Alternative Investments...any experience?

ButlerT

A friend of mine is dealing with old school cars and airplanes, antique and rare ones! Seems like is earning quite a lot by restoring them and reselling them. The hard part about it is that he has to find particular models the clients are asking for! The profit though is beyond imagination!

atush

the hard part is the hard work involved, and sourcing spare parts.

theGrinch

i guess the key is only allocating a small part of your overall assets, stick to things you like and can live with/enjoy and if it turns a profit its a bonus.

theGrinch

xware wrote: »

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)

funny you mentioned mont blanc pens. I had been left 5 of them, which I left in a draw for 3 years. Only this Christmas I was clearing out and was astonished to find out their value. Im glad I didnt throw them out as I nearly did twice!

Buffett

The problem with most alternative investments is that you have to know your stuff to not buy something overpriced or to find the right source. So-called 'experts' are often not or trying to profit themselves.

Also remember that a valuation is not necessarily a price someone is willing to pay!

If you don't have time to learn about watches/antiques/art/etc. then perhaps consider something like silver coins (the price of silver isn't up for debate!).

Whatever you decide, make sure it is a small %'ge of your overall wealth so you're not burned by any volatility in your chosen market.

brasso

SailorSam wrote: »

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.

This is a really ill-informed comment.

In fact, you're making two statements. The second one, about the scam companies is correct.

The first one -- "Wine has got a terrible reputation as an investment" is plain wrong. People have been investing in wine -- either to sell on for a profit, or for drinking themselves -- for many decades. It's only in recent years that the wide boys have moved in to part the gullible from their cash.

Wine can be a great investment, but never ever pay money to some 3rd party consultancy or wine investment brokerage.

Best way is to educate yourself and make your own decisions, then buy 'en primeur' through a reputable wine merchant like Berry Bros, Farr Vintners, Fine & Rare Wines etc. They are experts, and know many producers personally. They will help you decide and be able to advise you. They will actually purchase and store the wine for you in a bonded warehouse, until you want to sell it on or collect to drink yourself.

'En primeur' means you buy it while it is still in barrel, so you usually wait up to 2 years before it gets bottled and shipped. The advantage is that it is much cheaper at this stage than a decade or more later, when it is beginning to reach its peak. (This obviously varies from one vintage to another, and is why you need proper advice from a proper traditional wine merchant.)

Good Bordeaux from a great vintage can appreciate hugely in value over 10 years or so. Other regions/countries too, though red Bordeaux remains the most heavily traded.

Of course, there is no guarantee that the market won't collapse, but if that should happen, at least you would have a nice consolation. Hic!!

atush

I agree with the above, and it has increased in t he last decade due to the influx of Chinese buyers (for the decade old drinkable stuff).

But the only wine I hold like of quality like that, have been gifts to me which I drink at a rate of 1-2 bottles per year. Never sold any. I generally stick to drinking what I can buy with my weekly shop at Tesco lol.

grey_gym_sock

Buffett wrote: »

(the price of silver isn't up for debate!)

that would be against forum rules

brasso

atush wrote: »

I agree with the above, and it has increased in t he last decade due to the influx of Chinese buyers (for the decade old drinkable stuff).

But the only wine I hold like of quality like that, have been gifts to me which I drink at a rate of 1-2 bottles per year. Never sold any. I generally stick to drinking what I can buy with my weekly shop at Tesco lol.

Understood, though gifts of odd bottles would never be much good as saleable investments anyway. Most buyers would want want to buy at least a case (12), and would want to know how and where it had been stored since bottling -- which is why the trad merchant / bonded warehouse route is the one to take. Here you can prove that your wine has been stored in vibration-free, temperature controlled conditions from the start. It can add a significant premium.

Anyway, if someone gave me a great bottle of wine, it would be a bit mean to sell it! Agree with you on the Tesco purchases though.

atush

No, they were gifts of Cases ;-)

anyway, not selling. Mostly saving (in my temp controlled cellar) and drinking occasionally. and re gifting one bottle at a time should I need an expensive gift and not want to spend any readies! I have only one bottle of Romanee Conti left though ;-(