When it comes to investments, diversifying is always a good idea. This means putting money not only into stocks but also into items that appreciate in value over time. When investing, it’s always important to keep in mind that there are no guarantees and it’s always possible that an item will stop appreciating. It may even do the opposite and depreciate in value.
To protect your money, always do your research so that you understand what you’re investing in. You should also make sure your portfolio contains a good mix of assets to lower the impact of market volatility and protect your net worth.
Here are six items that are likely to appreciate in value over time.
1. Real estate
Both property and land tend to hold or appreciate in value over time. Despite the Covid-19 pandemic, the real estate market generated close to £70 billion in turnover in 2020, according to Statista. In fact, property prices increased 6.4% in 2020 alone.
While this is impressive, it seems modest compared to the historical growth for property in the UK. According to Global Property Guide, UK property prices grew an average of 187.5% between 1996 and 2007.
2. Gold and silver
When it comes to gold and silver, there are different ways to invest. You can invest in an exchange-traded fund or buy bars, coins and jewellery directly. Metals tend to fluctuate in price over time, but generally, they always tend to appreciate in value over the long term.
For example, the price for an ounce of gold was £197 in December 2001. The price peaked at £1,551 in 2020 and is now at £1,320 (as of August 2021). Silver is more unstable and peaked in 2011, but it’s still grown from £3 an ounce in 2001 to £17.45 today. If you stick to a long-term buy and hold strategy, these items are likely to appreciate in value over time.
3. Art
Art is tricky as an investment unless you understand the market well. The key to art that will appreciate in value is sticking to pieces by well-known artists with certificates of authenticity. Buying through a fine art auction house is a great option to get quality art.
4. Vintage toys
Old toys, especially from the 30s and 40s, sell well and continue to appreciate in value. The same is true for video games and consoles from the 1980s. In 2017, a sealed-in-the-box copy of NES game Stadium Events sold for $42,000. No matter how expensive the game might have seemed when it first came out, it’s hard to beat that appreciation.
5. Fine wine
You cannot buy a bottle of wine at your local shop and expect it to appreciate in value. But fine wine has consistently outperformed other investments over the past 30 years. You can invest in fine wine through a platform like Vinovest. The platform authenticates and even stores your wine (unless you want to have it shipped to you).
6. Vintage handbags
Luxury handbags from brands such as Louis Vuitton, Chanel and Hermès can significantly appreciate in value over the years. As an example, the value of Chanel’s Medium Classic Flap bag has grown over 90% in the past 10 years. That’s growth of about 10% a year!
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About the author
Diana is a writer specialising in debt repayment, savings, and personal investments. Her work has also appeared on MSN Money, Inc. Magazine, and Yahoo! Finance.
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