25 alternative investments that have made a fortune
Think outside the box
Putting your nest egg cash in stocks and shares is the obvious choice if you're keen to increase your wealth long-term. With average cumulative returns ranging from 61% (S&P 500) to 70% (FTSE 100) over the last 10 years, the stock market seems a relatively reliable bet. Yet your money could have gone a lot further elsewhere. Here are 25 alternative investments that have turned an even bigger profit during the past decade.
High-end watches – 10-year return: 86%
Tempted to splurge your spare cash on a high-end Patek Philippe, Rolex or Breitling timepiece? According to the Coutts Index of passion investments, the average auction price of investment grade watches has risen by 86% in the past 10 years. Not as impressive a rise as the other alternative investments in our round-up, but more lucrative than the stock market nonetheless.
Soccer players – 10-year return: up to 100%
If you like to kick a ball around, this investment opportunity should be right up your street. Companies such as Sillsport Sport Development and Sport Investment Fund bankroll individual soccer players. Clients can invest in the players and the companies claim the lucky ones can enjoy returns of up to 100% over a 10-year period.
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Stamps – 10-year return: 101%
Stamp collecting may have declined in popularity, but prices for the most in-demand examples have risen since 2006. Serious investors can make a small fortune collecting the more coveted stamps – and then selling them years later at inflated prices. During the past 10 years alone, average prices rose by 101% according to the Coutts Index.
Chinese ceramics – 10-year return: 108%
While the Chinese economy is slowing, the market for antique Chinese ceramics is still extremely lucrative – the Coutts Index shows a rise of 108% over 10 years. You could be very lucky if you know what to look for – a tiny 1,000 year-old Song Dynasty bowl (pictured) that was bought at a garage sale in 2013 was sold at auction later that year for a whopping $2.2 million (£1.5m).
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Lego – 10-year return: 120%
Believe it or not, Lego toys are now regarded as a serious investment opportunity. If you seek out the rarer sets, you could end up sitting on a tidy windfall – a Lego collector paid $15,000 (£10k) for a single limited edition toy in 2014. An analysis by the Daily Telegraph newspaper found that during the past 10 years alone, average prices have risen by 120%, even higher for limited editions.
Fine wine – 10-year return: 134%
If you fancy yourself as a connoisseur of the grape or are simply partial to the odd glass or two, fine wine could well be your money-spinning investment of choice, with an average 10-year return of 134% according to the Coutts Index. You could put your money into up and coming New World wines but classic French vino is probably the safest option – you ideally want to buy up the best grand cru Bordeaux you can afford.
Wen-Cheng Liu CC via Wikipedia
Hermès Birkin bags – 10-year return: 143%
A study by specialist designer bag website Baghunter shows that the super-covetable Hermès Birkin bag appreciated in value by a staggering 500% during the past 35 years, an average rise of 143% over a 10-year period – no doubt to the delight of owners like Victoria Beckham, who has a collection of 100. Getting hold of a new one could be tricky though – the Birkin waiting list is notoriously long.
Celebrity autographs – 10-year return: up to 147%
These days fans are more likely to request a selfie than an autograph from their favorite celebrity. They could be missing out big-time. The market for autographs is flourishing, with prices rising by 147% in just 10 years according to British auctioneer Paul Fraser Collectibles. If you ever spot a famous person, you know what to do – forget the pic and get out a pen and paper instead.
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Precious jewelry – 10-year return: 150%
Spending your hard-earned cash on flashy bling may seem like a frivolous thing to do, but you could actually be making a very sensible investment. Prices for pieces of precious jewelry by the likes of Tiffany, Cartier and Asprey have increased considerably since 2006, rising by a respectable 150% on average say Coutts Index figures.
Stradivarius violins – 10-year return: 154%
Although the average value of rare musical instruments has only risen by 25% in the past 10 years (Coutts Index figures), the price of prized Stradivarius violins has increased by 154% according to specialist website Violin Advisor. They don't come cheap however. With prices for the exquisite violins reaching millions of dollars at auction, this is one investment that is restricted to the mega-rich.
Coins – 10-year return: 176%
If it’s in rare coin form, money stashed away for years under the floorboards can grow far beyond its face value – prices for collectible coins have risen by 176% since 2006 (Coutts Index figures). Investors should look for older pieces in mint condition such as pre-1947 UK coins, which contain silver, or much sought-after gold or silver American Eagles.
Luxury real estate – 10-year return: up to 200%
Channeling your investment cash in bricks and mortar can be extremely lucrative, but it's all about quality and location, location, location – the latest Knight Frank Wealth Report shows that high-end real estate in sought-after areas of Hong Kong for instance has experienced average growth of 200% since 2006, with prime property in cities like London, New York and Paris not far behind.
Gold – 10-year return: 200%
It's not the most exciting of investments, but gold is renowned for being a safe, reliable bet compared to the volatile stock market. While the price of the shimmery stuff has been dipping since its peak in 2011, gold has actually doubled in price since 2006, a more than decent 10-year return.
