Not Keen on Stocks and Bonds? Here are 4 Interesting Alternative Investments to Consider

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Bored of your regular investment options and have some money on hand? We have a list of interesting investment choices for you that promise excitement along with returns. So, go ahead and select the one that suits you the most and add it to your investment portfolio.

1. Luxury watches

First things first – investing in watches is not the same as having a fetish for luxurious watches. Whether investing in watches is for everyone is debatable. Also, if you feel you can buy a Cartier and use it till you wish only to want to sell it for a humongous amount, you are in for some bad news.

Most of the times, it does not work like this as not many buyers would be interested to trust an individual wanting to sell a watch at a huge price. After all, rip-offs are not uncommon in this industry. This type of direct selling works only for individuals who have important contacts in the watch industry who can help them access watches before their release and also introduce them to potential buyers.

So, what’s the way to go about this kind of investment? One way could be to invest in The Watch Fund – a watch investment vehicle. After making an initial investment of US$250,000 (S$334,385), you will get to own limited editions watches and those previously owned by celebrities and other famous people. These will be selected by watch experts at The Watch Fund. Through them, you could sell watches to a database of over 9,000 shoppers and watch collectors, and expect an average of 20%-30% of profit. Here’s an interesting piece on The Watch Fund written by the New York Times.

Related: 3 Questions To Ask Before Going Into An Investment

2. Wines

Do you love picking the perfect wine to go with a lavish meal when you are out with friends? Then this investment option will surely interest you. There are two broad ways you could invest in wines – through a fund that specialises in wine investments and by buying rare, investment-worthy wines yourself. The easier and more fool-proof way obviously is doing it through a professional fund, especially if you are a novice wine investor.

OenoFuture, a London-based fine wine consultancy now in Singapore, says wine investment is a low-risk investment (with a consistent 10% annual growth rate) option you must explore. To get you started, a portfolio manager helps you understand the wine investment market and the investment strategy, prepares a tailor-made investment proposal, and helps transfer the wine to your bonded warehouse account.

However, the wine investment field is loaded with scammers so be extremely careful of where you put in your money.

Fine Wine Investing: 7 Things You Need to Know to Get Started

3. Diamonds

They say diamonds are a girl’s best friend. However, the version 2.0 of that adage is that diamonds are an investor’s best friend. If you want to move away from the yellow metal and explore investing in diamonds, you could do that on your own or through the official exchange.

If you want to buy high-quality diamonds yourself, you will need to study which diamonds are worth buying. Now, buying the right diamond isn’t a walk in the park. You will need to thoroughly understand the four Cs – cut, colour, carat and clarity. Also, make sure the diamond you buy comes with a Gemological Institute of America (GIA) or American Gem Society (AGS) grading certificate.

If you want to trade in diamonds through an official channel, here is some good news for you. Just two months ago, The Singapore Diamond Mint Company launched the Diamond Bullion, an investment product designed to bolster diamond investment as an asset class by providing a standardised, liquid, and exchange-listed format for diamond trading. For more details, check out the Singapore Diamond Investment Exchange website here.

Related: How to Know What Are the Right Kinds of Investments for You

4. Art

If you can tell a Picasso from a Da Vinci in a blink of an eye, this investment option will certainly interest you. Over the years, Singapore’s love for art has increased drastically, and a testimony to this is the springing up of numerous art galleries and exhibitions mushrooming across the city.

These exhibits give you access to paintings and art pieces from world-renowned artists as well as contemporary artists from Southeast Asia. If you are new to art investment, make sure you check out a few galleries, museums, and meet people from relevant auction houses.

The upside of investing in art is the high returns, high accessibility, and a hedge against inflation. However, the downside of it is the high risk and storage issues involved. Storing art in the hot and humid Singapore weather in not-so-spacious houses can be a huge challenge. So, make sure you figure out how you will store it once you buy an artwork. Before buying anything for investment or even negotiating, make sure you follow the rule of thumb – you must love the art piece yourself!  

Think you’d prefer to stick to something a lot more conservative? Here are some options to consider. Or if you wish to read up more on investing in general, check out our investing section.


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