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    Home»Investments»Exploring alternative investments – Businessday NG
    Investments

    Exploring alternative investments – Businessday NG

    January 31, 2025


    …Real estate, agriculture, REITs, commodities, crypto and gold

    Most people invest in what they know—stocks, savings, and maybe a little real estate. And that’s not a bad thing. Familiarity provides comfort, and comfort brings confidence. However, the world of investing is much broader than most realise. If wealth is the goal, then expansion is necessary.

    Diversifying across various asset classes doesn’t just minimise risk, it increases the potential for higher returns. Let’s explore some alternative investments beyond the traditional options you may already be familiar with.

    1. Real Estate—Buying, renting, or indirect Investing

    Real estate remains one of the most popular ways to build wealth. But beyond just buying a house, there are multiple ways to invest:

    Buying land in high-growth areas and selling later for a profit.

    Rental properties (residential or commercial) for steady cash flow.

    Short-term rentals (Airbnb, serviced apartments).

    • Real estate investment trusts (REITs)—a hassle-free way to earn from real estate without owning properties directly.

    Nigeria—land banking, co-ownership, and real estate development projects offer great opportunities.

    2. Agriculture – Tapping into Nigeria’s green gold

    Agriculture is big business, and investing in food production never goes out of style. Ways to invest include:

    Direct farming – Crops like maize, cassava, and rice or livestock like poultry and fish farming.

    Agro-processing – Turning raw agricultural goods into packaged products for higher value.

    Commodities trading – Buying and selling cocoa, palm oil, or rice.

    Agri-tech platforms – Investing in tech-driven agricultural businesses for passive returns.

    Nigeria – Local farm produce like cassava and poultry are always in demand.

    Global – Commodities ETFs like DBA (Agricultural Fund) and WEAT (Wheat ETF) provide indirect investment options.

    3. Commodities – Gold, oil, cocoa, and more

    Raw materials fuel the economy, making commodities a strong asset class. Options include:

    Physical commodities – Buying and storing gold, silver, or crude oil barrels.

    Commodities ETFs – Investing in oil, gas, metals, or agricultural products without physically owning them.

    Future contracts – Higher-risk investments for traders who predict price movements.

    Nigeria – Cocoa, crude oil, and solid minerals hold great value.

    Global—Gold ETFs like GLD and IAU allow easy access.

    Please read up and do your due diligence on all of the examples given.

    4. Cryptocurrency & Digital Assets

    Crypto is no longer a fad—it’s a full-blown asset class. It offers both high risk and high reward, with investment options such as:

    Bitcoin (BTC) & Ethereum (ETH) – The two largest and most trusted cryptocurrencies.

    Stablecoins (USDT, USDC) – Pegged to fiat currency, making them less volatile.

    NFTs & Tokenized Assets – Digital ownership of art, music, and even real-world properties.

    There are global crypto platforms that allow easy trading and offer secure access to digital assets.

    Note: Crypto is highly volatile. Invest only what you can afford to lose.

    5. Gold—The Ultimate Store of Value

    Gold has been a trusted wealth store for centuries. Why? It retains its value despite fluctuations in currencies. Ways to invest include:

    Hedging against inflation—Gold retains its value in economic downturns.

    Diversifying investments—A wonderful balance in your portfolio.

    Physical and digital ownership—gold bars, coins, or gold ETFs.

    • Gold jewellery—a stylish way to invest.

    Nigeria—Invest in gold jewellery or gold ETFs.

    Global—Gold ETFs like GLD, IAU, and PHYS make gold investment simple.

    Real-World Examples of Alternative Investments

    Real estate: A woman buys land in Ibadan for ₦500,000. Five years later, it’s worth ₦5 million.

    • Agriculture: A man invests ₦200,000 in an agrotech company that processes palm oil. He earns a 20 percent return in six months.

    Gold—Someone buys gold jewellery for $500. A few years later, it’s worth $2,000.

    Crypto—A young investor buys a fraction of Bitcoin at $10,000. Three years later, it’s worth $40,000. However, the outcome could also be reversed. Investing could be exciting and at the same time tricky.

    If you only invest in what feels familiar, you might be missing out on significant wealth-building opportunities. The key to financial growth is learning, exploring, and diversifying. Start small, stay consistent, and over time, your portfolio will grow.

    All examples given are for explanation purposes; none of them is to be taken as specific investment advice. Please read up and do your due diligence before you commit to any form of investment.

    Which of these asset classes have you explored? Which ones will you try in 2025?



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