Star Wars memorabilia – 10-year return: 200%
Collectibles from the first few movies in particular are worth a fortune these days. An Imperial Stormtrooper costume that was used in Stars Wars and the Empire Strikes back fetched $319,574 (£221k) at auction in 2012, and average prices of memorabilia and merch from these two iconic films have increased by 200% since 2006, according to Mashable.
Vintage computers – 10-year return: 250%
The market for old PCs is booming right now, with vintage Apple products the most desirable, so remember to hold on to your iMac if you own one. The Apple-I, Apple-II and Apple Lisa are the most valuable – as reported by Forbes, the going price for an Apple Lisa was $10,000 (£7k) in 2006. This has risen to $25,000 (£17k) in 2016.
Wen-Cheng Liu CC via Wikipedia
Chanel 2.55 flap bags – 10-year return: up to 297%
If you can't stretch to a $50,000 (£35k) Birkin bag, a classic Chanel quilted number you can snag for a fraction of the price should actually offer better returns. According to Racked magazine, the usual price for a vintage Chanel 2.55 bag was $1,650 (£1.1k) back in 2005. This had increased to a very tidy $4,900 (£3.4k) by 2014, a rise of 297%.
Investment-grade colored diamonds – 10-year return: 300%
Diamonds are an investor's best friend, but you have to opt for the right sort of ice and you need to part with rather a lot of money to ensure you snap up only the very best. During a 10-year period, figures from Leibish & Co. diamond merchants show that white diamonds of three carats or more appreciated by around 130%, while the rarer light pink and yellow rocks returned 300%. Be aware that there are plenty of fakes around.
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Rare Scotch whisky – 10-year return: up to 325%
Prefer a wee dram to a drop of claret? Prices of the top 100 best-performing bottles of rare vintage Scotch have skyrocketed during the last 10 years as outlined in the Rare Whisky 101 Apex 100 Index. Rare Laphroaig and The Dalmore whiskies tend to attract the highest prices. You have to be careful what you buy however. The worst-performing bottles lost 11% of their value last year.
Classic cars – 10-year return: 399%
Classic cars have offered stellar returns over the past 10 years, 399% according to the Coutts Index, mainly thanks to increased demand from countries like China and Brazil. If you're willing to stay in it for the long haul, likely future classics include the Saab 90 Turbo, Porsche 944 Turbo and Renaultsport Clio 182.
Mid to late 20th century furniture – 10-year return: 400%
While the price of older antiques has fallen dramatically since 2006, the market for mid to late 20th century furniture is remarkably buoyant. In fact, London dealer Ken Bolan says prices for Mad Men-style postwar furniture have quadrupled on average in the past decade. If you own anything decent from that era, you could be in the money.
First edition books – 10-year return: up to 567%
One for bookworm investors, the value of first editions has been soaring over the past decade. Research by Paul Fraser Collectibles shows that first editions of Tolkien's Lord of the Rings trilogy have experienced the biggest growth – their value has increased by 567% – while other classics like James Joyce's Ulysses (183%) and The Adventures of Tom Sayer by Mark Twain (150%) have been similarly lucrative.
Signed photos of Princess Diana – 10-year return: 716%
The universal popularity of the People's Princess endures and according to the PFC40 Autograph Index, signed photos of Diana, Princess of Wales rose in value by an incredible 716% in the space of just 10 years, increasing from an average auction price of £1,250 ($1.8k) a photo to £8,950 ($13k).
Vintage designer fashion – 10-year return: up to 1,111%
Into fashion? You'll need deep pockets and a good eye but if you know your stuff, collecting luxe clothing by world-class designers can be highly profitable. Vintage clothing expert Kerry Taylor reckons that high-end pieces that went for £2,000 ($2.9k) in the late 90s are selling for up to £40,000 (£58k) today, a 10-year growth rate of 1,111%.
Dinosaur bones – 10-year return: up to 1,250%
Fossils aren't just the preserve of archaeologists and museum curators. Savvy investors have been stockpiling the things for years and prices for some of the more valuable pieces have risen sharply. According to John Issa of Canada Fossils Ltd, a saber-toothed cat skull bought at auction 20 years ago for $20,000 (£14k) is worth $500,000 (£355k) today. That's an average 10-year return of 1,250%.
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Street art – 10-year return: up to 5,000%
If you're keen to invest in art, think ultra-contemporary. Old Master and Victorian paintings, for instance, have depreciated by 7% since 2006, while the market for street art is thriving. A Banksy artwork bought for $10,000 (£7k) in 2006 is worth $500,000 (£346k) today (Value My Stuff figures). Other street artists worthy of your investment money include JR, Miss Van and twin-brother team Os Gêmeos.
What goes up can come down…
Just remember when you’re thinking about investing your money in an asset, whatever it may be, that returns aren’t guaranteed. Make sure you do your research and seek professional advice if you’re not sure what you’re buying is genuine.