Despite all the bleak economic news I’m reading and hearing about, over the last few months, as I’ve traveled around looking at new development projects and abandoned ones that were left like old ghost towns from the gold-mining days of the past, a funny thing has been happening in the financial industry: The banks have quietly turned the lending spigot back on.

Hold on—you started to get excited, but let me finish!

I don’t think the lending window is open enough to what we need to see to get the economy growing, businesses expanding, and the unemployment rate going down. Most banks are still clinging to their purse strings, waiting for a broader recovery. They still need to make loans available to more consumer borrowers with blemished credit histories and to a broader array of small businesses. Let’s not forget that we have an election coming up next year, too, so I’m thinking and hearing that we will not see a major move until that is behind us.

In the meantime, though, if you’ve gone off to go fishing while waiting for the call to get back in the game, it’s time to sharpen those pencils and break out the laptops and iPads. We at the Syd Chase Group LLC have not gone fishing! Instead, we have been acquiring hotels, marinas, gas/oil projects, timber, films, abandoned developments, and condos for our clients to invest in. Most deals have been acquired for 10 to 40 cents on the dollar and some are turnkey-ready.

And that isn’t all. If you’re (understandably) leery about the traditional real estate market, let’s talk about some other alternative investments that you could put your money into, instead of letting it sit on the sidelines.

Victorian jewelry: You could buy an early Victorian gold necklace or bracelet set with popular gems from the period (topaz, aquamarine, and ruby). There was no assembly-line manufacturing in those days, so every piece is highly individual and nobody else is likely to have anything like it.

Vintage fashion: The fashion market has grown over the past decade as more people want vintage items to wear and designers look for inspiration in such pieces. An Yves Saint Laurent Mondrian couture mini-dress, for example, that could be bought for $USD 1500 in the 1980s would probably now sell for $USD 25,000.

Art: You should hold onto pieces of art for at least five years for a decent profit—artwork can become a great investment just hanging on the wall. For example, an art buff bought a print of Antony Micallef’s “Giant Freak” for $USD 650 in 2005, because he liked its “striking and arresting image.” It’s now estimated to be worth $USD 6,500.

Horse-racing syndicates: Buying a racehorse is a high-risk investment and costly, but smaller investors can get in the game more affordably by joining a racing partnership. It’s not just race winnings that can provide earnings: A Highclere Thoroughbred Racing syndicate bought Petrushka for around £100,000 and sold her for £3.5 million only two years later.

The article continues to International Alternative Investment Review – n.4, 2011 www.iaireview.org/subscribe