We marvel at how some people expand their fortunes, yet their secret to success is hiding in plain sight. They are not focusing on trading time for money. Instead, they are focusing on using their money to make money. This rule applies to whether they are thinking of investing in a business as an owner or investing in buying its stock as an investor.
Investing is the fastest way to make your money grow. Traditional forms of investment offer a return on your money slowly, over a period of years, even decades. When investing in stocks and bonds and certificates of deposit, you can expect to build your wealth over time.
Is there a faster way to get a big return on your initial investment without falling victim to some get-rich-quick scam?
Absolutely! Try non-traditional investments. Some excellent investments to consider are forex, fine art, and numismatics.
Invest in Foreign Exchange
According to Best Foreign Currency Investments for 2018, you’ll enjoy many unique advantages when you get into foreign exchange investing.
The forex market is one of the biggest financial markets in the world and you can buy and sell foreign currency without the constraints of trading regulations. What’s more, it’s a market that never sleeps. You can trade around the clock since this global market is accessible online and it’s easy to get live updates on price changes to the currencies you are interested in trading.
Unlike other financial markets, like the stock exchange, you won’t be spending money on brokers or transaction fees. You won’t have to dilute your profits by forking out commission fees, finance fees, or exchange fees.
This freedom from paying a middleman exists because the market is not regulated by any particular government; it’s an international market, not a national one. Additionally, since the market is so huge, it has high liquidity, which means that it’s easy to buy or sell quickly.
Invest in Fine Art
One reason why the fine art market has done well for centuries is that price is based on exclusivity. How rare a reputable artist’s work happens to be will play a huge role in determining the value of a piece of art. So, even today, in this age of rapidly changing technology and increasing automation, this market is booming.
If you’re good at noticing valuable art, you have a good chance of identifying the next Picasso, keeping it for a few years, then selling it at a high price. You also need to be able to network, going to places where you can buy potentially valuable art at a low price.
The only way to do well with this investment is through education.
You must deeply understand three things:
First, you must understand what makes art valuable.
Two, you must understand where you can buy low today to sell high in the future.
Three, you must understand how the art market works, which means understanding how fine art dealers negotiate and how auctions determine value.
Invest in Numismatics
Numismatics, or coin collecting, has some similarities to fine art. You must, for instance, acquire considerable knowledge to develop a discerning eye for value, and rarity determines value. How valuable is a rare coin? A 1793 American cent fetched $940,000 at a Stack’s Bowers auction in March 31st, 2017.
To do well as a numismatist, you must enjoy studying history, be able to appreciate the aesthetics of old coins, and be able to do some detective work in finding well-preserved masterpieces that are valued at ten-, hundred-, or a thousand-fold their face value.
Traditional Investments vs. Nontraditional Investments
On one hand, it’s not necessary to have to decide between buying traditional investments and nontraditional investments. There is no reason, for instance, why you can’t invest in mutual funds while developing your expertise and collection as a numismatist. You can still earn a return on investments from mutual funds while you are developing a profound knowledge about vintage coins.
On the other hand, depending on your choice of nontraditional investments, you may not want to spread yourself too thin. For instance, getting involved in both forex and stocks is probably not a good idea. Since both require a considerable amount of time, attention, and research to do well, it might be better to choose one over the other.
In the final analysis, then, deciding whether you should take an “and” or an “either-or approach” depends on your interests.