Types of Investment

Alternative Investments

Cash, bonds and stocks are more traditional investment types in finance. However alternative investments include art, wine, precious metals (i.e. gold) and cryptocurrencies (i.e. Bitcoin).

Alternative investments are not typically recommended to individuals as it is quite difficult to predict their value over time. These types of investments can often be worth millions one year and nothing the next.

Alternative investments are usually not regulated, which adds another element of risk. This means that investors are not protected from scams or manipulation, like they would be with stocks, bonds or cash.

Individuals don’t usually receive income from alternative investments and are usually hoping that the value of the item will increase over time. They are often referred to as ‘store of value’ investments.

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