Are rare sneakers and cars good investments? How you can build wealth with alternative assets
September 18, 2025 | by ltcinsuranceshopper
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If you’re going to make a run for the riches, you could well do it in sneakers — investing in them, that is.
The Bank of America’s 2024 Study of Wealthy Americans shows that millennials and Gen Zers with at least $3 million to invest are three times more likely to opt for alternative investments than older generations. In other words, they’ve shunned stocks to stock up on art, collectibles and crypto.
In all, 83% of wealthy young Americans ages 21 to 43 own or are interested in an art collection compared to 40% of the wealthy overall. They’re investing in “blue chip art,” said Drew Watson, Bank of America’s Head of Art Services, in a Bloomberg interview.
“The fastest-growing segment of the art market is still post-World War II and contemporary art”, Watson added.
The question is, do strategies like this paint a picture of financial gain? Let’s explore the world of alternative investments.
With art and vintage items, the appeal is obvious.
After all, which is more fun? Owning 1,500 shares of General Motors, (worth about $68,000) or snagging a GM throwback like a 1960 Chevy Corvette that currently fetches an average of $69,200?
As for whether a collectible-based strategy can build wealth, there’s no way to know definitively.
As with crypto, hitting the jackpot on a sought-after item is often a matter of luck and timing, a tricky proposition at best.
In spite of risky returns on collectibles, young Americans appear to be onto something when it comes to their interest in art.
Fine art is one investment that consistently outperforms the stock market over the long term, making it an increasingly popular tangible asset. Some contemporary art has even outperformed the S&P 500 over the past few decades, delivering an annual return of 11.5% from 1995 to 2023, compared to the S&P 500’s 9.6% during the same period.
Many investors consider it an asset reserved for the top 1%, but that’s no longer the case: Masterworks is making elite art investments accessible and hassle-free.
Masterworks is a top platform for retail and accredited investors to purchase fractional shares of blue-chip artwork by iconic artists like Picasso, Banksy and Basquiat.
Here’s how it works: Instead of spending millions on a single painting at auction, investors can now purchase fractional shares of blue-chip artworks by renowned artists including Pablo Picasso, Jean-Michel Basquiat, and Banksy.
Simply browse their impressive portfolio, pick the artwork you want to invest in and choose how many shares you’d like to buy. When the firm sells a piece you’ve invested in, you get a return from any net proceeds — and Masterworks takes care of all the deal details for you. The team does the due diligence for you, vetting each piece with industry experts, with an ultra-low acceptance rate of less than 3%.
For comparison, let’s return to those sneakers: You could cash in big time or get ripped off, depending on whether you’re buying or selling, knowledgable or gullible.
Nike Air Jordans are especially coveted, and an eBay seller is currently asking $1 million for a pair of Jordan 1 retros. These multicolor beauts fetched $135 when released in 2010, but another pair recently sold on StockX for $1,281.
The lesson is clear: Be careful of those who would sell you their sole.
One characteristic that the Gen Zers, millennials and baby boomers surveyed by BofA share, almost to the percentage point, centers on viewing their financial security as good or excellent: 75% for ages 21-43 versus 78% for those 44 and up.
The sharp divergence comes, then, with how the generations have chosen to build wealth. There’s distrust among millennials and Gen Z with the tried-and-true route, as 72% believe it’s “no longer possible to achieve above-average investment returns by investing solely in traditional stocks and bonds,” according to the survey. Only 28% of those aged 44 and older agreed with this statement.
Both residential and commercial real estate has long been a solid choice for investors looking to diversify and add stability to their portfolios. Since having a place to live is essential, real estate remains a stable, relevant asset.
With much lower upfront costs, new platforms are helping eager investors gain access to the housing market by removing financial barriers that previously kept them on the sidelines.
The $34.9 trillion U.S. home equity market has historically been the exclusive playground of large institutions.
Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments.
This approach provides an effective, hands-off way to invest in high-quality residential properties, plus the added benefit of diversification across various regional markets – with a minimum investment of $25,000.
If you’re an accredited investor, you’re not limited to residential real estate. Commercial real estate is another example of a reliable income stream — and you don’t need to invest an arm and a leg to tap in.
For example, First National Realty Partners specializes in grocery-anchored commercial real estate properties with historically strong return potential.
FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.
You can even invest through a Roth IRA — meaning, you’ll receive tax-free payments and distributions.
FNRP offers “white-glove” service to their investors, so you can engage with their experts, explore available deals and easily make an allocation, all in one personalized portal.
Gold is a great potential alternative because, unlike the U.S. dollar, which has lost 98% of its purchasing power since 1971, gold has remained more stable over time.
Many investors turn to “safe haven” assets like gold during economic and geopolitical instability to preserve their wealth. The enthusiasm of investors has indeed propelled the price of gold to record levels in recent years.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
