Maybe it’s the pandemic. Maybe we’re just bored. But this week, a Holden sold for $1.3 million and something called “non fungible tokens” (NFTs) were selling for $70,000.
NFTs are unique digital assets which exist, like Bitcoin, on a blockchain and cannot be replicated. Confused? You should be.
While the current NFT market is focused on collectibles, such as artwork and digital sports cards, Twitter CEO Jack Dorsey recently sold an NFT of the first ever tweet for US$2.9 million.
The NFT market has really taken off this year, with Reuters reporting that sales over the first six months of the year reached US$2.5 billion.
The trend has certainly been good to digital artists such as American Mike Winkelman. Up until the NFT craze, the most he had ever sold a print for was US$100, but in May an NFT of his work sold for US$69 million at auction house Christies, making him among the three most valuable living artists.
Someone else paid US$390,000 for a 50 second video of Elon Musk’s ex-partner Grimes.
They aren’t celebrities, but a US family sold an NFT of a family car tip, in which the mother told her daughters they would be going to Disneyland instead of going to school that day, for US$74,000.
Nice work if you can make it.
Not many of us can afford that kind of money, but if you want to explore and dabble in the world of the NFT there are several online marketplaces which you might like to check out.
Have a look at OpenSea, Rarible, and Nifty Gateway, which is reportedly a favourite of Grimes. Another one active is Australia is Binance.
While many NFTs exist in the digital world, one kind of physical asset seems to be accelerating in value is classic cars.
Last weekend, a 1994 Subaru world rally championship car sold at auction for around $500,000.
While that sounds a lot, and it is, how about the money people are paying for classic Australian muscle cars?
One of Australia’s rarest cars, a 1972 Ford XA Falcon GTHO Phase IV, was reportedly sold recently for $1.75 million, overtaking the previous record for this model which was also a jaw dropping $1.15 million.
If you’re on the Holden side of the Holden-Ford divide, you might invest in a classic Torana. One sold recently for $775,000.
Once again, these investments are probably way beyond many people but it is possible to apply some of the same thinking to cheaper investments.
The market for classic mid-century Australian made furniture, for example, can deliver nice profits. Look for brands such as Parker and Chiswell.
The world is full of replica Eames chairs, but a real one could not only be comfortable to recline in, but turn out to be a savvy investment.
There are all kinds of exotic investments out there and many different marketplaces. Depending on which google search you click on, old Australian $1 and $2 notes are reportedly worth up to $10,000 each.
Many people who have Self-managed Super Funds like to punt on exotics.
A 2019 analysis of close to 2500 SMSFs found that among the exotic investments were water rights, commercial washers and dryers and – wait for it – frozen semen.
While that might be the most exotic investment you read about today, there are plenty more out there.
So if you want to spice up your portfolio a bit, get searching.
While it might be too risky to bet the house on an exotic investment it could make you more interesting at dinner parties and make that bottle of vintage wine affordable.