The definition of a niche market is that it represents a small market segment that meets a very specific demand. The narrowness of the market has the advantage of bringing together true enthusiasts of the field concerned. Niche investing can be done in a variety of highly profitable areas. Since passion is very often the driving force behind these investments, knowing your niche perfectly is essential to be credible. Classic cars as a niche investment
If you want to make really niche investments, classic cars can be a good lead. As collector car enthusiasts are not legion, your margins will be significant. However, before investing in classic cars, you should pay attention to certain parameters.
The Choice Of Car
According to the International Federation of Old Products (FIVA), a car is considered a collector’s car from its 30th anniversary and when its production is stopped. In 2020, a few cars have entered the 30+ auto market. It is :
- Alfa Romeo Spider;
- The Fiat tempura;
- the Opel Calibri;
- The Toyota Previa.
The models that are part of this year’s collector’s cars are therefore those produced in 1990. These models have recently received their collector’s car gray card. If you want to invest in the field of vintage cars, you must first have a good knowledge in this area. Especially when it comes to the different categories. There are mainly three:
Rare cars. This category includes vehicles that are not necessarily old but rather those whose production was very limited.
To make a profitable investment, the choice of you timers cars is ideal. Indeed, these vehicles are not yet considered collector’s cars, you can have them at fairly affordable prices. If you then wait 30 years for the resale, you will have a better added value. For this, you must of course take proper care of your treasure.
Cars from the 70s such as the Lamborghini contact or the Porsche 930 are very popular with car collectors. Some of them are ready to pay millions of euros to have them in their collection. It is therefore an investment that can be very profitable.
Invest In Watches
To invest effectively in watches, you must pay attention to certain details. Indeed, to be attractive on the market, a watch must meet certain criteria.
The rarity of the watch and the technical prowess
The rarity of a watch is an important element that increases its value on the market. A rare watch will therefore allow you to have a more interesting added value. Watches that are no longer manufactured are better in terms of investment. Scarcity drives prices up. Limited editions are also a good investment.
Moreover, for a watch to be considered a collector’s item, it must have been produced at least 20 years ago. In addition, the watch on which you want to make an investment must obviously have a working mechanism. Technical prowess counts for a lot.
The Beauty And Prestige Of The Brand
A watch will have more value when reselling if it retains its beauty, aesthetic preservation will make things much easier when it comes to resale. Also, the prestige of the brand will have a great impact. The most prestigious brands are preferred.
Authenticity and conservation of the watch
For you to derive added value by investing in a watch, it must be authentic and in its original condition. The original packaging, box and papers must also be kept intact.
How to invest in watches?
Invest in wines
Wine has always been at the center of French gastronomy. This celebrity makes it very interesting for a niche investment. Indeed, the wine market is an area that attracts more and more investors.
You need to invest in a wine category that stands out and attracts a lot of people. You have several investment possibilities between organic wines, the diversity of French regions, foreign wines, etc. Wine is an often-profitable investment that is subject to very little taxation. In order to be able to generate added value in this investment, you must set up a cellar and diversify your assets in compliance with the regulations and the conservation of wine.
The wine market is not within everyone’s reach because it is reserved above all for connoisseurs. To embark on this investment, you must know the genesis of the wines, the quality of the cork, or the bottling conditions. Otherwise, you can be accompanied by specialists new to this market.
Art As A Niche Investment
The art market is over 1,000 years old. Investing in this market has long been reserved for the wealthy. This barrier seems to have ceased to exist for several years. To invest in art, you must be aware of certain information before you start.
A Profitable Market
Investing in art has always been considered a very profitable investment. It has the advantage of attracting a lot of capital thanks in particular to its generous taxation and its enthusiasts. To obtain an interesting profitability in this field, you must invest in the long term because it is difficult to predict the evolution of the price of a work of art. Before embarking on this field, it would be interesting to have information on the art market.
The Criteria For Selecting The Work Of Art For A Niche Investment
To invest in art, you must take into account the authenticity of the work, the choice of the artist, the format of the work but also the type of art (contemporary, ancient or modern). These criteria are of great importance if you want to make an interesting capital gain through this investment.
Art is above all an investment of pleasure. You must therefore have a strong interest in this field before you start. Your passionate and connoisseur’s glance will allow you to know which work is likely to appeal to collectors in a few years.
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