According to founder of Argyle Diamond Investment Craig Leonard, a lot of people are disillusioned with the property, share and gold market and they are looking for other things to drop their money into that are providing far better returns.
Leonard said this had particularly been the case for those managing their own superannuation.
Self-managed super fund (SMSF) trustees have the benefit of deciding how their funds are managed and have control over how their money is invested.
Here are some different investment opportunities Leonard has seen Aussies invest in.
Leonard said Whisky prices depended largely on two factors: the reputation of the distillery and the age/rarity of a particular bottle or cask.
“Investors can expect average annual returns of around 8-10 per cent, while older whiskies from top distilleries can fetch higher prices,” he said.
“Whisky is an asset-backed investment, meaning that once you have purchased your cask, you will always have access to the whisky, either to sell or bottle, but storage and keeping it in correct temperature conditions can be expensive and finicky.”
No, this is not a joke. Leonard said, depending on the stallion, horse semen was one of the most expensive liquids on earth.
“One gallon of a gold medal-winning horse is worth $4.7 million,” he said.
“Once the semen is collected, it can be separated and sold in units called straws, and wealthy investors are willing to spend, if it means procuring a proven winner’s semen.
“In the horse-breeding industry, genetics are very important and the thought of investing in producing a top-winning foal is very thrilling, but risky.”
Leonard said designer handbags had experienced a valuation spike of 83 per cent in the past 10 years, making them a viable and wearable investment choice.
“One such bag even sold at auction for over $370,000 in 2016,” Leonard said.
“Designer bags offer the benefit of a fairly fast return on investment.
“Some bags can be harder to get because of a limited release, which increases its value.”
Leonard said quite a few of his clients had added very specific branded handbags to their SMSF assets, but warned you needed to watch out for fakes and should only buy from established, reputable dealers.
Comic books, collectible toys and Pokémon cards
For the young at heart, collectibles such as comic books, toys, figurines and collectible cards could be a fun way to diversify an investment portfolio, Leonard said.
“While they may come across as kids’ novelty items, some of these things can actually get you a good price,” he said.
“The first Superman comic book was sold for $3.2 million, the most expensive Beanie Baby price fetched $600,000, and the most expensive Pokémon card ever sold was auctioned for $900,000.”
Leonard said it might be a good idea to clear out that old box of childhood trinkets in the garage. You never know what you might find in there that might be worth something.
Argyle branded pink diamonds
Leonard said many SMSFs were now investing in Argyle branded pink diamonds.
“Argyle branded pink diamonds have become an increasingly popular option in recent years, because investors are looking for higher-return tangible options other than traditional gold and silver,” Leonard said.
“With the closure in November 2020 of one of the world’s largest diamond producers by volume, the Argyle Mine, the rarity and value of these Argyle branded pink diamonds have shot up.”
Since 2005, Argyle branded pink diamond investors had seen an annual increase in value by up to 30 per cent.
“Investing in cryptocurrency is still a fairly young area of investment,” Leonard said.
“Many of the more conservative investors will shy far away from it, simply because they don’t understand what it is and how it works.”
However, Leonard said that even though crypto had made many people rich, it was also a risky investment.
“The downside of crypto is the lack of regulation and supervision, and the ongoing security issues,” he said.
“It seems like every day we are hearing stories of these currencies plummeting in value; wallets being drained and coins being stolen.”