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Why are alternative investments growing in popularity?

30/10/2023

In late September, the Royal Mint published the results of research which shows that the popularity of alternative investments remains high. Alternative investments can be defined as any that don’t fall into the traditional asset classes – including cryptocurrencies, collectibles, real estate, commodities and more. 

Let’s take a look at which alternative investments are currently popular, and why.

 

Which alternative investments are investors choosing?

The Royal Mint’s survey of 2,000 investors reveals that 58% hold at least one alternative investment as part of their portfolio. The appetite is there among those who don’t currently hold such an investment, too, with 36% of this group saying they would consider investing in alternative assets down the line. 

Crypto investments are currently popular, held by 30% of those with alternative investments in their portfolios. By next year, though, this is likely to fall to 24% as some reassess whether crypto assets are really the best way to invest. Gold, however, is set to increase from 19% to 21% over the same time period. 

 

Why are investors opting for alternative investments?

The lure of potential financial returns appears to be the biggest motivator for investors choosing alternative assets. 63% of alternative investors state that inflation rates outstripping savings rates at UK high street banks has motivated their decision. 

During the first half of 2023, the Royal Mint saw a 17% year-on-year rise in the number of people investing in precious metals such as gold and silver for the first time. The reason, they say, is because of the assets’ “safe haven” status – and because investors see precious metals “as a means to diversify their portfolio, beat inflation, and generate wealth in the long-term”.

 

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

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