It has been a tough few years for gold investors. Despite a recent uptick in gold prices, the yellow metal is still dramatically cheaper than it was in 2012, now selling at around $1,200 per ounce.
Meanwhile, other investments have outperformed gold, including the following:
Watches are not a traditional investment. If you are looking for a safe and solid investment, mutual funds are a better choice. But for investors who like to own something tangible that will hold its value over time, classic watches can be a good choice.
In particular, Rolexes are the best choice for investors looking for a safe watch investment, according to Paul Altieri, a vintage watch dealer and founder of Bobs Watches in Huntington Beach, Calif. After 20 to 30 years, Rolexes start to appreciate in value, Altieri said. This has continued to hold true in recent years even as gold has declined in value.
Investing in jewelry is often related to investing in gold, since a lot of jewelry contains gold. But jewelry also contains other elements, such as diamonds. The American Jewelry Institute notes that over the last 20 years, jewelry containing diamonds of the highest quality has been breaking records at auctions by major art houses.
That is not to say you can simply walk into a jewelry store and walk out with a ring that will be more valuable in a year. However, it is possible to make a smart investment in jewelry that can beat the returns on gold.
How one wears and treats the jewelry impacts how long the piece will last or how much repair might be incurred over time, says Jill Burgum, senior director of fine jewelry at Dallas-based Heritage Auctions.
The price of guns on both the primary and secondary markets has been skyrocketing in recent years. Meanwhile, antique weapons are another alternative investment that has done very well. From swords and knives to flintlock firearms, antique weapons have been a solid investment even as gold as tumbled, according to many experts.
Classic cars are a fun investment collectible, and their return has trounced the value of gold in the past few years. Even as gold continued to slide, classic cars increased in value by 40 percent in 2014, according to an index published by U.K. private bank Coutts.
It is critical to buy the right car and keep it in the right condition, but smart investors might find a lot of value sitting in their own garage.
Investing in coins long has been a popular hobby, but it might be on the verge of becoming a common investment too, according to some experts.
As with collecting jewelry, the value of a coin collection is often closely linked to gold prices. However, truly rare and sought-after coins are valuable not for their gold content but for their rarity and desirability.
Certain coins can be excellent investments that trounce the value of gold over time, and in recent years even common currency has outpaced the return of gold.