Just want to share something that has really worked well for me and could help alot of other people also.
I'm a young millennial. A few years back during college I made my way into investing. I realized that one of the main and only way of becoming "rich"/ creating wealth was investing whether that be in shares, business, etc. I always wanted to invest in real estate especially after hearing the statistic that 90% of millionaires are created in the real estate market. I don’t know how true that is but I liked the sound of it. However, real estate was not even an option to me at the time. So what I did was get into the antiques business, which I soon found to be very very profitable. Even the Great Scrooge McDuck was known to dabble in antiquities, so if it's good enough for him, I figured it was good enough for me!
It allowed me to pay off debt, travel and eventually obtain enough funds to invest in property, my long term goal, which is what I currently do now. Investing in antiques was my stepping stone to that goal. While the vast majority of millennials cannot invest in real estate, the antiquities market is very much accessible, and as in my case, can lead to other things. Alternative investments such as antiques, art and stamps regularly outperform shares. However, the industry is overlooked by younger people, and this I think is to our detriment. It really is an untapped gold mine.
In reality, flipping artefacts is not that much different from flipping homes. Same rules still apply, buy low, sell high and if required add a bit of value in between.
Although I'm primarily in the business of real estate now, the ROI is nothing compared to that which is possible with valuable items of the past. Occasionally I do miss the "hustle" and adrenaline of flipping something for $400 which you acquired for $30. Those are the sort of returns Wall Street can only dream of.
One of the main advantages of investing in property and antiques is that you have a physical and tangible item in your possession, unlike shares or cryptos. (Not that they're inferior or anything). You can live in a house and wear a valuable watch, but you can't eat a bitcoin is what I am trying to illustrate. Real assets like property, antiques, art, metals, oil and commodities are much more useful.
It is well known that precious metals are good investments as they hold their value well, and are one of the few relatively stable assets during bad economic times (such as recessions and depressions). This advantage can be compounded by the smart investor by acquiring items that are both antiques and precious metals at the same time. For example, a set of silver cutlery. This is valuable as an antique and also as a commodity. It’s also a very practical, useful asset in the sense that it can actually be used.
The ability to specialise in niche areas also make this form of investing much more interesting. Those with an interest in music, flip instruments. You can even buy, hold and flip fine wines from years gone by. There's something for everyone.
Like other markets, there can be risks, albeit relatively few, especially when compared to cryptocurrencies or shares. The main peril would be fakes. However, very quickly you can learn to recognise these instantly.
Just like in other markets such as shares, bitcoin, and oil there are trends. Something that not many people know (or neglect to consider) about in the industry is the influence of television and cinema. This can be highly useful in predicting and riding trends. To give a current example, there is a new Downton Abbey movie which is in the works. When it is released, the prices of antiquities from the Edwardian era will very likely rise. Buying before and selling after would net a very tidy profit. Knowing how to spot these opportunities is one of the keys to success in the industry, as with all others. In the past, this occurred in 2015 when the Great Gatsby was released, starring Leonardo Dicaprio. Shortly after, the demand for items from the "Roaring Twenties" (1920's) significantly increased, which led to higher prices and of course, a very profitable situation for savvy investors.
Another notion which could be looked into, is that fact that given enough time anything can become an antique. That means putting something away now which is next to worthless, can, with enough time end up priceless. A very extreme example, but the idea is sturdy. A scene from Indiana Jones goes something like this:
"Look at this. [holds out a pocket watch.] It's worthless. Ten dollars from a vendor in the street. But I take it, I bury it in the sand for a thousand years, it becomes priceless...like the Ark. Men will kill for it. Men like you and me."
To give another current example, it would make good sense to store away items from important events, such as the Brexit movement in Britain. If in Australia, the recent same sex marriage campaign. If in the United States, Trump memorabilia would look to be a good option. Trump will have a long lasting legacy that (good or bad) will not be soon forgotten. Recognising these opportunities is very important.
A very interesting emerging market that might be worth a look at the moment, is antique tractors. These are rapidly increasing in value, with some recently selling in the hundreds of thousands at auction. If it’s within the budget, this niche is definitely one to watch. Having said that, it’s never good to enter into an industry without good knowledge of the subject first.
Finally, it has never been easier to get started. There are countless apps that are available that make the appraisal of items very easy and quick. Popular television programs like American Pickers, Pawn Stars and Antiques Roadshow are also great resources.
My hope is that this message will lead to an awakening about this form of alternative investing, so that it may inspire others (particularly my age) to get started, and potentially start getting ahead in life. I think we've had enough of being told to just save and hope for the best. When you have an entire generation that feels as if the only home they’ll ever afford is one on a monopoly board, it can be very discouraging. The buying and selling of items of value shouldn't be reserved for the elite or upper class, rather it should be seen as an opportunity to get a foothold in the buying and selling economy as a whole. The truth is, you can become a tycoon of antiquities with relatively little capital or upfront costs. A local market, thrift store or estate sale and a bit of spare change is literally all that is needed. Facebook buy-sell groups, Etsy, Craigslist and Ebay make it easier again. Adding valuable and precious artefacts to one's portfolio is in my opinion, not a bad move. Like gold and silver, they tend to hold their value decently. I genuinely believe that 2019 could be the beginning of a new gold rush... rusty gold that is.
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