Are Tangible Investments Worthwhile?
We know investments are all the rage. People no longer want to let their money sit idle. All around the world, savers are now investing in different options. But not all of them get lucky. Some make zero profits while other unfortunate ones even end up losing their hard-earned money as they don’t think about their investments option thoroughly.
In this article, we will discuss whether one should steer away from traditional investments and invest in other tangibles. Is the risk worthwhile, and do alternative investments work for everyone? We have always found the world of financial securities more lucrative and know we will explain to you why it is better than tangibles.
So, if you are thinking of investing in tangible options, go through this read before you end up losing money. We have listed down 3 alternative investments that do not always work. They might sound better than stock fund and Forex trading but are the big fads of 2022. So
But, before we dive deep into the details of these tangibles, let us first discuss their not so valuable features:
Why shouldn’t you invest in tangible/alternative assets?
Tangibles investments such as Gold, art investments, antique collections, wine investments, and other items like cars are popular nowadays but are they profitable? The answer is something that is becoming popular does not mean it can give you high returns. Popularity does not equate to profitability.
There might be one in a thousand who could have made a lot from tangible investment and started praising it, and the rest of the herd followed. However, this is not a good approach to take while making a crucial decision like placing all your money. For example, you cannot just invest in antiques just because your neighbor profited from it. So here are some reasons why we don’t recommend investing in collectibles:
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By investing in them, you are risking everything on one endeavor, which can be very risky.
Most people do it for pleasure, but it can cost them profits as Investing shouldn’t be mixed with a part-time hobby
Unlike stock, bonds, and hedge funds, they do not provide a security net, and if you lose, you lose it all.
The probability of Tangible assets producing considerable returns is way less than stock and bonds
They are illiquid and can be pretty hard to sell
The maintenance, monitoring, and storing can end in costs outweighing benefits
So from all points of view, be it profitability, ease of investing, and liquidity, tangibles are no match for financial securities. So next time someone tells you can make thousands of dollars by investing in collectibles, you should know better. Don’t just believe them and ask for proof!
Let us break down 3 of these common alternative investments that you can fall prey to if you are not cautious:
Gemstones = Less Weight, More Profit?
Raw stones, crystals, diamond investments, and emerald cuts are becoming popular as celebrities invest in them. But are they a profitable way to invest money? We don’t think so.
Remember, some people have a lot of money to waste, and they can take the risk of investing in these little stones. Sometimes it does pay off, but the chances of this happening are less than 1%. You cannot expect everyone to land on diamond mines, do you? So why such risk with your hard-earned money.
While on the other hand, stocks and bonds provide a safe option and work for everyone. By using algorithm trading, why not invest in mutual funds and get predictable returns. It leads to a win-win situation for everyone and not just one lucky investor.
So if someone asks you to bet all your life earnings on some Colombian emerald, just because its worth jumped by 2,000%, be very careful. You might lose all as these gemstones face strange price hikes and can end up with as little value as a piece of rock.
So will you invest in little stones that may or may not hold the potential to provide you return?
Wine Investments = More Than Fine Profits?
Wine cellars are not just known for their taste and aroma but also for their capability to make huge profits, but not for everyone. Yes, a single bottle of fine wine can become a good source of investment but only if you get lucky and hold it for a long time. You might not be one reaping the benefits of your investment, as it takes generations for wine to become fine.
For example, it took a fellow investor 27 years to profit from his £4,700 investment in cask whisky to make a profit. He failed to invest in many other profitable investment options as all his funds were tied up in wine.
Moreover, unlike financial derivatives, you cannot sell wine as quickly as it does not have a stock market where it can be sold. Therefore, finding vendors can be difficult, and in the end, your investment will end up taking a lot of storage space and cost. So do not go all-in for these bottles and ensure that majority of your funds are invested in stock markets. Instead, use Zeus Capital as it can help you find top-rated securities with its algorithmic approach.
Can you trust a beverage to turn your life around and make millions?
Gold: Time-tested Option?
Old is Gold, but Gold never gets old! True, but is this enough to invest your lifelong saving in a metal bar. We agree that Gold had succeeded in maintaining its purchasing power for millennia even when the spending power of the pound eroded severely. This makes it a good inflation hedge; however, it does not make it profitable.
Yes, it is a security that has proven its merit in challenging times, but unlike financial securities, it has seen growing returns. Furthermore, investing in tangible asset like gold pieces require protection. So how are you going to keep it safe?
Remember, Gold is difficult to store, and unlike financial securities, it is not liquid. So you can use it to complement your financial investment but do not put all your fund in it. Let ZEUS decide which other financial derivate you should choose with its quick and accurate algorithm.
How much Gold do you have, and has it provided enough returns.
Some Words of Wisdom
So we hope you understand that stock and bonds are more worthwhile investment options than tangible investments. They provide you with a wide variety of options, but you can also use ZEUS to help you get the best returns. They are more reliable, liquid, and less risky than all these collectibles combined.
Explore secure horizons with Zeus to make more from your hard-earned money.
We hope you profit a lot and your investments remain safe and sound! Do let us know if you find more best investment options.
