For many people, investments are something that they have little knowledge about. You may have significant amounts of spare capital to put into a fund for future plans, such as retirement, but lack the expertise in knowing what is likely to give you a good return. In 2022, the financial markets are characterised by volatility, and with the Covid-19 pandemic and military action taking place in Ukraine, there has been a knock-on effect in the world of finance. However, there are certain investments that, whilst not guaranteed to offer a high and predictable return, can outperform some parts of the stock market and may be more profitable than simply leaving your money in a bank account. In this article three investment choices that tend to perform well in a variety of economic climates are discussed.
The market for works of fine art has demonstrated an ability to return consistently well on investments throughout the years. Research has shown an average annual return of 10% over the past four decades can be achieved by buying fine artworks. This outperforms many conventional stock and investment bonds, especially in times of market volatility. Many investors today have a portfolio that includes art investment alongside other more conventional choices. The key to investing in any piece of art is to speak to experts in the field so that you can ensure that the works you purchase have true potential to appreciate over time. A growing trend in the field of art investment is to purchase works of upcoming street artists who are gaining exposure and fame. Early works from upcoming artists can sell for immense amounts of money if their career takes off and they achieve worldwide recognition. Clearly expert knowledge is required to understand where and whom to invest in, but the returns can be significant for making some wise investment decisions.
The Gold Market
There is good reason for the longevity of the old adage “as good as gold.” It is simply that the gold market is recognised for giving solid and reliable returns on investments throughout the decades. As it is not directly linked to other global currencies it can avoid some of the volatility in conventional stocks and financial markets. It is an especially sound investment option when markets are volatile and there is a high degree of uncertainty as we currently have in today’s global marketplaces. In the short term it can be susceptible to fluctuations as with any investment choice. However, over longer periods it has a track record of realising substantial profits for investors.
Investing in the real estate market is another option that has been shown to offer good returns for investors over the decades. In many countries around the world there is high demand for superior quality housing. In addition, many investors choose to rent out their properties which allows for a perpetual income stream to be gained from having such acquisitions in your investment portfolio. The International Monetary Fund has stated that house prices have been rising since 2013. This is occurring on a global scale which offers investors the opportunity to purchase property in different countries depending on their levels of housing demand and projected increases in value.