3 Ways to Invest Your Money (Without Buying Stocks)

Did you know there are many ways to invest your money without putting any money in the stock market? Owning assets has become an increasingly popular way of investing. However, not all assets appreciate over time. Before investing in a physical asset, it should be considered which investments have proven to gain value over time.

Let’s take a look at some assets that have proven to appreciate over time:

Real Estate:

Real estate has proven to be an asset that appreciates when it is held for an extended period of time. As with many investments, there can be an ebb and flow depending on how the market conditions vary. However, if you are committed to holding your real estate investment for many years, you are likely to see a great return on your investment. According to the National Association of Realtors, home prices have increased by 49% in the last ten years.

Even in dire circumstances, the real estate market has been shown to recover and restore itself. For example, in 2008, when home values dropped 29%, it only took about four years for home prices to recover fully. This means if you hold your investment long enough, you will likely see a great return.

Over time real estate has proven to increase in value and recover from economic downturns.

Rare Art:

Rare art is another asset that has shown to appreciate over time. According to CNBC, contemporary art averages a return of 7.5% annually.

The average annual return in the stock market is around 10%. Meaning rare art comes close to keeping up with the rate of return you could expect from the stock market.

However, investing in rare art can be risky. As trends change, the value of rare art could be impacted. Additionally, art is generally somewhat fragile, so it needs to be taken care of and stored safely. Having artwork appraised and insured will help ensure you make a good investment and that your investment is protected.

Precious Metals:

Precious metals have also proven to appreciate over time historically. There are various types of precious metals you could invest in. Gold has shown to be a consistently high-yielding precious metal. According to Statista.com, gold has an annual return of 7.78%.

Investing in precious metals, or more specifically gold has can have many benefits. Generally, gold holds its value even in a turbulent economy. When inflation occurs, stocks often drop significantly; however, gold typically is much more stable and usually stays close to the same price when inflation hits. Therefore, gold has long been a go-to investment for investors looking to diversify and stabilize their portfolios historically.

All investments have some risks that should be considered. However, investing in physical assets may help to diversify your investment portfolio. A portfolio with many different types of investments will likely reduce overall risk and yield a more reliable return!