6 Alternative Investments in 2022

Stocks, crypto, real estate. Everyone knows that holding these investments can make you wealthy over the long term. But what are the top performing non-traditional investments you can invest in today, you know the ones that can get you really really rich or the ones that normally only the already ultra-wealthy invest into? In this article, we're going over six of the best alternative non-obvious types of investments that can see explosive growth in value.

1. WINE

So, if you guys have never watched sour grapes on Netflix, I highly recommend doing so because the world of one question is so fascinating and profitable. The documentary goes over the fine and rare wine auction market and centers on Rudy Kurniawan, a wine savant who cons investors out of millions of dollars, there are fake wines that he produced. 

Of course, I'm not telling you guys to go out and buy fake wine, the opposite actually, but you'll see just how much money there is to be made in investing in the wine market. As strange as it sounds. Investing in wine not only has the potential for future growth and value, but it's also tangible, unlike many other investments. 

While stocks and bonds go through cycles of up and down collectibles, like fine wine often deliver returns with no correlation to traditional assets. This is a great way to diversify your portfolio because of how unique the value of the wine is, its value is based on factors that often have nothing to do with how the economy is doing or interest rates, or things like consumer trends.

All of these factors are unrelated to the overall stock market, which is what makes wine such an attractive addition to the traditional portfolio. Now as for its performance, the LIV-EX FINE WINE1000, which is an index that measures more than 1000 Trade Winds has been up over 270% between 2001 and 2021, meaning it outperformed the s&p 500 by 8% Without reinvested dividends taken into account.

There are also other indexes for wind such as the Celebes wind index, which has also outperformed the s&p 500 since 2005. Experts in the wine community say that the quality and rarity of the product are key because it guarantees longevity which allows the investor to be comfortable knowing that there isn't a time limit to their bubbles. 

I can't tell you guys about the pros without also telling you about the cons because wine doesn't cost that comes with holding the acid. There's a buyer's premium shipping and storage costs insurance and even the initial investment that you have to worry about when it comes to money spent. And if that wasn't enough, you wind could take up to a decade or longer to reach its maximum value. 

So, in short, one is a super unique industry with even less investors. But like I said, it can be a very lucrative investment in the long term and is a great way to diversify. If you have an interest in wine and you want to have something that performs differently from the markets and economy. If ever take up wine tasting as a hobby in the future, I think investing in it would definitely be an option for me to level up my wine game. 

2. CARS

So usually when people think of cars, they think of depreciating hunks of metal, you drive off the lot and then lose 30% of its value, stuff like that. This one is interesting because it can make you a lot of money. It's super non-traditional, but unfortunately, you sort of have to have a lot of money to do it. And that is buying and selling exotic cars. 

If you look at John Cena and the Ford GT that he bought, he literally made about $1 million, buying that car at MSRP and then selling it and there are tons of examples of other people doing something similar to this. Now, especially with the car market being the way it's been in recent years, we've seen prices grow tremendously on both used and new cars. 

For example, I bought my Ferrari 458 for $175,000 Plus tax in late 2021. And its values are probably up at least 10 to $15,000. So essentially I'm getting paid to drive an exotic car like that. And it all comes down to supply and demand supply is as low as it's the last naturally aspirated V eight from Ferrari and demand is cars like that which can become classics will perform well in the price for the long term. 

If you can buy these types of more special cars at the bottom of their depreciation curve, you'll often find that they tend to bounce back up in price at some points as long as the mileage is low, or they'll hold value quite well in fact as an inflation hedge, so yes, it's crazy. But if you have the cash and connections to buy certain cars, you will pay less in the long run than driving a Mercedes E-Class. 

For example, a lot of cars are also impossible to get unless you have extensive purchasing power with that brand. For example, SF 90 hybrid supercar is literally impossible to get and it's selling for well over the sticker price. So if you have the connections, you can buy one drive for a year and then sell it for well over what you paid. 

Same with cars like the Lamborghini or 4 GT, Cadillac Escalade, and tons of other cars right now. So this won't apply to many of you guys reading this article. But it's great to know that someday when you have the capital and connections, you will be able to make a lot of money owning really cool cars. It's a super crazy thing that I just learned about these last couple of years and it's definitely going to be a part of my investment strategy in the future. 

3. ART

So, the third investment we're talking about is art. I'm really excited because this is a really high-performing asset that I have just started investing into. It's an asset that is steadily growing in popularity among other alternative investments with the average billionaire holding $31 million worth of arts and math makes sense why like gold art is a commodity with the ability to appreciate in value over time and yield fantastic returns.

This is why tons of famous celebrities and entrepreneurs like Leonardo DiCaprio, Kylie Jenner, and Jeff Bezos have also joined the art game. Now traditionally, when you invest in a piece of art, you're buying it with the expectation that the price of the piece will increase over time, and you can sell it for a profit. But that is easier said than done. The problem with investing in this market is that art is normally super expensive. 

Like we're talking millions of dollars a piece which makes investing in art impossible for people like you and me. since I use masterworks. Yeah, masterworks are the only platform where you can invest in art from names like Banksy, Monet, and other artists for just a fraction of what billionaires pay to purchase multimillion-dollar paintings. 

In return, you get a proportional stake in that piece of artwork just like when you buy stocks for a company with the hopes that the valuation will increase in the future and the masterworks results speak for themselves. So since 2020, mass versus sold three paintings with each returning over 30% net IRR to investors and their new offerings usually sell out in hours that 30-plus percent return is actually crazy.

