Trustnet Magazine 60 March 2020 - Page 44

In focus 44 / 45 [ SECTOR PROFILE ] Pádraig Floyd finds out how you can make money from your hobbies Collecting coins A fter years of relatively benign investment markets, concerns about the coronavirus have sent investors scurrying for safe havens. But some investors are not looking for a safe place to put their money, nor even in the stocks that deliver the highest returns, but in more exotic assets that pique their interest. specialised areas is not as straightforward as it sounds. “The big issue with things like classic cars is that not every classic car will go up in value, so you have to be extremely knowledgeable on which one you’re buying and which one is likely to add value,” he says. “It’s not like a company where you can look at the reports and Not such a bad idea accounts and go, ‘okay, that company This is why some people invest in race is making X profit and in scenario ABC, horses or football clubs. Not for pure we think this will happen based on the returns, but for the love of it. analysis’. In the past, other specialist assets have “The car doesn’t produce been regarded as frivolous rather than anything, so it is serious investments. Yet research from like gold in that P2P platform Sourced Capital suggests respect: it is classic cars, fine wine and coins have basically only proved to be sound investments over worth what people the past five years, delivering double- think it’s worth.” digit annualised returns. As a result, However, Adrian Lowcock, head of Lowcock says personal investing at Willis Owen, warns that making money in these TRUSTNET