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When experts offer tips on what to invest in, real estate invariably comes up. The housing market in 2021, however, priced many people out of such a plan. You should still strive to build a financial future, though, so finding investment strategies outside of real estate is vital.
Of course, there are plenty to choose from. You can do anything from funding new businesses to buying collectible comic books. And if you sold your real estate when home values recently hit historic highs, then you should have plenty of capital to work with.
Just because you can invest in something, however, doesn’t mean you should. Out of the many investment strategies that aren’t real estate, there are a few that stand out among the rest. Once you understand the basics of each, you can start investing in a more strategic way.
1. Physical Investment Strategies: Investing in Gold Bullion
If you paid attention to the recent shortages at the U.S. Mint, you already know gold bullion is in high demand. While the global pandemic certainly played a role in this, consumer interest in the yellow metal has been on the rise for years. Some folks even build their retirement plan around it.
You only need to look at the price of gold throughout history to see its appeal. There have certainly been fluctuations in its value, but the historic trend is always on the rise. That’s because the precious metal is a tremendous store of value. And when economies lag, gold excels.
Of course, many people think gold is too expensive. After all, seeking investment strategies outside of real estate to avoid high costs makes little sense if you buy something similarly expensive. For instance, 50 ounces cost roughly as much as a small home when gold passed $2,000.
Fortunately, there are affordable ways to buy gold:
- Buy gold bullion bars: If you think the price of gold coins is just too high, consider buying gold bullion bars. They don’t carry the numismatic, legal tender or collectible value of coins. This means you’ll invest at a smaller premium.
- Purchase gold by the gram: Purchasing gold by the gram might be the most affordable alternative investment strategy to real estate. That’s because a gram coin or bar contains about 30 times less gold than a one-ounce piece. Anyone can afford these!
- Search around: You’ll pay a premium on any gold bullion you buy, but shopping around can reduce this added cost. Silver Gold Bull offers the Best Price Guarantee, so if you find a lower price from our competitors, let us know and we’ll make it right.
Investing in gold predates U.S. financial markets by thousands of years. Even our ancestors viewed it as a tremendous store of value, so if you want a proven investment strategy other than real estate, the yellow metal has you covered.
Unfortunately, the increased popularity of gold has also led to a higher frequency of scams. Make sure you work with a reputable dealer when buying gold, and never offer payment to someone who makes unsolicited contact with you.
2. Digital Investment Strategies: Go for ETFs
The stock market offers a seemingly endless selection of potential investments. The Nasdaq alone tracks more than 3,300 public stocks. If choosing individual stocks seems a little overwhelming for you, though, you may do better by investing in exchange-traded funds (ETFs).
Rather than rising or falling based on a single company’s performance, an ETF tracks a commodity, sector, index or other asset. It does this by investing in underlying assets. You’ll find that ETFs typically have a specific focus. ETFs as an investment strategy alternative to real estate stands out for a variety of reasons. The biggest benefit people enjoy, though, is that it’s easy to track an entire sector. You can buy and sell ETF shares just like you would any other stock.
Additionally, you’re not risking your financial future on a single company. While one brand within an industry may fail, it’s unlikely that they all will. This adds a bit of diversity to your investment. However, there are some ETFs you should avoid based on your investment goals.
For instance, many people who want to invest in gold opt for precious metal ETFs. When you go this route, though, you’re not investing in actual gold. Instead, you’re investing in a security that tracks the metal. Unfortunately, many factors outside of gold’s value can affect these ETFs’ worth.
3. Collectibles Valued as Investment Vehicles
We mentioned collecting comic books offhand earlier, but in reality, this wouldn’t necessarily be a poor investment. If your grandfather had saved his $0.10 Action Comics #1 from 1938 and passed it on to you, for instance, you’d have a multi-million dollar item in your possession.
Of course, that is the exception more than the rule. This doesn’t mean, though, that investing in certain collectibles won’t prove profitable. Consider the following items as a potential investment strategy that’s not real estate. Each of them have the potential to make you a millionaire.
- Fine art
- Vintage toys
- Rare stamps
- Certified coins
- Vintage denim jeans
- Sneakers
- Jewelry
- Exotic and classic cars
- Fine wines
- Fabergé eggs
These are just the tip of the iceberg. There are countless collectible items out there.
However, if you can find the special specimens among these categories, there’s a lot of money to be made. It’s also important to note that collector’s values can rise and fall, but this is really the case for any investment. It all comes down to being smart about where you put your money.
4. The Flexible Investment Strategy: Silver Bullion
When people start their journey investing in precious metals, gold is often the first thing they turn to. We’ve touched on a few of the reasons behind this — such as its ability to store value — but it turns out that silver has many of the same benefits.
You’ll sometimes hear silver referred to as “poor man’s gold,” and that’s because it tends to hedge against poor economies as well. That’s why we saw the price of silver shoot up during the coronavirus pandemic. The best thing about the white metal, though, is its flexibility.
While silver can perform well during poor economic times, its value can also skyrocket when the economy is booming. That’s because the primary use of the metal is industrial. When industrial production goes up, so does the demand for silver. That’s a win-win for investors.
The important thing to remember is that silver can be volatile. That’s why it shouldn’t be your primary investment strategy outside of real estate. As they say, diversity is key. Be smart about not putting all your eggs into one basket, and you’ll have a solid financial plan in your corner.
5. Follow the Market Strategy: Index Funds
If you’ve been researching investment strategies besides real estate for some time, you’ve no doubt come across actively managed funds. This investment puts a professional investor in charge of your money. The high demand for this service has increased its availability recently.
Unfortunately, you may not always get what you expect. History shows index funds typically outperform actively managed investments. This is because rather than trying to buy and sell strategically, these funds track entire indexes.
There are plenty of index funds to choose from, and there are multiple options for each index. Whether you’re looking at the Dow Jones, Nasdaq or S&P 500, their long-term tendency is to rise. By investing in an index fund, you can ride this wave to the top.
The Best Investment Strategies Are Based on You!
There are tons of different investment vehicles available, and labeling one as “the best” can be difficult. When it comes down to it, the best place to put your money will rely on your own specific interests and goals. Many strategies will prove profitable, so find the one that works best for you.
The most important thing to take away from this guide is that diversity is key. Even if you’re excited about investing in gold bullion, you’ll ideally have other assets in your portfolio. Such an approach can protect your money even when markets perform poorly.
At Silver Gold Bull, we want investors to make informed decisions. There are many investment strategies outside of real estate, but it’s important to learn about your choices before investing. If buying bullion is at the top of your list, though, visit our Buy Precious Metals page today!
