Money is what made the world go around during earlier times, and so it continues to this day. How to make it grow still remains the mater of bread and butter for a large number of rather intellectually and academically endowed people, some of whom are employed to innovate with ideas. As demand of exclusivity rises, and rare classics rekindle the hidden desires of owning something precious from the previous era, new instruments for financial growth and investment have propped up and continue to find new takers who wouldn't mind putting in their money into the ideas, especially if they are adventurous enough.
In light of that, the traditional instruments like shares, bonds, debentures, mutual funds, to real estate, fixed bank deposits, etc, though still ever trusted, are now taking bit of a back seat with strong inclination towards some new innovations like vintage luxury cars, ultra-premium and rare alcohol, watches, and sometimes even pens taking their places. This following list brings forward some of these ideas, and what it is generally is like, all put up as a capsule.
1) Luxury Watches
For those who like tracking time, but with considerable exclusivity, there is nothing like the designer watches. Far from being just an expensive accessory, it is now an investment tool, which seemingly seems to have quiet a few individuals involved in it, and as word has it, some investment firms too! Speaking of the core idea, it would begin by buying a watch of a premium brand like Romaine Jerome, Audermars Piguet, Jaeger Le Coultre, etc especially those in their limited collection, and then preserving these watches with their original documentation. Over time when they become harder to come by, and people search for them with greater interest as a jewel for their collection, one can then sell of this watch for a premium, thus making a sizable profit along the way.
Along this way, the main crux comes to how does one market such an asset? Well, for once the internet is one such great forum. Professional forums and platforms exist where one can market their unique offerings, and perhaps strike a deal. Also, word of mouth publicity within the right circles could also help, especially with professional auction houses who oversee the sale of such timepieces. However, it goes without saying that this stream of investment still needs to pick up and become popular in many countries. Interest has been generated, but the trade will only pick up when more investors believe and practice it on a wider scale.
But yes, like most things valuable and like most businesses, one needs through expertise at how and what the watch works like. This will help gaining control over convincing the prospective buyer in future.
News: Hublot recently unveiled the $5 million Tourbillon watch, which has supposedly got the interest of some unnamed collectors and orders are pouring in.
2) Premium alcohol
Time immemorial, and the consumption of premium alcohol between the richer class as been documented with as much intricacy, and frequency, as it perhaps could have been. But with changing times, this too is now a rather lucrative avenue and emerging as a safehouse for investing decent amounts of cash. Mostly people already investing in such rare bottles of alcohol, auction their premium offerings when they become even rarer or simply consume them if they seek fit. But just like the other investments, this requires a lot of grading and picking, due to which one can even notice a premium pricing pattern for them. The likes of Chateau and Chardonnay wines, or the Dalmont, Johnnie Walker whiskies and many others like them, generally have a premium limited edition range, only a limited number of which get released each time.
They get differentiated according to their ages, or specific occasions for which they get bottled for, creating a demand amongst collectors and connoisseurs to buy them over. When they become even more rare and sought after, the bottles get sold off at premium prices along with a sizable profit margin. But the main point to note in this trade, is the sufficient knowledge of grading, tasting and flavoring, and sources of origin. This helps in building credibility and a higher demand in the long run for the seller/ investor.
News: A bottle of Janet Sheed Roberts Reserve of Glenfidditch whisky sold for $94,000 for a single bottle.
3) Writing Instruments and Pens
With the onset of internet and personal communication devices, hand written communication seems to have taken the road towards a series downhill in use, on a daily basis. However, for those willing to shell out the cash, some luxury pens still manage to strike a chord with them such as the Mont Blanc, Caran d'Ache, or the Montegrappa collections. Though it may not be as detail oriented as the watches or premium lot of alcohol from around the world which need significant amount of expertise, but never the less a sense of design and art forms does help a lot in it. Unlike the others, this trade and investment is still low key, but never the less there if looked after hard enough.
News- In 2010, Tibaldi's Fulgor Nocturnus (pictured above) had exchanged hands at a charity auction, for a sum of $8 million.
4) Investment grade automobiles
As a kid, I used to wonder what would happen to all those brilliant cars one would see in the old movies and car shows. Only very recently did I come to know that some of them really do exist, and in awesome condition, or rather investment grade. Auction houses like Sotheby's and RM Auctions have been grading and helping with the infrastructure to auction of vintage automobiles, which have been maintained as per certain standards, so that the seller gets a premium pricing, for the vintage auto he/she just sold. So the buyer or rather the winning bidder at the auction gets a premium vehicle with a great history behind itself, along with being one of the rarest examples of a car which was once the talk of the times, during its hay-days.
If trends were anything to go by, than its a safe conclusion to say that the Ferraris of the 1950's still continue to be the most sought after, followed by the likes of vintage Bugattis, Rolls Royce, and even some from Mercedes Benz. The lucky collectors who then sold of these vehicles, are known to make the most premium of the profits, but for earning it, great deal of passion and knowledge played considerable parts. Some of them have even acquired these vehicles under dire conditions, and over the years, spent their resources to get them back in shape as they were meant to be.
News- The world's most expensive vintage car sold at an auction, happens to be a 1936 Bugatti Type 57SC Atlantic, whose value is said to be $40 million.
- This article is not meant to be an authority in the area of investment and business transaction. Rather, it is meant to provide a new perspective on things that could lead to greater interest amongst various groups in the future.
- Also, there needs to be greater information sought other than that contained in this article, should anyone be looking at these avenues with more concern.
- The opinions expressed here, are perfectly my own and do not reflect any particular interest group. As a writer, these are things that have caught my attention in the recent past, hence I have used this forum to express them.