ALTERNATIVE
INVESTMENTS
If stocks and shares make you nervous why not turn an interest into something
more lucrative, by focusing on alternative investments
Antiques
Antiques out-performed shares and even house prices in recent
years, but prices did drop by two per cent in 2002, according
to the ACC Antique Furniture Index.
You don¹t need huge amounts of money to invest you
could pick up a Victorian walnut armchair for less than £400
or an Edwardian mahogany bureau for less than £200.
Specialise in the style or period that interests you most.
Novice investors should tread carefully until they know what
they are doing. Browse around in antique shops and specialist
markets, attend sales and auctions to get a 'feel' for things,
read the catalogues and go to pre-sale exhibitions where
you can handle and touch the objects. Note how pre-sale estimates
compare to the sale price.
You can view past auctions results on websites by auctioneers
and valuers Phillips, Sotheby¹s and Bonhams.
Jewellery
Gold isn¹t the only thing that holds its own in troubled
times - jewellery is also a safe haven. It is made from precious
stones and metals and each element has its own value. Look
for pieces from a master jeweller such as Boucheron, Bulgari,
Cartier or Tiffany.
Bonhams holds 26 jewellery sales in London a year, with
prices ranging from £200 to £500,000, but do
your research first. Learn to spot the difference between
something worth £1,000 and £100,000, purely by
handling it. Only then part with your cash. Remember to check
certification and don't ever buy damaged pieces.
Gold
Political and economic uncertainty has pushed up the price
of gold to levels not seen for years.
Investors can buy Kruggerands from around £30 and
gold sovereigns from around £60. It pays to spend more
the smaller the coin, the higher the relative commission.
The type of gold bars you see in heist movies now cost around £93,000
way too expensive for the small investor but you can get
one kilo bars for around £7,500. It will cost another £100
a year for safe storage at your bank.
Find a reputable gold dealer or trader through the British
Numismatic Trade Association and compare prices.
Beware investing at the peak of a market, if the global
economy improves, the price of gold could decline rapidly.
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