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Invest in the Rare and Alternative Commodities.
If the economic downturn of the last few years has taught us anything it must be that by trusting large corporation's with all of our money is maybe not the smartest idea. I am not anti-financial institutions it's just that I live with by that old adage of never leave all your eggs in one basket. Maybe now in this time of financial uncertainty it is the time we took more interest in how our money works for us day to day and how we can increase it over a longer time period. I am not advocating abandoning pension plans, life assurance, saving plans and stocks and shares. This is obviously the market which should guarantee our retirement .
Do you think we can get better returns through commodity investements?
I was wondering if maybe we can out perform the experts by investing in items which will have continued and stable value. It is in our own interests to see our money perform to it's potential, unlike if it was in a big pool of everyone else's cash, where it could just earn a smaller amount and be covered by other investments by the brokers. But the problem with this as we have seen recently is when it goes wrong it can go spectacularly wrong and thousands can suffer.
So we need to look at commodities which we can speculate on to effectively grow in value for our designated investement period and hopefully gain at least a 33% increase on initial investment. Of course we don't know what the long term outcome is going to be. For example we know that oil is a finite resource and that reserves will more than likely be exhausted with a couple of decades. The question is do you invest in buying and storing the oil for when the oil is that scarce you can name the sale price. Or do you invest in the shares of an oil company and reap the dividend payouts from higher profits? if you choose the latter you have to factor in that they will have to spend more and more on extraction of the oil and pump more money into alternative fuel sources. This will be an added expense to the company which will effect share price. And at what point do you sell your shares on? will it be for a mega loss?
Long term investment
So what can we invest in which will always have value. Well the obvious answer is investing in gold. Gold is a finite resource. Unless someone is able to solve the conundrum of turning base metals into gold we won't be seeing new supplies come into the Market. ( I exclude the existence of gold on other planets and comets for now ). I have a couple of articles exploring either the value of gold and whether or not to sell your scrap gold,so I won't retread old ground here. As alchemy is possible out of the question why not look at other precious metals could be a good investment as are some gemstones. Diamonds are always going to be valued, but their value is controlled by the diamond companies. It seems that there are more diamonds than the supplier wish you to believe. An investment in rarer gemstones may be prudent as fashion loves the extremes and fashion ultimately points us to the next luxury good to acquire.
Future value of commodites
Other items to maybe invest in include vintage wines and spirits. The wine investors actually made better profits than regular stocks and share investors in recent years. I have written a hub on investing in rare malt whiskey already please check that out for more information. The rare Tobacco and Alcohol is not an old market by any means but i think it has been a market which has been largely ignored. There are very potent and largely untapped markets in the Asian countries and as the new rich come through after recession, they will have more money to invest in these commodities.
I also believe that we may see a lot more worth in rarities from the media industries. Although the sale of actual albums has now decreased in relation to downloads, i think it is entirely likely that nostalgia will drive the consumers of this generation to buy back the old records in place of the Mp3's a few years down the line. The trade in vinyl records is still strong and some records are now worth their weight in gold. The major medium for music is still compact disc, so already modern records are quite rare. In a decades time i assume that looking for today's number one record on a vinyl will be a white label release ( usually to clubs, Dj's or radio stations). These types of record are highly prized already, so if you are able to find one by a big band and are lucky enough to get it autographed you have a big asset already.
Other Articles by Author
- Britain's forgotten silver reserves
As a general rule, where you find lead you will find silver. Britain has more silver reserves than gold. The majority of the reserves are like the gold reserves situated in Cornwall, Wales and Scotland
- Gold- why is it so valuable?
Gold has many uses away from the world of beauty, fashion and financial affairs. Gold has properties which makes it ideal to use in technology. The computer or hand held device you are using now has some element of gold in its construction.
- Britain's ancient Roman goldmine's
When the Romans invaded Britain, they knew the region had a wealth of natural resources.Gold was one of these precious natural resources.
Cutting out the middleman
If this has got your mind thinking that there are other options, then there is a wealth of opportunity and companies that can help on the Internet. Please remember that when trading anything there are fee's involved, but don't let that stop you if you see a niche in the market. The initial outlay could be dwarfed by your future returns. In these times of financial uncertainty you will find people who will be able to make a lot of money by following their instincts and exploiting a market for their future prosperity. This is a long-term investment, but the returns can be handsome if you do your homework. The key to any venture is always research and i believe now is possibly the best time to act. On my 'Rare Malt Whisky- A good Investment' hub their is a commodity company with a link in the comment section, this maybe a good place to start or at least look into.