In this article we are going to talk about two very particular investments made by people who have a lot of money and in which the most modest investors do not usually pay attention.
Less typical but very profitable investments
Investment in art
Art has always been a great asset. Paintings, sculptures, objects, paintings and any form of art in general are an excellent investment for people who can afford to pay the price they cost.
When investing in art, the objective is for the good to be revalued over time , that is, to be able to sell more expensive after a few years. Its profitability / risk ratio over the last 50 years has been positive, which means that we are facing a refuge value that is always revalued .
Investment in art is also accompanied by interesting tax advantages . One of the most interesting is what is known as a dation system, which is that you can pay taxes through works of art without paying for the surplus value generated by the work.
But not all are advantages: art also has a dark side. The main disadvantages that we see to this investment are the following:
- It is a complex investment that you can only do if you have knowledge. How else will you know if what you are buying is cheap or expensive and if it will be revalued or not with the passage of time?
- It has very little liquidity . If you want to recover your money you will have to find a buyer for your work. Considering that there are not many people who invest in art, the sale could be postponed more than desired.
- You have to keep the work of art in perfect condition . If you invest 30,000 dollars in a canvas and it is damaged, you will have lost all your money. If it’s stolen, too.
These three premises make art an investment that is not suitable for everyone . Only people with great heritage and knowledge dare to enter it.
Investment in gold
Before, the wealth of a country is mediated by the amount of gold it stored. Not today. Despite this, gold remains the refuge asset par excellence and all the rich have part of their assets in it to
You can invest in gold buying coins or bullion on your own and keeping them at home, through a bank (and keeping it there) or through investment funds that replicate the gold index. This last formula is what we like the most.
In any case, the operation of this type of investment is quite peculiar. Looking for a safe haven for your money, many people invest in gold in times of crisis . Do you remember the “Compro Oro” stores that mushroomed as of 2008? Well, most closed after the recovery.
It is in times of recession and greater financial instability when this metal is usually revalued. You can check it on this
Surprised by its growth in the crisis years, right? It is not surprising.
The problem is that nobody can assure you that the historical behavior of gold will be repeated in the future . You must consider that we are facing an asset without any real use : it is the investor’s trust that only prevents its value from collapsing.
Is it a good investment then? If you understand what it is and want to diversify your portfolio, yes. Gold is one of the safest investments. But always keep in mind its particularities.