Alternative Investments...any experience?

theGrinch

Does anyone here have experience in alternative investments, for example, art, wine, collectibles, autographs and care to share that experience and any tips?

As banks are paying such thin returns, I'm thinking of putting in a bit of my savings in 2013 into something I can at least see and touch and building it up over time - while its more for fun, its nice if there is some appreciation in value - although, I'm happy to just enjoy my purchases.

innovate

I would consider shares and funds long before I'd contemplate the alternatives you list. Not least because of the possible tax savings in ISAs and SIPPs.

kidmugsy

I've got a couple of limited-edition prints that are worth something now, being fashionable. I bought them decades ago because I liked them. Similarly I once bought some Penfold's Grange that went up in value so much that we couldn't bring ourselves to drink it: we sold it to a local wine merchant.

And yet I wouldn't dream of deliberately investing in such things: I've been lucky, not well-informed.

pqrdef

I think the FSA would like to ban people from selling these things as investments.

I looked at stamps once, but it looked like the profits would all disappear into the spreads and only Stanley Gibbons would make any money.

HJC1972

Antique furniture could, at current prices, represent some value for money. The heavy dark brown Victorian stuff is particularly unfashionable right now and therefore can be bought very cheap. Problem with all such investments is how liquid they can be made when you need to move them on. The previous poster mentions the large spread on stamps, well, that would seem positively generous compared with what the antiques trade demand: 100% mark-ups being commonplace.

Flip side is that you get to own something nice and usefull and if you buy wisely there's unlikely to be any fall in prices.

theGrinch

I was thinking of photos and autographs as there are some people i have enjoyed watching or listening to as well as having the chance to hang the photos and enjoy them. I guess if they go up in value is another thing.

I have some savings and shares, so maybe this is a more fun thing.

DrudgeDread

I expect to goes without saying, especially with regard to autographs, that you ensure you are dealing with a reputable trader. I believe Stanley Gibbons deal in them, or someone similar.

The likes of ebay etc a few years ago were absolutely awash with autographed photos, most of them fake and complete with a coa that wasnt worth the paper it was written on.

SailorSam

Wine has got a terrible reputation as an investment. I've read about lots of these companies that go bust after a few years and have never even bought any wine.
Antiques, you really need to know what you're doing. As fashions change they can fall out of favour, HJC suggested furniture 'cos it's down in price, but will it ever go back up again. People have smaller houses now and don't have the room, if you're looking towards antiques get something small that you put away, or at least buy things you like personally then if it doesn't go up at least you've had the pleasure of owning it.
Always buy the best you can afford, what do they say, quality will always sell.
Or for a gamble in art, find a young unknown artist that you like yourself, if he hits the big time you'll be on a winner.

HJC1972

SailorSam wrote: »

, HJC suggested furniture 'cos it's down in price, but will it ever go back up again. .

A question I ask myself almost daily. I'm an antique furniture restorer and french polisher by trade, running my own business. So I have been adversely effected by the fall in price on such items somewhat more than most.

Will it ever go back up again? Well, who knows. Fashions tend to be cyclical and there does seem to be some small signs of improvement. The lighter coloured stuff as well as Art Deco, Art Nuveau, Arts and Crafts seem to be still quite strong, as well as some of the Post-modern 60's stuff (not really antique, I know).

And then there's the worlds dwindling raw materials supply. Mahogany (the true variety) is no longer a commercially available species, not to mention many other previously plentiful exotic timbers like Rosewood, Teak, Satinwood...some of which are either no longer available or prohibitively expensive.

So, something that has been around for 200 years, still perfectly serviceable and more often than not better built to last another 200 years....for pretty much the same price as an Ikea piece designed to last 4-5 years and to then be dumped into a land-fill site. I have a sneaky feeling that sometime in the not too distant, people are going to start thinking that some of that old Victorian brown doesn't look too bad after all.

Then again, I've been saying that for a few years now.

xware

Also take a look at certain watches and pens ( fountain pens). In the long term, if you buy correctly, they are quite a safe bet and they almost always hold their value if not increase. Bought a pen 12 years ago for £1200, now it's worth closer to £3000 which s a pretty good return. Limited edition Mont Blanc pens and Rolex daytonas are there way to go, but if you want to invest in these sorts of things, always remember that you should only buy if you can afford to lose money ( not saying that will happen but still)

atush

HJC1972 wrote: »

Antique furniture could, at current prices, represent some value for money. The heavy dark brown Victorian stuff is particularly unfashionable right now and therefore can be bought very cheap. Problem with all such investments is how liquid they can be made when you need to move them on. The previous poster mentions the large spread on stamps, well, that would seem positively generous compared with what the antiques trade demand: 100% mark-ups being commonplace.

Flip side is that you get to own something nice and usefull and if you buy wisely there's unlikely to be any fall in prices.

I did this myself with a small part of an inheritance. But as with the mentioned prints, I bought only what I actually liked and wanted to live with (such as a grandfather clock circa 1804) and did not buy with a view to selling at a profit. I also researched, and bought things at auction so paying less than retail. This is how I bought sterling cuttlery as you tend to be able to buy it for the scrap/melt price. But I only spent a small part of the inheritance this way, I would not advocate using more than 3% or so on things like this.

This way you have nice things you can see and use and touch but that may give you more in return later should you come to sell them. If not, unlike a new car or sofa, they may well be worth at least what you paid for it and then you would have had the beneficial use of the items as well.