Should you invest? Absolutely! It’s one of the best ways to beat inflation, build wealth, and retire comfortably.
While most people think about investments as investing in stocks, mutual funds, and bonds, these are only a handful of the many choices available. While there is nothing wrong, of course, with pursuing traditional investments, you may also want to consider investing in non-traditional things like foreign currency, coins, or collectibles.
Investing in Foreign Currency
The foreign exchange market, usually referred to as FOREX, is where currencies are regularly traded. As a speculator, you can take advantage of price differences to make handsome profits.
An excellent example is the Iraqi Dinar (IQD). Before the 1991 Gulf War, this currency traded at 3 IQD for 1 US Dollar. Now, the ratio is 1,185 IQD for 1 US Dollar. As a speculator, you can now buy a large amount of the Iraqi currency and wait until it revalues, at which point, you can sell your Dinars for a huge profit. Of course, you should keep up with quarterly and annual updates, getting reports like the Iraqi Dinar Revaluation 2018.
All things considered, there are three reasons why you might want to consider foreign currency investments.
- Diversify your portfolio: Foreign currency investments allow you to diversify your portfolio rather than just focus on US equities.
- A level playing field: Foreign currency investments allow you to compete on a level playing field because currency valuations are based on real-time monetary flows and a nation’s economic events.
- A global economic hedge. Foreign currency investments can serve as a global economic hedge should US fiscal policies trigger inflation–which, of course, will progressively weaken the dollar.
Investing in Coins
Coin collecting is based on the hope that the coins you buy will increase in value at a higher rate than inflation.
But coin collecting is only something you should do if you’re intrinsically interested in the historical significance of coins, the field of numismatics, because to prosper as a coin collector, you will need to do a considerable amount of research on where to find valuable coins.
Coin collecting is ideal for someone who has a passion for finding rare coins, but it’s not the best path for someone whose primary interest is to benefit from the world of precious metals. If your main focus is on wealth building, then a better path to follow would be to just buy metal ingots.
Investing in Collectibles
Collectibles like coin collecting are for people who like to look for rare items that will one day become popular.
While there are many categories of collectibles, the most popular are stamps, comic books, coins, toys, and antiques.
To do well, you need to be able to recognize the value of an item and know whether something you’re interested in buying has been overpriced or underpriced.
3 Tips to Being a Good Investor
If you’re interested in alternative investments, you need to focus on three things to do well: education, resources, and relationships.
- Education: The more you know about your chosen interest, the better your investment decisions will be. It takes considerable research, for instance, to identify the best types of coins to collect and to understand what makes them valuable. What’s more, you need to consistently study your topic—understanding things at an increasingly deeper level and staying up to date on the latest developments.
- Resources: You will need to get the right resources to do well. Resources include getting the right catalogs, subscribing to the best charts and statistical data, knowing the best places to buy and sell, and discovering where you can get reliable information. Every field has different resources, so find out the resources that you need to know to excel in your field.
- Relationships: You will learn a great deal about your alternative investment by associating with others in the field. Besides working with mentors and knowing the right brokers, you will also benefit a great deal by spending time with peers. Associating with others who are as interested in your field as you are will help you deepen your insights. You’ll get invaluable tips on what to pay attention to and what to buy or sell.
In closing, don’t simply think of investments as vehicles to grow your wealth. Instead think of them as passions, because the more passionate you are about something, the more you’ll be motivated to learn everything you need to know to get significant results.
