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9 Types of Alternative Investments to diversify Your Offshore Portfolio?

If you’ve heard someone talking about making alternative investments in an offshore environment, they’re not discussing hard-to-find or uncommon assets. They are talking about investing in something other than stocks, bonds, or cash assets. Knowing more about your alternatives for an offshore portfolio does more than add diversity to your portfolio; choosing to add some of the following will strengthen that portfolio and ensure your investment can continue to prosper in just about any economic situation. Consider the following nine alternative offshore investments.

1. Artwork within the offshore portfolio

Just about anywhere you look, there are works of art that appreciate in value. As you look around for offshore investments, everything from paintings to photography to sculptures should be considered. Along with selections that have a proven track record of value, there’s the chance to identify an artist who is gaining in popularity and might have several pieces that are attracting attention.

While you may need some help at first, learning how to recognize the earmarks of a solid investment in artwork is certainly possible. Along with securing an asset that increases in value from year to year, art is something that can add joy to your life now.

SEE ALSO: How to form a Company in Guatemala?

There are alternatives such as real estate to diversify your offshore portfolio. Infographic abot real estate in Latam.u
There are alternatives such as real estate to diversify your offshore portfolio.

2. Collectibles

Collections capture attention across the globe. They can include items once made by a particular company, be associated with a celebrity of the past, or even have to do with children’s toys. The possibilities for collectibles as investments are unlimited.

Here’s something that you may not know. With many collectibles, there are versions found in multiple countries. You may find limited editions of action figures or games associated with several nations. Secure a game from each country to have a collection that’s highly likely to appreciate over time.

3. Precious Metals within the offshore portfolio

Investments in precious metals are one of the most easily recognized alternative investments today. Your offshore portfolio can include investments in mines, ores, and other forms. Along with gold and silver, don’t overlook the potential for platinum, copper, and other options.

Using your offshore accounts to handle precious metals transactions can be very beneficial. Suppose the offshore institution you use allows for transactions in multiple currencies. In that case, converting the money in your checking account to a currency with the best exchange rate of the day is easy. You can secure more for less money.

4. Private Debt

“Private debt” refers to debt funding that does not go through a bank or gets traded on an open market. This is an area where you have the chance to tap into a financial investment that carries no more risk than you like but does offer some degree of reasonable returns. In an offshore setting, you may have to be aware of laws related to the funding of private debt. The good news is that offshore locations open to investments by those living in other nations are often happy to provide full disclosure about those laws.

The private lending you extend can be for any purpose you feel comfortable with. Provide seed money for a favorite cause or the start of a locally-owned business. Delve into property development as a silent partner. You’re set as long as you and the recipient agree on the terms, the rate of interest, how it’s applied, and ensure everything complies with the law.

5. Peer-to-Peer Lending

If taking on a private debt investment all by yourself seems like a bit much, it never hurts to consider the idea of peer-to-peer lending. This approach allows you to contribute, with several others, to fund a project. The debt is repaid to the pool of investors, each receiving their share of the interest.

In terms of volatility, this is easily one of the safest investments. You limit your risk because of the smaller amount you contribute to the investment. At the same time, you stand to generate an acceptable return to allocate to other forms of investments.

largest beef producers in latin america infographic by biz latin hub.
Meat could be included among the commodities. This is another offshore portfolio investment alternative.

6. Offshore Real Estate Holdings

There’s no doubt that offshore real estate is an excellent choice for an alternative investment. Depending on the property’s location, it may be a prime area for development. If it’s already developed, you’re ready to find tenants who will provide a steady flow of income for years. While some of what you receive goes back into upkeep and maintenance, there’s an excellent chance of recouping the original investment and beginning to see a profit sooner than you may think.

Remember that you can purchase an offshore residential property, rent it out for several years, and eventually use it as your residence after retirement. By that point, there is no debt associated with the property.

7. Offshore Life Insurance Policies

You can get life insurance at home, so why bother to look into offshore life insurance coverage? The answer is simple: you may find some whole-life policies that provide more of a return on the amount you pay into the plan.

It’s not just the return your loved ones will receive when you pass away. With the right type of policy, you have a powerful asset to use to borrow money if needed. The funds can be transferred directly into an offshore checking or investment account, used in any way you like, and then repaid according to a schedule that suits you. If you should pass away before repaying the loan, the provider deducts the balance from the payout to the beneficiary, eliminating the debt.

8. Hedge Funds

This type of investment fund can involve the trading of different kinds of liquid assets. Different approaches, as outlined in the fund, determine how the investing is carried out. At all times, the goal is to secure the highest possible return for the investors.

Unlike some offshore investment opportunities, hedge funds are not the right choice for everyone. Corporations and other institutional investors are usually the target audience for this type of strategy. At the same time, it’s not unheard of for individuals with a higher net worth to be candidates for participation.

9. Commodities

Commodities trading is one of the oldest forms of investing. If you have already dabbled in trading precious metals, you have been trading a commodity. The thing to remember is there are many other resources to consider.

Some common examples of commodities trading will involve natural gas, petroleum products, pork, poultry, corn, wheat, and other agricultural products. Supply and demand impact how the value of those commodities fluctuates over time. You can ride a wave and generate a significant return with the right approach. As you see the market shift, you can sell off those assets before they fall in value.

Biz Latin Hub can help you multiply your assets with diversification of your offshore portfolio

Diversity is essential to the success of your offshore portfolio. At the Biz Latin Hub, we have a strong reputation for being the market leaders in working with clients to understand and operate within the local market, and likewise we are well positioned to direct you to a reputable financial advisor that will support your investment decisions. Choosing the right investment advisor when doing offshore investment can mean the difference between low or high returns.

Our portfolio of services includes accounting & taxation, company formation, bank account opening, and corporate legal services.

Contact us today to find out more about how we can assist you. 

Also about our team and expert authors.

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Looking for alternative investments to diversify Your Offshore Portfolio? Let us assist you in doing business in Latin America.

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Luigi Wewege

Luigi Wewege

President at Caye International Bank, a FinTech School Instructor and the Published author of The Digital Banking Revolution - now in its Third Edition.
Luigi Wewege is President of award-winning Caye International Bank, headquartered in Belize, Central America. He is the author of The Digital Banking Revolution, now in its third edition, and has co-authored economic research presented before the United States Congress. He also serves as an Instructor at the FinTech School in California and as an Advisory Board Member of Fort Kobbe International Vaults in Panama. He holds an Italian MBA from the MIB Trieste School of Management with a major in International Business and a BSBA with a triple major in Finance, International Business, and Management from the University of Missouri-St. Louis.

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