The first quarter of the year has gone and investors are scouring the market to identify trends for their next big investment.
So which markets should you keep an eye out on?
Investing in Colored Diamonds
Coming up time and time again, colored diamonds continue to show growth in 2021. Despite supply chains being disrupted in 2020 due to the pandemic, colored diamond prices don’t seem to be significantly affected. In fact, the very first colored diamond auction in 2020 was met with record breaking sales.
Colored diamond prices do seem to continue their upward trend. In fact, in May, 2021, a new record was set for purple-pink diamonds when the Sakura Diamond sold for $37.7 million AUD. In a report published by the Fancy Color Research Foundation, it is evident that pink, blue, and yellow diamonds prices are all going up. More specifically:
- Pink diamonds experienced a 0.4% growth, with 2 and 3 carat categories rising by 1.5% and 1.4% respectively.
- Blue diamonds experienced a 0.5% growth in price, with 1.5 carat diamonds rising by 1.5% to 1.9% depending on color saturation.
- Yellow diamonds showed a 1.1% and 1.2% increase for 3 and 10 carats respectively. As opposed to blue and pink diamonds through the overall category did see a slight decrease. This is no need for alarm however, since yellow investment grade diamonds saw an overall increase as stated above.
Time and time again we see that no matter the market situation, colored diamonds seem to be an excellent alternative investment, and have shown to retain (or even gain) value.
But what if you wanted something a bit more “adventurous”…
Investing In Cryptocurrency
Ever since the mysterious Satoshi Nakamoto created Bitcoin over a decade ago, there have been firm advocates for and against cryptocurrencies. Overtime however, more and more cryptocurrencies started to emerge, and as the number of adopters rose, so did their value. Something interesting has happened over the past few months…
Multiple cryptocurrencies have been climbing to jaw dropping numbers in 2021:
Even cryptocurrencies that were originally created as a joke, such as dogecoin, have seen their fair share of value increases.
Unlike colored diamonds, cryptocurrencies are significantly more volatile and are subject to massive value spikes and dips at a moment’s notice.
From the graphs above, while crypto's are off from their all-time high, they are still showing greater than 100% year over year increases in their prices.
Investing in NFTs
If you are not a fan of the cryptocurrency volatility but you want to enter the digital world, perhaps NFT (non-fungible-tokens) are right for you. Similar to diamonds or works of art, their value is tied to exclusivity and rarity. The most popular and perhaps most confounding NFT market is none other than NBA Top Shot. Showing massive growth in the past months alone, NBA Top Shots has processed over $250 million in sales and there are no signs of it slowing down.
If you would like to learn more about NFTs and if they are the right alternative investment for you, check out our post “Everything You Need To Know About NFTs” for more insight.
Investing in Collectable Sports Cards
If you want to combine a hobby with investing, then collectable sports cards might be the alternative asset for you. Amidst the global pandemic, when most other investment assets took a hit, this particular industry was growing rapidly.
Normal and rookie cards from superstars and hall-of-famers of every sport were setting jaw-dropping records the likes of which the industry had never seen. Values were seemingly doubling or even tripling compared to those from just a year ago, and that was only the start.
Here are just some notable examples with price-tags close to those of fancy colored diamonds:
- January 2021, a 1952 Topps Mickey Mantle sold for $5.2 million
- April 2021, an Upper Deck Exquisite Collection Rookie Patch Autographs #78 LeBron James sold for $5.2 million
- In February 2021, a 2018 Panini National Treasures 1 of 1 Logoman Autograph Luka Doncic sold for $4.6 million
- August 2020, a 2009 Bowman Chrome Draft Prospects Superfractor Autograph Mike Trout sold for over $3.9 million
- In April 2021, a 2000 Playoff Contenders Championship Rookie Ticket Autograph #144 Tom Brady sold for over $2.2 million
- September 2020, a 2013 Panini National Treasures Logoman Patch Autograph Giannis Antetokounmpo exceeded $1.85
- July 2020 - 2003-04 UD Exquisite Collection LeBron James rookie card was expected to sell for $1 million and it sold for $1.8 Million
- March 2021, a 1996 Topps Chrome Refractors #138 Kobe Bryant Rookie Card sold for close to $1.8 million
The list can go on and on. Furthermore, looking through recent public auction lots such as Goldin Auctions and Robert Edward Auctions, more record breaking prices might just be around the corner.
Some Honorable Mentions
Invest in Whiskey
Often overlooked, whiskey can indeed be a good alternative investment asset to consider. While not as big as the colored diamond, collectable card, or cryptocurrency industries, some whiskey bottles have set some pretty notable records at public and private auctions. Here’s a few:
- Isabella’s Islay - $6.2 million
- 1926 Macallan 60 year old - $1.8 million
- Macallan M - $628,205
- Dalmore 62 - $250,000
- Glenfiddich 1937 – $71,700
Invest in Luxury Watches
Instead of keeping your investment locked up in a vault or sitting in a digital world, why not enjoy it? Luxury watches are a perfect investment for those who want to get some more enjoyment and use out of their investment assets. Some very notable watches include:
- Graff Diamonds Hallucination - $55 Million
- Graff Diamonds The Fascination - $40 Million
- Breguet Marie-Antoinette Grande Complication Pocket Watch - $30 Million
- Chopard 201-Carat Watch – $25 Million
- Patek Philippe Supercomplication – $24 Million
- Jacob & Co. Billionaire Watch – $18 Million
- Paul Newman’s Rolex Daytona – $17.8 Million
- Patek Philippe Ref. 1518 in Stainless Steel - $11.1 Million
- Vacheron Constantin 57260 – $8 Million
- Hublot Big Bang – $5 Million
- Louis Monet Meteoris - $4.5 Million
- Breguet Antique Number 2667 - $4.5 Million
- Patek Philippe 5004T - $4 Million
- Rolex Daytona Ref. 6263 Oyster Albino - $4 Million
- Franck Muller Aeternitas Mega 4 - $2.7 Million
- Lange & Söhne Grand Complication - $2.5 Million
And once more, the list can go on…
Are there any industries that have peaked your interest? Have you noticed anything worth adding to our list? Are you planning on making an investment? Let us know in the comments below!
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