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Traditionally, investment has taken the form of stocks, bonds or cash. These heavily regulated industries generally provide good security but limited returns, depending on the nature of the investment and its performance over time.
However, the underwhelming economic climate over recent years experienced in Africa has prompted savvy investors to look to alternative assets to bolster their portfolio and increase their profit margins. Although these often come with a higher degree of risk, the potential rewards they offer far outstrip those in the traditional investment market.
With that in mind, here are three asset opportunities for Nigerian investors to consider as they look to take advantage of new trends, favourable conditions and exciting new technologies to expand their wealth in the 21st century.
Gold
Investing in gold has always been a safe bet for those who like to avoid the fluctuations and unpredictability of fiat currencies or commercial investments. While the dollar and the naira are susceptible to market shocks and troughs, and the success of a business investment depends entirely on its performance in its chosen niche, gold stays constant whatever the weather.
Meanwhile, new discoveries in Western Africa have meant that the region’s reserves of gold ore have gone up by almost 60% in recent years, even as those in other countries (like the USA) are on the decline. Therefore, investing in African gold is a way of bolstering the local economy and safeguarding your personal wealth unlike any other.
Cryptocurrencies
Since the launch of Bitcoin in 2009, the cryptocurrency has gone from strength to strength and was even embraced by the government of El Salvador as an official form of payment in 2021, becoming the first country in the world to do so. That endorsement has lent cryptocurrency a new legitimacy, meaning it is now more popular than ever.
Of course, Bitcoin is far from the only horse in the race. These days, there are literally thousands of cryptocurrencies to choose from. Although many of them do not last the test of time, plenty of savvy investors have made substantial fortunes from early adoption of the most successful ones. For those with their finger on the pulse and an eye for a good deal, cryptocurrency could be the way to diversify their investment portfolio.
NFTs
The rise of non-fungible tokens – or NFTs for short – has provided a new way for investors to own digital assets. While anyone can theoretically download an image, video or other piece of digital content to their device, only one person has the ownership rights to it. And since they are underpinned by the same blockchain technology as cryptocurrencies, NFTs are extremely safe and secure.
Indeed, the NFT craze has been bought into by a number of high-profile celebrities, including Elon Musk, Snoop Dogg and Paris Hilton. What’s more, it’s home to an ever-increasing catalogue of options and communities, from the psychedelic and increasingly popular artworks of Trippies NFTs to the exclusive members-only Bored Ape Yacht Club. Investing in NFTs now not only consolidates wealth and provides an opportunity for profit, but also denotes status and style.
Does your investment profile need a refresh? Why not dip your toes into the market of one of these alternative assets to futureproof your wealth for today, tomorrow and beyond?