The reason why I'm investing in art is because it's a great way to diversify, and it's a natural hedge for inflation, beating the s&p 500 for over 25 years. For example, take a look at the performance of Banksy's artwork, which has had an average annual price return of almost 20% between 2007 and 2020, meaning it almost doubled the return of the s&p 500 for over a decade.

If that doesn't tell you enough about the performance of the art market. This chart shows the price appreciation of art during times of inflation compared to other investments like the s&p 500 real estate and gold. This platform has a lot of potential because how it allows everyday investors like you and me to compete against the wealthy investors that have tons of purchasing power.

4. COINS

Alright, so the next investment is coins, which are also high on the list of good things to put your money into. But like all of the other investments on this list, it can be very profitable. So well-known coin collector John Pittman spent decades building up a coin collection and you'll be surprised at how much he was able to profit from all the time he spent researching and negotiating. 

For example, he bought a gold $5 half eagle for $635 in 1954, which then sold for $467,500 in 1997. That's more than a 70,000% increase. What's even crazier is the fact that over the course of his lifetime, Pittman invested around $100,000 in his collection, and after his death, the coins would sell for over $30 million. 

So if you have an eye for coins or collectibles, there are some really great options to get started with, such as modern bullion coins, the Canadian Maple Leaf silver coins, and the American Gold eagles. The good thing is that many coins gain value. And if you ever want to sell your collection, you'll most likely get all of your investment back, which is definitely a good quality that you do want for your investments.

However, I guess the trade-off is that finding rare coins to invest in is not something simple that can be learned in a short period of time because yeah, often takes years and sometimes even decades to build a valuable coin collection. So yeah, investing in coins is a long-term investment. 

And you shouldn't just go into trying to flip coins for a quick profit. Because most successful coin investors had a long-term vision that took years to build just like stocks or crypto, you want to do your own due diligence and research before you buy so that you can fully understand the investments that you're going to make. 

Even though the coin market has changed over the last few decades, investing in the coins can definitely net you a ton of profit if you spend the time researching for the best coins out there. And nowadays with the internet, it's much easier to find learn and research coin collecting. 

5. Watches

So, our next non-traditional investment is Watches. So the watch role is absolutely crazy. And it's also one of the most profitable on this list. At least as of recently. For example, if you follow channels like the timepiece gentleman, you see how much the value of watches has increased in the last few years.

Used to be able to pick up a Rolex Submariner from an authorized dealer easily at MSRP, or even discounted, but now it's almost impossible unless you have an extensive purchase history or you know them really, really well. For example, my Rolex Submariner, which I was lucky enough to buy as an investment for about $9,000 after tax is probably worth closer to $13,000 or more right now. 

That's a 44% increase in under one single year. Most people think of watches as something for the rich to collect. But if you are a fan of putting your money into worthy assets, you probably know that watch collecting is definitely a profitable hobby Business Insider compared buying a Rolex Daytona back in October of 2020, to investing in the s&p 500 and the Rolex and that beating the fun by $3,000. 

And to top it off, a report from McKinsey shows that the pre-owned luxury watch market is set to be the industry's fastest growing retail segment topping $29 billion by 2025 On average Rolexes have gained 21% or more in value in the past year, which is just absolutely crazy considering we're talking about watches that you can literally wear. 

Another really cool thing about watches is that the market sells fast, meaning your investment becomes a pretty flexible asset that can easily and safely be turned back into cash and profit. There are tons of watch brands out there and everyone knows about ROLEX, AUDEMARS PIGUET, VACHERON CONSTANTIN, OMEGA, or PATEK PHILIPPE.

The great thing about collecting watches, in my opinion, is you get to wear them too. As long as you choose the right type of watch and buy it at the right price, it will likely hold its value or go up over time. Now if you can get any of the watches I mentioned in this video at MSRP, which, by the way, is almost impossible for some models, then you will instantly make money too.

So even though most watches are held for a shorter amount of time, unlike wine, there's still a really amazing investment that you can use to make a profit and you get to wear a timepiece on your wrist. 

6. VENTURE CAPITAL INVESTING

Now, we are talking about another secret world of investing that the ultra-wealthy do where you literally invest in startup companies that have a 90% plus chance of failing in return for equity. Back in the early 2000s, 50 Cent became a venture capitalist for the company behind vitamin water to launch his own vitamin water brand formula 50, giving him a 5% equity stake in the company.

This investment into a company that had nothing to do with 50 cents rapid career proved to be a really smart decision because once it was bought by Coca-Cola in 2007 50 cents earned over $50 million dollars. Even today, we see tons of celebrities and athletes pouring money into venture capital.

it's risky. But if you invest in enough companies, then there's a chance that one that becomes a 100-bagger, which is where people went, I just started investing in venture capital last year. And it has definitely been an exciting journey. You can even invest in venture capital through companies like the sweater.

This means you're putting your money in a fund that uses that money to invest in VC, and you can get a portion of those gains. Overall, there's a lot of potential in VC. But you have to know that even if the company's valuation grows, meaning your investment grows as well, you can't realize the gains very easily at all.

The company still has to be bought or go public for you to actually realize those gains and if they don't, your investment literally goes to zero. But if and when the gains do come, they will likely be significant. Just know that for most angel investing in venture capital, you will have to be an accredited investor to participate so there are income requirements as well as net worth requirements.