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Investors turn to SWAG

Acronyms are popular in the world of finance, and it seems that the latest collection of initials to pass the lips of investors is SWAG.

Standing for silver, wine, art and gold, SWAG brings together the current darlings of the investment scene, the assets that have everyone talking, and reaching for their cheque books.

As economic stability is currently hard to come by,  investors can be forgiven for being more conservative with their money, and for expressing caution when it comes to finding the ideal product in which to invest. However, even in these difficult times the SWAG assets have been performing well, and the reasons why are evident.

The precious metals, silver and gold, always do well in times like these. Gold in particular is seen by many as the safe haven investment, an investment that always does well, and this is still very true.  The price of gold has continued to rise as days go on, and silver, vital in the vehicle industry, is not far behind.

Wine and art, though, may require a little more explaining. Fine art has been very popular of late. The big auction houses, such as Sotheby’s and Christies,  are said to be experiencing all-time record sales of classic works by the likes of Picasso, indeed the Artprice Global Index can confirm this- on the whole fine art has appreciated by 120 percent in the last year.

Fine wines have also flourished, the Liv-Ex fine wine index shows that an increase of 300 percent can be documented over the last ten years.

So, in the climate of uncertainty we reside in, how have these assets done so well? Perhaps an indication could be the common traits that they share- they are all physical assets, they have longevity, they are easy to store and movable, they are rare and in demand, they do not bring tax liability through income streams, their performance is generally untouched by equity market happenings and they rarely come with incumbent debt.

With this in mind a wise investor could do much worse than expanding his portfolio with a touch of SWAG.