Are There Good Alternative Investments To Stocks and Bonds

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( — September 24, 2020) — Stocks and bonds are traditional investments considered to be high yielding due to their high risk. With the variable nature of the stock market making it hard to predict, however, more people are turning to safer assets in which to invest their money. Any investment outside the scope of the traditional assets of stocks, bonds, and cash is considered an alternative investment.

Alternative investments, though less traditional, are a great way to diversify your financial portfolio. Spreading your funds over a variety of assets, rather than putting all of your money into one, minimizes the risk of your financial investment and may improve your returns.

But what are good alternative investments? With a wealth of options available, it’s difficult to know where to start. Let’s explore a few different assets and their advantages.

Real Estate

Real estate is a popular alternative to investing. Purchasing a house to use as a rental property generates a steady flow of income. With current interest rates being so low, it’s a good market for buying a house. The rent not only pays off the mortgage over time, increasing the amount of cash flow as direct income, but it’s also a reliable option for securing a monthly income.

Though investing in real estate is considered a lower risk, it requires a larger upfront cost. No matter how good the market is, property is expensive. In addition to the mortgage, you must factor in property tax and home repair. General upkeep and taxes limit profit. If you don’t have a lot of upfront cash, an investment property may be an expensive alternative.

Gold and Silver

Commodities such as precious metals are another good alternative to investments. Gold and silver bullion are two of the more common precious metals to invest in. With the depreciation of the dollar and people’s fears of an economic crash, there has been an upward momentum in buying precious metals. Furthermore, gold is less of a commodity and more of a currency. It functions both as a store of value as well as a medium of exchange.

Currently, gold prices are at an all-time high. With a rise in record prices for gold—its per-ounce price performing quite high—gold bullion has become a viable safe investment. Gold has a large liquid market due to the driving forces of investors and the high jewelry demand. As the value in investments such as stocks decline, the value of gold typically increases. As a result, it can act as a protection against inflation and deflation. Gold is also valued globally, which provides more security during uncertain financial times. Investing in gold will further diversify your portfolio, increasing its stability.

Though gold bullion is typically a better investment, there are some advantages to investing in silver. Silver is the more accessible precious metal to smaller investors because it’s cheaper than gold. Silver is considerably cheaper per ounce. It’s also high in demand since it’s used in nearly every industry, in addition to its use as currency. Though the price is more volatile than gold, you may want to consider investing in silver if you’re working with a more limited budget. Its affordability and diversity make it a good alternative to gold.


Another form of investing in precious metals is through the purchase of coins. Investing in coins is ideal because they’re highly liquid and easier to trade. Since bars tend to be harder to sell back than coins and have higher transaction costs, coins can bring in a larger premium than bullion bars.

Bullion coins are an investment-grade coin struck from precious metals such as gold, silver, or platinum and are kept as a store of value rather than a daily currency. They’re minted by national governments and derive their value by their weight and the fineness of the precious metal. Since they don’t receive their value from rarity or condition, they sell at a price competitively close to the commodity price.

Gold coins are a popular choice for investing. Since their weight and purity are backed by a central bank and sovereign, the demand for them is high. They’re produced annually, so there’s never a risk of shortage. Silver coins hold legal tender status as well as government-backed purity and weight.

Another type of coin used for investing is the numismatic coin. Commemorative or numismatic coins are valued for their scarcity, limited mintage, condition, and age. The rarer the coin, the higher the yield.

Whether you’re investing in physical bars or coins, it’s important to find a reputable dealer. If you want the most from your investment, consider choosing Swiss America for your gold coins, silver coins, or gold bullion. Our team of trained professionals is ready to serve you. Our account executives and support staff are here to answer any questions and help your venture to acquire tangible assets a pleasant one.


On the other end of the spectrum from physical assets are digital assets. Cryptocurrency is one of the newest alternatives to investing in stocks and bonds. Essentially, cryptocurrency is a digital or virtual currency. A crypto coin is secured by cryptography, which makes it virtually impossible to counterfeit. Although there are many crypto coins on the market, Bitcoin is the most familiar and therefore currently the most valuable.

One of the major advantages of cryptocurrency is that it eliminates the need for a third party. It’s easier to transfer funds directly between the two parties rather than going through a bank or credit card company. This also keeps processing fees to a minimum compared to the fees of a third party.

Although they can be highly liquid like a stock, they can also be volatile. There’s a high degree of scarcity within cryptocurrencies, so the rate at which a cryptocurrency can be exchanged for another currency can greatly fluctuate. However, they have experienced some high surges and so are gaining popularity with alternative investors.

Stocks and bonds are high risk and not the only method of investing your hard-earned money. There are various alternatives that are good choices. Don’t leave yourself vulnerable by investing in only one type of asset. Diversify your portfolio with one or more of these alternative assets and find more financial stability within your investments.