Before doing an amorphous search for alternative investment information resources, first have a strong understanding of what alternative investments are. This is a financial classification that can be hard to define, especially in a volatile marketplace. For some people, the simple catch-all definition of an alternative investment might be investments that do not trade publicly on an organized exchange.

Others might define alternative investments more specifically as complex investment strategies for assets that are of a complex and illiquid nature with the intent of creating investment returns in excess of returns typically available in traditional financial market investments. These types of sophisticated alternative investment strategies are typically aimed at private buyers or at mass market buyers of alternative investments.

Financial pundit opinions have been strongly mixed on the likelihood of gaining positive investment returns in an alternative investment marketplace.

Alternative investment strategies may address these markets:

1. Commodities
2. Financial Derivatives
3. Private Investment Funds
4. Real Estate
5. Collectables

While commodities are traded on exchanges, the volatile and highly speculative nature of this type of an investment may require a sophisticated alternative investment strategy. Commodities such as gold and diamonds are also commonly traded outside a common exchange environment. Types of commodities traded include:

1. Grains, food, and fiber
2. Livestock and wheat
3. Energy commodities such as oil and gas
4. Precious metals such as gold, silver and platinum
5. Industrial metals such as steel and copper

Commodities trading also fall under the category of financial derivatives, instruments that bet on market or event movements and may be traded as futures, forwards, options or swaps. Such complex instruments in a fluctuating market require alternative investment research before investing. While derivatives can include commodity futures, they may also include these types of trades:

1. World currencies
2. Interest rate movements
3. Housing prices
4. Predictions of major events

Before investing in private investment funds, alternative investment research can be a necessity in a fluctuating market. Private investment funds not listed on a national exchange include:

1. Commodity funds
2. Hedge funds
3. Real estate funds
4. Venture capital and private equity funds
5. Funds of funds

For decades, real estate had been considered a fairly safe alternative investment strategy for many investors, but since the turn of the millennium, volatility in this market has proven otherwise.

Alternative investment strategies can also be applied to collectable items like art, wine and classic automobiles. For some, these items are considered as commodities.

Action Steps
The best contacts and resources to help you get it done

Find alternative investment information resources on commodities trading

Read commodity market indexes, informative commodity market reporting, and additional alternative investment reference materials for the commodity market.

I recommend: For investors, Forbes.com and CNNMoney.com have daily updated commodities indexes as well as informative market reporting. Dollars & Sense is an online alternative investment resource that offers an easy to understand, albeit politically slanted, description of commodities trading. National Futures Association, the self-regulatory organization for the US futures industry, offers their eMarket Services for newcomer and professional futures traders. eMarket Services include transaction background checks and market surveillance services. Blanchard is a longstanding (over 20 years) gold dealer. Their products include foreign gold bullion. World Gold Council, an organization funded by over 25 of the world's leading gold mining companies, offers advice on how to invest in this often volatile market.

Find alternative investment information resources on the trading of financial derivatives

Before investing in financial derivatives, do the appropriate research on alternative investments to have at least a basic understanding of what financial derivatives are.

I recommend: Cato Institute, a leading Washington DC nonprofit public policy research foundation, offers alternative investment reference material that clearly defines financial derivatives from a conservative political view. Milken Institute, another leading nonprofit public policy research foundation, offers an easy to grasp explanation of financial derivatives from a more neoconservative political view.

Find alternative investment information resources on trading private investment funds

Do the appropriate research on alternative investments before investing in private investment funds, which include volatile alternative investment strategies such as hedge funds.

I recommend: U.S. Securities and Exchange Commission offers primary alternative investment reference materials on the do's and don'ts of hedge fund investing. University of Iowa Center for International Finance and Development offers its in-depth and understandable hedge fund FAQ. Hedge Fund Association (HFA), a global non-profit information organization for hedge fund industry professionals, has an informative explanation of hedge fund trading. John Doerr is a partner at Kleiner Perkins Caulfield & Byers, one of the world's leading venture capital firms. FastCompany offers "John Doerr's Startup Manual," an in-depth examination of the venture capital business from both developer and investor perspectives. A Fidelity Investment mutual fund, Fidelity Ventures does the necessary alternative investment research to find quality emerging businesses, acting as an early investor (as a fund of venture capitalists) for these recommended young companies.

For real estate investors, find alternative investment information resources

Because the real estate investment market can be volatile, investors should proceed cautiously and well armed with the necessary alternative investment research.

I recommend: Real estate investment trusts (REITs) are mutual fund style investments in real property and real estate development. Alternative investment information resource REIT.com offers "The Investors' Guide to Real Estate Investment Trusts" (PDF), an understandable explanation of real estate investment trusts. National Association of Realtors (NAR) has their "Field Guide to Investing in Real Estate," which is actually an updated in-depth list of links to information on multiple aspects of real estate investing.

Find alternative investment information resources on investing in collectables

Reliable reference material for alternative investments can be necessary in a volatile marketplace for collectables.

I recommend: International Fund Investment (IFI) is an online financial information resource that reports on news and views on investments that are considered "exotic alternatives." These include the collectable marketplace. From the publishers of the book series "Kovel's on Antiques and Collectables," Kovels.com offers online collectors' price guides as a good starting point for new collectors. A few of the many specific Kovel's collectible guide topic categories include "prints, paper & paintings," "dolls and toys," "music," and "jewelry."

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Note that all prior action steps in this Guide lead toward alternative investment information resources, and should not be construed as alternative investment recommendations.
• •  The marketplace for collectables can be volatile mostly because it relies on an added intangible collectable value, i.e. numismatic value in the case of coin collecting.