Alternative investment markets have allowed a wider influx of ordinary individuals to become involved in investing. This is due primarily to the reduced regulations associated with alternative investments.
There is also no requirement for investors to adhere to a certain proposed number of shares that they can buy. Alternative investment markets also bring significant tax benefits to investors as in the example of wine which is free from tax implications.
Here are two very accessible and largely profitable alternative investment markets to one could get into very quickly.
Investing in Wine
Wine has certainly proved a fine investment over the last two decades with consistent improvement and rising value almost up to 20% per year. It is also a relatively low risk market to get into. Even when economies slump as we have witnessed in recent times, wine held its value more firmly than traditional investments that are known to fluctuate wildly.
Generally finer wines have been purchased frequently by the markets in America and much of Europe. Recently however there has been a sharp increase and rising demand from the rapidly growing economy of China. This trend will no doubt continue to increase over the long-term and brings with it a fantastic opportunity for investors particularly in the UK.
Investing in wine means that you are buying an asset that emerges from a limited production base but at the same time needs to supply an ever-growing demand. Where there is an increasing demand you know that prices are also increasing. Not only that, the value of wine also tends to rise as global consumption depletes existing stocks and this causes prices to rise even further.
Wine is also a physical asset that does not to respond to the financial markets in the same way that other more volatile assets are likely to. If anything wine can be enjoyed at any time you are not selling it or if the market slows down. Wine is also generally exempt from duties and taxes.
Investing in Gold
Gold has always played a significant role in central banking and its role in preserving their securities is essentially significant. Looking at the way in which the gold market has progressed over many years; the way it differs in price and fluctuation against other commodities, as well as its rapid rise in value in strange economic times, reflect that gold can viewed as closer to an actual currency than most commodities.
Most people are familiar with investing in gold as a measure taken to avert economic crises that may result from war, social unrest or unpredictable recessionary times. Till today gold is a popular choice with investors in among all the precious metals. Gold has the wonderful potential to be sold again and again and rarely loses its value.
The global demand for gold is broken up into jewellery and industries that recognize its resistance to corrosion and its superior electrical conductivity.
There are many investing opportunities when it comes to gold ranging from collectors gold coins, to traditional gold bullion bars, to gold shares and ETFs, and also the gold mining industry.