Whether you want to earn extra cash, grow your wealth , or diversify your portfolio, investing in collectibles is an exciting and fun alternative to traditional investments such as stocks, bonds, or real estate. Certain things, like vintage cars, hard-to-find wines, or rare coins, can appreciate in value over time and potentially rake in a lot of money.
Here are five collectibles to consider investing in that can become lucrative profits and soar in value over the next five years. Like any investing, there are risks, so speaking to a financial professional is always advised.
Gold bars have recently skyrocketed in value and hit a record of $1 million. According to Bloomberg News , the price of a gold bar reached an all-time high recently “when the precious metal’s spot price surpassed $2,500 per troy ounce, an all-time high. With gold bars typically weighing about 400 ounces, that would make each one worth more than $1 million.”
According to CNN , many investors believe gold bars will keep their value and withstand inflation . “Spot gold prices have shot up more than 20% year to date,” the outlet reported. “Higher gold prices can be a sign that investors expect the Federal Reserve to cut its benchmark interest rate soon. Central banks led by China are also buying up gold to ease reliance on US dollars.”
Turning your love of a good bottle of wine into an investment is a sought-after way to diversify assets and can provide a return of 8-15% annually, “depending on the source,” per No Sediment . Knowing how to choose the wine is key, and investors should consider factors such as quality, supply, demand, and the 100-point scale on which wine is ranked.
Sports Trading Cards
Owning and trading sports cards has long been a popular pastime and can be financially rewarding. According to Sotheby’s , the sports trading cards industry has experienced “massive growth in both interest and value throughout recent years,” and the amount for buying mint-conditioned cards has significantly increased. “Tens of thousands of cards are bought and sold every day, and with dozens trading for over $1 million since 2020, records are being set so quickly that if you blink, you could miss them,” the auction house stated.
To date, the 1952 Topps Mickey Mantle secured the No. 1 spot as the most valuable sports card in history when it sold for $12.6 million in 2022.
Classic Cars
If you collect the right car, you could hit the jackpot. According to Guinness World Records , the most expensive car sold at auction was the Mercedes-Benz 300 SLR Uhlenhaut Coupe, sold in 2022 for $142,769,250 in Stuttgart, Germany. Collecting vintage cars is a thrilling hobby but expensive. Classic cars are usually sold at a lower price, repaired and restored, and then sold at a higher cost, so for anyone who doesn’t know much about maintaining a classic car, this might not be the right fit.
Rare Coins
A common item investors enjoy collecting is rare coins because they offer security in the investment and maintain value, especially if you plan to invest long-term.
“If you have the ability to hold on for the long-term with the money that you’re going to put into that market, yes, because rare coins have done nothing but appreciate over the long-term very well,” Dana Samuelson of American Gold Exchange said on the Invest Like a Billionaire podcast. “When I was working in 1982, my boss bought an 1804 dollar at an auction. At that time, he paid $250,000 for the coin,” he explained. “It’s a classic. That coin traded hands many years ago for $2.6 million. It’s probably a $4 or $5 million coin now. It’s the last silver dollars they made in the classic design. They didn’t make any other dollars until 1830.”
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