Nov 28, 2024
Ontario-based real estate agent Jack Arshawksy bid USD$3.72 million for a case containing thousands of 1979-1980 O-Pee-Chee hockey cards — including Wayne Gretzky’s rookie card.
Texas-based Heritage Auctions, who put the cards up for auction, say they were never paid.
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Arshawsky told CBC News that he’s not sure what happened but that when wiring large amounts of money, it can “disappear into cyberspace.” While this may deterent from looking towards more unique types of investments, fear not, there is a thriving industry that places precendence on these precious commodities.
Alternative investments can be a way to offer diversified financial growth while nurturing your passions. Here are three options worth betting on:
Investing in precious metals
Precious metals such as gold, silver and platinum can be attractive assets to invest in. As of 2023, the annual average return of gold was 13.8%.
You can either have physical ownership, like bullion, or products that give exposure without taking ownership, such as equities or derivatives.
Exchange-traded funds (ETFs) give investors ownership of the proportion of gold or silver that underlies the fund, without taking physical ownership of the actual metal.
Gold derivatives, like futures and options, allow investors to buy or sell gold at a set price in the future. These are typically for more experienced investors and may involve larger investments, leverage and complex trading.
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Fine art can yield impressive results
Commodities aren’t the only alternative investments to consider if you’re looking to spread your risk outside the stock market. The art market has been consistently growing over the past few decades, and certain pieces have yielded impressive returns.
Beginners should hone in on emerging artists and research online marketplaces where contemporary artists are getting visibility.
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Start by analyzing the market, visit auctions and galleries, and learn about different types of art and artists.
However, it’s also possible to invest in shares of art through funds, such as Yieldstreet, which brings contemporary art to the auction block.
Wine connoisseurs have options for investing
Similar to artwork, wine is a collectible investment that often outperforms the stock market.
Digital platforms like Vinovest, which is similar to a robo-advisor, have broadened the scope of wine investing, reaching younger people across North America.
Wine has outperformed the S&P 500 since 2006 — so if you’re looking for a passive investment with higher-than-average returns, wine might be just the thing.
Bottom line
Whether it's art, wine, precious metals or hockey cards, alternative investments such as collectibles are worth considering if you’re looking for higher risk with the potential for higher rewards.
As for the Gretzky cards, Heritage Auctions will be reoffering the case in an upcoming auction — with Arshawsky suspended from bidding.
Sources
1. Canadian Securities Institute: Investing Strategies of the Future: From Alternatives to Personalization
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Jessica Wong is a freelance writer based in Toronto, Ontario. Her work has appeared in numerous publications including STAY Magazine: Hotel Intelligence and re:porter magazine. With a background in economic development, entrepreneurship and small business consulting, she enjoys writing about topics that help Canadians learn more about personal finance.
