Alternative investment options Other investments
Horseracing syndicates
Buying a racehorse is costly, but smaller investors can join a racing partnership
Buying a racehorse is a high-risk investment and costly, but smaller investors can consider joining a racing partnership.
It’s not just race winnings that can provide earnings: one successful sale was of Petrushka – owned by a Highclere Throroughbred Racing syndicate – for £3.5 million after buying her for around £100,000 two years earlier. The British Horseracing Authority provides guidance on ownership.
Wine
Over the past decade, fine wine has appreciated by more than 10% a year.
Of all, red Bordeaux has generally performed well - a case of Carruades de Lafite 2000 cost £950 in August 2007, compared with £451 a year earlier.
Wine should be viewed as a medium-term to long-term investment – with a minimum of around five years.
If it’s kept in a bonded warehouse there’s no VAT or duty to pay, although you pay annual storage and insurance fees of around 0.5% of your investment.
Gold
Gold is widely viewed as a safe option in times of economic turbulence.
The gold market can fluctuate from year to year
The average price of gold in 2006 was $590 an ounce, compared with $388 in 1996. However, the average price in 2001 was $271, showing how much the market can fluctuate from year to year.
The World Gold Council can advise on ways to invest.
Stamps
According to stamp dealer Stanley Gibbons, prices of rare-quality rare stamps have increased by 9.5% a year for the last 50 years. Stamps are easily portable and there’s a large international market for rare items of high quality.
To learn more about collecting stamps, join a local philatelic society.
Classic cars
Classic cars require expertise, storage space and enthusiasm to restore them if needed, as well as cash. But they can make their money: for example, a 1971 Type 1 Karmann Ghia might sell for more than £12,000 if sold today.
If you’re interested, read specialist magazines and consider joining an owners’ club, which can offer valuable advice and information about private sales of cars you have in mind.
Coins
As with stamps, there’s a large collectors’ market for coins – of all ages and types. For example, an 1817 George III sovereign might sell for around £200 if it’s classified as being in a ‘fine’ condition.
The British Association of Numismatic Societies produces a list of groups if you want to get involved in coin collecting.
Growth in value
Check out the table below to compare the value of items available in 1957 with what they're worth today.
| Annual increase in value of different items over a 50 year period | |||
|---|---|---|---|
| Item | Value in 1957 | Value in 2006/7 | Annual growth in value |
 Worlds second stamp | £80 | £16,000 | 11.2% |
 Beano Annual 1957 | 30p | £50 | 10.8% |
 Ermine coat worn by Marilyn Monroe | $1000 | $50,400 | 8.3% |
 1957 Ferrari 410 | $20,000 | $1,320000 | 8.7% |
 £1000 invested in UK stocks and shares | £1000 | £31,000 | 7.1% |
- To talk which investment option is best for you, call our experts on the Money Helpline
- For other investment ideas, read our guide to alternative investment options
- Or take a look at our guide to ethical investments
