurrency could make a great long-term investment as digital currencies become increasingly popular.

If this is an area that you would like to invest in, make sure you purchase a wallet. Essentially, a cryptocurrency wallet offers a more secure way of storing your investment, verifying your purchases and keeping your information private. 

Fine Jewellery

From A Heritage In Bloom to the Graff Pink diamond ring, rare fine jewellery can sell for millions of pounds at auction. Even less rare vintage jewellery, such as family heirlooms, can sell for thousands if they have been properly maintained over the years. Finally, gold sovereign coins are some of the most in-demand collector’s items on the market, with less than 1% of all original sovereign coins still in collectable condition. 

When it comes to investing jewellery, it’s important to make sure that any jewellery you purchase is authentic. Here at Hatton Jewellers, we provide free professional appraisals and insurance valuations on the majority of our products, so you can buy with peace of mind. 

We recently wrote about investing in jewellery and you can read our top tips in this blog post: A Guide to Buying Jewellery as an Investment.

 

What’s your favourite type of investment? We’d love to hear! Why not let us know on Instagram or Facebook?

For more articles like this check out the Hatton Jewellers blog.