Listen to the article
Alternative Investments To Gold
Economic uncertainty and political instability often leads investors to seek refuge in gold. Historically, investing in gold has been a bastion of stable returns & value preservation.
And while gold still remains a popular investor’s choice, in the age of alternative investments, there are other options that can provide investors with the same security and better long term returns.
In this article, we’ll explore a bunch of alternative investments to gold, such as silver, cryptocurrencies, fractional ownership of real estate, investing in EVs, and more, giving investors a number of comprehensive investment options beyond gold.
What Are The Best Alternative Investments To Gold?
Silver
There’s a reason silver is known as the “poor man’s gold”. Silver is a very similar investment to its more illustrious counterpart, except that with silver, you can purchase more metal for the same amount of money, providing you with more affordability.
In addition, silver has extensive industrial applications, particularly in electronics, solar panels, and medical devices, which can drive demand and potentially enhance its value. Silver also has higher volatility compared to gold, which can lead to larger price swings.
Cryptocurrencies
Cryptocurrencies such as bitcoin have emerged as a modern alternative to traditional investments like gold. In fact, many cryptocurrencies are actually referred to as “digital gold”.
Bitcoin for example, offers a decentralized and finite digital asset which caps at 21 million coins.
Its appeal stems from its potential for high returns, ease of transfer, and independence from government control.
Other cryptocurrencies, such as Ethereum and Litecoin, provide distinct advantages such as smart contract capabilities and faster transaction times. However, the cryptocurrency market is very volatile and speculative, making it a riskier investment than gold.
Fractional Ownership of Real Estate
Just like gold, real estate has been the favoured investment for investors seeking stable, long term returns. However unlike gold, real estate has an added advantage of generating consistent monthly income through rental yields, making it one of the most productive investments you can have in your portfolio.
But not everyone has the financial resources to invest in buy expensive commercial properties or real estate. This is where fractional ownership comes in. Fractional ownership allows multiple investors to pool in their money and jointly own a property, mostly commercial real estate.
This enables people to invest a fraction of the total property price and purchase a share of ownership in it, lowering the barrier to entry and enabling diversification.
Fractional ownership is done through fractional ownership platforms (FOPs), like Assetmonk, that handle the property takeover, management, and maintenance, so you don’t have to.
How Big is Fractional Ownership?
In 2024, Small and medium real estate investment trusts (SM REITs) are expected to grow significantly in India’s real estate market, according to a report by real estate giant JLL India titled JLL Property Share.
The report also reveals that the Indian fractional ownership market is expected to grow more than tenfold and exceed $5 billion by 2030.
The fractional ownership sector has enormous potential, with a portfolio of over 328 million square feet of office assets valued at around $48 billion, as per the report.
Invest in EVs
Investors can also capitalize on the growing shift towards sustainable transportation by investing in the electric vehicle (EV) sector. Companies like Tesla, Rivian, and traditional automakers are leading this transformation. The increasing demand for EVs is driven by technological advancements, environmental regulations, and changing consumer preferences.
Investing in EV stocks or related industries, such as battery production and charging infrastructure, can provide substantial returns as the market continues to expand. However, investors should be mindful of the competitive landscape and technological risks associated with the EV industry.
EV Industry Market Size
The current market size for EVs 2024 is estimated to be USD 34.80 billion, with a potential for growth to USD 110.74 billion by 2029, representing a Compound Annual Growth Rate (CAGR) of approximately 26.05% over this forecast period.
According to a report by Mordor Intelligence.
According to a number of reports with varying forecasting periods, the EV and EVs market in India will exceed USD 100 billion by the end of this decade.
Structured Debt Backed By Real Estate
Structured debt backed by real estate -such as mortgage-backed securities (MBS) and real estate investment trusts (REITs) – offers another alternative to traditional gold investments.
However, how these investments perform can be affected by the overall real estate market and economic conditions, so it’s crucial for investors to do their homework thoroughly.
Bottom Line
Like the name suggests, alternative investments represent a departure from the conventional. Alternative investments may not be for everyone, but are they the right choice for you? This is where we come in.
Assetmonk is a unique player in the real estate alternative investment space By marrying the stability of conventional real estate investments with alternative financial investments, we have constructed an innovative bridge between traditional property investment and contemporary wealth management strategies.
Assetmonk provides a web-based dynamic alternative investment platform, it empowers investors to own stakes in high-value commercial properties, opening up opportunities for them in real estate investments with significantly lower entry barriers.
In doing so; we present investors with a unique avenue for growth by putting them in pole position for reaping off of their financial investments.
Read More
Fixed Income Investments Are Your Best Bet In A Fixed Market, Here’s Why
