ALTERNATIVE INVESTMENTS Research paper

Zagreb, svibanj 2013.

Table of Contents

1. INTRODUCTION 3 2. ART INVESTMENT 3 3. OLD - TIMERS 6 4. BASEBALL MEMORABILIA 8 5. WINE 11 6. CONCLUSION 13

INTRODUCTION |

Alternative investments have become popular because many people and investors have been looking into safer ways to invest their money. But there is a question: What is actually an alternative investment? An alternative investment could any investment other than the three traditional asset classes: stocks, bonds and cash. Another very important question is: Why do people invest their money in alternative investment? Answer is very simple,
Intermediaries are art consultants and private banks.
The Mei Moses® World All Art Indeks is indeks which is calculated annually and it is based on resale values of paintings sold, multiple times during auction. As Figure 2 shows, Mei Moses World All Art Indeks achieves positive returns over the last 50 years, slightly lagging the S&P 500.

Figure 2 Art has shown positive returns over the long-term, albeit mixed relative to other asset classes (as of
2011)
Source: Barclays Capital, Morgan Stanley Capital International, Standard & Poor's, Bloomberg, FTSE International, Beautiful Asset Advisors® LLC Source: Barclays Capital, Morgan Stanley Capital International, Standard & Poor's, Bloomberg, FTSE International, Beautiful Asset Advisors® LLC

We can conclude that people invest in art pieces for several reasons. Art investment has its advantages (passion and diversification of portfolio) and disadvantages (illiquidity and problems with transparency) . But it is obvious that art investments make significant part in world alternative investing. Art investments achieve solid returns during periods of high and rising inflation, which make them huge investment opportunities in downturns. If an investor wants to succeed in the art business he must be patient, smart and experienced enough to enable market to trick him. After picking the right investment one can enjoy watching beautiful paintings