Had a cash windfall? Here’s how you can make even more money if you buy coins, wine and WHISKEY
According to a study by Lloyds Private Banking, collectibles such as watches, coins, stamps and wine are the way to invest
IF you’re lucky enough to have had a bit of a cash windfall lately, you may be keen to invest some of your extra funds for the future.
But, according to a study by Lloyds Private Banking, collectables such as watches, coins, stamps and wine are the way to invest.
The bank’s analysis has showed that these ‘alternative investments’ are reaping in worthwhile returns.
Top of the list when it came to the list of investments are classic cars - which have seen increases of almost 500 per cent over the last decade.
In second place came rare whisky, with increases of around 350 per cent since 2008.
In the same amount of time, stamps have soared by around 295 per cent, while coins have increased by 270 per cent.
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However, in the next decade, watches and fine wine are also forecast to reap big increases.
Markus Stadlmann, Chief Investment Officer at Lloyds Private Banking said: “Often tangible assets, such as a painting or a timepiece, retain their value and are not eroded by inflation.
"Over the long-term, these types of assets do not closely correlate with more traditional equity and bond markets, and therefore offer diversification opportunities.
"Investing in something you enjoy is a great way to make your portfolio unique to you.
"However, it is vital to remember that you are dealing with predominately private markets.
"It is therefore highly important that before you invest in your favourite, car, watch or wine, you do your research.
"From the start you must be clear on your motivation behind the investment.
"You must also consider all costs, including: purchase, restoration, storage, upkeep, and insurance.
"And be sure that items have all valid documentation, to ensure that you give yourself the best chance to make your pastime pay.”