Most people build their portfolios around stocks, bonds, and real estate. Those are solid foundations, but they are not the only tools available. For Arizona residents, a range of tangible and non-traditional assets can offer additional ways to spread risk and pursue financial goals that conventional markets do not always address.
This article covers five of the most accessible categories worth understanding before making any decisions.
Real Estate as an Alternative Investment
Arizona's housing market has long attracted investors from outside the state, and for good reason. Rental properties can generate consistent monthly income while the underlying asset appreciates over time. Markets like the Phoenix metro area and Tucson have seen sustained population growth, which supports demand for housing and keeps vacancy rates manageable for landlords who choose their properties carefully.
Assets under management for alternatives have more than doubled over the last decade, from just over $7.2 trillion in 2014 to an estimated $18.2 trillion in 2024, and real estate remains one of the largest drivers of that growth. That context matters because it shows how many investors are already looking beyond the stock market for returns.
Real estate is not a passive endeavor, though. Direct ownership requires capital for a down payment, ongoing maintenance, property management, and taxes. Liquidity is also limited. Selling a rental home takes weeks or months, so investors who might need quick access to their funds should weigh that carefully before committing a large portion of their portfolio to a single property.
Precious Metals and Gold Coins
Physical gold has served as a store of value for a long time, and recent years have reinforced that reputation. Investors choose it for several reasons: it is tangible, it is not tied to any single company's performance, and it tends to hold value when other assets decline.
Bullion Versus Collectible Coins
Not all gold coins are the same. Bullion coins, like the American Gold Eagle or the South African Krugerrand, are bought primarily for their metal content. Their price moves closely with the spot price of gold. Collectible or rare coins, on the other hand, carry a numismatic premium tied to condition, historical significance, and buyer demand. A coin graded MS-70 by a recognized grading service can command significantly more than its melt value.
Factors That Affect Resale Value
When it comes time to sell, condition matters. Coins with visible wear or damage fetch less than those in mint state. Rarity and current market demand also play a role, as does the prevailing gold price at the time of sale.
Turning Physical Holdings Into Cash
Investors who already own gold coins sometimes reach a point where those assets no longer align with their broader strategy. Maybe they want to rebalance into equities, cover a large expense, or simply consolidate their holdings.
Selling to a Scottsdale coin shop that buys and evaluates coins on-site is a straightforward way to convert physical metal into liquid funds. Before accepting any offer, it pays to understand what you are selling, whether the piece is valued for its gold content alone or for its collectibility, and to compare offers from more than one buyer.
Collectibles and Other Tangible Assets
Beyond coins, the broader collectibles market includes rare watches, vintage art, antiques, sports memorabilia, and other sought-after objects. What these assets share is that their value depends heavily on condition, provenance, rarity, and the depth of the buyer pool at any given moment.
Unlike publicly traded securities, collectibles do not have a central exchange where prices are set in real time. Selling a rare piece of art or a vintage timepiece can take months, and the final price depends on finding the right buyer. That illiquidity is not necessarily a dealbreaker. But investors should understand the market for a specific category before treating it as a core financial strategy.
Investing in Small Businesses and Private Companies
Gaining exposure to businesses outside the public stock market is another route some investors explore. This can take the form of a direct investment in a local startup, participation in a small-business loan, or a stake in a private company through an angel investing network.
The appeal is straightforward: early-stage companies can grow fast, and getting in before a public offering can produce strong returns. The risks are equally real. Many small businesses fail within their first few years, and there is rarely a quick exit if things go wrong. Liquidity is limited compared with publicly traded shares, and investors often have little influence over day-to-day decisions. Anyone considering this path should review the business's financials carefully and consult a financial advisor before committing.
REITs and Other Ways to Access Alternative Assets
Not every alternative investment requires directly owning a physical asset or taking a stake in a private company. Real estate investment trusts, or REITs, let investors participate in real estate markets through publicly traded shares. They can be bought and sold like stocks, which makes them far more liquid than owning a rental property outright.
Infrastructure and Private Credit
Infrastructure funds invest in assets like toll roads, utilities, and communication networks. These tend to produce steady, long-term returns tied to usage rather than market sentiment. Private credit, where non-bank lenders provide capital to businesses, has also grown significantly as a category.
Choosing Between Direct and Market-Based Alternatives
Some alternatives, like REITs and infrastructure funds, are accessible through a standard brokerage account. Others, like physical gold or collectibles, require direct ownership and storage. The distinction matters when planning around liquidity, tax treatment, and the amount of active management involved.
In terms of price returns, precious metals far outshined other asset classes since the end of 2024, with gains of 65% for gold, 95% for palladium, 150% for platinum, and 170% for silver as of early 2026, according to CME Group data. That kind of performance draws attention, but it also shows how fast market conditions can shift and why no single asset class should dominate a portfolio.
Balancing Alternative Investments With Your Main Portfolio
Adding alternatives works best when they complement a broader strategy rather than replace it. A few principles worth keeping in mind:
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Know your timeline. Illiquid assets like real estate, private equity, and collectibles are better suited to long-term holds. If you might need the money within two years, prioritize assets you can sell quickly.
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Match risk to your tolerance. Private business investments carry higher failure rates. Physical metals carry storage and insurance costs. Each alternative has its own risk profile.
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Avoid concentration. Putting a large share of a portfolio into one alternative asset defeats the purpose of diversification.
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Review periodically. Financial goals change. An asset that made sense five years ago may no longer fit your current situation.
No alternative investment is inherently better or worse than another. The right fit depends on what you are trying to accomplish and how much uncertainty you are comfortable carrying.
Final Words
Arizona residents have real access to a wide range of non-traditional assets, from rental properties and physical metals to collectibles, private businesses, and market-based vehicles like REITs.
Each comes with its own trade-offs around liquidity, risk, and return potential. The investors who tend to do well with alternatives are the ones who understand what they own and why they own it. Not the ones chasing whatever performed well last year.
Take time to learn the specifics of any asset before committing capital, and let your own goals drive the decision rather than market noise.
