Most things you buy lose some or even all of their commercial value as soon as you’ve bought them. If you could resell them at all, their “second-hand” status means you’d have to accept a price far below the one you paid. Other purchases, like computers and most cars, continue to lose value over time.
However, there are exceptions. Certain kinds of personal assets actually gain value over time. This makes them good long-term investments. These items may also serve as a valuable safety net – if you ever need to, you can sell them or secure loans using them as collateral.
It’s also true that sometimes forking out for a better item means you’ll have it for a good long time, instead of having to replace a cheaper item several times over and losing out overall.
Classic cars are a sound investment, with an estimated annual appreciation growth rate of more than 12 percent. The reason is that there’s a limited supply of them. In general, the more scarce the car, the greater its value. Aside from rarity, the quality, condition and manufacturer of a vehicle all affect its value. The best classics to invest in include models from Mercedes Benz, Aston Martin, Porsche, Ferrari and Jaguar.
The art market can be fickle, with the value of artwork changing according to current art trends and demand for certain periods, styles or artists’ work. To collect art intelligently, you need to research and evaluate each piece of art before buying it. It’s also recommended that you build up a cohesive collection of artwork. This could make your art more valuable as a collection than as individual pieces.
Rare watches tend to be the most valuable. Globally, demand for rare watches is increasing. This applies especially to rare watches from the best-known luxury brands, such as Rolex and Patek Philippe. The value of a rare watch typically increases 5 to 15 percent annually. However, the rarest and most prestigious timepieces appreciate far more in value each year.
Gold, silver and platinum are the wisest choices if you’re looking for jewellery that’s likely to retain its value or increase in value over time. A bonus is that even if the jewellery breaks or goes out of style, it will always retain the value of the precious metal.
Gold jewellery is always a solid investment, and will appreciate in value while you enjoy wearing it. The value of gold jewellery can be determined by looking at the markings stamped on it – the karat value is represented as either “k” or “kt”. The maximum number of karats assigned is 24, representing pure gold. As the gold content of the jewellery decreases, so does the karat value.
Silver is also a good investment, although its price is more volatile than gold. Silver jewellery is usually marked with a stamp to indicate its silver content. The mark “925” indicates that the jewellery is “sterling silver” , with a silver content of 925 parts per 1000. The other 25 parts consist of copper, nickel, zinc or other precious metals.
Platinum is one of the rarest precious metals, making it a valuable asset that is likely to appreciate in value over time. Most platinum jewellery consists of 95 percent pure platinum and 5 percent other precious metals, and is hallmarked “plat”. “Irbid Plat” is the mark given to jewellery that is 90% platinum and 10% iridium.
Unlocking the value of assets
If you have an asset of value, you can unlock this value by using the asset to secure an asset-based loan. Advantages are that you can obtain funds quickly and easily, without tedious paperwork, or waiting periods – and once you’ve repaid the loan and agreed interest, the asset will be returned to you.
Client borrows R10,000 for 90 days.
Total Cost of Loan
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.