Offbeat Investments

March 1, 2015

Stocks, IRAs, mutual funds, real estate, precious metals, corporate shares – you’ve probably heard of these in your quest to grow your financial portfolio. But, if you’re feeling like taking a little risk, here are a few offbeat investments you might want to check out. They may seem like oddballs now, but if you win big, you’ll be laughing all the way to the bank.

ART

Art takes many forms, with some of the best investment returns found in painting and sculpture. Of course, you can’t see the future, but you can hone your investor’s eye by visiting galleries and exhibitions, subscribing to art magazines, reading up on emerging artists, and seeing who’s got buzz going. Follow your gut, too. If you sense that an artist is creating something truly unique, buy one piece now and watch their growth to decide if you want to invest further. Today’s small town gallery show may spawn the next Picasso or Banksy. Every famous artist had to start somewhere. TIP: Make sure that you get proper, signed documentation when buying a piece of art. Otherwise, 20 years from now, when Mr. Artiste’s works are highly in-demand, you may have a tough time proving that you own the real deal. SUCCESS! In 1949, Alfonso A. Ossorio bought one of Jackson Pollock’s early paint drip compositions for $1,500. The painting, titled "No. 5, 1948," went through several owners over the years before selling in 2006 for a whopping $140 million.

COINS AND STAMPS

There are two ways to approach coin or stamp investing. One is to take a selection from what’s circulating now, store it safely and sit on it for several decades, hoping that you’ve chosen wisely. The other is to acquire rare coins from collectors, shops or shows, buying low and selling high, which, depending on the market, can sometimes be achieved within just a few years. There’s a massive amount of variety here. You can collect to suit your interests, seek out stamps and coins from certain countries, or theme them by artwork. The enemies of coins are humidity, acids, air pollution and improper handling. Stamps can be damaged by water, sunlight, dust or pressure. So, with these investments, care is key.

TIP: Keep stamps in albums, stored upright, and only pick them up with stamp tongs, which are designed to avoid making ridges. For coins, don’t just throw them in a jar like you would your extra change; use a 2 inch by 2 inch specialty coin holder or encapsulated coin shell. Store either in a home safe or safety deposit box in a low-humidity environment.

SUCCESS! One of the most rare postage stamps in the world, the Cape of Good Hope stamp, is valued at $40,000. One of the most valuable coins, the U.S. Flowing Hair Dollar of 1794, sold for over $10 million. They don’t take up that much space, so what are you waiting for?

POP CULTURE MEMORABILIA

The value of pop culture memorabilia is highly subjective and, like most investments, its value is based on how badly people want it. So, it’s risky, but it doesn’t have to be expensive at the outset, as some memorabilia can be purchased for as little as $5. If you think you’ve got the ability to know what trendy TV show, film, sci-fi phenomenon, cartoon character, ad campaign or toy is going to have longevity, buy it now and store it to be opened like a time capsule later. Some examples include collectibles from Star Wars or the Marvel Universe, video game tie-ins like Pokemon or World of Warcraft, or limited-edition gear from shows having a current moment like Game of Thrones.

Be prepared to haunt eBay (or its future equivalent) in your old age, and attend comic-cons, in order to sell your investments.

TIP: Keep your trendy treasures in good condition: clean, smoke-free and unused. Most toys and action figures are far more valuable if kept in their original, unopened packaging. If you want something left out just for the fun of it, buy two – one for your shelf and one to carefully pack away.

SUCCESS! Back in the "˜60s, it was a campy sci-fi show that few believed in; today, Star Trek is a worldwide phenomenon of TV and movies, with another film on the way in 2016. If you’d picked up one of Captain Kirk’s phaser rifles at a props auction back in the day, you could sell it today for $192,000.

COMIC BOOKS

For many, collecting comics is nothing more than a hobby, but the best scenario is that it’s a labor of love that pays off in the long run. There are a few ways you can maximize your comic collection to become something that might bring in the bucks. When you’re buying vintage, look for the earliest appearances of landmark characters, such as Batman or the Green Lantern. Try to find comics that include storylines relevant to the time of publication, such as Wonder Woman, who amped up patriotism during World War II. When buying current comics, stay savvy by keeping an ear to the ground for what new characters are generating a lot of talk and buy the issues that feature them. This could get you in on the ground floor of the next big comic thing.

TIP: When you were a kid, you may have made fun of a classmate for keeping his comics covered in plastic, but that comic nerd would prevail today because a polyethylene or mylar sleeve, backed with acidfree cardboard to keep them flat, is the best way to protect these colorful picks. Your old comic is yellowed and torn; his is snagging $2,000 at auction.

SUCCESS! An Action Comics 1938 issue that initially cost 10 cents and introduced the character of Superman went up on eBay last summer for 99 cents"¦and ended up selling for $3.2 million – nerd power!

PEOPLE

That’s right – people (and we don’t mean Soylent Green). Short or long term, there are many ways to invest in talented folk and their creative projects. Online, check out Patreon, Kickstarter, Crowdcube, Crowdfunder, IndieGoGo, Appbackr and Prosper if you’re interested in general crowd funding. The returns vary wildly from simple goodwill – or pennies on the dollar – to music, backstage passes, film credits, cool new products or, yes, financial kickback. Prodigy Finance al lows you to invest in an MBA student. Lending Club allows investors to take the place of a bank, loaning money to regular people for a projected return. Or, you can aim closer to home and support the dream or venture of a family member or friend; be an angel investor to help them reach their goal and you might just move toward your own financial goals, too.

TIP: These are very unpredictable situations with a lot of diversity, so make sure you understand what’s expected of you and exactly what returns are being offered. Even with people you know well, prepare paperwork so there aren’t any misunderstandings, hurt feelings or family feuds down the line.

SUCCESS! Berlin-based Companisto, an equity crowd funding platform, worked with the Weissenhaus Grand Village Resort to make their property a reality. That project is reportedly paying back its investors at 4 percent per year, with capital gains potential in the near future. Or, if you’d invested early on in the music career of someone like Madonna or Jay-Z"¦well, that one’s obvious.