Diversify Your Portfolio With These Alternative Hard Assets
12 October 2022
As an investor, it is imperative to diversify your portfolio by exploring all kinds of investment options with potentially high returns. After all, spreading your assets is the cornerstone of mitigating risk in your investments. A diversified portfolio means that even if a few of your endeavors do not pan out as expected, you’d still have many others to keep you in the black.
One alternative investment option you can never go wrong with is hard assets. These tangible investments hold intrinsic value through good and bad times, making them highly reliable even when fiat currency and other asset types drop in value from unexpected economic downturns. Thus, consider spreading your wealth and becoming resilient against financial crises with the following hard assets.
1. Gold, Silver, and Precious Metals
Precious metals, such as gold, silver, platinum, and palladium, have been valued for their rarity and beauty for centuries. In other words, these valuables will forever stand the test of time and retain their high value for generations to come. Today, they are also highly sought after as a store of value and a hedge against inflation and market volatility.
As such, they are a great way to quickly and efficiently protect your wealth in trying times. If the markets collapse unexpectedly, these precious metals can prevent you from losing everything.
2. Fine Art and Paintings
Fine art is renowned for its value that continues to grow over time, as evident by the masterpieces stored within museums all over the world that are now worth a fortune. The value of a painting or artwork is determined by its rarity, quality, and historical significance, hence why it is a tangible asset that appreciates over time.
In addition, the art market is driven by supply and demand, which can create opportunities for savvy investors to profit from buying and selling artworks.
3. Antiques and Collectibles
Rare collectibles and antiques capture attention across the globe, and these may include products once made by certain companies, items associated with historical figures or celebrities, and more. In short, there are endless investment possibilities for prized collectibles.
The value of antiques and collectibles is largely determined by supply and demand, with rare items in high demand commanding higher prices. For those with a passion for history and a willingness to invest in their interests, antiques and collectibles can offer a unique and potentially profitable diversification option for their portfolio.
4. Wine and Liquor
Wine and liquor are physical assets that can be stored and appreciated over time, potentially increasing in value as they age. Additionally, certain bottles of wine and rare liquors can be highly sought after by collectors, driving up their value even further, especially as the wine market has seen consistent growth and a rise in interest in recent years.
Since high-end jewelry is made from precious metals and rare stones with stable prices largely unaffected by economic problems, they are also considered a good store of value and a worthwhile investment option.
The jewelry market is driven by global demand from collectors, investors, and individuals seeking to own a piece of history or celebrate a special occasion. Jewelry also has the advantage of being easily transportable and easy to store, making it a convenient investment option.
As the times change and become more volatile, it is vital to start spreading your investments across different areas. In our world shaken by war, political turmoil, and financial crises, there is no better way to safeguard your wealth than keeping them in different investment baskets.
Store your hard assets in safe deposit storage in Singapore at The Reserve, where we go beyond the bounds of safekeeping. The Reserve hosts The Safe House vault, one of Singapore’s most trusted vaulting facilities with the world’s highest storage capacity and safest storage options for your wealth. For more details, don’t hesitate to send us an inquiry today.