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# Investment Options ## 7. Collectibles **Description:** * Examples of collectibles include antiques, coins, artwork, stamps, jewelry, and Krugerrands. * When choosing collectibles, a good understanding of the collectible market is important. * The South African market for collectibles is limited...

# Investment Options ## 7. Collectibles **Description:** * Examples of collectibles include antiques, coins, artwork, stamps, jewelry, and Krugerrands. * When choosing collectibles, a good understanding of the collectible market is important. * The South African market for collectibles is limited compared to other parts of the world, but technology is lessening this problem. * Dealing in collectibles requires a high degree of knowledge and expertise. * Any damage to a collectible (e.g., a stamp, artwork, or antique) will significantly reduce its value. **Risk:** * Damage to the collectible can drastically diminish its value. **Return on Investment (ROI):** * If the collectible is truly valuable, its value will likely appreciate over time (assuming no damage). * A disadvantage of collectibles is that they don't offer a monthly income to the investor. **Time Frame:** * Collectibles markets are typically not volatile and tend to show growth over long periods. * Increased artist recognition or "discovery" of a piece can result in a rapid increase in value, but this is often the exception rather than the rule. ## 8. Notice Deposits ### 8.1 Fixed Deposits **Description:** * A fixed deposit is a type of investment where a fixed amount of money is deposited with a bank for a predetermined time at a fixed or variable interest rate. * The interest rate might change with prime rate changes. * Fixed deposits are usually long-term investments. * The investor can only withdraw the money at the maturity date, or if the investor dies, unless a penalty is paid. **Risk:** * The risk associated with a fixed deposit is generally very low. * The greatest risk is the potential for the bank to be liquidated. While this is relatively rare, there are historical examples of this happening in South Africa (African Bank in August 2014). **Return on Investment (ROI):** * Interest rates for fixed deposits vary between banks and depend on the amount of money invested. * Generally, the longer the time period and the larger the deposit, the higher the interest rate will be. * Despite this, it's often challenging to achieve returns that exceed inflation. * Capital growth is only possible if the interest is capitalized (re-invested). **Time Frame:** * Fixed deposits can range from one year to 10 years or longer. * The longer the time frame, the higher the interest rate tends to be. ### 8.2 Money Market Accounts **Description:** * Money market accounts are a popular short-term investment option; they are fairly easy to access and thus more liquid. * Examples include call accounts where funds may remain invested indefinitely. **Risk and Return:** * Money market accounts typically offer lower interest rates than other investment options. * The return usually does not outperform normal savings options, but they can be attractive alternatives to savings for their liquidity, and relative ease of access. **Time Frame:** * Money market accounts are typically a short-term investment, with timeframes ranging up to one year. ## 9. Fixed Property **Description:** * Fixed property can either be a residential property (e.g., a flat) or commercial property (e.g., shopping centres). **Risk:** * The risk of fixed property investment is determined by various factors. * Primary factors include the location and type of property and its condition.