19 January, 2017

Quora Answer: Where Can I Get 20%+ ROI on $200,000

The following question was asked on Quora and answered on the 29th November, 2015.

Answer: To earn such a massive return, you will need substantially more than $200,000.  $200,000 is a pittance in investment.  And there is no such thing as a high return with minimal risk.  There is no free lunch.  Being an accredited investor is not a requirement.  If you have enough money and you are willing to invest, there are many people out there who are willing to work for you.

If you have $200,000, and if you have the contacts, you can consider buying modern art.  They allow a guaranteed high gains in a short investment horizon.  Based on ‘minimum’ value gains presented by international appraisers, properly executed, the art will appreciate by at least 65% in three months.   There is a 25% increase in a week.  For those investors willing to hold on slightly longer, the art increases in value of 200 or 300% in 12 to 18 months.

You do not even need to take delivery of the piece.  What you really want is the documentation certifying authenticity, and the appraiser’s report.  Keep the piece with the gallery for it to be exhibited.  This generates interest and provides a ready secondary market.  Sell when you have a suitable offer and move on to the next piece.  This is an excellent opportunity for HNW clients to invest for various reasons.  The appreciation in value is guaranteed and over 50% in 6 months.  The certification is provided and tradeable as securities.  There is a ready secondary market.  The tax exemption for donations to public institutions in Singapore and elsewhere is up to 300%.  The prices are locked in at the time of sale.  The buyer can put in 50% of the sale price and cover the rest later.

This is not something I offer most of my clients since they must fit a certain profile.  This is only for sophisticated investors with funds to spare, who are already diversified.  If you are interested in this, you need to find someone who has direct contact with the artist or his network.

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